Rough & Ready Lumber, the last sawmill in Josephine County, set to close

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(Gallery by The Associated Press)

CAVE JUNCTION – Here lies

. The last sawmill in Josephine County closes next week, a grim milestone in the persistent stalemate over logging that's peculiar to this unique corner of Oregon.

In much of western Oregon, the 1990s timber wars have given way to a shaky détente, with a focus on thinning and light-touch restoration in federal forests.

In southwest Oregon, the battle still runs hot.

High unemployment raises the stakes here. So does a storied timber history and a heavy reliance on dwindling logging revenues from federal forests to fund county government. Three Oregon Congressmen want to more than double logging in the region's O&C Lands, forests shifted to the feds after an early 20th Century railroad deal went sour.

But the consequences are uniquely high for environmentalists, too, who said no to big increases in logging when Gov.

convened an O&C Lands task force last year to

.

Josephine County and its neighbors sit in the Klamath-Siskiyou eco-region, one of the most biologically diverse places on the planet. The landscape, warmer than Douglas fir strongholds to the north, supports 36 species of conifers alone and some of Oregon's top runs of salmon and steelhead.

Meanwhile, Josephine County voters decide today whether to i

to partially plug the gap left by logging reductions.

"Everybody views this as black and white, and it's just not that way," says Tom Tuchman, Kitzhaber's forestry adviser. "Finding a balance is an incredibly difficult thing to do."

Mill moments





Jennifer Phillippi's grandfather opened Rough & Ready 90 years ago, a safe bet in a county that's two-thirds federal forests. At the mill, the snowcapped Siskiyou Mountains hang on the horizon, and the smell of sawdust still lingers.

But the mill stopped sawing last month, with Phillippi and her husband, Link, citing a lack of reliable log supply from public lands.

Federal timber production and jobs at Oregon mills have fallen dramatically since 1990, when the

. Bigger, more efficient mills and the huge housing construction drop in the recent recession contributed as well.

Rough & Ready was among 22 sawmills in Josephine and Jackson counties in 1975, the Phillippis said, down to none now.

The mill was small, running one shift with 85 jobs. And the recession stung. But the problem wasn't demand, said Jennifer Phillippi, one of three co-owners.

"We have customers who are dying for it," she said. "The only thing we don't have is the logs."

In 2002, Rough & Ready shut down its small-log mill running three shifts. It needed millions in investment to compete in commodity timber, said Link Phillippi, the mill's president. Nearby lumber, needed to keep costs low, wasn't steady enough, he said.

Instead, they upgraded a large-log mill and built a niche in appearance-grade lumber for exposed beams and high-quality windows and doors.

For that, they needed the clear, knot-free pine and fir that runs toward the outside of larger logs. The ideal: 80- to 100-year-old second-growth logs -- not old growth, the Phillippis stress -- 22 to 24 inches wide.

The mill put out "one of the best products in the sawmill business," says John Dunkin president of

, one of the largest U.S. manufacturers. These days, his company buys wood from Canada.

Forest politics



The Phillippis say environmental groups helped stifle timber sales, protesting five of the last six

sales with Rough & Ready as the winning bidder. BLM handles most of the O&C Lands.

An industry group protested the sixth sale for lack of log supply, but withdrew it after Rough & Ready won the bid. BLM also removed two large sales in 2006 after protests, Link Phillippi said.

"Rarely do we buy a federal timber sale that we can operate right away. It usually takes a year or two. Sometimes they get eliminated."

Oregon Timber

JOBS

1990: 63,700

2010: 25,300

SAWMILLS

1988: 165

2008: 116

2012: 69

O&C LANDS

Annual growth: 1.2 billion board feet

Industry favored cut: 500 million

Current cut: less than 200 million

SOURCES: U.S. Forest Service; Oregon Forest Resources Institute; Bureau of Land Management.

Oregon Democratic Reps.

and

, and Republican

are pitching a deal in the U.S. House to more than double logging on O&C land.

Their proposal, supported by industry, would put 1.5 million acres of previously logged forests in a trust run for timber production and managed under more lenient state laws for private forests -- a shift designed to limit environmental appeals.

The

would manage the remaining 1.1 million acres with a focus on retaining old growth. The

would get 56,000 more acres.

The plan could fly in the Republican-controlled House. It stands little chance in the Democrat-controlled Senate, Oregon Sen.

has warned.

DeFazio's approach is the "only hope for federal timber in our region," Link Phillippi said. But after decades of battling, the Phillippis said, the prospects are too dim for Rough & Ready to bank on.

Biggest and best





Eighteen miles down the Redwood Highway from the mill, Orville and Mary Camp manage their own 180 acres of forest with light-touch logging to improve forest health. Threatened coastal coho salmon teem in their pond.

DeFazio's proposal, which would apply Oregon's private logging rules to public forests, scares them, the Camps said.

Their property is surrounded by a mix of private and O&C forests, typical in southwest Oregon.

In 2008, Rough & Ready's timberland arm clear-cut 67 acres next door to the Camps, spraying herbicides afterward. That approach is allowed under Oregon's

, and would extend to lands placed in the trust, the Camps fear.

The proposal "should terrify people across the nation," Mary Camp said.

Endangered Species Act rules on the trust lands would also be far less stringent. Many cuts would be in potential spotted owl habitat. And streamside protection would drop from putting nearly 40 percent of harvestable acres off limits to about 5 percent.

In cooler, wetter northwest Oregon, BLM has focused on thinning projects. That tends to go over well in thick, second-growth Douglas fir stands clear-cut and replanted decades ago. Mills set up for small logs can process them into commodity lumber and other products.

Thinning is tougher to execute profitably and ecologically in southwest Oregon. Ecologists here focus on keeping larger pines and clearing smaller trees crowding them.

That's the rub for Rough & Ready: Larger trees like its mill needs, particularly pines, aren't left to grow on private lands, where more profitable 30- to 60-year rotations are the norm.

The

has led many timber sale appeals.

George Sexton, the group's conservation director, says he offered to back off a lawsuit over a recent Rough & Ready sale, Rio Rumble, if BLM put trees less than 30 inches wide off limits.

The agency declined, saying older trees needed to be cut to prevent harmful mistletoe spread along the trees' crowns.

Rough & Ready and at least seven Oregon mills are relying on larger diameter trees from public lands, environmental groups estimate.

Rough & Ready's mistake was banking on bigger trees, particularly large pines, said Steve Pedery,

's conservation director. New regulations have cut harvests because past volumes were unsustainable, he said, harming streams, salmon and wildlife.

"It's not a good business model to depend on eliminating 20 years of conservation standards."

300 million feet apart





The governor hoped his O&C committee would compromise. It didn't.

The environmental representatives could swallow just over 200 million board feet a year, tapping an "ecological forestry" model with limited clear-cuts. Industry and county representatives stuck to 500 million, enough to meet county revenue goals.

A

said meeting the revenue goals and abiding by environmental laws as interpreted now "appear to be mutually exclusive." It also said thinning projects would run out in 10 to 25 years.

Wyden has promised a strategy later this month to address the deadlock. The two sides could reconcile in conference committee.

The

could use more streamside protection, DeFazio agreed. But it would pay for private forest streamside buffers, manage half the trust lands in at least 100-year rotations and add wilderness and some old-growth protections.

Industry has filed lawsuits for bigger cuts, arguing that O&C law sets aside the lands for "sustainable yield."

If the lawsuits succeed, "the environmentalists would be here in a second saying, 'We want old-growth protection and wilderness,'" DeFazio said. "At that point, I might not be able to get it."

Back at Rough & Ready, 19-year millwright Larry Mason is hoping for a solution. Josephine County's unemployment rate tops 11 percent. At last count, a quarter of its residents were on food stamps. Mason figures his chances of getting a local job are close to zero.

It could make you cry every night, Mason said.

"In this valley, there's no jobs. The kids my daughter went to school with, none of them have jobs. It's tough, man."

-- Scott Learn