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2026-04-22 State Trust lands presentationDepartment of Natural Resources and Lewis County Scott Sargent, Region Manager for PC Steve Ogden, Assistant Region Manager for PC Andy Aschenbrenner, Lewis District Manager Brandon Mohler, Assistant Region Mgr. for SPS Mike Fowler, Rainier District Manager DNR State Trust Lands April 22nd, 2026 2 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County2Department of Natural Resources •Manages 5.6 million acres of forest, range, agricultural, aquatic, and commercial lands. •~2.9 million acres are State Trust Lands •DNR is the Trust Manager •State of Washington is the Trustee •Lewis County and its junior taxing districts are the Trust Beneficiaries of approximately 43,073 acres of state forestlands. 3 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County3Original Federally Granted Trusts Enabling Act of 1889 1.Common School Trust 2.University Trust 3.Agricultural College Trust 4.Scientific School Trust 5.State Normal School Trust 6.Charitable, Educational, Penal & Reformatory Institution Trust 7.State Capitol Trust John G. Carlisle President Benjamin Harrison John J. Ingalls 4 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County4Trust Obligations As manager of state trust lands, DNR has legal fiduciary responsibilities to: •Generate revenue and other benefits for each trust, in perpetuity. •Preserve the corpus (body) of the trust. •Exercise reasonable care and skill. •Act prudently to reduce the risk of loss for the trusts. •Maintain undivided loyalty to beneficiaries. •Act impartially with respect to current and future beneficiaries. 5 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County5State Lands Trusts (Federally Granted) 1,781,461 71,150 89,057 71,480 109,486 66,799 84,250 Common School (03) Agricultural School (04) University (05) (11) CEPR & I (06) Capitol Grant (07) Normal School (08) Scientific School (10)(appx. acres) 6 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County6State Lands Revenue 7 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County7State Lands Revenue Distribution- Common School Trust 8 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County8Common School Trust •School districts access this trust revenue through application to OSPI’s School Construction Assistance Program (SCAP). •SCAP is funded with a combination of state general obligation bond funds and revenues generated from common school trust lands. •SDs may apply for major new construction or modernization projects. •SDs must secure local funding (pass a bond) to apply. ospi.k12.wa.us/policy-funding/school-buildings-facilities/school-construction-assistance-program-scap 9 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County9Original Statutory Trust •Chapter 154 of the Laws of 1923 •Designated state forests and state forest lands. •Chapter 288 of the Laws of 1927: •County foreclosures via tax liens may be deeded to the state forest board. •Will become a part of the state forest lands. •Revenue “paid to the county in which the lands are located to be paid, distributed and prorated to the various funds in the same manner as general taxes” 10 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County10State Forestlands (Statutory) State Forest Transfer Lands •Foreclosed private lands in counties, transferred to state ownership •Managed in trust by DNR •~ 540,000 acres •21 counties are direct beneficiaries •Most counties redistribute to junior taxing districts (including some school districts) •Revenue distribution: •75% to counties, schools, other taxing districts •25% DNR management State Forest Purchase Lands •Private land purchased and owned by the state •Managed by DNR •~ 80,000 acres •Purpose for purchase is to keep land in working forest •Revenue distribution: •50% DNR management •26.5% to counties •23.5% to state general fund 11 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County11State Forestlands 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 State Forest Purchase State Forest Transfer 12 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County12State Forest Transfer Revenue Distribution Net Revenue Gross Revenue Forest Development Account (FDA) 13 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County13State Forest Transfer Distribution State Forest Transfer to Tax Code Area 66 Taxing District Total to Fund County Regular $ 126,254 Lewis County Roads $ 170,360 Morton School District (#214)$ 428,426 Arbor Health—Morton Hospital (District #1)$ 35,049 State $ 199,443 State School Levy 2 $ 107,669 Timberland Library $ 30,818 Totals:$ 1,098,019 Dew Dog Timber Sale – Lewis Co. Appraisal Price $ 1,464,025 100% State Forest Transfer $ 1,464,025 DNR FDA (25%)$ 366,006 County Distribution (75%)$ 1,098,019 County 75% Forest Development Account (FDA) 25% STATE FOREST TRANSFER LAND 14 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County14DNR Managed Lands 15 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County15DNR Managed Lands in Lewis County 16 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County16State Trust Lands State Lands Federally granted Enabling Act (25 U.S. Statutes at Large, c 180 p. 676). Detailed in WA State Constitution. Revenue is generated from a variety of sources. Source of financial support, primarily for public schools and colleges. State Forestlands Transfer and purchase > 617,000 acres in 21 counties. Transfer lands acquired by counties through tax foreclosures. Held in statutory trust by state for counties. Purchase lands acquired by the state/DNR. Revenue helps fund county services, state schools, and junior taxing districts. 17 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County17Board Policies & Applicable Laws Habitat Conservation Plan Policy for Sustainable Forests Sustainable Harvest Level Multiple Use Concept 18 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County18Habitat Conservation Plan •Agreement between the state and the federal government signed 1997 to comply with the Endangered Species Act. •Allows DNR to carry out revenue-producing activities for beneficiaries while protecting and developing habitat for endangered species. •Includes northern spotted owl, marbled murrelet, and riparian-dependent species like salmon and bull trout. 19 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County19Sustainable Harvest Calculation Purpose: To establish new sustainable harvest levels for forested state trust lands. 1.Support sustained yields over multiple planning decades. 2.Optimize long-term economic value for trust beneficiaries. 3.Protected ecological values (forest health, habitat for endangered species). •Calculate this level every decade. •Separate project for Eastern and Western Washington 20 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County20Multiple Use Act •Supports other types of activities and management of state trust lands, but the agency must meet its financial obligations to trust beneficiaries first. •Gives DNR the authority to provide and designate areas for recreation. •Forestland loss and an increase in recreation since the pandemic means more activity concentrated on fewer acres of forest land. 21 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County21Trust Lands Management Trust Lands ManagementRecreation & Conservation Product Sales & Leasing Asset Management Engineering Regions Forest Resources State Lands Budget 22 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County22DNR Managed Trust Lands in Lewis County Trust Type Forested Non-forested Total Acres 01 - State Forest Transfer 38,161 1,838 39,999 02 - State Forest Purchase 2,933 135 3,069 03 - Common School and Indemnity 36,864 1,655 38,519 05 - University - Transferred 151 28 179 06 - Charitable/Educational/Penal & Reformatory Instit.1,558 89 1,647 07 - Capitol Grant 7,909 395 8,304 08 - Normal School 931 64 995 09 - Escheat 837 65 902 10 - Scientific School 2,902 93 2,995 11 - University - Original 38 2 40 13 - Administrative Site 21 7 28 43 - Land Bank 46 0 46 75 - Natural Resources Conservation Area 226 7 233 Total Acres 92,578 4,378 96,956 23 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County23Revenue Distribution in Lewis County Lewis County Revenue Projections for FY ‘26 - '28 in PC/SPS Region Sale Date/CY Sale Status Expiration Sale Name Sale Type Trust Trust MBF Estimated % Complete Est. Value to County Distribution Present to ~ 2028Dec-24 Completed Oct-27 Luna Tix Lump Sum 01 - 72%5,850 100%$2,236,806 Nov-25 Completed TBD Leaping Thespian Sorts Sort Sale 01 - 69%4,192 60%$2,040,175 Apr-24 Sold Oct-26 Tigerilla VRH & VDT Scale 01 - 62%1,665 50%$447,624 Jun-24 Sold Oct-26 Dew Dog Lump Sum 01 - 100%4,963 25%$1,098,019 Oct-24 Sold Oct-26 Action Item Lump Sum 01 - 97%4,690 100%$1,545,157 Oct-24 Sold Oct-26 Stearn Look Lump Sum 01 - 22%680 100%$303,919 Dec-24 Sold Oct-26 Four Score Lump Sum 01 - 46%1,865 80%$571,576 Jan-25 Sold Oct-26 Five Dollar Bill Lump Sum 01 - 36%1,620 60%$683,885 Feb-25 Sold Oct-27 Rockit Launch SWT Scale 01 - 53%965 10%$180,568 Mar-25 Sold Oct-26 Nash Lump Sum 01 - 63%2,700 50%$1,108,783 May-25 Sold Oct-27 Highlander Lump Sum 01 - 95%7,500 95%$3,448,706 Dec-25 Sold Oct-27 Emancipator Lump Sum 01 - 29%1,110 0%$381,228 Feb-26 Sold TBD Lego My Loggo Lump Sum 02 - 99%2,875 0%$358,530 Feb-26 Sold TBD Closer Lump Sum 01 - 76%6,600 0%$2,166,278 Mar-26 Sold TBD Synergize Lump Sum 01 - 96%3,950 0%$1,237,594 Apr-26 PLANNED TBD Whistle Punk Pete Lump Sum 02 - .09%496 0%$434 Jun-26 PLANNED TBD More Gooder Lump Sum 01 - 70%3,597 0%TBD FY 2027 PLANNED TBD All Sales in FY 2027 Lump Sum 01/02 15,000 0%TBD FY 2028 PLANNED TBD All Sales in FY 2028 Lump Sum 01/02 20,000 0%TBD ***DRAFT*** SUBJECT TO CHANGE*** $17,810,850 24 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County24 Lewis County 40% FDA 13% Common School 32% RMCA 15% State Forest Transfer Distribution State Forest Transfer to Tax Code Area 250 Taxing District Total to Fund County Regular $ 20,762 Lewis County Roads $ 28,016 Morton School District (#214)$ 70,454 Arbor Health—Morton Hospital (District #1)$ 5,764 State $ 32,798 State School Levy 2 $ 17,706 Timberland Library $ 5,068 Totals:$ 180,568 Rockit Launch SWT Timber Sale – Lewis Co. SOLD Value $ 454,258 Trust 01 53.0 % State Forest Transfer $ 240,757 DNR FDA (25%)$ 60,189 Lewis County (75%)$ 180,568 Trust 03 47.0% Common School (K-12)$ 213,501 DNR RMCA (31%)$ 66,185 Common School (69%)$ 147,316 25 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County25 Lewis County 71% FDA 23% Common School 4% RMCA 2% State Forest Transfer Distribution State Forest Transfer to Tax Code Area 66 Taxing District Total to Fund County Regular $ 362,358 Lewis County Roads $ 488,947 Adna School Dist. #226 $ 512,274 Centralia School Dist. #401 $ 364,695 Port of Centrailia $ 43,402 State Treas - Tax Levies $ 572,415 State Treas - Tax Levies 2 $ 309,018 Timberland Library $ 88,449 Riverside Fire Protection $ 707,147 Totals:$ 3,448,706 Highlander Timber Sale – Lewis Co. Sold Value $ 4,861,269 Trust 01 95% State Forest Transfer $ 4,598,274 DNR FDA (25%)$ 1,149,569 County Distribution (75%)$ 3,448,706 Trust 03 5% Common School $ 262,995 DNR RMCA (31%)$ 81,528 Common School (69%)$ 181,466 26 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County26 Lewis County 27% FDA 9% Common School 44% RMCA 20% State Forest Transfer Distribution State Forest Transfer to Tax Code Area 625 Taxing District Total to Fund County Regular $ 102,840 Lewis County Roads $ 138,766 Pe Ell School District $ 164,836 Cemetery District #03 $ 2,184 State Treas - Tax Levies $ 162,455 State Treas - Tax Levies 2 $ 87,701 Timberland Library $ 25,103 Totals:683,885 Five Dollar Bill Timber Sale – Lewis Co. SOLD Value $ 2,530,098 Trust 01 36.04 % State Forest Transfer $ 911,847 DNR FDA (25%)$ 227,962 Lewis County (75%)$ 683,885 Trust 07 63.96% Common School $ 1,618,251 DNR RMCA (31%)$ 501,658 Common School (69%)$ 1,116,593 27 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County27 Lewis County 58% FDA 19% Capitol Grant 16% RMCA 7% State Forest Transfer Distribution State Forest Transfer to Tax Code Area 209 Taxing District Total to Fund LEWIS COUNTY $ 321,144 STATE SCHOOL LEVY 1 $ 507,310 STATE SCHOOL LEVY 2 $ 273,871 TIMBERLAND LIBRARY $ 78,389 LEWIS COUNTY - ROADS $ 433,335 SCHOOL DIST #206 - MOSSYROCK $ 449,751 CEMETERY DISTRICT #02 $ 13,326 HOSPITAL DISTRICT #1 $ 89,153 Totals:$ 2,166,278 Closer Timber Sale – Lewis Co. SOLD Value $ 3,774,661 Trust 01 76.52 % State Forest Transfer $ 2,888,371 DNR FDA (25%)$ 722,093 Lewis County (75%)$ 2,166,278 Trust 07 23.48% Capitol Grant $ 886,290 DNR RMCA (31%)$ 274,750 Capitol Grant (69%)$ 611,540 28 Draft/Author’s Work/Subject to ChangeCollaborative Engagement  DNR and Lewis County28County Quarterly Income Reports https://dnr.wa.gov/business-data-dashboards-and-reports/county-quarterly-income-reports Thank you! Scott Sargent: Scott.Sargent@dnr.wa.gov Steve Ogden: steve.ogden@dnr.wa.gov Andy Aschenbrenner: andy.aschenbrenner@dnr.wa.gov Brandon Mohler: brandon.mohler@dnr.wa.gov Mike Fowler: michael.fowler@dnr.wa.gov