Montana Legacy Project
Encyclopedia
The Montana Legacy Project is a three phase purchase of more than 310000 acres (1,254.5 km²) of land owned by Plum Creek Timber
in northwestern Montana
. The land is within the counties of Missoula
, Mineral
, Lake
and Powell
. Land included in this purchase is within the Swan Valley
, the upper Clearwater Valley near Seeley Lake
, the Lolo
Creek watershed, the Mill Creek area near the city of Missoula
, Fish Creek, Petty Creek, Schwartz Creek, and in the Garnet Mountains between Potomac and Interstate 90.
The Nature Conservancy
and The Trust for Public Land
were asked to complete the purchase for a combined total price of $510 million, although the Project has revised this figure to $490 million. The first phase was purchased in December 2008, the second in February 2009 and the third is schedule for December 2010. The U.S. Federal Government appropriated $500 million to facilitate the purchase.
. The program enabled The Nature Conservancy and The Trust for Public Land to purchase forest lands either through the issuance of tax credit bonds or through direct federal grants. The bond program, however, contained such stringent project requirements that it was in fact only available to the Montana Legacy Project lands; the projects had to involve at least 40000 acres (161.9 km²) of land that partially bordered National Park land and that was subject to a native fish habitat conservation plan.
The Nature Conservancy and The Trust for Public Land, as 501(c)(3) charities, were made eligible to issue up to $500,000,000 of Qualified Forestry Conservation Bonds. This entitled them to a direct payment of $250,000,000 from the U.S. Federal Government:
"without regard to whether the issuer is subject to tax under Chapter 1 of the Code, the issuer may elect to be treated as having made a payment
against that tax ... in an amount equal to 50 percent of the amount of the allocation. Under section 54B(h)(2)(A), the Secretary shall not use
the deemed payment of tax as an offset or credit against any tax liability of the issuer but shall refund the deemed payment to the issuer."
John Boehner
, while House Minority Leader, lambasted the bond program for disguising as a new tax conservation credit an earmark for Senator Baucus' home state.
Plum Creek Timber
Plum Creek Timber is the largest private landowner in the United States. Most of its lands were originally purchased, or otherwise acquired as timberland....
in northwestern Montana
Montana
Montana is a state in the Western United States. The western third of Montana contains numerous mountain ranges. Smaller, "island ranges" are found in the central third of the state, for a total of 77 named ranges of the Rocky Mountains. This geographical fact is reflected in the state's name,...
. The land is within the counties of Missoula
Missoula County, Montana
-National protected areas:*Bitterroot National Forest *Flathead National Forest *Lolo National Forest *Rattlesnake National Recreation Area-Demographics:...
, Mineral
Mineral County, Montana
-Demographics:As of the census of 2000, there were 3,884 people, 1,584 households, and 1,067 families residing in the county. The population density was 3 people per square mile . There were 1,961 housing units at an average density of 2 per square mile...
, Lake
Lake County, Montana
-National protected areas:*Flathead National Forest *National Bison Range *Ninepipe National Wildlife Refuge*Pablo National Wildlife Refuge*Swan River National Wildlife Refuge-Demographics:...
and Powell
Powell County, Montana
-National protected areas:* Beaverhead-Deerlodge National Forest * Flathead National Forest * Grant-Kohrs Ranch National Historic Site* Helena National Forest * Lolo National Forest * Bob Marshall Wilderness Area...
. Land included in this purchase is within the Swan Valley
Swan River (Montana)
The Swan River in the western part of the U.S. state of Montana starts in the Mission Mountains at Gray Wolf Lake and continues north to Swan Lake. Then it goes west and is impounded by a dam before emptying into Bigfork Bay and the town of Bigfork, where it enters Flathead Lake. The last stretch...
, the upper Clearwater Valley near Seeley Lake
Seeley Lake, Montana
Seeley Lake is a census-designated place in Missoula County, Montana, United States. It is part of the 'Missoula, Montana Metropolitan Statistical Area'...
, the Lolo
Lolo, Montana
Lolo is a census-designated place in Missoula County, Montana, United States. It is part of the 'Missoula, Montana Metropolitan Statistical Area'. The population was 3,388 at the 2000 census. It is home to Travelers' Rest State Park, a site where Lewis and Clark camped in 1805 and again in 1806...
Creek watershed, the Mill Creek area near the city of Missoula
Missoula, Montana
Missoula is a city located in western Montana and is the county seat of Missoula County. The 2010 Census put the population of Missoula at 66,788 and the population of Missoula County at 109,299. Missoula is the principal city of the Missoula Metropolitan Area...
, Fish Creek, Petty Creek, Schwartz Creek, and in the Garnet Mountains between Potomac and Interstate 90.
Interstate 90 in Montana
Interstate 90 in Montana is a portion of the east–west transcontinental Interstate 90, which links Seattle, Washington to Boston, Massachusetts. The portion in the U.S...
The Nature Conservancy
The Nature Conservancy
The Nature Conservancy is a US charitable environmental organization that works to preserve the plants, animals, and natural communities that represent the diversity of life on Earth by protecting the lands and waters they need to survive....
and The Trust for Public Land
The Trust for Public Land
The Trust for Public Land is a land conservation nonprofit founded in 1972 by Huey Johnson and based in San Francisco, California in the United States. TPL works throughout the United States to conserve land for people as parks, gardens, and other natural places.- TPL Conservation Initiatives :TPL...
were asked to complete the purchase for a combined total price of $510 million, although the Project has revised this figure to $490 million. The first phase was purchased in December 2008, the second in February 2009 and the third is schedule for December 2010. The U.S. Federal Government appropriated $500 million to facilitate the purchase.
Financing
The project has been primarily funded through Qualified Forestry Conservation Bonds – a public financing mechanism created in the 2008 Farm Bill under the leadership of Montana Senator Max BaucusMax Baucus
Max Sieben Baucus is the senior United States Senator from Montana and a member of the Democratic Party. First elected to the Senate in 1978, as of 2010 he is the longest-serving Senator from Montana, and the fifth longest-serving U.S...
. The program enabled The Nature Conservancy and The Trust for Public Land to purchase forest lands either through the issuance of tax credit bonds or through direct federal grants. The bond program, however, contained such stringent project requirements that it was in fact only available to the Montana Legacy Project lands; the projects had to involve at least 40000 acres (161.9 km²) of land that partially bordered National Park land and that was subject to a native fish habitat conservation plan.
The Nature Conservancy and The Trust for Public Land, as 501(c)(3) charities, were made eligible to issue up to $500,000,000 of Qualified Forestry Conservation Bonds. This entitled them to a direct payment of $250,000,000 from the U.S. Federal Government:
"without regard to whether the issuer is subject to tax under Chapter 1 of the Code, the issuer may elect to be treated as having made a payment
against that tax ... in an amount equal to 50 percent of the amount of the allocation. Under section 54B(h)(2)(A), the Secretary shall not use
the deemed payment of tax as an offset or credit against any tax liability of the issuer but shall refund the deemed payment to the issuer."
John Boehner
John Boehner
John Andrew Boehner is the 61st and current Speaker of the United States House of Representatives. A member of the Republican Party, he is the U.S. Representative from , serving since 1991...
, while House Minority Leader, lambasted the bond program for disguising as a new tax conservation credit an earmark for Senator Baucus' home state.
2008
- May 23: In a joint press conference with Senator Max BaucusMax BaucusMax Sieben Baucus is the senior United States Senator from Montana and a member of the Democratic Party. First elected to the Senate in 1978, as of 2010 he is the longest-serving Senator from Montana, and the fifth longest-serving U.S...
, Plum Creek TimberPlum Creek TimberPlum Creek Timber is the largest private landowner in the United States. Most of its lands were originally purchased, or otherwise acquired as timberland....
announces that it is close to a sale of a full quarter of the company's 1200000 acres (4,856.2 km²) of land in Montana. - June 30: Announcement of the Project; “Plum Creek is selling 223,400 acres in Missoula CountyMissoula County, Montana-National protected areas:*Bitterroot National Forest *Flathead National Forest *Lolo National Forest *Rattlesnake National Recreation Area-Demographics:...
, and 35,500 acres in the Swan Valley, along with 13,800 acres in Lincoln CountyLincoln County, Montana-National protected areas:* Pacific Northwest National Scenic Trail *Flathead National Forest *Kaniksu National Forest *Kootenai National Forest -Demographics:...
.” - July 24: Robert Rasmussen of the Trust for Public LandThe Trust for Public LandThe Trust for Public Land is a land conservation nonprofit founded in 1972 by Huey Johnson and based in San Francisco, California in the United States. TPL works throughout the United States to conserve land for people as parks, gardens, and other natural places.- TPL Conservation Initiatives :TPL...
says that some of the land will be resold to Timberland Investment Management Organizations ("TIMOs"), and “To that end, part of the agreement stipulates that TNC and TPL will sell to Plum Creek at market value a certain number of board feet, logged from lands they choose, over the next 10 to 15 years.” - August 1: Local residents at public meeting express concern over lack of details.
- October 20: Montana Legacy Project announces “Working Forest” Agreement, with the goal of providing steady inputs for Plum Creek lumber mills estimated at 92 million board feet. “A key to the deal was the promise of a steady timber supply for Plum Creek mills over the next 10 years."
- December 19: Phase I of Montana Legacy Project completed. The Nature Conservancy and the Trust for Public Land purchase nearly 130000 acres (526.1 km²) of Plum Creek land west of Missoula County in the Fish Creek area of Mineral County, and east of Missoula County in the Potomac Valley. The price is $150 million. Plum Creek will continue to have timber harvesting rights.
2009
- January 31: Phase II purchase, originally scheduled to close during December, 2009, now expected to close seven months earlier in February 2009. Total project transaction now valued at $489 million, a reduction of $21 million.
- February 2: During Plum Creek earnings call, the company announces the completion of Phase I, which valued the companies' lands in western Montana at $1,600 an acre.
- February 17: The Nature Conservancy and Trust for Public Land announce the completion of Phase II purchase of 111740 acres (452.2 km²) of western Montana forestland from Plum Creek for $250 million.
- February 18: The Flathead Beacon publishes criticism alleging that the Federal Government, through TNC and TPL, vastly overpaid for the Phase II purchase.
2010
- February 3: Montana Department of Fish, Wildlife and Parks ("FWP") announces “Fish Creek Project”, plan to purchase 41000 acres (165.9 km²) of fire-damaged former Plum Creek land in Mineral County for $14 million from The Nature Conservancy.
- March 10: The Nature Conservancy raises the Fish Creek price by more than $3 million, to $17.35 million. The Montana FWP Commission approves the purchase the next day.
- March 15: Phase II Concludes, Transfers 122,000 Acres to Forest Service.