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If Clallam County determines that the right-of-way contains merchantable timber which belongs to Clallam County, the following steps shall occur prior to granting the license:

(1) The County Forester shall determine the stumpage value of the timber.

(2) If the value is less than $500, then the applicant shall pay the County said amount.

(3) If the value is more than $500, then the County shall sell the timber in accordance with the procedures and requirements of Chapter 36.34 RCW.