As part of the phase's completion, Plum Creek received $250 million in cash for about 112,000 acres.

The project's final phase, which includes 70,000 acres valued at about $89 million, is targeted to close during the 2010 fourth quarter.

Plum Creek said in December that it received $150 million in cash for the first part of the three-phase deal that included about 130,000 acres.

Last month the company said it would reduce production at its four lumber sawmills and its medium density fiberboard plant in Montana, resulting in the loss of 145 jobs. Plum Creek said it was making the move due to the poor housing market and decline in demand for wood products.