The Nature Conservancy has purchased 18,400 acres from Plum Creek Timber in the Blackfoot River Valley for $13.8 million, completing the first installment of a three-stage project designed to protect the area from overdevelopment.

As part of what eventually will be a $30 million deal covering 41,588 acres, the Nature Conservancy and Plum Creek closed last Friday on the sale for portions of Ovando Mountain, Monture Creek West, Bear Creek, Tupper Lakes and Marcum Mountain.

The Conservancy plans to hold title to the lands temporarily while the Blackfoot Challenge -- a local landowner group -- works out a community-based plan for the resale of the property to public and private entities. The plan, put together with input from area residents, will include measures to protect conservation and community values on the properties.

"What we have heard at public meetings is that local residents want to see these lands managed in a way that maintains the valley's tradition of ranching, forestry, wildlife and public access," said Jim Stone, chairman of the Blackfoot Challenge and Blackfoot Valley rancher.

He noted that the public's participation in the planning process has been "tremendous," with about 70 Ovando area residents turning out last week for a public meeting.

Some of the properties purchased Friday may be sold to the Bureau of Land Management or the Montana Department of Natural Resources and Conservation, since these agencies own adjacent lands and there is a desire for continued public access to them.

Some of the other parcels will be sold to private buyers, but will come with conservation easements and other restrictions attached to ensure that while houses may be built upon some of the parcels, the vast majority of the land will not be subdivided and turned into million dollar ranchettes.

The Nature Conservancy has a "no-net-profit" policy when selling land to public agencies, so the cost to any state or federal agency will reflect the Conservancy's purchase price and direct costs associated with each transaction. Private buyers must pay the non-profit Conservancy at least the appraised market value.

If private funds can be raised by the Conservancy and Blackfoot Challenge, the community may retain some type of control on the lower slopes of Ovando Mountain. The area currently is publicly accessible, and the community wants to see it remain that way.

"The input we've received is that people would like to see this area managed for conservation of wildlife habitat, sustainable forestry, grazing and public recreational access," Stone said.

The second part of the land purchase is expected to take place in May. Tana Kappel, spokeswoman for the Nature Conservancy, said that installment will cover 19,883 acres, including parcels within the Blackfoot Clearwater Wildlife Management Area. Kappel said she's not sure when the third purchase will take place.

The Blackfoot River Valley generally flows westward from Rogers Pass and the Scapegoat Wilderness Area near Lincoln toward Helmville and Ovando. It's home to black and grizzly bears, elk, deer, mountain lion and lynx as well as nearly 235 bird species and native cutthroat and bull trout. Unlike many urbanized areas of Montana, the Blackfoot River Valley -- consisting of about 1.5 million acres of public and private lands -- is home to only about eight communities and 2,500 families.

Generally, the properties involved in the sale are part of a checkerboard pattern of ownership, ranging in size from small parcels to thousands of acres.

The total $30 million deal is the Nature Conservancy's largest project in Montana, and among the largest in the Conservancy's 52-year history. The Virginia-based conservation group also has an option to purchase another 46,640 acres from Plum Creek for about $38 million if all goes well with this project.

"It's a pretty complex situation, so we want to get the first 41,000 acres closed on before we exercise our option on the other parcel," Kappel said.

Friday's closing is the most recent land transaction for Plum Creek, which owns 1.4 million acres in Montana, including an additional 194,000 acres in the Blackfoot Valley. As Plum Creek's acreage is being cleared of timber, instead of waiting for trees to grow back, the company is selling off some of its logged land at prime residential prices.

When the sale first was announced, Plum Creek officials said they recognize that the Blackfoot River Valley is a special place, which is why they sold the Nature Conservancy 11,700 acres there in 1996 and were pleased to work with the conservation group and Blackfoot Challenge to facilitate the recent sale.

Reporter Eve Byron can be reached at 447-4076 or by e-mail at eve.byron@helenair.com