The solution advocated falsely  presumes that environmental groups would allow logging anywhere in the Elliott without a fight. The sensitive areas will require buffer areas, the buffer areas will then require buffer areas - all for land that's been logged numerous times. 
The state can first make a deal with 10 opposition groups to log certain areas only to find a new group will appear to contest any sale - I would not be surprised if the state then pays the legal fees for the opposing side as the federal government does.