AuCoin had a hand in the rescue of Northwest lumber and plywood mills during the recession of the early 1980s. The mills faced financial ruin when federal timber sales contracts they had purchased at a face value of hundreds of millions of dollars were rendered worthless by the collapse of the lumber and plywood markets. Along with Senators Hatfield and Howard Metzenbaum, AuCoin helped write the Federal Timber Contract Payment Modification Act of 1984. After requiring timber companies to pay a penalty to the U.S. Treasury, the bill released the firms from their contracts and allowed them to return approximately 9.5 billion board feet of standing timber to the government, much of it commercially pre-thinned.