The Associated Press

Oregon's State Lands Board is considering increasing grazing fees on 635,000 acres of state lands, most of it in southeastern Oregon.

The board votes Tuesday in Salem, Ore.

Assistant State Lands Director Steve Purchase says a 2004 audit by the secretary of state's office recommended the fees more closely reflect market values.

Most of the 635,000 acres is in the southeastern corner of Oregon.

The lands bring in about $346,000 a year, and after costs are deducted, about $56,000 goes into the Common School Fund.

The board is voting on changing elements of the formula for setting the grazing fees, which will be phased in over three years.

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