By the late 1930s, the Red River Lumber Company had exhausted most of its timber tributary to Westwood. Red River officials consulted with the Lassen National Forest about a possible exchange of cut-over lands for timber rights on Forest Service lands, which could be done under the accordance of of the Land Exchange Act of 1922. The Forest Service considered the exchange program beneficial in the long range for future recreational aspects for the public and also for the re-growth of the forests. A deal was struck and on January 21, 1941, Red River deeded over some 50,000 acres adjacent to Lake Almanor and Butt Valley to the Forest Service in exchange for 50 million board feet of timber in the Moonlight district, east of Westwood.
