<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM U.S.
TIMBERLANDS KLAMATH FALLS, L.L.C. SEPTEMBER 30, 1997 AND DECEMBER 31, 1996
COMBINED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<CIK>        0001047739
<NAME>       U.S. TIMBERLANDS KLAMATH FALLS, L.L.C.
       
                                                  
<PERIOD-TYPE>                   6-MOS                   OTHER <F1>
<FISCAL-YEAR-END>                          DEC-31-1997             DEC-31-1996
<PERIOD-START>                             JAN-01-1997             AUG-30-1996
<PERIOD-END>                               SEP-30-1997             DEC-31-1996
<CASH>                                          24,032                  16,613
<SECURITIES>                                         0                       0
<RECEIVABLES>                                    5,777                   1,694
<ALLOWANCES>                                         0                       0
<INVENTORY>                                          0                      78
<CURRENT-ASSETS>                                31,765                  29,586
<PP&E>                                           1,768                   1,478
<DEPRECIATION>                                     221                      58
<TOTAL-ASSETS>                                 415,227                 310,191
<CURRENT-LIABILITIES>                           31,750                   8,127
<BONDS>                                              0                       0
<PREFERRED-MANDATORY>                                0                       0
<PREFERRED>                                          0                       0
<COMMON>                                             0                       0
<OTHER-SE>                                    (14,523)                 (2,936)
<TOTAL-LIABILITY-AND-EQUITY>                   415,227                 310,191
<SALES>                                         41,057                  14,019
<TOTAL-REVENUES>                                41,057                  14,019
<CGS>                                           12,101                   6,179
<TOTAL-COSTS>                                   28,350                  18,786
<OTHER-EXPENSES>                                   (48)                     36
<LOSS-PROVISION>                                     0                       0
<INTEREST-EXPENSE>                              17,818                   7,316
<INCOME-PRETAX>                                 (6,825)                (13,036)
<INCOME-TAX>                                         0                       0
<INCOME-CONTINUING>                             (6,825)                (13,036)
<DISCONTINUED>                                       0                       0
<EXTRAORDINARY>                                 (3,571)                       0
<CHANGES>                                            0                       0
<NET-INCOME>                                   (10,396)                (13,036)
<EPS-PRIMARY>                                        0                       0
<EPS-DILUTED>                                        0                       0
<FN>
<F1> The income statement data for the period ended December 31, 1996
represents only four months of operations as the Company was formed on August
30, 1996.
</FN>