O&C Lands Protection Act

O&C Lands Protection Act - Establishes specified limitations on the sale and exchange out of Federal ownership by the Secretary of the Interior of O&C and public domain lands within the Bureau of Land Management's (BLM) Medford, Roseburg, Eugene, Salem, and Coos Bay districts and the Klamath Resource Area of the Lakeview District (geographic area) in Oregon. Defines "O&C lands" as certain lands originally granted in Oregon for purposes of establishing railroad and telegraph lines that revested in the United States.

(Sec. 3) Bars the Secretary from selling or exchanging out of Federal ownership any O&C or public domain lands within the geographic area located within: (1) a congressionally designated wilderness area; (2) the national wild and scenic river system; or (3) an area designated to be of critical environmental concern.

Sets forth provisions regarding prices and procedures for making such land sales.

Authorizes the Secretary to: (1) use the O&C Lands Protection Fund (established by this Act) to purchase non-Federal lands located within the geographic area that are contiguous to other O&C or public domain lands; and (2) give first priority to acquiring lands adjacent to streams, riparian areas, or wildlife corridors within such area used by endangered or threatened species.

(Sec. 4) Sets forth procedures for exchanges as well as requirements for the value of exchanged lands.

(Sec. 5) Directs the Secretary to: (1) determine annually whether there has been a net reduction in the acreage of O&C lands during the preceding fiscal year as a result of disposal of lands by the United States; (2) designate an equivalent number of acres of public domain lands within the geographic area for treatment as O&C lands, if there was a reduction; and (3) designate such public domain lands that are stocked with timber in volumes per acre that are not less than the average volumes found on the O&C lands and public domain lands in the area that were disposed of during the preceding fiscal year.

(Sec. 6) Establishes the O&C Lands Protection Fund to be available for purchasing lands, making equalization payments, and making distributions to the State of Oregon and the counties within the geographic area.

(Sec. 7) Allocates revenues received by the United States from the sale of timber and other surface resources from public domain lands within such area to the State of Oregon, the affected counties, and the Salmon Habitat Restoration Fund.

Establishes the Salmon Habitat Restoration Fund for specified activities within the geographic area.