Oregon Public Lands Transfer and Protection Act of 1998

Oregon Public Lands Transfer and Protection Act of 1998 - Provides for the transfer of: (1) specified lands in the Rogue River National Forest System, Oregon, from public domain status to the National Forest; and (2) other lands from the National Forest to public domain status.

Restores the status of certain revested Oregon and California railroad grant lands (O&C lands) and revokes the reservation of such lands as part of the National Forest. Adds certain other revested railroad grant lands to such National Forest.

(Sec. 3) Directs the Secretary of the Interior, in carrying out sales, purchases, and exchanges of Bureau of Land Management (BLM) lands located within six Oregon districts (the geographic area), to ensure that, upon the expiration of a ten-year period beginning on the date of enactment of this Act and each ten-year period thereafter, the total number of acres of O&C lands, Coos Bay Wagon Road grant lands, and public domain lands in the geographic area that are available for timber harvesting is not less than such number on the date of enactment of this Act.

(Sec. 4) Transfers administrative jurisdiction over certain lands in Lake County, Oregon, located adjacent to or within the Hart Mountain National Antelope Refuge, from BLM to the U.S. Fish and Wildlife Service. Includes transferred lands within the Refuge. Withdraws such lands from the public land, mineral leasing, and mining laws. Requires BLM to retain jurisdiction over certain lands located south of the Refuge identified for cooperative management. Requires such lands that are within the Guano Creek Wilderness Study Area to be managed to maintain the values for which the Area was designated. Transfers administrative jurisdiction over other specified lands adjacent to or within the Refuge from the Fish and Wildlife Service to BLM. Removes such lands from the Refuge and designates them as public lands.

(Sec. 5) Increases from 300 to 1,000 acres the area included within the Bandon Marsh National Wildlife Refuge, Oregon.

(Sec. 6) Amends the Reclamation Projects Authorization and Adjustment Act of 1992 to authorize the Secretary to participate in the design, planning, and construction of the Willow Lake Natural Treatment System Project for the reclamation and reuse of wastewater within and outside of the service area of Salem, Oregon. Limits the Federal share of project costs to 25 percent. Prohibits the Secretary from providing funds for project operation and maintenance.

(Sec. 7) Authorizes the Secretary, acting through BLM, to make available for sale at fair market value to Deschutes County, Oregon, a parcel of land in such County, to be used for private residential development and the provision of community amenities and services. Requires the amount paid to be deposited in a special account and used to purchase environmentally sensitive land to be utilized within the BLM land use planning process.