MISSOULA, Mont., July 5 (UPI) -- The White House is preparing to ease the way for the United States' largest private landowner to convert huge tracts of forestland to residential subdivisions.

The deal was struck -- without public review -- between Mark Rey, the former timber lobbyist who oversees the U.S. Forest Service, and Plum Creek Timber Co. (NYSE:PCL), a former logging company turned real estate investment trust that is building homes, The Washington Post (NYSE:WPO) reported Saturday.

The company owns more than 8 million acres nationwide, including 1.2 million acres in mountainous western Montana. Officials there have said they were not given a voice in negotiations over the plan.

"We have 40 years of Forest Service history that has been reversed in the last three months," said Pat O'Herren, director of Rural Initiatives for Missoula County.

The county is threatening to sue the Forest Service for forgoing environmental assessments and other procedures.

Under the agreement, logging roads running into areas controlled by Plum Creek could be paved. Critics say the plan would threaten species and waterways.

While the rule changes could open hundreds of thousands of acres to development, Plum Creek executives note they've only built on 3,000 acres in the past five years and plan to develop fewer in the coming five. In return, the government extracted requirements mandating "fire-wise" measures to reduce wildfire dangers.