SACRAMENTO — Two years ago, federal prosecutors in California’s Eastern District could not have been riding higher.

After years of intense litigation, the U.S. attorney’s office had secured a $122 million deal with Sierra Pacific Industries Inc. to settle charges that the timber giant was liable for the 2007 Moonlight Fire, an inferno that blackened 65,000 acres of northeast California forest land. SPI agreed to pay $47 million and to donate 25,000 acres to the national forest system.

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