The Kumil timber project in Papua New Guinea represents one of the earliest attempts by the State to directly involve customary landowners in large-scale timber harvesting. A unique aspect of this project was that a local landowners' company was established to manage the logging and initiate development activities, so that customary landowners would retain a greater share of the benefits. This paper examines the experience of customary landowners with the Kumil project. The social structures applying to land tenure are examined, as well as the impact that logging has had on village stability and prosperity. Finally, the role of the landowners' company as a vehicle for meaningful village participation in large-scale forest harvesting is assessed.