RAYONIER INC — Director's Dealing 2006

Dec 19, 2006

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RAYONIER INC (RYN)
CIK: 0000052827
Period of Report: 2006-12-15

Reporting Person: NUTTER WALLACE LEE (Director, CHMN, PRES & CEO)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2006-12-15	Common Shares	M	6900	$15.96	Acquired	829387.105	Direct
2006-12-15	Common Shares	S	200	$41.78	Disposed	829187.105	Direct
2006-12-15	Common Shares	S	2000	$41.76	Disposed	827187.105	Direct
2006-12-15	Common Shares	S	2300	$41.77	Disposed	824887.105	Direct
2006-12-15	Common Shares	S	2400	$41.75	Disposed	822487.105	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2006-12-15	Employee Stock Option	$15.96	M	6900	Disposed	2008-01-04	Common Shares (6900)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Shares	21978.8	Indirect

Footnotes

F1: Shares are held in the Rayonier Investment and Savings Plan, a 401(k) plan, for this person's account.