Douglas County faces losing up to $1.2 million in timber revenue from Oregon & California Railroad trust lands after the Bureau of Land Management announced Tuesday it will withhold 10 percent of the payments due Oregon counties as a hedge against looming, mandatory budget cuts. Douglas County officials expected to receive a check totaling between $10 million and $12 million Friday, part of a $38 million payment to the 18 O&C counties in Western Oregon. Instead, BLM will withhold $4 million of the $38 million because of sequestration — automatic, across-the-board cuts due to take effect March 1 unless Congress …