I like the idea of the ooze behind this and the imagery at the heart of it all, but I can't shake the feeling that I've played the manipulative-cultist thing already. While the gears all fit together, I just don't think I'd pick this encounter for my party. It's an interesting twist on the premise, but it doesn't turn it on its head to the point that it feels fresh.
I agree with Ziv, and am puzzled by the general reaction to this submission. I feel like feedback has been less focused on what Michael has presented, and more about other, unrelated ideas Michael could have used.
Of all the submissions, I find this one the most compelling. This encounter has a moral weight to it beyond good party / evil logging consortium. The innocence of the brainwashed drakes, the druids stuck between a rock and a hard place... there's a lot more to this encounter than its physical location. Scenarios like these make a world far more interesting to roleplay.
It's fine if you didn't find it compelling, that's fair. But to say that this post didn't meet the round criteria, or that it didn't meet your personal, unspoken idea of what should have been written is a poor foundation from which pan this entry. It's a solid, compelling idea that feels woven into the Pathfinder canon instead of an isolated not-quite-one-shot.