Imported terrain is
always
in a convex shape (the computer doesn't know you dont' need some of the shapes....). But you already figured that out.
The easiest solution I think of would be using the magic wand!
You also need the site boundary. Split it in half, so you get two sides. Invert inside and outside (the polygon now contains everyting you
don't
want.
Select the mesh, get the PET palette and use the subtraction method. Now magic-wand your way!