That's a beautiful piece. I can see why you want to use it. I think treating it properly is the answer. Contrary to popular belief, there is occasionally a piece of driftwood in the rift lakes that fish take advantage of.

It looks well seasoned, but I'd take my time with it. I doubt there's anything living in it, but I'd bleach it all the same to be sure. You don't need much, maybe 1/4 to 1/2 cup. Drain and rinse, then refill and double dose the dechlor. Repeat the double dose of dechlor if needed. Let it soak in that for another day or two. Then let it dry in the sun completely. I'd then test it by letting it soak in the tub while taking daily KH readings. Keep that up for a while. Keep it covered to reduce evaporation because topping off will only re-add buffers. If the change in KH is negligible after a couple of weeks, then I'd say it's good to go. If it doesn't leach tannins, that's a good sign also. After setup, I'd be tempted to test with some danio's or something. I know fmueller had a negative experience one time with driftwood in his tropheus tank. That's the reason for all the caution. If you can get it to work out, I can see calvus and juli's and others really liking that piece and spawning in it.
And, btw, the rise in pH after 24 hours is normal and is probably CO2 related.