MEETING SUMMARY - KLAMATH BASIN ALTERNATIVE DISPUTE RESOLUTION

Date: July 13, 1999

Location: OSU Extension Service Office, Klamath Falls, OR

Welcome and Agenda Review

1. Mike Golden reviewed the meeting agenda.

2. Clarification of 6/8/99 ADR meeting notes, "Adjudication Up-date" on page three:

a. Reed Marbut clarified the Water Resources Department position with respect to proposed legislative changes to ORS Chapter 539. At the May meeting, Reed stated that the Department was opposed to amendments being offered for Water for Life, Inc., because they would have changed ORS 539, relating to adjudications. The statement was made that the Department opposed any changes to Chapter 539 because of the adverse effect such changes might have on the Klamath adjudication process. At the June meeting, Reed clarified that the Department opposes changes to those sections of ORS Chapter 539 which relate to the adjudication process.

Reed went on to explain that the Department has actually proposed legislation which would amend other sections of Chapter 539. This amendment is contained in SB 299. Reed pointed out that

SB 299 amends only ORS 539.230 and 539.240 dealing with "Surface Water Registrations." Registrations were limited to basins that had not been adjudicated. Since the Klamath Basin adjudication was initiated before adoption of the Surface Water Registration program (ORS 539.230 and 539.240), and these sections do not apply to the Klamath adjudication, SB 299 has no effect on the Klamath adjudication. On the other hand, the Water For Life amendments were intended to change the Klamath adjudication; therefore, the Department opposed the Water For Life amendments.

Lastly, Reed pointed out that one part of the Water For Life amendments was intended to increase the time between the beginning of open inspection and the end of the contest period. The Department recognized that the open inspection and contest periods as originally planned were very short, given the complexity of the claims. Therefore, the Department agreed that a longer time for preparation of contests was reasonable. Fortunately, the Department can accomplish this time extension administratively without resorting to a statute change. The Adjudicator has increased the open inspection period from 32 days to to 102 days. Since the contest filing period will run from January 17 to February 18, 2000, there will be 151 days between the beginning of the open inspection and the end of the contest period.

b. "Water for Life" should read "Water for Life, Inc.", and the organization should not be confused with the Water for Life Foundation.

3. Reed Marbut conveyed apologies from Martha Pagel who was unable to attend today's meetings. The legislature is nearing adjournment, but is still working on Water Resources Department budget matters. Martha learned late in the day on July 12 that she would be needed in Salem for much of the day on July 13. She does plan to attend the August ADR meetings.

Hydrology Sub-committee (HSC) and Modeling of Supply and Demand

Bob Main and Jonathan LaMarche

Bob reported on a very productive morning HSC session which was well attended. The group discussed particular problems in modeling upper Klamath Marsh.

Jonathan described revisions which were made to the Sprague River model in response to a

question at the last HSC meeting regarding modeled zero-demand flows (i.e. natural flow hydrographs). The hydrograph in question was for a particularly dry year (1992) and showed peak flows in early summer, which did not seem feasible to one of the HSC members. In response to this question, Jonathan examined precipitation and snow melt records which he found did not support the derived flows. Therefore, the consumptive use calculations (used in the flow derivations) were examined for errors. In particular, the acreage used to calculate yearly consumptive use and the distribution of the yearly consumptive use by month were investigated.

Jonathan and Bob toured areas in the Sprague basin and made field observations to examine discrepancies in areas classified as farmland in the GIS data. Based on those observations, discrepancies were noted in the lower and upper Sprague basins and adjustments were made. New yearly consumptive use numbers for the basin were calculated. In addition, Jonathan distributed the new yearly consumptive use numbers to each month based on the distribution of like consumptive numbers given in the OWRD Klamath water availability study. The newly derived zero-demand hydrographs followed more closely the monthly precipitation patterns in the basin. The distribution model was re-run for 24 years with the new data.

In response to a question from Dick Fairclo, Jonathan stated that the GIS layers classified some areas as farmland in the Lower Sprague that were not farmland, and had classified some areas in the upper Sprague as wetlands that were farmland.

Jonathan has started work on modeling the Upper Williamson River and has progressed as far as Klamath Marsh. The marsh is heavily influenced by groundwater, which substantially complicates the surface water distribution modeling. In order to complete the distribution model, accretions from groundwater into the marsh must be accounted for. Jonathan is using a water mass balance to determine the net groundwater inflow/outflow for the marsh and intends to report findings at the August HSC meeting.

Bob said that a question before the HSC is: "Could a water user below Kirk Reef benefit in time of shortage by regulation above the reef ?" Jonathan will study the evidence and provide information and technology he used to the HSC before their next meeting.

In response to a question, Bob drew a map of the location of Kirk Reef, a basalt ledge that runs perpendicular on the Williamson River near Highway 97, southwest of Wocus Bay. It was noted that evaporation rates are very high in this area.

Sub-committee and Negotiating Group Reports

Administrative Sub-committee - Mike Golden announced that the August 10 Klamath Basin ADR group meeting will be held from 9:30 a.m. to noon. The Administrative Sub-committee will meet prior to the group meeting from 9:00-9:30 a.m. (Note: location is Shilo Suites Hotel,

2500 Almond Street, in Klamath Falls - the Klamath/Diamond Room.) Agenda details of the Klamath Compact Commission tours and meetings August 10-12 (a tour organized to educate participants about basin water quality issues) will be mailed with the August ADR meeting notice. Mike reviewed the upcoming meeting agenda.

Williamson Area Negotiating Group - Kip Lombard reported on the recent meeting in Chiloquin. There was discussion of a planned tour of the area by representatives from the Klamath Tribes and local irrigators. Those tour plans are temporarily "on hold" due to a change in tribal administration. (NOTE: The next meeting is scheduled for Monday, August 9, 1:30p.m. in Chiloquin.)

Rate and Duty Sub-committee - Reed Marbut advised that this sub-committee is currently inactive. It will be re-activated if future interest is expressed.

Annie Creek/NPS Negotiating Group - Barbara Scott-Brier stated that the group continues to make progress. (NOTE: The next meeting is scheduled for Tuesday, August 10, at noon - immediately following the ADR general meeting at Shilo Suites Hotel in Klamath Falls.)

Klamath Compact Commission Congressional Tour to follow August

ADRMeeting - Reed Marbut briefly outlined details of Commission's activities on August 10-12 which will be an educational tour for the Commission and congressional representatives. Public participation is welcomed. (Note: See enclosed draft agenda. For more information about the meeting or tours, contact Alice Kilham at telephone (541)883-6935 or e-mail akilham@mp.usbr.gov)

Updates

Tribes - Bud Ullman advised that new Tribal Council members were sworn in on

June 22. The new members are in a steep "learning curve" and intend to keep working on the ADR process. He encouraged ADR participants to keep the lines of communication open with the Tribes.

After the meeting break, Bud introduced the recently elected Tribal Chairman, Allen Foreman. The Chairman explained that he was born and grew up in the area, and as a life-long rancher is familiar with water issues. He sees the ADR process as important and encourages a spirit of cooperation to resolve issues in the best interest of all. In response to questions, Chairman Foreman stated that he looks at the issues from perspectives both as a rancher and tribal representative. He sees the need to restore wildlife as well as maintain ranching. He does not intend to change tribal committee members at this time. His campaign platform included focus on issues that were important to the tribes, and getting those resolved in a timely way. He does have an individual claim outside the Tribal claim. Regarding the list of priorities for settlement given to the Williamson group, he expects only minor changes.

Adjudications - Reed Marbut confirmed that Open Inspection begins October 4 in Klamath Falls and will close at 5:00 p.m. on November 5. All information files will then be transported to Salem with open inspection to resume November 15 until the official close on January 14. A summary of claims will be available on the Water Resources Department web page. The title and web page address will be announced at an ADR meeting well before the October 4 beginning of Open Inspection.

The contest period will begin January 17 and will close February 18. Claimants are welcome to file contests during that period. It is hoped that some settlements will be reached during the contest period. The procedure to be followed is described in Oregon Administrative Rules Chapter 690, Division 30. Reed will bring copies of those rules to the next ADR meeting, and they are also available on the Water Resources Department web site at (http://www.wrd.or.us/law/oar.html). The actual time frame for resolving contests cannot be predicted.

SB1010 - Andrea Rabe advised that the Klamath Headwaters Local Advisory Committee met and discussed which template to use for the SB1010 plan. They agreed that both regulatory and education components are needed in the template.

The Lost River LAC has prepared a draft of Timeline/2000 which will include the open comment period. Currently, the Committee is revising the prepared draft.

TMDL/303(d) list - Steve Kirk reported that:

1) DEQ and USFS (Winema and Fremont NF) are in the process of collecting water quality data to support the development of TMDLs for 303(d) listed streams in the Williamson, Sprague and Sycan watersheds. USFS scientists are collecting data to support the development of TMDLs for the 303(d) listed streams within the Winema and Fremont National Forests.

2) Data collection includes:

a) Continuous temperature monitoring at approximately 130 locations.

b) Surface water temperatures will be assessed by conducting a Forward Looking Infrared Radiometer (FLIR) survey using a camera mounted on a helicopter. The FLIR data will be used to develop longitudinal stream temperature profiles, evaluate groundwater inflows to streams and assist in the calibration of stream temperature simulations.

c) Nutrient sampling and analyses will be conducted along the mainstem of the Sprague River.

d) USFS will assess riparian vegetation, riparian soils and stream morphology to evaluate the present and potential natural communities on USFS managed lands.

3) The development of TMDLs for Upper Klamath and Agency Lakes will utilize existing water quality data collected by BOR, USFWS, and the Klamath Tribes.

Klamath Project - BOR - Karl Wirkus stated that he had received more requests from cooperating agencies to participate in the long-term Project operation planning process. His office is responding to those requests. At the end of July, a meeting is scheduled to discuss the substance of the planning process. The final biological opinion on the Klamath Operating Plan is expected soon from the National Marine Fishery Service.

Lost River Adjudication - Paul Simmons reported no change from last month.

Klamath Watershed Coordination Group - Jim Carpenter referred to the Oregon

Resources Conservation Act and the subsequent four entitities which were established by the Hatfield working group. A draft memorandum of understanding (MOU) has been circulated which outlines how the four groups will cooperate in the resource conservation planning process. Jim hopes to give an update on progress of the MOU at the next ADR meeting.

The Department of Fish and Wildlife is establishing a website domaine which will allow access to Requests for Proposals on the GIS level. A publication titled "Klamath Basin Natural Resource Directory" has been completed, and copies were distributed at the ADR meeting. Each directory included a form with which to submit changes and additions. After updates are made, the Coordination Group intends to make the directory information available online at www.klamathgroup.org

Other Business

1. Mike Golden commented that much of the business of ADR is occurring on the committee level. He encouraged continuing participation. Agenda items can be submitted to any member of the Administrative Sub-committee.

2. With the meeting agenda ahead of schedule at 2:10 p.m., a short break was taken. The meeting resumed at 2:35 p.m. with remarks from Tribal Chairman Allen Foreman which are included in the Tribes Update above.

3. Reed Marbut reported that Martha Pagel and representatives of the Klamath Tribes and the Klamath Project irrigators met two weeks ago in Washington, D.C. with U.S. Department of the Interior staff. Purpose of the meeting was to discuss settlement concepts with federal agency leaders. In addition, Martha met with Oregon Congressional representatives and staff to discuss federal funding of the adjudication process. The meeting was productive, and Martha was very pleased with communications at the federal level which demonstrate that Oregon is developing settlements. In response to a question, Reed clarified that the request for federal assistance is separate from settlement issues. A refined supply augmentation list will be included in the next federal budget cycle. The augmentation opportunities may be important components of ADR settlement agreements.

4. In response to a question about the status of SB 299, Reed stated that the legislation may be nearing signature. It does not affect the Klamath Basin Adjudication, but only applies to basin areas that have surface water registration.

5. Wally Watkins asked about the purpose of Department of Justice attorneys attending the next Williamson Area Meeting. Mike Gheleta of the U.S. Department of Justice responded that they hope to address issues and concerns about Winema Forest consumptive claims. He anticipates that the

meeting will be a forum for frank discussion and that issues can be resolved. Mike will present a summary of claims and non-consumptive claims at the August ADR meeting.

6. At the request of the Administrative Sub-committee, Reed Marbut addressed an on-going question about obtaining copies of videotapes that were made of previous meetings. He explained that three ADR meetings were videotaped by a professional photographer arranged for by Ambrose McAuliffe. The Administrative Sub-Committee requested copies of the tapes from Ambrose. Ambrose stated that copies will only be available if the entire cost of production is paid (approximately $1200). Reed cited the applicable ADR Operating Principles and explained that because of the high cost and no pre-authorization of the expense, state funds could not be used for this purpose. Reed will continue to explore this issue. Barbara Scott-Brier suggested that the Administrative Sub-Committee discuss policy and waiver conditions when considering future requests for videotaping of ADR meetings.

The meeting was adjourned at 2:42 p.m.

The next ADR group meeting will be held beginning at 9:30 a.m. on August 10 at the Shilo Suites Hotel in Klamath Falls, 2500 Almond Street. The Williamson Area Meeting will be held on Monday, August 9 in Chiloquin. Other Sub-committees will meet briefly on August 10, before and after the ADR group meeting.