MEETING SUMMARY

KLAMATH BASIN ALTERNATIVE DISPUTE RESOLUTION (ADR)

Date: August 10, 1999

Location: Shilo Suites Hotel, 2500 Almond Street, Klamath Falls, Oregon

Welcome and Agenda Review

1. Mike Golden reviewed the meeting agenda.

2. Jim Carpenter asked for a correction to page five of the 7/13/99 meeting notes regarding "Klamath Watershed Coordination Group". He clarified that the coordination group was established by act of Congress, not by the Hatfield working group.

Legislative Update

Martha Pagel outlined legislative and budget responsibilities that had prevented her from attending the last two ADR meetings. She provided a brief re-cap of the status of legislation at the end of the 1999 session. No bills passed that related specifically to the Klamath Basin Adjudication (ADJ). One bill, SB 299, does amend registration statements in unadjudicated basins, but this does not apply to the Klamath Basin process.

Budget approval of approximately $1 million has been received to be allocated for the Water Resources Department Adjudication Staff as it continues work on the open inspection phase of the Klamath Adjudication. Funding will support four of the five positions requested, with one of the four positions dedicated to dispute resolution and contested proceedings. Questions were called for, but there were none. (Note: Martha's update on the Adjudication process appears in the "Updates" section of this Summary.)

Hydrology Subcommittee Report

Bob Main reported that the Subcommittee had met only briefly that morning, but had communicated earlier by e-mail. He reviewed a discussion at the last ADR meeting regarding work being done by Jonathan LaMarche to evaluate Upper Klamath Marsh influence on the interaction of water rights in the Klamath Basin. Jonathan completed his study and write up of this work. That report has been distributed to the Hydrology Subcommittee and staff of Water Resources Department, but had not yet been fully reviewed. Bob announced that copies of the report were available.

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Jonathan LaMarche summarized his report which analyzed how the Upper Klamath Marsh

affects the interaction of water uses above and below the Marsh. His study focused on the question: "Could a water user below Kirks Reef (below the marsh) benefit in time of shortage by water regulation above and within Klamath Marsh?"

Factors considered in the study were: (1) lack of a natural channel through the marsh; (2) the

significant storage capacity of the Marsh; (3) the high natural evapotranspiration rate in the Marsh; (4) large groundwater inflows; and (5) the natural basalt plug at the Marsh outlet which acts as a natural dam.

Jonathan explained his analysis which indicated that an increase in water flow into the Marsh would have no short-term effect on downstream water users unless the water quantity during that season was high enough to flow over the natural dam at the marsh outlet. In reference to marsh water levels in 1992-1997, no downstream benefit would occur during summer months even with the elimination of all upstream irrigation. Jonathan's study considered historical Marsh levels and gage flows. He used regression analysis to check relationships between inflows and Marsh levels, and found no correlations. No cause and effect relationship was found between peak flows above and below the marsh. Jonathan's research indicated that much of the Marsh water comes from groundwater.

Responding to questions about how Marsh levels affect downstream accretions (groundwater flow), Jonathan displayed plotted graphs of Marsh stages versus Williamson River accretions below the Marsh which showed no correlation. He also answered a question from Roger Nicholson on the terminology of springs. Jonathan described springs as groundwater discharge areas where sub-surface flows becomes surface flows. He characterized accretions below Kirks reef as a combination of groundwater discharge directly into the Williamson river and surface flow from groundwater discharge at Spring Creek. Minimal pumping of groundwater had not been considered in Jonathan's study. Wally Watkins asked how daily variations in flow data from stations near Rocky Ford (above the Marsh) affected the study. Jonathan responded that daily data had been averaged into monthly discharge numbers.

Subcommittee and Negotiating Group Reports

Williamson Area Negotiating Group - had not meet with the Tribes during the past month. They did hold an informational meeting with the Forest Service to review maps and gain a better understanding of the impact of Forest Service claims.

Administrative Subcommittee - Mike Golden reported that the group discussed whether continued monthly ADR meetings are needed once open inspection begins. Martha Pagel may not be able to attend the 11/9 ADR meeting because the Water Resources Commission will meet on that date. Martha suggested that the Adjudications staff be invited to the October ADR meeting to present an update on the open inspection process.

There was general discussion about advantages and disadvantages of monthly ADR meetings. Mike summarized the comments and suggestions, and proposed that the September meeting be held as scheduled, with the October meeting to be re-considered at that time. There were no objections.

Annie Creek/NPS Negotiating Group - Barbara Scott-Brier stated that the group would meet briefly following the ADR session. She also introduced Chuck Lundy, the Superintendent of Crater Lake National Park.

Meeting Break

Updates:

Tribes - Bud Ullman reported that the Tribes were continuing to meet with the usual groups, although they had not met with the Williamson group. They are a little disappointed that agreements have not been worked out in Phase I of the ADR process, but are looking forward to Phase II. Their previous direction has not changed under the new tribal leadership.

Adjudications - Martha Pagel reported that the Adjudication process is proceeding on schedule. Open inspection will be October 4 to November 5 in Klamath Falls, and will continue in Salem from November 15 to January 14. This extended period of open inspection allows 4-1/2 months between the beginning of open inspection and the end of the period for filing contests. Martha further explained that the decision to extend the length of time for open inspection was made to allow more time for public access to information and to prepare contests. During the first portion of open inspection in Klamath Falls, the Adjudication staff will use office space currently being occupied by the District Attorney's office. (Note from Martha Pagel: The District Attorney's office may not be available as planned. The Adjudication staff are currently making arrangements for alternate space in Klamath Falls.)

As part of the general process at the beginning of open inspection, the Adjudicator will mail each claimant their specific claim summary (with the exception of federal claimants). Copies of the summaries for all claims, along with the claim files, will be available for the open inspection. Notice of the open inspection will be provided through the newspaper and media and will be mailed to claimants and to those who have previously requested notice through the Adjudication process.Although regular coordination meetings are being held between ADR and ADJ, settlement agreements may not be reached by the time open inspection begins.

Responding to a question, Martha described the content of the preliminary disposition "summary" form. The form will consist of: name and address of claimant; what was claimed; type of claim; standards to be met; and a section for the Department's preliminary findings based on the current record. Details and documentation of each claim will be contained in the complete files that will be available throughout open inspection.

Barbara Scott-Brier asked how to order full sets of disposition findings.

(Clarification from the Adjudicator, Dick Bailey Copies of individual claim evaluations will be mailed to each claimant on October 1, 1999. On October 4, 1999, the complete Summary and Preliminary Evaluation of Claims will be available as follows:

1. Hardbound sets can be reviewed on-site at the Klamath Falls Adjudication office at 2312 South Sixth Street, Klamath Falls 97601. Hardbound sets will also be placed in area libraries and government offices - a list will be published prior to October 4.

2. Computer diskette or CD - no charge;

3. Internet download from www.wrd.state.or.us - no charge;

4. Printed sets - approximately $2000/set.

To request the Summary and Preliminary Evaluation of Claims on diskette, CD, or in hardbound sets, call 1-800-624-3199, Dick Bailey at extension 256 or Jan DeVito at extension 240.)

Because the final adjudication report will be sent for printing a few weeks before the beginning of Open Inspection, any supplemental information which is submitted late will not appear in the report. In addition, the law allows claims to be amended right up to the beginning of Open Inspection. Therefore, the printed report at Open Inspection will not include any last-minute amendments which might be received. During the contest period of January 17 to February 18, Adjudication staff will make contest forms available for those people who have adjudicated rights.

SB1010 - Andrea Rabe reported that the Lost River LAC is continuing to conduct interviews with older members of the community regarding time lines. The Klamath Headwaters Local Advisory Committee also met.

TMDL/303(d) list - DEQ and USFS are still gathering water quality data.

Klamath Project - BOR - Karl Wirkus reported that Bernice Sullivan has retired as manager of the Klamath Project Long Term Operations Plan. Correspondence concerning the plan should now be sent directly to Karl Wirkus at U.S. Bureau of Reclamation, 6600 Washburn Way, Klamath Falls, OR 97602. At a recent meeting of cooperating agencies, agenda items included scope of the plan, analytical tools and processes used to analyze impacts. Operations scenarios were brain stormed and will be modeled to depict hydrologic outcome. Results will be used to develop a range of alternatives in preparation for impact analysis.

Lost River Adjudication - Mike Gheleta reported that a supplemental adjudication for the Lost River has been requested by some existing water users. Federal attorneys filed a motion to dismiss in order to avoid "piecemeal proceedings". A status conference was held with the Judge, and a decision is anticipated in a month or so.

Klamath Watershed Coordination - Jim Carpenter advised that Bernice Sullivan's retirement will leave a vacancy on the Klamath Watershed Coordinating. Group. The Department of Interior has not yet designated a new member. A cooperative agreement between the four parties of the Coordination Group (Hatfield Upper Klamath Basin Working Group, Klamath River Fisheries Group, Klamath River Fisheries Task Force, Trinity River Task Force and the Klamath River Compact Commission) is being reviewed and action is anticipated soon.

A list server that Tom Stokely maintains for the Trinity River Task Force can be accessed at - env-trinity@igc.org Those wishing to subscribe to the service should enter the following on the message line: subscribe env-trinity@igc.org

Other Business

1. ADR/ADJ Process - Martha Pagel stated that the Oregon Attorney General's office will soon deliver draft letters of advice regarding federal reserve right claims. The Adjudication staff asked the Attorney General's office to clarify legal issues on how Oregon understands the federal issue of reserved rights. She advised the ADR group and participating attorneys that drafts will be available as public information in the next few weeks ­ at the same time they're presented to federal attorneys. Martha explained that the Attorney General's office had agreed to provide the drafts to the federal attorneys because they relate to issues of "first impression" in Oregon regarding the federal claims. At the time the draft legal advice is offered to the federal attorneys for input, the letters will become public information, and will therefore be made available to other interested parties. Martha also explained that the same legal advice, given by the Attorney General, will guide both Martha and the Adjudicator. The time line will be short for public review and comment. Attorneys wishing to submit comments regarding draft advice letters should contact Assistant Attorney's General Meg Reeves or Walt Perry at Department of Justice (503)378-4409.

2. Wally Watkins commented on the very short meeting that few ranchers and irrigators had attended. For the September meeting agenda, he suggested that Bob Main give information about the process of contesting claims on adjacent land and the 1864 water rights situation. Bob agreed to discuss the process for filing contests.

3. Martha Pagel reminded those present that they were welcome to attend the Klamath Compact Meeting and Congressional Tour following the ADR meeting, but that the maximum number of reservations had already been received for the dinner at OIT.

There being no other agenda items, Mike Golden adjourned the meeting.

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