12
Summer 2009 VOLUME 3 NUMBER 1 NEWSLETTER OF THE DESCHUTES RIVER CONSERVANCY Enhancement Board. Working with the Upper Deschutes Watershed Council, the Crooked River Watershed Council and the Deschutes Land Trust, we de- veloped and initiated almost $4 million of projects under this new program. Also, we must recognize that much of our work would not be possible without the great partnerships we have with the irrigation districts in Central Oregon. In 2008, the DRC partnered with the districts to conduct a wide array of activities including water conservation, leasing, and banking. On a sad note, the DRC lost one of its founding fathers, Jim Noteboom, to leukemia in November last year. We are still feeling the enormous void left behind. Jim’s wisdom and insight about the importance of the collab- orative approach to conservation were instrumental in the formation of the DRC in the mid-nineties. His passion for the Deschutes River, his leader- ship and perseverance created the solid foundation on which today’s successes have been built. To honor Jim, we would like to help instill an even greater passion for the Deschutes River in you. In coopera- tion with local outfitters, the DRC is offering a variety of river outings, each one designed to give you a wonderful experience of our most prized natural resource, the Deschutes River. We hope that you will take advantage of these opportunities, and that you will be reminded of how important the clear cold waters of the Deschutes River are to all of us in our daily lives. NOTES FROM THE DESK OF THE EXECUTIVE DIRECTOR, TOD HEISLER Even an eternal optimist like me is surprised by the DRC’s continued success and growth during the economic down- turn that is being felt so hard throughout Central Oregon. 2008 was the DRC’s best year ever, surpassing $6 million in expenses and achieving more than 160 cfs of protected flows in our rivers and streams. Thanks in part to economic stimulus funding committed to the DRC by the Bureau of Reclamation in April, this year is shaping up to be just as good as 2008. The stimulus funding will mean an acceleration of large-scale canal piping, big construction proj- ects that create jobs and conserve water to restore streamflows. In addition, some of these piping projects will be accompanied by small-scale hydroelec- tric projects with electrical generation capacities up to five megawatts. None of this success would be possible without superb collaboration with our many partners. In January, we completed the first year of the Deschutes Special Investment Partnership, a new grant program from the Oregon Watershed DESCHUTES RIVER CONSERVANCY 1 The mission of the DRC: To restore streamflow and improve water quality in the Deschutes Basin. FEATURED IN THIS SPECIAL ISSUE: THE 2008 DRC ANNUAL REPORT DRC RIVER & ADVENTURE OUTINGS The McKenzie Canyon Conserved Water Project entailed piping 8 miles of a canal serving the Lower Bridge area located between Sisters and Redmond. The project will result in 6 cubic feet per second (cfs) of permanent streamflow restoration in Whychus Creek, a stream that is critical to the reintroduction of steelhead. The DRC has successfully restored over 15 cubic feet per second (cfs) to Whychus Creek, a small stream that used to run dry through the town of Sisters during summer months.

NOTES FROM THE DESK OF THE EXECUTIVE DIRECTOR, TOD …

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Summer 2009

VOLUME 3 NUMBER 1 N E W S L E T T E R O F T H E D E S C H U T E S R I V E R C O N S E R VA N C Y

Enhancement Board. Working with the Upper Deschutes Watershed Council, the Crooked River Watershed Council and the Deschutes Land Trust, we de-veloped and initiated almost $4 million of projects under this new program. Also, we must recognize that much of our work would not be possible without the great partnerships we have with the irrigation districts in Central Oregon. In 2008, the DRC partnered with the districts to conduct a wide array of activities including water conservation, leasing, and banking.

On a sad note, the DRC lost one of its founding fathers, Jim Noteboom, to leukemia in November last year. We are still feeling the enormous void left behind. Jim’s wisdom and insight about the importance of the collab-orative approach to conservation were instrumental in the formation of the DRC in the mid-nineties. His passion for the Deschutes River, his leader-ship and perseverance created the solid foundation on which today’s successes have been built.

To honor Jim, we would like to help instill an even greater passion for the Deschutes River in you. In coopera-tion with local outfitters, the DRC is offering a variety of river outings, each one designed to give you a wonderful experience of our most prized natural resource, the Deschutes River. We hope that you will take advantage of these opportunities, and that you will be reminded of how important the clear cold waters of the Deschutes River are to all of us in our daily lives.

NOTES FROM THE DESK OF THE EXECUTIVE DIRECTOR, TOD HEISLEREven an eternal optimist like me is surprised by the DRC’s continued success and growth during the economic down-turn that is being felt so hard throughout Central Oregon. 2008 was the DRC’s best year ever, surpassing $6 million in expenses and achieving more than 160 cfs of protected flows in our rivers and streams. Thanks in part to economic stimulus funding committed to the DRC by the Bureau of Reclamation in April, this year is shaping up to be just as good as 2008. The stimulus funding will mean an acceleration of large-scale canal piping, big construction proj-ects that create jobs and conserve water to restore streamflows. In addition, some of these piping projects will be accompanied by small-scale hydroelec-tric projects with electrical generation capacities up to five megawatts.

None of this success would be possible without superb collaboration with our many partners. In January, we completed the first year of the Deschutes Special Investment Partnership, a new grant program from the Oregon Watershed

DESCHUTES RIVER CONSERVANCY 1

The mission of the DRC: To restore streamflow and improve

water quality in the Deschutes Basin.

FEATURED IN THIS

SPECIAL ISSUE:

THE 2008DRC ANNUAL REPORT

DRC RIVER &

ADVENTURE OUTINGS

The McKenzie Canyon Conserved Water Project entailed piping 8 miles of a canal serving the Lower Bridge area located between Sisters and Redmond. The project will result in 6 cubic feet per second (cfs) of permanent streamflow restoration in Whychus Creek, a stream that is critical to the reintroduction of steelhead. The DRC has successfully restored over 15 cubic feet per second (cfs) to Whychus Creek, a small stream that used to run dry through the town of Sisters during summer months.

[ B O A R D O F D I R E C T O R S ]

John Allen US Department of Agriculture, Deschutes National ForestRick AllenJefferson CountyLeslie BachEnvironmentBobby BrunoeThe Confederated Tribes of Warm SpringsBruce BischofAt LargeTom CarlsenAt LargeVacantUS Department of the InteriorWayne ElmoreCrook CountyEllen Grover, SecretaryKarnopp PetersenKyle GormanState of OregonWater Resources DepartmentSteve JohnsonIrrigationJulie A. KeilHydroelectricRichard Macy Irrigated AgricultureBob MainAt LargeJim Manion, ChairWarm Springs Power & Water Enterprises

Jade Mayer, TreasurerAt LargeJim MeadAt LargeGregory McClarrenEnvironmentDamien NurreRecreation & TourismRon OchsSherman/Wasco CountyJim RamseyGrazing/LivestockJim RozewskiAt LargeJohn ShelkTimberWilliam SmithLand DevelopmentAmy StuartState of Oregon Dept. of Fish and WildlifeRay TienAt Large

Alan UngerDeschutes County

[ STAFF ]Tod Heisler Executive DirectorTamara Weaver Director of Finance/AdminScott McCaulou Program DirectorJulie Hotchkiss Development DirectorBea Armstrong Marketing DirectorKate Fitzpatrick Program ManagerGenevieve Hubert Programs ManagerZachary Tillman Transfers ManagerAndy Fischer Conservation Project ManagerBrett Golden Program ManagerAaron Maxwell Project ManagerJean Lambert Office ManagerDebbie Conners Office CoordinatorValerie Blume Financial Specialist

[ D R C P A R T N E R H I G H L I G H T ]

THE CONFEDERATED TRIBES OF WARM SPRINGS

The Deschutes Basin is home to the

sovereign Confederated Tribes of the Warm

Springs Reservation which includes the Warm Springs, Wasco and Paiute Indian Tribes. The Tribes were very important to the founding of the Deschutes River Conservancy. The DRC is the product of a cooperative project initiated in 1992 by the Confederated Tribes of Warm Springs Reservation and the Envi-ronmental Defense Fund to “investigate and promote sustainable development and eco-system protection strategies in the Deschutes River Basin.”

As a part of this partnership, the publication: Restoring Oregon’s Deschutes River: Developing Partnerships and Economic Incentives to Improve Water Quality and Instream Flows was produced in 1995 to provide a framework for our work in the Deschutes Basin. In the publication foreword, Senator Mark Hatfield stated, “In the case of environmental decision-making, the Warm Springs Tribes and Environmental Defense Fund have demonstrated that people can indeed come together to find solutions to natural resource issues that, at times, may seem insurmountable.”

Thirteen years after the publication, the Confederate Tribes of Warm Springs are still very instrumental to the work of the DRC. Together, we are accomplishing great things.

The Confederated Tribes of Warm Springs are so much more than just a stakeholder on the DRC board. It is the Tribes’ values for clean water, abun-dant fish and healthy forests and their long term perspective about the importance of good natural resources management that created fertile ground for the formation of the Deschutes River Conser-vancy. The Tribes’ insistence that we work together to resolve conflicts over natural resources and their strong desire to be a “good neighbor” helped to establish a culture of cooperation so important to the DRC’s success. —Tod Heisler, DRC Executive Director

THE CONFEDERATED TRIBES OF WARM SPRINGS QUICK FACTS

The Warm Springs Reservation encompasses 640,000-acres, which is located in Central Oregon. The population in Warm Springs is approximately 5,000. Tribal headquarters are in Warm Springs, Oregon. The main businesses on the reservation are Warm Springs Power and Water Enterprise, Warm Springs Forest Products, Warm Springs Composites Products, Kah-Nee-Ta Resort and Casino, The Museum at Warm Springs and Warm Springs Ventures. Native languages spoken are Kiksht (Wasco), Numu (Paiute) and Ichishkiin (Sahaptin).

The Tribes co-manage the Pelton-Round Butte Dam Complex with Portland General Electric. They manage timber, water, salmon and other reservation resources for the benefit of all Tribal members.

On-reservation water management and monitoring is conducted by the Tribes’ Natural Resources Department.

< Delvis Heath is the Chief of the Warm Springs Tribe.

2 DESCHUTES RIVER CONSERVANCY

[ D R C B O A R D M E M B E R H I G H L I G H T ]

What attracted you to play a role on the DRC Board? It is an organization that the Tribes helped establish because of the importance of water to the Tribes from both a cultural and spiri-tual aspect. Water is honored at all of our meals and ceremonies. We are taught at a young age how important water is to us both as individuals and Tribal members. I am a Tribal member and an employee of the Tribes

and therefore have a responsibility to look af-ter our waters now and for future generations.

What do you see as the most important issues that the DRC will be faced with in the next five years? Funding will be one of the issues that will be the most pressing for DRC to accomplish its mission and the projects that we are working on.

Is there anything else that you would like to comment on? During the time that I have served on the DRC’s board, I’ve witnessed impressive growth of the organization and of the partnerships that we have been able to foster in the Deschutes Basin. The members of our board are a group that has been dedicated and that cares very much about the future of the basin. I have enjoyed working with the staff and the board members over the years.

Bobby Brunoe has been working with The Confederated Tribes of Warm Springs for the last 16 years. For the past ten of those years, he has been the general manager for the Natural Resources Department, overseeing 180 full-time employees and 640,000 acres on the reservation. Prior to that, he was the Hydro Coordinator and the Range and Agriculture Manager for The Confeder-ated Tribes of Warm Springs. He also worked five years for the Bureau of Indian Affairs roads department. Prior to working for the Tribes, he worked for his family’s logging and ranching business. His family is still in the logging business today.

DESCHUTES RIVER CONSERVANCY 3

multi-stakeholder board in the Deschutes Basin. Thanks to Jim’s vision and leader-ship, the DRC is a thriving entity today.

As the organization began to grow, Jim played a pivotal role in advising the DRC Board to narrow its mission and focus on restoring streamflow and improving water quality in the Deschutes Basin. He wholeheartedly believed in the collabora-tive approach to streamflow restoration and natural resource management. A true testament to Jim’s guidance, the DRC has now successfully restored over 160 cubic feet per second of streamflow to the Deschutes River and its tributaries. Jim, also known as “Boomer” because of his loud, distinctive voice, was passionate about his work as a Tribal lawyer for the Confederated Tribes of Warm Springs. He was driven by his desire to help the Tribes protect their natural resources.

Delvis Heath, Chief of the Warm Springs Tribes, fondly remembers his good friend and colleague: “We really en-joyed spending time together playing golf. What I’ll miss most is the help he gave to the Tribes. He put a lot of time into us.” Jim will be remembered for his legacy and the imprint he left on all whom he encountered. A dedicated fam-ily man, his infectious sense of humor and incredible drive marked a brilliant career that included 39 years in the military and overlapped with his 31 years of practicing law. He was instrumental in many basin-wide policy decisions and transactions. He played a key role in the Pelton-Round Butte dam complex relicensing in 2004 and also helped to found the Warm Springs Museum. A re-markable individual, he will be missed.

DESCHUTES RIVER CONSERVANCY REMEMBERS FOUNDING FATHER JIM NOTEBOOM, 1945–2008

On November 27, 2008, DRC Founding Father Jim Noteboom passed away due to complications from leukemia. Jim played a key role in the formation of the Deschutes River Conservancy (DRC). In the early 1990s, Jim and a small group of dedicated men envisioned an organiza-tion unlike any other in Central Oregon. Jim representing the law firm of Kar-nopp Peterson, Jim Manion from The Confederated Tribes of Warm Springs, Ron Nelson formerly with the Central Oregon Irrigation District and Zach Wil-ley from Environmental Defense Fund came together as the Deschutes Basin Working Group. The group focused on cost-effective solutions to water manage-ment problems in the region. In 1996, Senator Mark Hatfield introduced a bill federally authorizing this working group, now known as the DRC, to operate as a consensus-based organization with a

Jim devoted his whole career to the representation of the Warm Springs Tribes. He was a real friend of the Tribes and very highly respected by the Tribes and the leadership at the Tribes. —Jim Petersen, Karnopp Petersen

Jim’s commitment to the basin and protection of the resource will be seen through the actions carried out by the DRC. It was Jim who was the initial author of the bill that formed the DRC. —Jim Manion, DRC Board Chair & President of Warm Springs Power & Water Enterprises

E X P L O R E YO U R L O CA L R I V E R S & S T R E A M S

4 DESCHUTES RIVER CONSERVANCY

FIVE SPECIAL OPPORTUNITIES TO EXPERIENCE THE MAGNIFICENCE OF THE DESCHUTES BASIN

The DRC is excited to provide our friends and supporters

with five exclusive opportunities to explore and learn

more about the natural wonders of our region. Please

join us on one or more of these outings and increase

your knowledge of the various issues facing our local

rivers and streams along the way. Partnering with local

outfitters Wanderlust Tours, Alder Creek Kayak & Canoe,

Sun Country Tours and local birding and river resto-

ration experts, the DRC has coordinated a number of

activities, offering you a chance to experience our local

rivers and streams by white water rafting, canoeing,

kayaking, birding, and hiking. The tours are specifically

designed to help you gain a better understanding of our

natural resources.

Our generous local outfitters are throroughly invested in the health or our rivers

and streams. They have agreed to substantially lower their normal rates for these tours

in support of the DRC’s mission to restore streamflow and improve water quality in the

Deschutes Basin. These excursions will not be mass marketed to the general public. They

will be staffed with very knowledgeable guides and naturalists. We hope that you will take

advantage of these fantastic outings. For more information: www.deschutesriver.org

1

ALDER CREEK

KAYAK & CANOE

SUN COUNTRY TOURS

WANDERLUST TOURS

LARRY BERRIN

BRETT GOLDEN

LESLEY JONES

SUNDAY, JULY 26, 2009

This high desert rafting classic is one you do not want to miss! This trip is for the entire family. The Lower Deschutes River near Maupin, Oregon provides outdoor adventure with a natural paradise for splashing, sunning, exhilarating paddling and just plain relaxing. With 13 miles of river to cover, you will be challenged by many exciting rapids and enjoy the peaceful quiet stretches. Please dress for rafting, bring water and snacks. Limited to 24 people.

Cost: $65/person (usually $111) Meeting Place: Sun Country Tours

Time: 8:00 a.m. – 6:00 p.m. Register: 541.382.6277

All Day White Water Rafting Adventure on Lower Deschutes

O U T I N G S & R I V E R A DV E N T U R E S

O U T I N G S & R I V E R A DV E N T U R E S , continued

DESCHUTES RIVER CONSERVANCY 5

2

5SATURDAY, SEPTEMBER 19, 2009

Grab your field books, bring a camera and explore this magical creek. Join Lesley Jones, Water Quality Specialist for the Upper Deschutes Watershed Council and Brett Golden, Program Man-ager from the Deschutes River Conservancy, for an informative hike along Whychus Creek. You will learn about the history, ecology, water quality and native plants of the area. Please be prepared to hike moderate terrain, wear hiking shoes, dress for weather and bring a small daypack with sunscreen, water, and snacks. Limited to 12 people.

Cost: Free Time: 9:00 – 12:00 Noon

Register: Contact Debbie from the DRC @ 541.382.4077 ext. 10, [email protected]. More info: www.deschutesriver.org

FRIDAY, JULY 31, 2009Join Alder Creek Kayak and Canoe on this beautiful ½ day Deschutes River tour on one of the most scenic sections of the Upper Deschutes River – just within minutes of downtown Bend. Explore the slough and learn about the lava flows, streamflow challenges, and natural history of the area. Please dress for paddling, bring water and snacks. Two trip times offered. Each trip limited to 12 people.

Cost: $30/person (usually $65)

Includes: Transportation, guides, canoes and gear.

Time: 9 a.m. – 1 p.m. or 2 p.m. – 6 p.m. Register: 541.317.9407

Canoe from Slough Camp to Dillon Falls

Enjoy the Wonders of Whychus Creek

3

SUNDAY, AUGUST 23, 2009

Join Larry Berrin, President of the Central Oregon Audubon

Society on a wonderful birding hike along the Upper Deschutes

River. Participants will hike and bird along the river trail to

Benham Falls. Please wear hiking shoes, bring binoculars,

water and dress for the weather. Limited to 15 people.

Cost: $6/person (fee for birding field guide)

Time: 9:00 - 11:00 am

Leader: Larry Berrin - President, Central Oregon Audubon Society

Meeting Place: Lava Lands parking lot located on 97 South on the way to Sunriver. (Please note: Participants need a NW Forest Pass to park in the parking lot. You can purchase one on site.)

Register: Contact Debbie from the DRC @ 541.382.4077 ext. 10, [email protected]. More info: www.deschutesriver.org

Learn about the Birds of the Upper Deschutes

4

FRIDAY, SEPTEMBER 11, 2009

The Deschutes River provides a dramatic means to take in the best of Central Oregon. Bald eagles, native rainbow trout, and mink will cavort as we paddle up river from Dillon Falls to Slough Camp. The aspen groves and impressive lava flows pro-vide spectacular backdrops to the journey. We will turn around at Slough Camp and enjoy a leisurely float back to Dillon Falls. Wanderlust Tours guides will instruct everyone on canoeing techniques and lead the group while sharing the natural and cultural history of the area. Limited to 12 people.

Cost: $30/person (usually $47)

Time: 1:30 Leave Bend,

5:30 Return to Bend

Includes: Transportation, guides, canoes and gear.

Meeting Place: Front parking lot at Fred Meyer.

Register: 541.389.8359

Canoe from Dillon Falls to Slough Camp

C H A L L E N G E S FA C I N G T H E D E S C H U T E S R I V E R

6 DESCHUTES RIVER CONSERVANCY

Upper Deschutes—In the winter, water is stored in the reservoirs for the irrigation season. This seasonal reservoir storage significantly reduces the streamflow in the Upper Deschutes River, defined as the reach from Wickiup Reservoir to Bend.

Middle Deschutes—90% of the streamflow from the Deschutes River in Bend is diverted through irrigation canals during the irrigation season. The diversions cause a dramatic reduction of stream-flow in the Middle Deschutes, defined as the reach between Bend and Lake Billy Chinook.

Lower Deschutes—Thousands of people visit the Lower Deschutes River each year to enjoy its world class fishing, exhilarating whitewater, and spectacular landscape. Many of them are unaware of the issues facing the Upper and Middle reaches of the river.

Settlers arriving in Central Oregon in the late 1800’s and early 1900’s were enticed by the abundant rivers and other natural resources in the region. Before long, however, virtually all of the Deschutes River was diverted for the growing number of families, livestock and agriculture. Decades of seasonal disruptions of streamflow in the Deschutes River and its tributaries have contributed to a decline in the overall health of the rivers including degraded habitat for fish and wildlife and poor water quality. Today, local irrigators are aware of the serious problems caused by seasonal disruptions of flow, and are partnering with the DRC to create viable solutions.

2 0 0 8 A N N U A L R E P O R T P R O G R A M H I G H L I G H T S

DESCHUTES RIVER CONSERVANCY 7

DRC PROGRAMS

CHANGING THE COURSE OF CONSERVATION HISTORY

The Deschutes River Conservancy (DRC) is leading the way to define and implement new models of cooperative conservation with our partners. Our collaborative approach continues to be regionally and nationally recognized as the gold standard in conservation. We are successfully building strong alliances, developing holistic ecosystem restoration strategies with our partners, and funding large-scale restoration projects.

The DRC is actively restoring streamflow in the Deschutes River and its tributaries through three programs: water conservation, water leasing, and water transfers. Through these programs, water that would otherwise have been diverted out of the rivers remains in stream to foster a healthy ecosystem for people, plants, and animals. To date, our collaborative programs have restored 160 cubic feet per second (cfs) to the Deschutes River and its tributaries.

Leasing Program: Temporary Streamflow Protection

Allows landowners who do not wish to use their water rights the option to temporarily leave their water in the river for the purpose of enhancing instream flows.

Water Conservation Program: Permanent Streamflow Protection

The DRC permanently conserves water through two methods: pip-ing and lining irrigation canals and on-farm efficiency projects.

Transfers Program: Permanent Streamflow Protection

When water right holders no longer need their water, they can transfer that water to new lands or sell it outright to the DRC.

Whychus Creek—Seasonal irrigation diversions significantly reduce streamflow in Whychus Creek. Before the DRC started working with our partners to increase streamflows, the creek would run dry every August through the town of Sisters. In just a short period of ten years, the DRC has successfully restored over 15 cubic feet per second of instream flow through the town of Sisters. We are well on our way to the Oregon Department of Fish & Wildlife’s goal of 33 cfs.

Middle Deschutes—Just upstream from this photo near the Riverhouse in Bend, 90% of the river is diverted during the irrigation season. Historically, 98% of the river was diverted, leaving only 30 cfs in this reach. Today, thanks to the work of the DRC, over 115 cfs flows in the Middle Deschutes during irrigation season. We are well on our way to our goal of 250 cfs in this reach.

Upper Deschutes—Drastic seasonal fluctuations in streamflow have eroded the streambanks resulting in water quality problems and habitat degradation. Historically, during the winter months when the water was being stored in the reservoirs for irrigation season, this reach dropped as low as 20 cfs. Today, the DRC is employing innovative reservoir management strategies and working with the Oregon Water Resources Department to increase winter flows.

Leasing Program - Temporary

Transfers Program - Permanent

Water Consrvation Program - Permanent

2002 2003 2004 2005 2006 2007 2008

Stre

amflo

w R

esto

red

180 cfs160 cfs140 cfs120 cfs100 cfs880 cfs

60 cfs40 cfs20 cfs

0 cfs

DRC PROGRAM SUCCESS2002-2008

T H A N K Y O U T O M A I N P R O J E C T F U N D E R S

8 DESCHUTES RIVER CONSERVANCY

The Columbia Basin Water Transactions Program (CBWTP) was started in 2002 to support innovative, voluntary grassroots water transactions that improve flows to tributary streams and rivers in the communities of the Columbia Basin. With CBWTP’s support, the DRC’s Programs are

successfully restoring streamflow and improving water quality in the Deschutes Basin. In FY 08, the DRC’s Programs more than doubled the average summer flow in the Mid-dle Deschutes, resulting in the largest portion of protected water in the Deschutes River.

The CBWTP is managed by the National Fish and Wildlife Foundation, a non-profit orga-nization dedicated to the conservation of fish and wildlife, working in partnership with the Bonneville Power Administration. The majority of funding is provided by BPA in cooperation with the Northwest Power and Conservation Council.

The Oregon Watershed Enhancement Board (OWEB) is an Oregon state agency led by a 17-member policy oversight board. The Board fosters the collaboration of citizens, agencies, and local interests. OWEB Programs, funded largely from the Or-egon Lottery, support the state’s efforts to restore salmon runs, improve water qual-ity, and strengthen ecosystems that are critical to healthy watersheds and sustainable communities. The OWEB Special Investments Program (SIP) supports the DRC’s efforts to restore streamflow and improve water quality in Whychus Creek, a tributary that is critical to the reintro-duction of steelhead into the Deschutes Basin. As a result of OWEB funding, the DRC has successfully restored over 15 cubic feet per second (cfs) to Whychus Creek, a small stream that used to run dry through the town of Sisters during summer months.

The Pelton Round Butte Fund was created by Portland General Electricand the Confederated Tribes of Warm Springs to protect and enhance habitat for Deschutes River fish passage. Grants totaling $21.5 million will be awarded through the year 2020 for water rights and habitat improvements where salmon and steelhead will migrate, spawn and rear. Conservation organizations (such as the DRC) and private land-holders receive funds for projects such as removing culverts, stabilizing

stream banks, restoring channels and conserving water. To date, more than $6 million has been awarded for dozens of projects and another $6 million will be distributed in 2013.

The DRC uses Pelton Water Fund grants to acquire or lease instream water rights and participate in water conservation projects that increase streamflows in the Deschutes Basin.

The DRC would like to recognize the three primary grantors who funded 77% of its water transactions

and projects in Fiscal Year 2008. As a result of this support, the DRC increased streamflows from

123 cubic feet per second (cfs) in FY07 to 160 cfs in FY08 in the Deschutes River and its tributaries.

Glen Cooper, Three Sisters Irrigation District Board President and the foreman of the McKenzie Piping Project has donated all of his time to construct four phases of the Project. The conserved water project entails piping 8 miles of a canal serving the Lower Bridge area and will result in 6 cfs of permanent streamflow restoration in Whychus Creek, a stream that is critical to the reintroduction of steelhead. Funding from the OWEB made this project possible. The final phase of the project will be constructed in the winter of 2009/2010.

The Swalley Main Canal piping project alone will put four times more water back in the Deschutes River than any other project to date - permanently restoring 29 cubic feet per second (cfs) of streamflow in the Middle Deschutes River just below Bend. The project also has a hydro component that will supply 500 homes with elec-tricity. This project was partially funded by the CBWTP.

Current Assets Property & Equipment net of accumulated depreciation

TOTAL ASSETS

Current LiabilitiesLong-term LiabilitiesNet Assets-restricted by grant or donor source

TOTAL LIABILITIES & NET ASSETS

Grants & ContributionsInterest IncomeOther

TOTAL REVENUE & SUPPORT

PROGRAM SERVICESWater Acquisitions Conservation Leasing Permanent transfers__restorationMitigation Temporary transfers__mitigation Permanent transfers__mitigationProgram - Other

TOTAL PROGRAM SERVICES

Communications & MarketingFundraisingGeneral & Administrative, includes UDWC support

TOTAL EXPENSES

Change in Net Assets

NET ASSETS__END OF YEAR

S T A T E M E N T O F F I N A N C I A L P O S I T I O N

TWELVE MONTHS ENDING SEPTEMBER 30, 200820072008

ASSETS

LIABILITIES & NET ASSETS

REVENUE & SUPPORT

EXPENSES

REVENUE BY SOURCE PROGRAMS

$1,496,596

$26,276

$1,522,872

$247,094

$230,000

$1,045,778

$1,522,872

$4,838,284

$10,982

$425,192

$5,274,458

$4,867,448

$190,522

$78,763

$27,823

$242,907

$102,680

$5,510,143

$118,107

$100,013

$215,783

$5,944,046

($669,588)

$1,045,778

$2,675,461

$27,537

$2,702,998

$757,632

$230,000

$1,715,366

$2,702,998

$3,979,577

$10,195

$454,839

$4,444,611

$2,843,230

$157,966

$120,477

$43,364

$405,243

$365,375

$3,935,655

$111,201

$115,308

$272,485

$4,434,649

($9,962)

$1,715,366

Foundations & Corporations 16%

Individual 4%

Consulting& Other 8%

Federal 2%

Fundraising 1.7%

Permanent Transfers 5.4%

Leasing of Water Rights 3.7%

Communications 2%

Administration 3.6%

Program - Other 1.7%

National Fish & Wildlife Foundation 5%

State 65% Water Conservation 81.9%

DESCHUTES RIVER CONSERVANCY 9

DONATIONS MADE FROM JANUARY 1, 2008 - DECEMBER 31, 2008T H A N K Y O U F O R Y O U R S U P P O R T

RIVER STEWARD($1,000+) AnonymousAnonymous Bank of the CascadesBMG Group/Jim & Kim MeadBend FoundationKnute & Patty BuehlerJohn & Joan Casey Family Fund of the Oregon Community FoundationRonald Cochran & Julie KennedyPaul & Carol FortinoFriends of Bend, Inc.Steve Galash/R&H Construction CompanyJohn C. (Jack) & Anne HeislerEric & Ronna HoffmanSue & Mike Hollern/ Greystone FoundationBill HolverstottHurley Re PC/Liz DicksonAndrew & Beth JonesKarla Harling Interior DesignKarnopp Petersen LLP/ Jim Noteboom*Terryl KempleLes Schwab Tire CentersCharles E & Mary Miller Family Fund of the Oregon Community Foundation/ Donald and Cameron KerrRob & Sally Miller/ Mt. Jefferson Farms/Miller Forests, Inc.Chuck & Debbie NewportLarry NurreNorth Rim Deschutes River Fund of the Oregon Community FoundationRonald & Laurice OchsOrvis Company, Inc.Juliana PanchuraRen & Marilyn Harris/ Paradigm WineryPastini PastariaPepsi-Cola Bottling CompanyPortland General ElectricPronghorn Community FoundationMel & Dee RaffBill & Sharon RobbinsJim & Becky RozewskiJohn RudiRobert & Janice Schock Fund of the Oregon Community Foundation Ken & Sharon Scott/Lee Romney FoundationGreg & Nancy SerrurierLoren Smith

Starview FoundationSun Country Tours, Inc.Sunriver AnglersRay Tien & Gina McClardAmy Tykeson & John TellerW & H Pacific, Inc.Jan & Jody WardWilliam & Patricia Smith/William Smith Properties, Inc.

RIVER CHAMPION ($250-$999) AnonymousAnonymousAnonymousAnonymousGail AchtermanRick AllenMichael & Bea ArmstrongJeff M. BarryScott Baumer/TKO Surgical, Inc.John BelsickRay & Cheri BelsickMichel & Marian BoileauEH & ME Bowerman Advised Fund of the Oregon Community FoundationRobert W. BoydBob & Dellie BrellBruce & Pamela Brody-HeineBrooks ResourcesFrank and Jane CammackLin Yee Chang Jim & Jean Curran Fund of the Oregon Community FoundationDon Terra ArtworksMike & Kathleen DonleyDavid & Grace DuersonBob Engelbrecht & Katherine HilstChris & Janet FarrensRick Fernald & Jennefer Lloyd-FernaldFireside Red Bend, LLCJohn FlowerreeDale ForsterPolly GervaisNancy Gilbert & John StephensonHamlin Family TrustJames & Dale HardtTod Heisler & Cris HimesTodd & Margy HoffmanFarris & Judy HotchkissJulie HotchkissDanny & Kathy HuffBob & Bonnie HustonThe Ladkin FamilyDon & Wendy LangeJohn Lanier & Jane GarveyEdwin & Jo Ellen Lee

Jim & Denise MahoneyBob & Liz Main/Main Water Consulting LLCNelson & Joanne MathewsJade Mayer & Romy MortensenScott McCaulou & Lily RaffGregory & Carter McClarrenBrian & Valeta McEachronSteven & Molly MichelMark Murzin & Kris KnoernschildDamien NurreJoan PecenkaBill & Lura ReedJoanne Richter & Sara WienerTodd & Julie SmithEric & Chantal StrobelSandy TaylorBob & Lynn TillmanThomas & Andrea TongueTumalo Art CompanyJay T. WaldronJim & Tamara Weaver

RIVER SUPPORTERS ($1-$249) AnonymousAnonymousKaren AllenCharles K. & Sandra AndersonBruce & Karen AylwardLeslie BachBob & Gayle BakerLarry Katz & Kathy Baker-KatzJay Beckstead & Paula StenbergJay & Julie BennettBruce & Jodie BischofMark BishopHerb Blank & Lee Ann RossArchie & Maureen BleyerWill & Shawn BlountBo BonottoPeter BrewerBobby & Rebecca BrunoePaul & Susan BurtonDonnie & Heidi CastlemanAl ChaseRay & Beverly ClarnoTim & Marie ClasenDerek & Rachel CornforthJames & Lorri CraigWillard & Gretchen DakinJean DillardHans & Karen DoornCornelius & Teri DunbarWayne Elmore/Full Stream Consulting, Inc.Andy Fecteau & Kathy O’Hara/ The Long Road FoundationHeidi Flannery/Fi.Com LtdJason & Ann Fleck

Ron & Molly FoersterWin & Laurel FrancisLester & Katlin FriedmanSylvia Breed GatesPeter Geiser & Maureen SweeneyMichael & Karen GirardKyle & Andrea GormanJulie GregoryMark HanschkaJohn & Dori HartWalter* & Kae HenseyHigh Desert BankJudith HimesJohn Hoffman & Heidi Weiss-HoffmanRobert HoganSue & Mike HollernPeter HorschWendy HudsonNeal Huston /Neal Huston & Associates Architects, Inc.Jim InksterGreg & Catherine JensenBrigitte Kenny, Jace Kenny & Wes JiningsSteve & Michelle JohnsonJulie Keil & Terence SweeneyDouglas P. KintzingerJeff & Carol KozimorBarry & Polly LandsonDanielle MacBain & Jason GerardSteve & Cynde MagidsonJim & Donna ManionCharles & Elouise MattoxTroy & Julie McMullinWilliam B. MerrillTom & Jane MerrowEddy & Ann Miller/ Nine Mountain Log WorksJan MooreRobert B. NeighborRichard & Linda PattersonAlbert & Elizabeth PyottJim & Dianne RamseySi ReedyMichael ReidyBarry & Connie RiceBob & Janice SchockErich & Paige SchultzDoug & Barbara SeamanDaniel & Maureen SempertJudy SetzerSteve SheldonDave Slavensky & Lori Anne DomarchukEmil SmithJohn & Nancy SorlieJeff & Lucy StackAmy StuartBill & Lynda Swarts

10 DESCHUTES RIVER CONSERVANCY *deceased

T H A N K Y O U F O R Y O U R S U P P O R T

Todd & Lorri TaylorThomas & Phillis TempleDavid & Donna ThayerDon & Willie TykesonDan & Sarah WagsterWanderlust ToursKyle & Tara Wieche/ Altius Search Group LLCRandy & Kelly WildmanCarl & Judi Yee

IN-KIND DONATIONSAlder Creek Kayak & CanoeSteve ArnoldLee AugustAmy BakerBend Metro Park and Recreation DistrictBMG Group/Jim & Kim Mead C3 EventsCarlton Hill Wine CompanyKen ClarkConfederated Tribes of Warm Springs Combined CommunicationsNate Connolly Scott CookMark CopelandDeschutes Brewery, Inc. Don Terra ArtworksEarth H2O El PescadorElevation TentsFishpondFish’s Shuttle Service IncFly and Field OutfittersThe Fly Fisher’s Place Jen’s Garden Susan Luckey Higdon John JudyKatmailand, Inc.Kah-Nee-Ta High Desert Resort & CasinoDon Lange Winery

Steve LightJen LukeTR McCrystalMcMenamins, Inc.Gene McMullenDave Merrick Eddy MillerMontana Fly CompanyNorth Pole Products Damien NurreMark OglesbyBrian O’KeefeO’Keeffe’s Company OrvisLynne Paretchan/ Perkins, Coie, LLPPatagoniaLarry PecenkaPepsi Cola Bottling CompanyJeff Perin REIRedsides LodgeRidgeline Custom Homes Jim RozewskiBob SmithSherry SteeleStrictly Organic CoffeeSun Country ToursSutronTable Tops, Inc.Tate & Tate Catering The Bulletin The Morning Hatch The Source WeeklyThe Steambboat InnWanderlust Tours

GIFT MADE IN HONOR OR IN MEMORIAMErin Villano, In honor of Rocco, Chanda, Zoe & Ari VillanoRon and Margaret Angell, In honor of Dr. Raymond TienDean & Lavon Morton, In honor of

Craig Morton and his childrenEdd & Dawn Doorn/Doorn & As-sociates CPAS LLC, In honor of Hans Doorn TIGHT LINESAUCTION DONORSGary BakerJohn BelsickHerb Blank and Lee Ann RossGlenn DaviesRobert EvansJames FitzpatrickTim GalvinBob GriffinWilliam HinchliffKarl JohnsonLucian JonesLyle KearnsKevin KeillorDick KollerAaron LafkyBob LaneGregory McClarrenJim MeadSteven MichelRandy MillerAl & Pat NeufeldtDamien NurreO’Keeffes CompanyAlbert PyottRozewski & Company Designers, LLCRob Wilde

RESTRICTED GRANTS AND PROJECT FUNDERSAvion Water Company & Avion Blue Water ParticipantsBella Vista FoundationBureau of ReclamationColumbia Basin Water Transactions ProgramEagle Crest ResortJubitz Family Foundation

Meyer Memorial TrustNational Fish & Wildlife FoundationNational Forest FoundationNorth Rim Deschutes River Fund of the Oregon Community FoundationOregon Department of Fish & WildlifeOregon Water Resources DepartmentOregon Watershed Enhancement BoardPelton Water FundTransCanada GTN & NBP System

IRRIGATION DISTRICTS Arnold Irrigation DistrictCentral Oregon Irrigation DistrictCrook County Irrigation District #1LaPine Cooperative Water AssociationNorth Unit Irrigation DistrictOchoco Irrigation DistrictSwalley Irrigation DistrictThree Sisters Irrigation DistrictTumalo Irrigation District

WATER DONATIONS/ TEMPORARY INSTREAM LEASESCity of BendCity of Redmond City of SistersKeith Cyrus/ Aspen Lakes DevelopmentMill Creek Land LLC Ochoco Valley RanchRimrock Valley Ranch LLCLorne Stills

DESCHUTES RIVER CONSERVANCY 11

DONATIONS MADE FROM JANUARY 1, 2008 - DECEMBER 31, 2008

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DESCHUTESRIVER.ORG

SAVE THE DATE: UPCOMING DRC EVENT GET INVOLVED!There’s a reason you love Central Oregon. The quality of life in this region is hard to match. The beauty and allure of the Deschutes River and its tributaries probably played a role in attracting you here. Despite the beauty of our local rivers and streams, they require ongoing restoration efforts to repair past damage and return to health and vitality.

Although the DRC has been successful in attracting major project funding, your financial support is as important as ever. In order to accomplish our ambitious goals, we must raise 5% of our annual budget in unrestricted funds that are completely unencumbered by project restrictions. For more information visit us at www.deschutesriver.org or call 541.382.4077.

RIVERFEAST

July 11, 2009Please join the DRC for a wonderful evening of delectable food, spirits and jazz music at Izzy & Nancy Oren’s magnificent riverfront property along the Upper Deschutes, located directly across the river from Meadow Camp. You will thoroughly enjoy an un-structured evening of mingling with friends while taking in the beauty and wildlife this spectacular location has to offer. There will be a very brief program where you will have the opportunity to raise your paddle in sup-port of the DRC’s mission to restore streamflow and improve water quality in the Deschutes Basin.

Cost: $75 per person, $140 per couple.

Please RSVP by July 2nd to [email protected] or 541.382.4077 ext.10.