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HomeMy WebLinkAbout2021-11-04 Anuta Email RE File Nos 247-21-000553-MC and 247-21-000920-A1 Tracy Griffin From:Karl Anuta <kga@integra.net> Sent:Thursday, November 4, 2021 5:47 PM To:Angie Brewer Cc:'Jeffrey L. Kleinman' Subject:RE: File Nos. 247-21-000553-MC and 247-21-000920-A (Central Land and Cattle Company, LLC/DeLashmutt) Attachments:Anuta Summary of Water Facts with Ex sm.pdf [EXTERNAL EMAIL] [EXTERNAL EMAIL] Ms. Brewer – Here is an additional Memo submitted on behalf of Ms. Gould Karl G. Anuta 503-827-0320 From: Jeffrey L. Kleinman <kleinmanjl@aol.com> Sent: Thursday, November 4, 2021 3:34 PM To: angie.brewer@deschutes.org Subject: File Nos. 247-21-000553-MC and 247-21-000920-A (Central Land and Cattle Company, LLC/DeLashmutt) Hi Angie, Attached please find two technical memoranda from John Lambie. Kindly place them in the record in the above proceeding. Thank you. Jeffrey L. Kleinman Attorney at Law The Ambassador 1207 SW Sixth Avenue Portland, OR 97204 Tel: (503) 248-0808 Fax: (503) 228-4529 Email: KleinmanJL@aol.com You don't often get email from kga@integra.net. Learn why this is important KARL G. ANUTA LAW OFFICE OF KARL G. ANUTA, P.C. 735 SW FIRST AVENUE, 2ND FLOOR TRIAL ATTORNEY PORTLAND, OREGON 97204 E-MAIL LICENSED IN (503) 827-0320 KGA@INTEGRA.NET OREGON & WASHINGTON FACSIMILE (503) 386-2168 TO: Hearings Officer FR: Karl G. Anuta DT: November 4, 2021 RE: Deschutes County Case #’s: 247-21-000508-SP and 247-21-000849-A (Central Land and Cattle) - 80 OLU Site Plan approval - Thornburgh Resort 247-21-000553-MC and 247-21-000920-A (Central Land and Cattle) - OLU Expansion - Thornburgh Resort SUMMARY OF WATER RELATED FACTS SUPPORTING GOULD APPEAL This is intended to be a Summary of the Water Permit situation. I will attempt to just hit the proverbial high points, rather than repeating all the detailed analysis of why the Findings in the underlying decision were defective. Intended Use Of Water The current applications seek approval of a Site Plan for 80 Overnight Lodging Units (OLU), and expansion of the number of homes vs. OLU ratio authorized at the Thornburgh Resort. Both those types of uses will result in significant water use. The applicant has issued a Water Management Conservation Plan (WMCP) that documents that. A copy is provided as Anuta Ex.#1. This WMCP outlines considerable water use. It should be noted, this WMCP was created and the water use calculations were completed before the proposed increase in homes to OLU ratio. It would appear then, that the calculated water use outlined in this WMCP likely understates the actual use at the Resort - because the WMCP was not premised on the addition of over 200 (likely “trophy” style) homes. It should also be noted that the underlying Staff Report appears to rely on Page 1 of 7 the approval of this WMCP by the Oregon Water Resources Dept (OWRD). However, the WCMP was subsequently withdrawn by the applicant and a Stipulation filed in court that this WMCP has no further legal effect. A copy of that Stipulation is provided as Anuta Ex. #2. Background On Water Use Permits When a person or company is issued a Permit to appropriate water, by the OWRD, that Permit comes with a requirement that the permittee start appropriating or using water by a specified date. That is called a Completion date or C-Date. If the holder of the Permit has not put the water to use by the C-Date, then the permit expires. No water can then be legally withdrawn or used under that permit. That approach is a fundamental premise of the “use it or lose it” doctrine in western water law. And for that doctrine to work as it was designed, that approach makes sense. People should not be allowed to speculate in or hold unused water. They either need to use it in the period allowed by law, or release their claim on it so that the next person in line - or in time - can make use of it. A Permit holder can, if - an only if - they show that they made reasonable efforts to put the water to use, get an Extension of a C-Date. Here, the Resort sought just such an Extension from OWRD. Ms. Gould opposed, because under Oregon water law a permittee has to show that they put at least some water to use, or drilled wells, or constructed delivery works, or made some other similar effort to physically divert or withdraw the water at issue before the C-Date passes. We believe the evidence before the OWRD will ultimately show that the Resort had not done any of that, by April 3, 2018.1 Here the OWRD initially issued an Extension to the Resort. However, the agency ultimately withdrew that Extension - by an Order dated January 31, 2019. A copy of that Order is attached as Anuta Ex. #3. The OWRD instead sent the matter to Contested Case, after concluding as a matter of law that Ms. Gould had raised significant issues as to whether the Resort Permit could legally be 1 There is case law in Oregon confirming that a permittee cannot rely on conduct outside of the permit period, to meet its requirement of beneficial use. That is a legal issue that the ALJ Hearing the OWRD Contested Case will ultimately have to address. Page 2 of 7 extended. Id. No Hearing on that issue has to date been scheduled or occurred, and no decision issued. Impact Of Propose Resort It is already proven (and accepted by the courts) that this applicant’s: “consumptive use of groundwater is anticipated to impact an offsite fish-bearing stream, Whychus Creek, by reducing instream water volumes and increasing water temperatures.” Gould v. Deschutes County, __ Or LUBA ___, ___(2021)(LUBA #2020-095 June 11, 2021 Slip Op. p.12) citing Gould v. Deschutes County, 79 Or LUBA 561 (2019), aff’d 310 Or App 868 (2021). It is precisely because of this accepted fact, that water availability is such an important consideration in the approval process for these two applications. Availability Of Water The Resort currently holds a Permit G-17036, that would have allowed them to drill 6 wells - from which the water for the OLU’s and the rest of previously approved Resort would ultimately have come. A copy of that Permit is attached as Anuta Ex. #4. However, that Permit has - by its own terms - expired. Id. Even the Resort admits the C-Date on its Permit was April 3, 2018.2 No Extension of that Permit currently exists. So under that Permit, the Resort can only use the amount of water that it had already put to beneficial use under the Permit before the C-Date. That amount is zero. And the Resort admits that is the case. As the Resort WMCP repeatedly admits: “Thornburgh’s water system has not yet been developed and to date has not utilized any permitted water.”3 The OWRD also agrees that so far, Thornburg has reported no water usage of any sort. I have attached a highlighted email that confirms this, dated April 16, 2020. It is marked as Anuta Ex. #5. 2 Ex.#1 - Resort WMCP p.8 (“Water right Inventory” Table listing “Authorized C-Date” as “April 3, 2018"). 3 Ex.#1 - Resort WMCP p.7 §2.04 (discussion of “Historic Water Use.”). See also, WMCP p.8 (“Water right Inventory” Table listing amount of “Actual Diversion” to date as “0 cfs (00 gpm)”); WMCP p.11 §3.02 (“Thornburgh’s water system has not yet been developed, and no water use has been measured or reported to date.”)(emphasis added); and WMCP p.13 §4.01 (“...the water system is not yet developed.”). Page 3 of 7 The Resort also admitted in its own WMCP, that it “will require an OWRD Extension of Time” in order to be able to make use of water under the Permit.4 So the bottom line here, at least for you, is that the Record in front of you shows there is no water currently available to the Resort under the existing Permit. Recognizing that, the Resort has now applied for three additional Permits, for water that it hopes to use at the Resort. Those are: 1 - LL-1879 - A Limited License for use of Quasi-Municipal water for construction and operation of the Resort; 2 - T-13703 - A Temporary Transfer of another Permit to be Temporarily used at the Resort; and 3 - G-19139 - An entirely new Ground Water Permit, using more wells than the currently expired Permit. The Limited License (LL-1879) had a host of problems, including the fact that one of the wells proposed for use is a well that the County required be abandoned as part of the Resort land use approval. A copy of Ms. Gould’s comments on that application, which outlined the many problems and provided the maps and documents proving that the Resort was proposing to act contrary to its prior representations about well abandonment (representations on which the County relied in approving the Resort) are attached as Anuta Ex. #6. The Limited License has already been denied by OWRD. That denial specifically occurred because water was not available within the capacity of the resource. A copy of that Denial is attached as Anuta Ex. #7. The underlying Groundwater Review by OWRD is attached (and highlight in pertinent points) as Anuta Ex. #8. The Temporary Transfer (T-13703) has not yet been denied, but the wells involved in that application are the same as those involved in the Limited License. Attached as Anuta Ex. #9 are Ms. Goulds comments on that proposed transfer, which include specific identification (both in text and on maps) the wells involved - as well as an outline of a host of other problems with that application, some or all of which will likely result in the denial of the proposed transfer. The new “back up” Ground Water Permit (G-19139) is also likely to be denied. The map for the wells in that application is attached as Anuta Ex. #10. 4 See, Ex.#1 - WMCP p.16 §5.02. Page 4 of 7 That application seeks to use the same wells that the OWRD already found in the LL-1879 Denial do not have water available within the capacity of the resource. Thus it is highly unlikely that application will be approved and a Permit issued. It does not appear to me that the applicant has fully disclosed all the information that is in these comments, to the County, in its application. Thus, even if FMP Condition #10 was hypothetically purely “informational” the applicant has not met the requirements of that Condition. To the extent that the applicant has to, at each stage, prove up that water is available for this Resort - that clearly is not the case here. Mitigation As part of its Conditions of approval, the applicant must prove it has the ability to provide the Mitigation it agreed to with the Oregon Department of Fish & Wildlife (ODFW). Here, the applicant has not done that, and likely cannot do that. The applicant has not done that because it has not obtained the instream water right on Deep Creek that it promised. The ODFW Mitigation Agreement (which is effectively incorporated into the land use approval conditions) requires that cold spring surface flows of Deep Canyon Creek (after the two ponds there are completely removed - which to date has not occurred) be put instream. Those Deep Canyon Creek surface flows must be dedicated and permanently protected Instream, in order to constitute mitigation for the harm that is already known to potentially occur if the Resort ever uses the 6 wells that it originally proposed. No such instream right currently exists. Currently the Deep Canyon Creek surface water rights that the applicant originally pledged as mitigation do not even exist as such. Those rights have instead been “permanently” transferred by their former owner (Big Falls Ranch) to use via ground water. The Resort recently obtained an Assignment of those rights, from Big Falls Ranch, to the Resort. As a result, the Resort appears to now own those rights. However, in order to put those rights to use as mitigation, the applicant would have to do the following: (1) Apply for a transfer of those rights back from ground water to surface water; (2) Obtain an OWRD Order transferring those rights back to Page 5 of 7 surface water; (3) Apply for a transfer of those surface water irrigation diversion rights to a different “use” i.e. to an Instream use; (4) Obtain an Order approving that transfer of use; and (5) Completely remove the impoundments that create the two ponds on Deep Canyon Creek, so that the cold clean spring water flows unimpeded to the Deschutes.5 Here is a simplistic effort at providing that outline as a Timeline: Promise to provide Deep Canyon Creek We are Here Request to transfer rights Deep Canyon Creek water right transferred l back to surface water Surface water rights to Ground Water l l protected Instream l l l l l l l V V V V l-------------------------------l---------------------------l---------------------------l----------------- Order approving Application to transfer Order approving Removal of all transfer back use of same rights transfer Instream impoundment l Instream l Structures l l l l V V V V l-------------------------------l-----------------------------l-------------------------l----------------- Mitigation actually in place and available l V ---------l-------------------- As you can hopefully see, much remains to be done before the water that was promised under the ODFW Mitigation Agreement is actually available. In addition, it is highly questionable whether - if all of the outlined steps occur - there will actually be any mitigation water there. That is because the groundwater pumping and declines in the area have likely already eliminated the 5 Currently a head gate on the lower pond has been removed, but the concrete impoundment structure still exists, and still ponds water. The other pond has, to my knowledge, also not been removed. Page 6 of 7 flow of the Deep Creek Canyon springs at most (if not all) time of the year. We had two Technical Memorandum’s completed by an exceptionally well qualified Certified Water Rights Examiner. Mr. Kleinman has already submitted those. They clearly show that even if the surface water rights that were pledged as mitigation are someday transferred back and and turned into instream water rights, there is likely be no actual benefit because there will be no actual surface flows in Deep Canyon Creek. Staff’s approval of these two applications was error. For all the reasons both I and Mr. Kleinman have noted, you should grant the appeal and remand this matter to Staff. Respectfully Submitted, /s/ Karl G. Anuta Karl G. Anuta Page 7 of 7 11/5/2020 Water Right Services, LLC Page 1 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 WATER MANAGEMENT AND CONSERVATION PLAN PREPARED FOR PINNACLE UTILITIES, LLC THORNBURGH RESORT REDMOND, OREGON OCTOBER, 2020 PREPARED BY WATER RIGHT SERVICES, LLC PO BOX 1830, BEND, OR 97709 WWW.OREGONWATER.US JOHN A. SHORT CCB # 197121 JOHNSHORT@USA.COM 541-389-2837 Anuta Exhibit 1 - Page 1 of 37 11/5/2020 Water Right Services, LLC Page 2 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 TABLE OF CONTENTS PAGE 1. OAR 690-086-0125 WATER MANAGEMENT AND CONSERVATION PLAN ............. 4 1.01 SUPPLIER .................................................................................................................. 4 1.02 REASON FOR SUBMITTAL OF WMCP ................................................................ 4 1.03 OAR 690-086-0125(5) AFFECTED LOCAL GOVERNMENTS............................. 4 1.04 OAR 690-086-0125(6) PROPOSED DATE FOR SUBMITTAL OF UPDATES .... 4 1.05 OAR 690-086-0125(7) METER INSTALLATION STATUS ................................... 4 2. OAR 690-086-0140 WATER SUPPLIER DESCRIPTION .................................................. 4 2.01 OAR 690-086-0140(1) WATER SOURCES ............................................................. 4 2.02 OAR 690-086-0140(2) SERVICE AREA AND POPULATION .............................. 5 2.03 OAR 690-086-0140(3) PRESENT AND FUTURE ADEQUACY OF WATER SUPPLY ..................................................................................................................... 7 2.04 OAR 690-086-0140(4) HISTORIC WATER USE .................................................... 7 2.05 OAR 690-086-0140(5) WATER RIGHTS ................................................................. 8 2.06 OAR 690-086-0140(6) WATER CUSTOMERS ....................................................... 9 2.07 OAR 690-086-0140(7) INTERCONNECTIONS WITH OTHER MUNICIPAL SUPPLIERS ............................................................................................................. 11 2.08 OAR 690-086-0140(8) SYSTEM SCHEMATIC .................................................... 11 2.09 OAR 690-086-0140(9) SYSTEM LOSSES ............................................................. 11 3. OAR 690-086-0150 WATER CONSERVATION ............................................................... 11 3.01 OAR 690-086-0150(1) PROGRESS REPORT FROM PREVIOUSLY APPROVED WMCP ................................................................................................ 11 3.02 OAR 690-086-0150(2) WATER USE MEASUREMENT AND REPORTING ..... 11 3.03 OAR 690-086-0150(3) OTHER CONSERVATION MEASURES ........................ 11 3.04 OAR 690-086-0150(4) PLANNED CONSERVATION MEASURES ................... 12 A. OAR 690-086-0150(4)(a) Annual Water Audits - Not currently performed, as system is not yet constructed. ................................................ 12 B. OAR 690-086-0150(4)(b) System Metering – Water System has not yet been developed but will be fully metered when constructed. ................. 12 Anuta Exhibit 1 - Page 2 of 37 11/5/2020 Water Right Services, LLC Page 3 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 C. OAR 690-086-0150(4)(c) Meter Testing & Maintenance Program – Not instituted to date, but a testing and maintenance plan will be developed after construction. ......................................................................................... 12 D. OAR 690-086-0150(4)(d) Water Use Rate Structure – Not instituted to date, but to be developed prior to water use. ................................................ 13 E. OAR 690-086-0150(4)(e) Leak Detection if System Leakage Exceeds 10% – Not instituted to date; to be developed in conjunction with implementation of water audit program. ...................................................... 13 F. OAR 690-086-0150(4)(f) Water Conservation Public Education Program – None to date but will be developed prior to unit sales. .............. 13 3.05 OAR 690-086-0150(5) MUNICIPAL WATER SUPPLIERS SERVING OVER 1,000 ......................................................................................................................... 13 4. OAR 690-086-0160 WATER CURTAILMENT ................................................................. 13 4.01 OAR 690-086-0160(1) CAPACITY AND PREVIOUS SUPPLY DEFICIENCIES. ...................................................................................................... 13 4.02 OAR 690-086-0160(2-4) ALERT STAGES, TRIGGERS, AND CURTAILMENT ACTIONS ................................................................................................................. 14 5. OAR 690-086-0170 WATER SUPPLY ............................................................................... 16 5.01 OAR 690-086-0170(1) CURRENT AND FUTURE SERVICE AREA .................. 16 5.02 OAR 690-086-0170(2) FULL EXERCISE OF WATER RIGHTS ......................... 16 5.03 OAR 690-086-0170(3) PROJECTED WATER DEMAND .................................... 16 5.04 OAR 690-086-0170(4) PROJECTED WATER NEEDS VS. CURRENT SOURCES ................................................................................................................ 21 5.05 OAR 690-086-0170(5) ALTERNATIVES TO EXPANSION OF APPROPRIATION................................................................................................... 21 5.06 OAR 690-086-0170(6) EXPANSION OF APPROPRIATION ............................... 23 5.07 OAR 690-086-0170(7) MITIGATION REQUIREMENTS .................................... 23 5.08 OAR 690-086-0170(8) ALTERNATIVE SOURCE ANALYSIS ........................... 24 Anuta Exhibit 1 - Page 3 of 37 11/5/2020 Water Right Services, LLC Page 4 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 1. OAR 690-086-0125 WATER MANAGEMENT AND CONSERVATION PLAN (“WMCP”) 1.01 SUPPLIER Pinnacle Utilities, LLC Attn: Kameron DeLashmutt 2447 NW Canyon Dr Redmond, OR 97756 541-350-8479 1.02 REASON FOR SUBMITTAL OF WMCP Under water right Permit G-17036 Pinnacle must submit a WMCP to affected governments for comment and to Oregon Water Resources Department (OWRD) pursuant to Oregon Administrative Rules (OAR) Chapter 690, Division 86. Pinnacle Utilities, LLC (hereon referred to as Pinnacle), is the water right holder and the entity responsible for supplying water to the planned Thornburgh Resort. 1.03 OAR 690-086-0125(5) AFFECTED LOCAL GOVERNMENTS Copies of this draft WMCP were made available to the following affected local government at least 30 days prior to submitting to OWRD: Deschutes County Planning Department. No substantive comments on the plan were received (see attached County email). 1.04 OAR 690-086-0125(6) PROPOSED DATE FOR SUBMITTAL OF UPDATES OWRD approves WMCP’s for a standard period of 10 years and requires the water supplier to submit a progress report at the five-year mark. We propose to follow standard OWRD protocol and submit the next WMCP 10 years after the issuance of OWRD’s Final Order approving this WMCP, with a progress report within 5 years. Pinnacle proposes to submit its next plan update within 10 years of OWRD’s Final Order approving this initial WMCP. This gives sufficient time to develop the initial phase of the resort and begin using water and implementing conservation measures as outlined by this plan. 1.05 OAR 690-086-0125(7) METER INSTALLATION STATUS Not applicable at this time as the system is not built. Once built it will be fully metered. 2. OAR 690-086-0140 WATER SUPPLIER DESCRIPTION 2.01 OAR 690-086-0140(1) WATER SOURCES Water supplies will be derived from 6 groundwater wells penetrating the Deschutes Formation aquifer. Groundwater in the supplying aquifer is replenished by snow melt and precipitation recharge on the east slope of the Cascade Mountains. There are 6 planned wells and a pumping system feeding up to 4 above-ground concrete or steel reservoirs, along with irrigation lakes, all included in the original permitting process, and a buried distribution network. The water will be used for quasi-municipal purposes, including household uses, commercial use, and irrigation of the golf course and other common areas—all of which uses were included in the original groundwater permit. Water will be distributed through underground pipelines and a series of lakes. The system will be designed to pump the entire permitted 9.28 cfs. At this time, Pinnacle does not have any Anuta Exhibit 1 - Page 4 of 37 11/5/2020 Water Right Services, LLC Page 5 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 exchange agreements, intergovernmental cooperation agreements, and/or water supply or delivery contracts. Proposed Source Well Table Well # Township Range Section QQ Location 1 15 S 12 E 28 SE NW 1800’ S, 2335’ E of NW Cor Sec 28 2 15 S 12 E 29 SE NW 1655’ S, 2750’ W of NE Cor Sec 29 3 15 S 12 E 21 SW SW 1100’ N, 400’ E of SW Cor Sec 21 4 15 S 12 E 20 NE SE 2885’ S, 750’ W of NE Cor Sec 20 5 15 S 12 E 20 SW NE 2590’ S, 1860’ W of NE Cor Sec 20 6 15 S 12 E 17 SE NW 2375’ S, 3615’ W of NE Cor Sec 17 Storage for non-irrigation water will consist of up to 4 above-ground steel or concrete tanks that will be sized to provide sufficient capacity to meet peak demand including fire flow throughout the project. Pump stations and pressure-reducing valves will deliver water through a PVC water main and distribution network, maintaining appropriate pressure levels throughout the project. Irrigation water will be temporarily stored in ponds located throughout the project which will be sized to meet peak irrigation demand requirements. Water from the ponds will be pumped through a separate irrigation pipe network for irrigation of golf course areas and standard irrigation areas. Landscaping for private lots will be irrigated through the domestic supply system. Non-Irrigation Storage Description Reservoir Volume 1 130,000 gallons 2 300,000 gallons 3 160,000 gallons 4 40,000 gallons Total 630,000 gallons 2.02 OAR 690-086-0140(2) SERVICE AREA AND POPULATION The service area for the Thornburgh Resort water system is solely the Thornburgh Resort property. See attached schematic map and G-17036 Permit Map. Thornburgh Resort is a planned destination resort located in Deschutes County in Central Oregon, 8 miles west of Redmond, 12 miles north of Bend. The Thornburgh Resort property consists of approximately 1,980 acres on the southerly and westerly flanks of Cline Buttes, with a variety of undeveloped land including sloping terrain, natural vegetation, ridgelines, and rock outcroppings. Anuta Exhibit 1 - Page 5 of 37 11/5/2020 Water Right Services, LLC Page 6 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 Thornburgh Resort Development Location Thornburgh Resort is still in the planning stages and has not yet been constructed. The Final Master Plan for the Thornburgh Resort outlines a phased development approach. In total, Thornburgh Resort is permitted for 1,425 Equivalent Dwelling Units (EDU) including 950 homesites and 475 cabins/cottages/townhomes. For projected population calculations, this plan will utilize a fully planned occupancy rate of 2.5 people per EDU, in-line with area resorts. Thornburgh Resort Estimated Total Project Population BUILDING/FACILITY TYPE ESTIMATED EQUIVALENT DWELLING UNITS ESTIMATED PROJECT POPULATION 950 homesites 950 2,375 Cabins/Cottages/Townhomes/Overnight Lodging Units 475 1,188 Miscellaneous--clubhouse, restaurant, spa, fitness center, rec. facilities, administrative buildings 0 0 TOTALS 1,425 3,563 Anuta Exhibit 1 - Page 6 of 37 11/5/2020 Water Right Services, LLC Page 7 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 2.03 OAR 690-086-0140(3) PRESENT AND FUTURE ADEQUACY OF WATER SUPPLY At full build-out Thornburgh Resort plans to utilize the full rate (9.28 CFS) and duty (2,129 AF) permitted by water right G-17036 (copy attached). Planning of the Resort and subsequent design specifications were created with this rate and duty in mind. Quasi-municipal uses including Golf Course Irrigation, Standard Irrigation, Reservoir Maintenance, and “Other” QM use (Domestic- Residential/Commercial/Dust Abatement-Construction Water) are limited categorically by the permit, thus design and construction will follow suit. As the water system is developed and actual water use and demand data is collected, more analysis can be conducted to determine the adequacy of the water supply for the future needs of the community. An additional system reliability component is the mitigation requirement of Permit G-17036. Permit G-17036 states that “the use of groundwater allowed under allowed under the terms of this permit will not be subject to regulation for Scenic Waterway flows as long as mitigation is maintained.” Mitigation elements are discussed later in this report. 2.04 OAR 690-086-0140(4) HISTORIC WATER USE Thornburgh’s water system has not yet been developed and to date has not utilized any permitted water. See Water Supply Section of this plan for projected water use information. [CONT’D ON NEXT PAGE] Anuta Exhibit 1 - Page 7 of 37 11/5/2020 Water Right Services, LLC Page 8 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 2.05 OAR 690-086-0140(5) WATER RIGHTS Thornburgh Water Right Inventory Appl # Permit # Cert # (Transfer #, if any) Priority Date Source Use Allowed Rate (cfs) and Duty (AF) Actual Diversion Authorized C- Date Threatened or Endangered Species Affected? Water Quality Listed Source in Critical Groundwater Area? Maximum Instantaneous Rate Diverted to Date (cfs) Maximum Annual Quantity Diverted to Date (MG) Average Monthly Diversion (MG) Average Daily Diversion (Gallons) G-16385 G-17036 February 9, 2005 6 wells in the Deschutes River Basin Quasi-Municipal Uses, including irrigation of golf courses and commercial areas, and maintenance of reservoirs 9.28 cfs (4,165 gpm), limited to a maximum annual volume of 2,129 AF. Further limited by the corresponding mitigation provided. 0 cfs (00 gpm) 0 MG 0 MG 0 Gallons April 3, 2018 None No No Ground Water Permit G-17036 (2-9-2005) – This permit authorizes up to 9.28 cfs and 2,129 AF for Quasi-Municipal uses including irrigation of golf courses and commercial areas, and maintenance of reservoirs. Period of use is Year-Round except for the seasonal limits placed on irrigation use by the permit. The rate and volume are further limited by the corresponding mitigation provided. The maximum volume for irrigation of 320 acres of golf courses shall not exceed 717 AF annually. The amount of water used for irrigation generally under this right is limited to a diversion of 1/80th of 1 cfs and 3 AF for each acre irrigated during the irrigation season of each year. The amount of golf course irrigation specifically under this right is further limited to a diversion of 2.24 AF for each acre irrigated during the irrigation season of each year. The fully developed Mitigation Obligation for this right is 1,356 AF annually, to be provided within the General Zone of Impact. Mitigation is to be provided prior to each stage of development under the permit. The use of groundwater allowed under the terms of the permit is not subject to regulation for Scenic Waterway flows, so long as mitigation is maintained. Anuta Exhibit 1 - Page 8 of 37 11/5/2020 Water Right Services, LLC Page 9 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 2.06 OAR 690-086-0140(6) WATER CUSTOMERS Pinnacle will solely provide water for the Thornburgh Resort development. This development will utilize the water for various Quasi-Municipal (QM) uses. Golf Course Irrigation will be utilized by the portion of development at Thornburgh Resort including three 18-hole golf courses, along with extensive practice facilities. Standard Irrigation will be utilized by the portion of development at Thornburgh Resort including landscaped grounds and common areas not falling on private lots or golf course areas or reservoir areas. Reservoir Maintenance use will be utilized by the portion of development at Thornburgh Resort including planned irrigation storage, recreational, and aesthetic lakes and reservoirs. “Other” Quasi-Municipal uses will include Residential, Commercial, and Construction Water/Dust Abatement Water. Domestic-Residential QM uses will be utilized by the portion of development at Thornburgh Resort including 950 single-family homesites, and 475 Cabins/Cottages/Townhomes. Commercial QM uses will be utilized by the portion of development at Thornburgh Resort including Clubhouses, Restaurant, Spa, Wellness & Fitness Center, Pool and Water Sports Complex, a Beach Club facility, and various administrative and maintenance facilities. Dust Abatement and Construction Water will be utilized throughout the Resort as development occurs. Projected Uses by Category Type of QM Use/Custom er Areas of Use Season Projected Accounts Annual/Diurnal Use Pattern Golf Course Irrigation Golf Courses, Driving Range, Practice Area Irrigation Season 1 Use is highest during irrigation season; use will be highest in the late evening through early morning when evapotranspiration is lowest to conserve water. Use will be higher during establishment of vegetation. Standard Irrigation Common Areas, General Grounds Irrigation Season 1 Use is highest during irrigation season; use will be highest in the late evening through early morning when evapotranspiration is lowest to conserve water. Use will be higher during establishment of vegetation. Reservoir Maintenance Irrigation, Recreation and Aesthetic Lakes/Reservoirs Year Round 1 Seasonal pattern; highest use will occur during the summer when evaporation rates are high, lowest use will occur in winter when evaporation rates are low Domestic- Residential QM Single Family Homesites, Cabins/Cottages/ Townhomes, Overnight Lodging Lots Year Round 1,425 No study has been performed for Thornburgh Resort, use is expected to follow typical American residential patterns. Expected seasonal peaks will occur during summer months and weekends due to visitor influx. Anuta Exhibit 1 - Page 9 of 37 11/5/2020 Water Right Services, LLC Page 10 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 Inside Use (year-round): a) Low during night, approx. 11pm- 5am b) Highest use in morning, approx. 7am-11am c) High evening use, approx. 6pm- 11pm Outside Use (summer): a) High, approx. 5am-10am Commercial QM Clubhouses, Welcome Center, Restaurant, Spa, Wellness & Fitness Center, Pool and Water Sports Complex, Beach Club, Administrative/ Maintenance Facilities Year Round Approx. 20 Highly variable. Use will vary seasonally with highest use in summer. Daily use will be highest during daytime hours, although will vary depending on facility type. Construction / Dust Abatement Water Throughout resort as development occurs Year Round 1 Highly variable. Highest use will occur during peak construction times, mostly limited to daytime hours Monday – Friday, with highest use likely during summer months when soil conditions are driest. Thornburgh expects to see highest uses early in the development to follow trends seen in recent developments of other comparable resorts such as Eagle Crest Resort and Brasada Ranch in Crook County. (These facilities are comparable as they are similar in nature and located in similar environments, and soil types. Golf Course Irrigation and Standard Irrigation along with Reservoir Maintenance and Construction/Dust Abatement Water will likely be the highest uses during the early stages of development. As residential and commercial development occurs, the need for delivery of water to customers will rise along with the need for fire protection flow. Thornburgh’s projected residential flow requirement is 1,095 gallons per EDU per day. Because of the semiarid environment and the likely use of many units for vacation homes, water consumption is expected to peak in the hot summer months. While actual water use may be lower than 1,095 gallons per day, due to proposed conservation measures, this daily water supply estimate allows for a margin of supply safety. Following recommendations from the Redmond Rural Fire District, a water supply for fire protection in semiarid Oregon requires providing 2,250 gpm for the planned commercial facilities at Thornburgh Resort. Thornburgh’s projected use by category will be comparable to area resorts. For Residential-Domestic Use, Thornburgh projects 1,095 gpd/EDU compared to the 1,250 gpd/EDU projected at both Brasada Ranch and Eagle Crest Resort. Eagle Crest is a fully developed destination resort with a variety of Anuta Exhibit 1 - Page 10 of 37 11/5/2020 Water Right Services, LLC Page 11 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 recreational facilities including two 18-hole golf courses, 1,463 homes, 24 commercial water users, and 143 irrigation services in its 2015 WMCP. According to Oregon Water Utilities, LLC, the owners of the Eagle Crest utilities, Eagle Crest Resort used approximately 3,208,659 gallons per day during its peak demand days. Of that, 1,534,598 gallons per day were used for its two 18-hole golf courses. Thornburgh projects delivering 717 AF annually to its multiple 18-hole golf courses, and practice areas. 2.07 OAR 690-086-0140(7) INTERCONNECTIONS WITH OTHER MUNICIPAL SUPPLIERS No interconnections exist with other municipal supply systems. See further discussion of interconnection below in Section 5.05(B) below, covering OAR 690-086-0170(5)(b). 2.08 OAR 690-086-0140(8) SYSTEM SCHEMATIC As discussed herein, Thornburgh has not begun construction of the water system. Attached to this WMCP is the approved Final Master Plan Water System map that provides a rough layout water system and the proposed underground distribution lines discussed and described herein, along with its proposed wells and reservoirs. As the project develops its water system it will be able to provide “schematics” of the system as built. 2.09 OAR 690-086-0140(9) SYSTEM LOSSES During the installation of the distribution system, the system will be pressure tested to assure water-tight installations. Once constructed, little leakage is expected from the new water system due to new piping and pressure testing. Following installation of the water system, a water audit estimating water loss will begin within the first year of water usage. 3. OAR 690-086-0150 WATER CONSERVATION 3.01 OAR 690-086-0150(1) PROGRESS REPORT FROM PREVIOUSLY APPROVED WMCP Not applicable – this is the first plan. 3.02 OAR 690-086-0150(2) WATER USE MEASUREMENT AND REPORTING Thornburgh’s water system has not yet been developed, and no water use has been measured or reported to date. Water use reporting is required by Permit G-17036. As outlined in Permit G-17036, Pinnacle will install totalizing flow meters at each source well after well development occurs. Data will be collected, and records kept so that monthly water use reports can be submitted on an annual basis at a minimum. The program will comply with the measurement standards in OAR Chapter 690 Division 85. 3.03 OAR 690-086-0150(3) OTHER CONSERVATION MEASURES Conservation and preservation of natural features has been a constant throughout the resort’s planning process. While Thornburgh Resort has not yet implemented any conservation measures as it hasn’t begun development, it is committed to water conservation as a foundation of the development. The resort’s Architectural Design Guidelines, a draft of which was approved by Deschutes County as part of the Conceptual Master Plan, strongly encourage the use of techniques that limit the building’s water demands, including the use of efficient water fixtures, drought tolerant plants, landscape materials indigenous to the area, xeriscaping, and limited turf areas. Landscape designs require that strong Anuta Exhibit 1 - Page 11 of 37 11/5/2020 Water Right Services, LLC Page 12 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 consideration be given to the residences water usage and conservation. Thornburgh’s Architectural Design Committee will oversee the implementation of the landscaping guidelines that address land and water conservation. The committee has the authority to approve or disapprove of all landscape plans for individual residences that do not meet the resort design guidelines or its intent. In addition, the resort will implement a system of reuse of its treated wastewater for irrigation of the golf course. The golf course irrigation system was designed complete with a mixing station to mix the fresh water with the treated water for use on the golf course. As detailed below, all of the systems are being designed to be fully metered allowing for accurate auditing of use and system losses. 3.04 OAR 690-086-0150(4) PLANNED CONSERVATION MEASURES A. OAR 690-086-0150(4)(a) Annual Water Audits - Not currently performed, as system is not yet constructed. Five-Year Benchmarks: By end of 2024 (within 5 years of WMCP approval): will implement an annual water audit program utilizing a systematic and documented methodology for estimating any un-metered authorized or unauthorized water use. The planned annual water audit program will also include methods to estimate non-revenue water use including real system losses (such as leakage) and apparent losses (such as meter error, billing issues, fire hydrant testing, construction water, dust abatement water etc.). A water audit estimating water loss will begin within the first year of water usage. B. OAR 690-086-0150(4)(b) System Metering – Water System has not yet been developed but will be fully metered when constructed. Five-Year Benchmarks: Beginning in 2020: Develop planning measures that call for the installation of meters throughout water service connections and source wells in the development. 2020-2024 (to begin after WMCP approval): Install totalizing flow meters as wells are developed and install meters for individual water service connections throughout the Resort as lots and facilities are developed. Begin collecting and organizing water use data for all meters once installed. C. OAR 690-086-0150(4)(c) Meter Testing & Maintenance Program – Not instituted to date, but a testing and maintenance plan will be developed after construction. Five-Year Benchmark: 2020-2024: Typical expected useful life of water meters is 20-25 years, therefore few problems are anticipated during this initial phase of development. Meters will be tested if a problem is suspected or if requested by a customer/user. Source meters Anuta Exhibit 1 - Page 12 of 37 11/5/2020 Water Right Services, LLC Page 13 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 will be tested, calibrated and maintained within 5 years after initial installation (not expected to occur within the WMCP update timeframe). D. OAR 690-086-0150(4)(d) Water Use Rate Structure – Not instituted to date, but to be developed prior to water use. Five-Year Benchmark: 2020-2024 (within 5 years of WMCP approval): Implement most appropriate rate structures based, at least in part, on metered water use by each residential service connection. E. OAR 690-086-0150(4)(e) Leak Detection if System Leakage Exceeds 10% – Not instituted to date; to be developed in conjunction with implementation of water audit program. Two-Year Benchmark: 2020-2024 (within 2 years of WMCP approval): During the installation of the distribution system, the system will be pressure tested to assure water-tight installations. Following future water audits, if leakage exceeds 10%, Thornburgh shall develop a regularly scheduled and systematic program detecting and addressing leaks in transmission and distribution lines, consistent with the standards of the American Water Works Association’s standards (not expected to occur within the WMCP update timeframe). As noted above, once the system is built Pinnacle Utilities, LLC will ensure the systems comply with the measurement standards under OAR Chapter 690, Division 85. F. OAR 690-086-0150(4)(f) Water Conservation Public Education Program – None to date but will be developed prior to unit sales. Five-Year Benchmark: 2019-2014 (within 5 years of WMCP approval): Review and select preferred water conservation educational materials for distribution and/or made available to residents and water customers within 5 years. 3.05 OAR 690-086-0150(5) MUNICIPAL WATER SUPPLIERS SERVING OVER 1,000 This requirement is not applicable at this time, as the Resort is not yet serving anyone. The requirement will be addressed, if applicable, in the next plan update. 4. OAR 690-086-0160 WATER CURTAILMENT 4.01 OAR 690-086-0160(1) CAPACITY AND PREVIOUS SUPPLY DEFICIENCIES. No supply deficiencies have occurred since the water system is not yet developed. Anuta Exhibit 1 - Page 13 of 37 11/5/2020 Water Right Services, LLC Page 14 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 4.02 OAR 690-086-0160(2-4) ALERT STAGES, TRIGGERS, AND CURTAILMENT ACTIONS Thornburgh Resort will employ a three-stage alert system to be overseen by Pinnacle Utilities, LLC water system manager. Determination of stages and authority and enforcement of Water Curtailment actions will be the responsibility of the Pinnacle Utilities, LLC water system manager. Thornburgh’s three curtailment stages increase in severity and are as follows: Stage I: Mild Alert Stage II: Serious Alert Stage III: Critical Alert Water Shortage Stages and Initiating Conditions Stage Initiating Conditions Curtailment Actions Stage I: Mild Alert Water use has reached 80% of capacity; or wells are producing no more than 90% of capacity; or Drought Emergency for Deschutes County declared by the Governor Notice to the public of the water supply shortage condition level, cause of condition, consequences of moving to next stage, and actions that will help alleviate the shortage condition. This information will also be posted in public areas (ex. Clubhouse, Welcome Center, Rec. Facilities etc.), and posted within online community websites and/or social media. Automated Standard Irrigation of common areas will be reduced 10% from normal watering cycles. Request Residential water users take the following voluntary actions: • Domestic watering of landscaping restricted to the evening or early morning. • Limit car washing, shower times, dishwasher and laundry use, washing of patios and other hard-scaping, and other ordinary types of water use. Stage II: Serious Alert Water use has reached 90% of capacity; or wells are producing no more than 75% of capacity. Notice (including door to door contact) to the public of the water supply shortage condition level, cause of condition, consequences of moving to next stage, and actions that will help alleviate the shortage condition. This information will also be posted in public areas (ex. Clubhouse, Welcome Center, Rec. Facilities etc.), and posted within online community websites and/or social media. Automated Standard Irrigation of common area will be eliminated. Golf Course Irrigation will be reduced at least 20%. Eliminate the replenishment of any recreational/aesthetic lakes due to evaporation losses. Anuta Exhibit 1 - Page 14 of 37 11/5/2020 Water Right Services, LLC Page 15 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 Eliminate dust abatement uses. Fire hydrants to be used for emergencies only. Prohibit new connections until shortage conditions are alleviated. Investigate alternative sources of supply (water tank trucks, graywater, interconnections with other water systems, new or existing wells, etc.) in order that they be immediately available should the shortage become elevated to Stage III: Critical Alert Residential water user requirements: • Domestic watering of landscaping strictly limited to alternate day schedule in the evening or early morning to be set by Pinnacle water system manager. • The following uses prohibited: vehicle, boat, trailer, patio and hardscaping, washing, planting new lawns or landscaping requiring irrigation. • Encourage limited shower times, dishwasher and laundry use, toilet flushing etc. Stage III: Critical Alert Water use has reached 95% of capacity; or wells are producing less than 70% of capacity; or there is an immediate threat to public health or safety due to a contamination or catastrophic loss of water. Notice (including door to door contact and notice left on-site) to the public of the water supply shortage condition level, cause of condition, and actions that will help alleviate the shortage condition. This information will also be posted in public areas (ex. Clubhouse, Welcome Center, Rec. Facilities etc.), and posted within online community websites and/or social media. Automated Standard Irrigation eliminated. Golf Course Irrigation will be eliminated, except greens and tee areas allowed 30% reduced irrigation sets at the discretion of the Pinnacle water system manager depending on the specific circumstances surrounding the Critical Alert. Eliminate the replenishment of any recreational/aesthetic lakes due to evaporation losses. Eliminate dust abatement uses. Fire hydrants to be used for emergencies only. Residential water user requirements: • All outdoor use prohibited. Anuta Exhibit 1 - Page 15 of 37 11/5/2020 Water Right Services, LLC Page 16 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 • Indoor use limited to 68 gallons per person per day to serve basic health and sanitation needs; or 50 gallons per day in the case of severe or prolonged shortage or other emergency. As needed, issue water boil notices prior to system failure. Connect to alternative sources identified during Stage II Serious Alert if available. As needed, provide information about where to obtain water for cooking and sanitation. 5. OAR 690-086-0170 WATER SUPPLY 5.01 OAR 690-086-0170(1) CURRENT AND FUTURE SERVICE AREA Thornburgh Resort is currently undeveloped. See attached Permit G-17036 map at the end of this document. Due to fluctuations in the real estate market, population projections are highly uncertain. Thornburgh projected the number of EDU’s and population using a professional real estate economist and by using data from comparable developments and destination resorts in Oregon. Projected population is expected to be approximately 2.5 persons per Equivalent Dwelling Unit (EDU), depicted on the following table. Projected Equivalent Dwelling Units and Population at Thornburgh Resort 2020 2024 2029 2034 Build-out Units 0 405 855 1305 1,425 Population 0 1,012 2,137 3,262 3,563 5.02 OAR 690-086-0170(2) FULL EXERCISE OF WATER RIGHTS Water Right Permit G-17036 has a projected completion date of 10/1/2035. This will require an OWRD Extension of Time. As this report depicts, Thornburgh Resort will have considerable water demand needs including significant domestic-residential and golf course irrigation uses. As the resort develops water demand is expected to grow in phases tied to building activity. Currently full build-out is expected to occur in 2035, at that time Thornburgh Resort expects to fully exercise Permit G-17036. However, it is quite possible that full beneficial use of the permit will occur prior to build-out, due to water demand for peak flows during hot summer days when fire danger is highest, and potential uses such as fire flow and flushing of hydrants for maintenance or entire system contamination flushing may occur. 5.03 OAR 690-086-0170(3) PROJECTED WATER DEMAND Because Thornburgh is not yet constructed, making 10- and 20-year projections is difficult. Using master planning information, historical growth data from similar developments, and other real estate and economic projections, we have produced reasonable expectations for growth at Thornburgh Resort. As Thornburgh develops in the coming years, population and demand data will be collected and analyzed to Anuta Exhibit 1 - Page 16 of 37 11/5/2020 Water Right Services, LLC Page 17 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 better develop growth projections at that time. The following table depicts the projected number of Equivalent Dwelling Units at Thornburgh at 5-year increments until build-out. Projected Equivalent Dwelling Units at Thornburgh Resort 2019 2024 2029 2034 Build-out Units 0 405 855 1305 1,425 Thornburgh master planning data combined with analysis of comparable resort development data regarding expected demand and uses by category informed Thornburgh’s projected water use calculations. Due to the seasonal nature of comparable resort developments, Thornburgh is projected to require a rate sufficient to meet peak summer daily demand accounting for all uses. Averaged annually, daily demand for each use category is expected to be much lower and annual use will fall within the annual volume limits of the permit. The projections assume the following: • Projected use by category will follow the pattern of development outlined by the Incremental Development Plan in 5-year increments. • Water use for peak day Golf Course Irrigation will be 8,126 gallons per acre per day, adhering to total annual volume caps limited by Permit G-17036. Peak day usage will be met by storage in the reservoirs and will be recovered over approximately 12 hours each cycle. Irrigation of golf course areas will occur over approximately 8 hours at night, when evapotranspiration rates are lowest. • Water use for Standard Irrigation will be 3 AF per acre, with a peak rate of 1/80th cfs per acre irrigated, adhering to total annual volume caps limited by Permit G-17036. • Reservoir Maintenance use will be based on an evaporation rate of 2.66 AF per acre of surface area. • Thornburgh Resort requires 2,250 gpm (5.01 cfs) to ensure adequate instantaneous flow for the fire suppression system. Thornburgh’s distribution system will be capable of delivering this flow, and the storage system once fully developed will be capable of meeting this need, but Thornburgh may require direct groundwater flow for the fire suppression system depending on the stage of development. This need will be addressed after more analysis and water demand data is collected. At this time, fire flow demand will be considered met by storage capacity. • Thornburgh’s domestic peak-day demand is assumed to be 1,250 gallons for single family homes, 1,050 gallons for Cabins/Cottages, and 850 gallons for condominiums; using a 90% occupancy factor we assume an overall weighted average of 1095 gallons per EDU. As development increases, Thornburgh’s peak day demand is therefore expected to increase at the same rate as the rate of growth as the development. 10-Year Projections: Anuta Exhibit 1 - Page 17 of 37 11/5/2020 Water Right Services, LLC Page 18 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 10 Year Projected Peak Day Demand (Domestic-Residential QM) 855 EDU’s X 1,095.26 gpd/EDU = 936,225 gpd = 0.936 MGD 936,225 gpd / 1440 min/day = 650 gpm or 1.45 cfs 10 Year Projected Peak Hour Demand (Domestic-Residential QM) 650 gpm X 2.5 P.F. = 1,625 gpm or 3.62 cfs 10 Year Projected Peak Day Demand (Commercial QM) 101,959 gpd = 0.102 MGD 101,959 gpd / 1440 min/day = 71 gpm or 0.16 cfs 10 Year Projected Peak Hour Demand (Commercial QM) 71 gpm X 2.5 P.F. = 177.5 gpm or 0.40 cfs 10 Year Projected Peak Day Demand (Reservoir Maintenance) 30 ac X 2,740 gpd/ac = 82,189 gpd = 0.082 MGD 82,189 gpd / 1440 min/day = 57 gpm or 0.13 cfs 10 Year Projected Peak Day Demand (Standard Irrigation) 36.92 ac X 1/80th cfs = 0.46 cfs or 298,276 gpd = 0.298 MGD 298,276 gpd / 1440 min/day = 207 gpm 10 Year Projected Peak Hour Demand (Standard Irrigation) 298,276 gpd / 480 min (8-hour irrigation cycle) = 621 gpm or 1.38 cfs 10 Year Projected Peak Day Demand (Golf Course Irrigation) 110 ac X 8,126 gal/ac/day = 893,860 gpd = 0.894 MGD 893,860 gpd / 1440 min/day = 621 gpm or 1.38 cfs 10 Year Projected Peak Hour Demand (Golf Course Irrigation) 893,860 gpd / 480 min (8-hour irrigation cycle) = 1,862 gpm or 4.15 cfs 10 Year Projected Peak Day Demand (Construction/Dust Abatement) Construction/Dust Abatement Water = 22 gpm or 0.06 cfs Total Peak Day Demand Total MDD = 1.45 cfs (Domestic-Residential) + 0.16 cfs (Commercial) + 0.13 cfs (Reservoir Maintenance) + 0.46 cfs (Standard Irrigation) + 1.38 cfs (Golf Course Irrigation) + 0.06 cfs (Construction/Dust Abatement) = 3.64 cfs Thornburgh Resort Estimated 10-year Water Demand Source Requirement Water Use Estimated Consumption Anuta Exhibit 1 - Page 18 of 37 11/5/2020 Water Right Services, LLC Page 19 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 Domestic-Residential QM Use Domestic-Residential Peak Day Demand 650 gpm or 1.45 cfs Domestic-Residential Peak Hour Demand 1,625 gpm or 3.62 cfs, provided by stored water in reservoir Fire Protection Flow Requirement 2,250 gpm or 5.01 cfs, provided by stored water in reservoir Commercial QM Use Commercial Peak Day Demand 71 gpm or 0.16 cfs Commercial Peak Hour Demand 177.5 gpm or 0.40 cfs, provided by stored water in reservoir Fire Protection Flow Requirement 2,250 gpm or 5.01 cfs, provided by stored water in reservoir Reservoir Maintenance Use Reservoir Maintenance Peak Day Demand 57 gpm or 0.13 cfs Standard Irrigation Use Standard Irrigation Peak Day Demand 207 gpm or 0.46 cfs Standard Irrigation Peak Hour Demand 621 gpm or 1.38 cfs, provided by stored water in reservoir Golf Course Irrigation Use Golf Course Irrigation Peak Day Demand 621 gpm or 1.38 cfs Golf Course Irrigation Peak Hour Demand 1,862 gpm or 4.15 cfs, provided by stored water in reservoir Construction/Dust Abatement Use Construction/Dust Abatement Peak Demand 22 gpm or 0.06 cfs Total 10 Year Projected Demand Requirement 1.45 cfs (Domestic-Residential) + 0.16 cfs (Commercial) + 0.13 cfs (Reservoir Maintenance) + 0.46 cfs (Standard Irrigation) + 1.38 cfs (Golf Course Irrigation) + 0.06 cfs (Construction/Dust Abatement) = 3.64 cfs or 1,628 gpm Build-out Projections: Build-out Projected Peak Day Demand (Domestic-Residential QM) 1,425 EDU’s X 1,095.26 gpd/EDU = 1,560,746 gpd = 1.561 MGD 1,560,746 gpd / 1440 min/day = 1,084 gpm or 2.42 cfs Build-out Projected Peak Hour Demand (Domestic-Residential QM) 1,084 gpm X 2.5 P.F. = 2,710 gpm or 6.04 cfs Anuta Exhibit 1 - Page 19 of 37 11/5/2020 Water Right Services, LLC Page 20 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 Build-out Projected Peak Day Demand (Commercial QM) 198,222 gpd = 0.198 MGD 198,222 gpd / 1440 min/day = 138 gpm or 0.31 cfs Build-out Projected Peak Hour Demand (Commercial QM) 138 gpm X 2.5 P.F. = 345 gpm or 0.78 cfs Build-out Projected Peak Day Demand (Reservoir Maintenance) 77.44 ac X 2,740 gpd/ac = 212,158 gpd = 0.212 MGD 212,158 gpd / 1440 min/day = 147 gpm or 0.33 cfs Build-out Projected Peak Day Demand (Standard Irrigation) 36.92 ac X 1/80th cfs = 0.81 cfs or 523,414 gpd = 0.523 MGD or 0.81 cfs 523,414 gpd / 1440 min/day = 363 gpm Build-out Projected Peak Hour Demand (Standard Irrigation) 523,414 gpd / 480 min (8-hour irrigation cycle) = 1,090 gpm or 2.92 cfs Build-out Projected Peak Day Demand (Golf Course Irrigation) 320 ac X 8,126 gal/ac/day = 2,600,291 gpd = 2.600 MGD 2,600,291 gpd / 1440 min/day = 1,806 gpm or 4.02 cfs Build-out Projected Peak Hour Demand (Golf Course Irrigation) 2,600,291 gpd / 480 min (8-hour irrigation cycle) = 5,417 gpm or 12.07 cfs Total Peak Day Demand Total PDD = 2.42 cfs (Domestic-Residential) + 0.31 cfs (Commercial) + 0.33 cfs (Reservoir Maintenance) + 0.81 cfs (Standard Irrigation) + 4.02 cfs (Golf Course Irrigation) = 7.89 cfs Thornburgh Resort Estimated Build-out Water Demand Source Requirement Water Use Estimated Consumption Domestic-Residential QM Use Domestic-Residential Peak Day Demand 1,084 gpm or 2.42 cfs Domestic-Residential Peak Hour Demand 2,710 gpm or 6.04 cfs, provided by stored water in reservoir Fire Protection Flow Requirement 2,250 gpm or 5.01 cfs, provided by stored water in reservoir Commercial QM Use Commercial Peak Day Demand 138 gpm or 0.31 cfs Commercial Peak Hour Demand 345 gpm or 0.78 cfs, provided by stored water in reservoir Anuta Exhibit 1 - Page 20 of 37 11/5/2020 Water Right Services, LLC Page 21 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 Fire Protection Flow Requirement 2,250 gpm or 5.01 cfs, provided by stored water in reservoir Reservoir Maintenance Use Reservoir Maintenance Peak Day Demand 147 gpm or 0.33 cfs Standard Irrigation Use Standard Irrigation Peak Day Demand 363 gpm or 0.81 cfs Standard Irrigation Peak Hour Demand 1,090 gpm or 2.92 cfs, provided by stored water in reservoir Golf Course Irrigation Use Golf Course Irrigation Peak Day Demand 1,806 gpm or 4.02 cfs Golf Course Irrigation Peak Hour Demand 5,417 gpm or 12.07 cfs, provided by stored water in reservoir Build-out Projected Demand Requirement 2.42 cfs (Domestic-Residential) + 0.31 cfs (Commercial) + 0.33 cfs (Reservoir Maintenance) + 0.81 cfs (Standard Irrigation) + 4.02 cfs (Golf Course Irrigation) = 7.89 cfs or 3,538 gpm 5.04 OAR 690-086-0170(4) PROJECTED WATER NEEDS VS. CURRENT SOURCES Thornburgh projects initial water use demand of 3.64 cfs to satisfy demand through 10 years following the start of construction (2029). At build-out (2035) Thornburgh projects demand of an additional 4.25 cfs for a total of 7.89 cfs. Permit G-17036 authorizes 9.28 cfs, an 18% margin of safety over projected demand at build out. 5.05 OAR 690-086-0170(5) ALTERNATIVES TO EXPANSION OF APPROPRIATION OAR 690-086-0170(5) requires an analysis of alternative sources of water if any expansion or initial diversion of water allocated under existing permits is necessary to meet future water demand. Permit G- 17036 currently limits withdrawal to 9.28 cfs. Thornburgh is projected to require access to 3.64 cfs by 2029 and an additional 4.25 cfs by 2035, for a total of 7.89 cfs by 2035. The following subsections analyze the extent to which the projected water needs can be met through other alternatives. OAR 690-086-0170(5)(a) – Conservation as a water source – Because it is not yet constructed, Thornburgh’s initial water use under Permit G-17036 is necessary to meet the needs of development. Projected water demand will be met through a combination of wells and on-site storage, coupled with the planned conservation measures outlined in the Water Conservation Section of this Plan. Thornburgh is being designed to minimize non-essential water use through conservation measures including architectural and landscape design guidelines that promote xeriscaping, protect native vegetation and maintaining open space, using drought resistant plants, and efficient plumbing fixtures and irrigation systems. Water use will be highly efficient as all aspects of the water system will be planned and developed with conservation in mind. Projected water demand for the development assumes highly efficient water use as a result of these conservation measures. Commercial Anuta Exhibit 1 - Page 21 of 37 11/5/2020 Water Right Services, LLC Page 22 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 facilities and residential units will contain all new water fixtures and water efficiency devices, and landscaping guidelines that emphasize water conservation. As water use is developed for golf course and standard irrigation and vegetation is established, irrigation practices and use will be fine-tuned in response to analysis of need and growth, likely resulting in further conservation. Although future measures will likely result in conservation, at this time they cannot substitute for initial development of water use under Permit G-17036. OAR 690-086-0170(5)(b) – Municipal interconnections – At this time, there are no planned interconnections with nearby water systems, although some preliminary discussions have occurred. The westerly boundary of the City of Redmond is located approximately 5 ¼ miles east of the site, across the Deschutes River canyon. The Eagle Crest Resort is located, at its nearest point, approximately ¼ mile east of the Thornburgh Resort site across a parcel of BLM owned land. These interconnections are options that could offer a redundant margin of safety, although cost prohibitive in the case of the City of Redmond. An interconnection with the Eagle Crest Resort is most feasible because of the nearby location. Pinnacle has held preliminary discussions with Oregon Water, the owners of the Eagle Crest water system, about the potential to interconnect the two systems for the benefit of both communities. However, any interconnection between Eagle Crest water system and the early phases of Thornburgh’s development would need to cover a substantial distance, over some very challenging terrain. A connection would entail very substantial costs that could easily run into the millions of dollars and would require a right of way across federal lands. While applicant believes a ROW could possibly be obtained after completing the required environmental studies, such studies are themselves very costly. For example, in a previous BLM right of way the developer completed, over $500,000 was incurred on the required environmental analysis alone. That said, an interconnection to Eagle Crest is potentially possible, and something that is being explored, but it would be a costly and complex undertaking that would entail very substantial discussions, negotiations, analysis, and engineering among all the parties, that by necessity, must include the US Government. Furthermore, Pinnacle does not understand Eagle Crest to have any excess capacity that it could share with Thornburgh. The combined water rights for Eagle Crest amount to only about 7 cfs, less than the amount of Thornburgh’s permit and its projected needs. Another alternative for supply would be the city of Redmond. This would entail connecting to a major supply line in Redmond and bringing that supply down Hwy 126, across the Deschutes River and then down Cline Falls Highway to the property. We currently have utility easement across the Federal Lands this route would cross so would not have to deal with that particular element. That said the cost of this supply would exceed $5,000,000. Therefore, interconnecting with another system does not at this time present a feasible alternative supply for the Resort. Anuta Exhibit 1 - Page 22 of 37 11/5/2020 Water Right Services, LLC Page 23 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 OAR 690-086-0170(5)(c) – Other low-cost conservation measures – OAR 690-086- 0170(5)(c) requires an assessment of whether the projected water needs can be satisfied through other conservation measures that would provide water at a cost that is equal to or less than the cost of other identified sources. As has been discussed above in Section 3.03 OAR 690-086-0150, conservation and preservation have been central themes of the planning around the development of the resort. As discussed herein, the architectural design guidelines focus attention on measures to minimize water use in the buildings as well as the landscaping surrounding them. The Architectural and Landscape guidelines provide the Architectural Committee the ability to deny proposed residences that do not comply with the guidelines or their intent as it relates to conservation. As the community grows and the waste-water treatment facility is built, treated water will be available for re- use in irrigation. If needed, some further reductions can be made to the amount of irrigation water used at individual homes, on the golf courses, in community open spaces, and around other commercial facilities. At this time, since the water system has yet to be constructed, additional conservation measures beyond those already planned and mentioned here would be unlikely to provide water at equal or lower cost than the current planned water source. Furthermore, it should be noted that since maximum conservation practices will be implemented from the beginning of construction of this project, the water demand will be somewhat “hardened,” thus leaving less slack in water use for tightening up further with conservation. 5.06 OAR 690-086-0170(6) EXPANSION OF APPROPRIATION Projected water demand calculations shown in above Section 4.05 justify the need for initial water use at Thornburgh Resort. Thornburgh projects an initial maximum rate of 3.64 cfs (2.35 MG/day or 72.85 MG/month) to satisfy demand through 10 years following the start of construction (2029). At build-out (2035) Thornburgh projects demand of an additional 4.25 cfs for a total of 7.89 cfs (5.10 MG/day or 158.10 MG/month). Permit G-17036 authorizes 9.28 cfs. Monthly volumes assume water is diverted at the maximum rate, 24 hours per day for 31 days during the maximum month (likely July or August). 5.07 OAR 690-086-0170(7) MITIGATION REQUIREMENTS Under OAR 690-086-0170(7), for expanded or initial diversion of water under an existing permit, the water supplier is to describe mitigation actions it is taking to comply with legal requirements of the Endangered Species Act, Clean Water Act, and other applicable state or federal environmental regulations. The Deschutes Basin Mitigation Program currently requires mitigation for all new ground water permits in The Deschutes Basin. The mitigation program is based on the findings of the USGS Water Resources Investigations Report 00-4162, “Groundwater Hydrology of the Upper Deschutes Basin, Oregon.” The mitigation program was developed to maintain flows for Scenic Waterways and senior water rights, restore flows in the Middle Deschutes River, and accommodate growth by allowing new groundwater development. Thornburgh’s mitigation efforts will make a positive contribution towards maintaining adequate flows in the Deschutes Basin for native aquatic species. Anuta Exhibit 1 - Page 23 of 37 11/5/2020 Water Right Services, LLC Page 24 of 24 PO Box 1830 www.oregonwater.us johnshort@usa.com Bend, OR 97709 John A. Short CCB # 197121 541-389-2837 The fully developed Mitigation Obligation for this right is 1356 AF annually, to be provided within the General Zone of Impact. Mitigation is to be provided prior to each stage of development under the permit. The use of groundwater allowed under the terms of the permit is not subject to regulation for Scenic Waterway flows, so long as mitigation is maintained. An Incremental Mitigation Plan is in place for the water use under Permit G-17036. The Incremental Mitigation Plan is summarized in the table below. Incremental Mitigation Plan Incremental Step Volume of Use Mitigation Mitigation Source Mitigation Type 2013-2019 6.0 AF 3.6 AF 3.6 Credits from DRC Mitigation Bank Temporary 2020-2024 401.61 AF additional 315.8 AF additional 2025-2029 416.78 AF additional 212.0 AF additional 2030-2034 815.57 AF additional 515.5 AF additional 2035 489.04 AF additional 309.1 AF additional Totals 2129.0 AF 1356.0 AF 5.08 OAR 690-086-0170(8) ALTERNATIVE SOURCE ANALYSIS Not applicable – Under OAR 690-086-0170(8), if a municipal water supplier finds it necessary to acquire new water rights within the next 20 years in order to meet its projected demand, an analysis of alternative sources of the additional water is required. The analysis must consider availability, reliability, feasibility, and likely environmental impacts and a schedule for development of the new sources of water. No additional water rights are anticipated to meet Thornburgh’s demand in the next 20 years. 035992\00001\11687708v1 Anuta Exhibit 1 - Page 24 of 37 ATTACHMENT DESCHUTES COUNTY EMAIL Anuta Exhibit 1 - Page 25 of 37 Anuta Exhibit 1 - Page 26 of 37 ATTACHMENT WATER SYSTEM MAP Anuta Exhibit 1 - Page 27 of 37 Exhibit B1Anuta Exhibit 1 - Page 28 of 37 ATTACHMENT PERMIT MAP Anuta Exhibit 1 - Page 29 of 37 Anuta Exhibit 1 - Page 30 of 37 Anuta Exhibit 1 - Page 31 of 37 ATTACHMENT PERMIT Anuta Exhibit 1 - Page 32 of 37 STATE OF OREGON COUNTY OF DESCHUTES I PERMIT TO APPROPRIATE THE PUBLIC WATERS THIS PERMIT IS HEREBY ISSUED TO THORNBURGH UTILITY GROUP, LLC 2447 NW CANYON DR REDMOND, OR 97756 The specific limits and conditions of the use are listed below. APPLICATION FILE NUMBER: G-16385 SOURCE OF WATER: SIX WELLS IN DESCHUTES RIVER BASIN PURPOSE OR USE: QUASI-MUNICIPAL USES, INCLUDING IRRIGATION OF GOLF COURSES AND COMMERCIAL AREAS, AND MAINTENANCE OF RESERVOIRS. MAXIMUM RATE AND VOLUME: 9.28 CUBIC FEET PER SECOND, LIMITED TO A MAXIMUM ANNUAL VOLUME OF 2,129.0 ACRE FEET (AF) . THE RATE AND VOLUME ARE FURTHER LIMITED BY THE CORRESPONDING MITIGATION PROVIDED. THE MAXIMUM VOLUME FOR IRRIGATION OF 320.0 ACRES FOR GOLF COURSES SHALL NOT EXCEED 717.0 ACRE FEET. PERIOD OF USE: YEAR ROUND WELL 2: SE NW 'A, SECTION 29, T15S, R12E, W.M.; 1655 FEET SOUTH AND 2750 FEET WEST FROM NE CORNER, SECTION 29 : I : i I ~ I ; 1 I I WELL 3: SW % SW 3, SECTION 21, T15S, R12E, W.M.; 1100 FEET NORTH AND 400 FEET EAST FROM SW CORNER, SECTION 21 DATE OF PRIORITY: FEBRUARY 9, 2005 ~I'l WELL LOCATIONS: II I WELL 1: SE % NW %, SECTION 28, T15S, R12E, W.M.; 1800 FEET SOUTH AND 2335 FEET EAST FROM NW CORNER, SECTION 28 WELL 4: NE 'A SE 5, SECTION 20, T15S, R12E, W.M.; 2885 FEET SOUTH AND 750 FEET WEST FROM NE CORNER, SECTION 20 WELL 5: SW i/4 NE %, SECTION 20, T15S, R12E, W.M.; 2590 FEET SOUTH AND 1860 FEET WEST FROM NE CORNER, SECTION 20 WELL 6: SE 'A NW 'A, SECTION 17, T15S, R12E, W.M.; 2375 FEET SOUTH AND 3615 FEET WEST FROM NE CORNER, SECTION 17 Application G-16385 Water Resources Department PERMIT G-17036 Ill Anuta Exhibit 1 - Page 33 of 37 Page 2 THE PLACE OF USE IS WITHIN THE BOUNDARIES OF THE THORNBURGH RESORT, BEING WITHIN SECTIONS 17, 20, 21, 28, 29, AND 30; TOWNSHIP 15 SOUTH, RANGE 12 EAST, W.M. The amount of water used for irrigation under this right, together with the amount secured under any other right existing for the same lands, is limited to a diversion of ONE-EIGHTIETH of one cubic foot per second and 3.0 acre-feet for each acre irrigated during the irrigation season of each year. The amount of water used for golf course irrigation under this right is further limited to a diversion of 2.24 acre-feet for each acre irrigated during the irrigation season of each year. Measurement, recording and reporting conditions: A. Before water use may begin under this permit, the permittee shall install a totalizing flow meter at each point of appropriation. The totalizing flow meters must be installed and maintained in good working order consistent with those standards identified in OAR 690-507-645(1) through (3). The permittee shall keep a complete record of the amount of water used each month and shall submit a report which includes the recorded water use measurements to the Department annually or more frequently as may be required by the Director. Further, the Director may require the permittee to report general water use information, including the place and nature of use of water under the permit. B. The permittee shall allow the watermaster access to the meters; provided however, where the meters are located within a private structure, the watermaster shall request access upon reasonable notice. Use of water under authority of this permit may be regulated if analysis of data available after the permit is issued discloses that the appropriation will measurably reduce the surface water flows necessary to maintain the free-flowing character of a scenic waterway in quantities necessary for recreation, fish and wildlife in effect as of the priority date of the right or as those quantities may be subsequently reduced. However, the use of ground water allowed under the terms of this permit will not be subject to regulation for Scenic Waterway flows so long as mitigation is maintained. GROUND WATER MITIGATION CONDITIONS Mitigation Obligation: 1356.0 acre-feet annually in the General Zone of Impact (anywhere in the Deschutes Basin above the Madras gage, located on the Deschutes River below Lake Billy Chinook.) Application G-16385 Water Resources Department PERMIT G-17036 Anuta Exhibit 1 - Page 34 of 37 Page 3 Mitigation Source: Mitigation Credits from a chartered mitigation bank, or suitable replacement mitigation that meets the requirements of OAR 690-505-0610, in accordance with the incremental development plan on file with the Department, meeting the requirements of OAR Chapter 690, Division 505 (Deschutes Ground Water Mitigation Rules) and OAR Chapter 690 Division 522, within the General Zone of Impact. Mitigation water must be legally protected instream for instream use within the General Zone of Impact and committed for life of the permit and subsequent certificate(s). Regulation of the use and/or cancellation of the permit, or subsequent certificate(s) will occur if the required mitigation is not maintained. If mitigation is from a secondary right for stored water from a storage project not owned or operated by the permittee, the use of water under this right is subject to the terms and conditions of a valid contract, or a satisfactory replacement, with the owner/operator of the storage project, a copy of which must be on file in the records of the Water Resources Department prior to use of water. The permittee shall provide additional mitigation if the Department determines that average annual consumptive use of the subject appropriation has increased beyond the originally mitigated amount. The permittee shall provide mitigation prior to each stage of development under the permit and in accordance with the standards under 690-505-0610 (2) - (5). The permittee shall seek and receive Department approval prior to changing the incremental permit development plan and related incremental mitigation. )I 11 11 The permittee shall report to the Department the progress of implementing the incremental permit development plan and related mitigation no later than April 1 of each year. This annual notification is not necessary if the permittee has completed development and submitted a Claim of Beneficial Use to the Department. The permittee shall not increase the rate or amount of water diversion before increasing the corresponding mitigation. l1 I1 Application G-16385 Water Resources Department PERMIT G-17036 1, i I I I I i 1 I I I I I I I 1 (1 Within five years of permit issuance, the permittee shall submit a new or updated Water Management and Conservation Plan pursuant to OAR Chapter 690, Division 86. 1' I' I I Anuta Exhibit 1 - Page 35 of 37 Page 4 Failure to comply with these mitigation conditions shall result in the Department regulating the ground water permit, or subsequent certificate(s), proposing to deny any permit extension application for the ground water permit, and proposing to cancel the ground water permit, or subsequent certificate(s). STANDARD CONDITIONS Failure to comply with any of the provisions of this permit may result in action including, but not limited to, restrictions on the use, civil penalties, or cancellation of the permit. If the number, location, source, or construction of any well deviates from that proposed in the permit application or required by permit conditions, this permit may be subject to cancellation, unless the Department authorizes the change in writing. If substantial interference with a senior water right occurs due to withdrawal of water from any well listed on this permit, then use of water from the well(s) shall be discontinued or reduced and/or the schedule of withdrawal shall be regulated until or unless the Department approves or implements an alternative administrative action to mitigate the interference. The Department encourages junior and senior appropriators to jointly develop plans to mitigate interferences. The wells shall be constructed in accordance with the General Standards for the Construction and Maintenance of Water Wells in Oregon. The works shall be equipped with a usable access port, and may also include an air line and pressure gauge adequate to determine water level elevation in the well at all times. Where two or more water users agree among themselves as to the manner of rotation in the use of water and such agreement is placed in writing and filed by such. water users with the watermaster, and such rotation system does not infringe upon such prior rights of any water user not a party to such rotation plan, the watermaster shall distribute the water according to such agreement. Prior to receiving a certificate of water right, the permit holder shall submit to the Water Resources Department the results of a pump test meeting the Department's standards for each point of appropriation (well), unless an exemption has been obtained in writing under OAR 690- 217. The Director may require water-level or pump-test data every ten years thereafter. This permit is for the beneficial use of water without waste. The water user is advised that new regulations may require the use of best practical technologies or conservation practices to achieve this end. Application G-16385 Water Resources Department PERMIT G-17036 Anuta Exhibit 1 - Page 36 of 37 Page 5 By law, the land use associated with this water use must be in compliance with statewide land-use goals and any local acknowledged land-use plan. The use of water shall be limited when it interferes with any prior surface or ground water rights. Completion of construction and application of the water shall be made within five years of the date of permit issuance. If beneficial use of permitted water has not been made before this date, the permittee may submit an application for extension of time, which may be approved based upon the merit of the application. Within one year after making beneficial use of water, the permittee shall submit a claim of beneficial use, which includes a map and report, prepared by a Certified Water Rights Examiner. This permit is issued to correctly describe the maximum annual volume. Permit G-17009, dated February 7, 2013, is superseded by this instrument and is of no further force or effect. Issued April 3 , 2013 - for Phillip C. Ward, Director Water Resources Department Application G-16385 Water Resources Department Basin 5 Volume 1 DESCHUTES R MISC PERMIT G-17036 I1 li! Anuta Exhibit 1 - Page 37 of 37 Anuta Exhibit 2 - Page 1 of 5 Anuta Exhibit 2 - Page 2 of 5 Anuta Exhibit 2 - Page 3 of 5 Anuta Exhibit 2 - Page 4 of 5 Anuta Exhibit 2 - Page 5 of 5 Oregon Water Resources Department Water Right Services Division In the Matter of the Application for an ) Extension of Time for Permit G-17036, Water ) Right Application G-163 85, in the name of the ) Pinnacle Utilities, LLC ) ORDER ON RECONSIDERATION WITHDRAWING FINAL ORDER APPROVING EXTENSION OF TIME FOR PERMIT G-17036 The Oregon Water Resources Department (Department) on reconsideration of it~ Final Order dated October 26, 2018, withdraws its Final Order and finds that Annunziata Gould raised significant disputes related to the proposed agency action in a protest filed on July 20, 2018. Accordingly, a contested case hearing to resolve the protest must be held. FINDINGS OF FACT 1. On February 7, 2013, Permit G-17009 was issued to Thornburgh Utility Group, LLC for groundwater use in the Deschutes River Basin. The permit specified completion of construction and complete application of water was to be made within five years of permit issuance, being February 7, 2018. On April 3, 2013, a superseding permit G-17036 was issued. The superseding permit specified completion of construction and.complete application of the water was to be made within five years of permit issuance, being April 3, 2018. 2. In 2014, the permit was assigned to Pinnacle Utilities, LLC which subsequently submitted an "Application for Extension of Time" on April 2, 2018. 3. On May 8, 2018, the Department proposed to deny the proposed extension in a Proposed Final Order (PFO) issued on that date. 4. On May 14, 2018, Pinnacle Utilities, LLC submitted additional information to the Department regarding use of a well (DESC 756 or "Well 2"), which information resulted in the Department finding that construction of the well began prior to April 3, 2018 as required by ORS 537.630(2). Accordingly, the Department withdrew its Proposed Final Order (PFO) dated May 8, 2018 and issued a new PFO dated June 5, 2018. 5. The PFO dated June 5, 2018 proposed to allow the extension of time and to extend the time to complete construction to October 1, 2035. The June 5, 2018 PFO also provided notice that any person could protest the PFO but that a protest must be received by "June 22, 2018 [sic] being 45 days from the date of publication of the proposed final order in the Department's weekly notice." 6. Notwithstanding the typographical error in the June 5, 2018 PFO, Annunziata Gould timely filed a protest on July 20, 2018 (45 days after public notice of the June 5, 2018 PFO). In the protest Ms. Gould asserted errors in the June 5, 2018 PFO including raising the issue of whether the Department correctly found that construction had begun within the time period specified in the permit. Ms. Gould requested a contested case hearing. Application G-163 85, Permit 17036 Order Withdrawing Final Order 1 Anuta Exhibit 3 - Page 1 of 2 7. On October 26, 2018, the Department issued a Final Order approving the Application for Extension of Time for Permit G-1703 6, adding conditions governing development limitations, and affirming its June 5, 2018 PFO. The Final Order noted the protest filed by Ms. Gould, but did not address the assertions in the protest, nor grant a contested case hearing. 8. On December 7, 2018, Ms. Gould petitioned for judicial review and declaratory judgment of the October 26, 2018 Final Order in the Marion County circuit court (Case No. 18CV55723) and in the Court of Appeals (Case No. Al 69580). CONCLUSIONS OF LAW 1. The Department may withdraw the October 26, 2018 Final Order approving the Application for Extension of Time for Permit G-17036 for reconsideration. ORS 183.482(6). 2. The protest filed on July 20, 2018 raises significant disputes related to the proposed agency action. OAR 690-315-0060(3)(b )(A). ORDER The Final Order Approving Extension of Time for Permit G-17036 dated October 26, 2018 is withdrawn and the Protest filed July 20, 2018 shall be referred to the Office of Administrative Hearings for a contested case hearing. Dated at Salem, Oregon on January 31, 2019. I ' I; . I / (! . //1 j ~ I ~ :.! I / I, ['dY+ , ,, _, '---- Dwighi f~ch---'--· Water(~ht Seiv·ices Division Administrator, for Thomas M. Byler, Director Oregon Water Resources Department Anuta Exhibit 3 - Page 2 of 2 STATE OF OREGON COUNTY OF DESCHUTES I PERMIT TO APPROPRIATE THE PUBLIC WATERS THIS PERMIT IS HEREBY ISSUED TO THORNBURGH UTILITY GROUP, LLC 2447 NW CANYON DR REDMOND, OR 97756 The specific limits and conditions of the use are listed below. APPLICATION FILE NUMBER: G-16385 SOURCE OF WATER: SIX WELLS IN DESCHUTES RIVER BASIN PURPOSE OR USE: QUASI-MUNICIPAL USES, INCLUDING IRRIGATION OF GOLF COURSES AND COMMERCIAL AREAS, AND MAINTENANCE OF RESERVOIRS. MAXIMUM RATE AND VOLUME: 9.28 CUBIC FEET PER SECOND, LIMITED TO A MAXIMUM ANNUAL VOLUME OF 2,129.0 ACRE FEET (AF) . THE RATE AND VOLUME ARE FURTHER LIMITED BY THE CORRESPONDING MITIGATION PROVIDED. THE MAXIMUM VOLUME FOR IRRIGATION OF 320.0 ACRES FOR GOLF COURSES SHALL NOT EXCEED 717.0 ACRE FEET. PERIOD OF USE: YEAR ROUND WELL 2: SE NW 'A, SECTION 29, T15S, R12E, W.M.; 1655 FEET SOUTH AND 2750 FEET WEST FROM NE CORNER, SECTION 29 : I : i I ~ I ; 1 I I WELL 3: SW % SW 3, SECTION 21, T15S, R12E, W.M.; 1100 FEET NORTH AND 400 FEET EAST FROM SW CORNER, SECTION 21 DATE OF PRIORITY: FEBRUARY 9, 2005 ~I'l WELL LOCATIONS: II I WELL 1: SE % NW %, SECTION 28, T15S, R12E, W.M.; 1800 FEET SOUTH AND 2335 FEET EAST FROM NW CORNER, SECTION 28 WELL 4: NE 'A SE 5, SECTION 20, T15S, R12E, W.M.; 2885 FEET SOUTH AND 750 FEET WEST FROM NE CORNER, SECTION 20 WELL 5: SW i/4 NE %, SECTION 20, T15S, R12E, W.M.; 2590 FEET SOUTH AND 1860 FEET WEST FROM NE CORNER, SECTION 20 WELL 6: SE 'A NW 'A, SECTION 17, T15S, R12E, W.M.; 2375 FEET SOUTH AND 3615 FEET WEST FROM NE CORNER, SECTION 17 Application G-16385 Water Resources Department PERMIT G-17036 Ill Anuta Exhibit 4 - Page 1 of 6 Page 2 THE PLACE OF USE IS WITHIN THE BOUNDARIES OF THE THORNBURGH RESORT, BEING WITHIN SECTIONS 17, 20, 21, 28, 29, AND 30; TOWNSHIP 15 SOUTH, RANGE 12 EAST, W.M. The amount of water used for irrigation under this right, together with the amount secured under any other right existing for the same lands, is limited to a diversion of ONE-EIGHTIETH of one cubic foot per second and 3.0 acre-feet for each acre irrigated during the irrigation season of each year. The amount of water used for golf course irrigation under this right is further limited to a diversion of 2.24 acre-feet for each acre irrigated during the irrigation season of each year. Measurement, recording and reporting conditions: A. Before water use may begin under this permit, the permittee shall install a totalizing flow meter at each point of appropriation. The totalizing flow meters must be installed and maintained in good working order consistent with those standards identified in OAR 690-507-645(1) through (3). The permittee shall keep a complete record of the amount of water used each month and shall submit a report which includes the recorded water use measurements to the Department annually or more frequently as may be required by the Director. Further, the Director may require the permittee to report general water use information, including the place and nature of use of water under the permit. B. The permittee shall allow the watermaster access to the meters; provided however, where the meters are located within a private structure, the watermaster shall request access upon reasonable notice. Use of water under authority of this permit may be regulated if analysis of data available after the permit is issued discloses that the appropriation will measurably reduce the surface water flows necessary to maintain the free-flowing character of a scenic waterway in quantities necessary for recreation, fish and wildlife in effect as of the priority date of the right or as those quantities may be subsequently reduced. However, the use of ground water allowed under the terms of this permit will not be subject to regulation for Scenic Waterway flows so long as mitigation is maintained. GROUND WATER MITIGATION CONDITIONS Mitigation Obligation: 1356.0 acre-feet annually in the General Zone of Impact (anywhere in the Deschutes Basin above the Madras gage, located on the Deschutes River below Lake Billy Chinook.) Application G-16385 Water Resources Department PERMIT G-17036 Anuta Exhibit 4 - Page 2 of 6 Page 3 Mitigation Source: Mitigation Credits from a chartered mitigation bank, or suitable replacement mitigation that meets the requirements of OAR 690-505-0610, in accordance with the incremental development plan on file with the Department, meeting the requirements of OAR Chapter 690, Division 505 (Deschutes Ground Water Mitigation Rules) and OAR Chapter 690 Division 522, within the General Zone of Impact. Mitigation water must be legally protected instream for instream use within the General Zone of Impact and committed for life of the permit and subsequent certificate(s). Regulation of the use and/or cancellation of the permit, or subsequent certificate(s) will occur if the required mitigation is not maintained. If mitigation is from a secondary right for stored water from a storage project not owned or operated by the permittee, the use of water under this right is subject to the terms and conditions of a valid contract, or a satisfactory replacement, with the owner/operator of the storage project, a copy of which must be on file in the records of the Water Resources Department prior to use of water. The permittee shall provide additional mitigation if the Department determines that average annual consumptive use of the subject appropriation has increased beyond the originally mitigated amount. The permittee shall provide mitigation prior to each stage of development under the permit and in accordance with the standards under 690-505-0610 (2) - (5). The permittee shall seek and receive Department approval prior to changing the incremental permit development plan and related incremental mitigation. )I 11 11 The permittee shall report to the Department the progress of implementing the incremental permit development plan and related mitigation no later than April 1 of each year. This annual notification is not necessary if the permittee has completed development and submitted a Claim of Beneficial Use to the Department. The permittee shall not increase the rate or amount of water diversion before increasing the corresponding mitigation. l1 I1 Application G-16385 Water Resources Department PERMIT G-17036 1, i I I I I i 1 I I I I I I I 1 (1 Within five years of permit issuance, the permittee shall submit a new or updated Water Management and Conservation Plan pursuant to OAR Chapter 690, Division 86. 1' I' I I Anuta Exhibit 4 - Page 3 of 6 Page 4 Failure to comply with these mitigation conditions shall result in the Department regulating the ground water permit, or subsequent certificate(s), proposing to deny any permit extension application for the ground water permit, and proposing to cancel the ground water permit, or subsequent certificate(s). STANDARD CONDITIONS Failure to comply with any of the provisions of this permit may result in action including, but not limited to, restrictions on the use, civil penalties, or cancellation of the permit. If the number, location, source, or construction of any well deviates from that proposed in the permit application or required by permit conditions, this permit may be subject to cancellation, unless the Department authorizes the change in writing. If substantial interference with a senior water right occurs due to withdrawal of water from any well listed on this permit, then use of water from the well(s) shall be discontinued or reduced and/or the schedule of withdrawal shall be regulated until or unless the Department approves or implements an alternative administrative action to mitigate the interference. The Department encourages junior and senior appropriators to jointly develop plans to mitigate interferences. The wells shall be constructed in accordance with the General Standards for the Construction and Maintenance of Water Wells in Oregon. The works shall be equipped with a usable access port, and may also include an air line and pressure gauge adequate to determine water level elevation in the well at all times. Where two or more water users agree among themselves as to the manner of rotation in the use of water and such agreement is placed in writing and filed by such. water users with the watermaster, and such rotation system does not infringe upon such prior rights of any water user not a party to such rotation plan, the watermaster shall distribute the water according to such agreement. Prior to receiving a certificate of water right, the permit holder shall submit to the Water Resources Department the results of a pump test meeting the Department's standards for each point of appropriation (well), unless an exemption has been obtained in writing under OAR 690- 217. The Director may require water-level or pump-test data every ten years thereafter. This permit is for the beneficial use of water without waste. The water user is advised that new regulations may require the use of best practical technologies or conservation practices to achieve this end. Application G-16385 Water Resources Department PERMIT G-17036 Anuta Exhibit 4 - Page 4 of 6 Page 5 By law, the land use associated with this water use must be in compliance with statewide land-use goals and any local acknowledged land-use plan. The use of water shall be limited when it interferes with any prior surface or ground water rights. Completion of construction and application of the water shall be made within five years of the date of permit issuance. If beneficial use of permitted water has not been made before this date, the permittee may submit an application for extension of time, which may be approved based upon the merit of the application. Within one year after making beneficial use of water, the permittee shall submit a claim of beneficial use, which includes a map and report, prepared by a Certified Water Rights Examiner. This permit is issued to correctly describe the maximum annual volume. Permit G-17009, dated February 7, 2013, is superseded by this instrument and is of no further force or effect. Issued April 3 , 2013 - for Phillip C. Ward, Director Water Resources Department Application G-16385 Water Resources Department Basin 5 Volume 1 DESCHUTES R MISC PERMIT G-17036 I1 li! Anuta Exhibit 4 - Page 5 of 6 Anuta Exhibit 4 - Page 6 of 6 1 Karl Anuta From:COPE Kerri H * WRD <Kerri.H.Cope@oregon.gov> Sent:Tuesday, May 12, 2020 10:12 AM To:DOOLEY Deirdre A * WRD Subject:FW: Pinnacle Utilities/Thornburgh Utility Group Mitigation Credits     KK ee rr rr ii HH .. CC oo pp ee | Water Management and Conservation Analyst/Reuse Coordinator ___________________________________________________________________________________________________________________________________________________________________________________________ WWaatteerr RReessoouurrcceess DDeeppaarrttmmeenntt | 725 Summer St. NE, Suite A | Salem, Oregon 97301 Ph: 503 986-0919 | Fax: 503 986-0901 Email: Kerri.H.Cope@oregon.gov | Web:http://www.oregon.gov     From: HENDERSON Sarah A * WRD <Sarah.A.Henderson@oregon.gov>   Sent: Thursday, April 16, 2020 11:22 AM  To: COPE Kerri H * WRD <Kerri.H.Cope@oregon.gov>  Subject: RE: Pinnacle Utilities/Thornburgh Utility Group Mitigation Credits    Hi Kerri,    Yes Pinnacle Utilites/Thornburgh have purchased credits for Permit G‐17036, every year they have bought temporary  credits from DRCMB. 3.6 mitigation credits every year, and they report to the Department every year on the water  usage, which is 0.    Let me know if you need anything else.    Sarah     Sarah A. Henderson Flow Restoration Program Coordinator  Transfer and Conservation Section   725 Summer St. NE, Suite A |Salem, OR 97301| Direct: 503‐986‐0884   Email: sarah.a.henderson@oregon.gov         Integrity | Service | Technical Excellence | Teamwork | Forward‐Looking    From: COPE Kerri H * WRD   Sent: Thursday, April 16, 2020 10:40 AM  To: HENDERSON Sarah A * WRD <Sarah.A.Henderson@oregon.gov>  Subject: Pinnacle Utilities/Thornburgh Utility Group Mitigation Credits    Anuta Exhibit 5 - Page 1 of 2 2 Hi Sarah, I’m reviewing Pinnacle Utilities/Thornburgh Utilities WMCP and they indicate they’ve purchased credits for Permit G-17036, is that something you can verify for me? It’s a plan written by John Short’s employee Bryce so I know he has a mitigation bank as well. I received multiple public comments on the plan so just want to verify. Thanks, KK ee rr rr ii HH .. CC oo pp ee | Water Management and Conservation Analyst/Reuse Coordinator ___________________________________________________________________________________________________________________________________________________________________________________________ WWaatteerr RReessoouurrcceess DDeeppaarrttmmeenntt | 725 Summer St. NE, Suite A | Salem, Oregon 97301 Ph: 503 986-0919 | Fax: 503 986-0901 Email: Kerri.H.Cope@oregon.gov | Web:http://www.oregon.gov     Anuta Exhibit 5 - Page 2 of 2 KARL G. ANUTA LAW OFFICE OF KARL G. ANUTA, P.C. 735 SW FIRST AVENUE, 2ND FLOOR TRIAL ATTORNEY PORTLAND, OREGON 97204 E-MAIL LICENSED IN (503) 827-0320 KGA@INTEGRA.NET OREGON & WASHINGTON FACSIMILE (503) 386-2168 July 6, 2021 VIA ELECTRONIC MAIL (mary.f.bjork@oregon.gov) AND FAX (1-503-986-0901) Oregon Dept of Water Resources Attn: Mary F. Bjork 725 Summer St., NE, Suite A Salem, OR 97301 Re: Application LL-1879 Limited License Request Kameron DeLashmutt/Pinnacle Utilities Dear Ms. Bjork: This office represents Annunziata Gould, a local public interest advocate, on water issues. These comments are submitted on behalf of Ms. Gould. Since the Department has not yet completed its evaluation of this application, we hope that these comments will be helpful to your analysis and decision making. BACKGROUND As the Department well knows, the Deschutes Basin groundwater levels are in decline. Scenic waterway flows are being negatively affected. The ground and suface water resources in the area are being mined and used at a rate that is not sustainable or stable. In fact, we understand that the 200 CFS cap on new appropriation may soon be reached. The Department is charged with managing and protecting groundwater and surface water. The Department is the trustee of these resources, which are owned by the public. The Department is prohibited from allowing over appropriation of ground or surface water. The Department has an obligation to protect senior water right holders in the basin, including the Instream rights on State Scenic Waterways, from harm by new or junior users. The Department also has a public trust obligation to the owners of the waters in question, the citizens of Oregon. See, ORS 537.110 (“All water within the state from all sources of water supply belongs to the public.”) Page 1 of 8 Anuta Exhibit 6 - Page 1 of 15 SPECIFIC CONCERNS ABOUT THIS PROPOSED LIMITED LICENSE These comments are directed at the Limited License requested by Mr. DeLashmutt and his Pinnacle Utilities LLC (aka Thornburgh Resort or TBR). The Department should deny the requested Limited License due to one or more the following reasons: 1. The proposed use is not for a “short term” use, as required by ORS 537- 143(1). Instead, as the applicant admits in Section 3 of the first page of the Application, the intended use includes “Quasi-municipal uses.” The application Description of Proposed Project similarly admits that the water is intended in part for “initial quasi-municipal uses at the site of the Thornburgh Resort.” Similarly, the Limited License Map submitted with the application show “POU QM” in shaded areas throughout the propose Resort. 2. It is unlawful for the Department to grant a Limited License for what is really a long term or permanent proposed use. Such licenses are only available for “short term or fixed duration” uses. Such licenses cannot lawfully be issued as a proverbial “bridge” to a long term use. Yet that is exactly what this application clearly proposes. The Description of Proposed Project statement admits that this proposed License is intended as a bridge “pending the resolution of” two other water use applications and a Permit Extension dispute. 3. There is no need for the 4 new wells proposed in this Limited License application, except for the Quasi-Municipal uses that are actually long term uses. The application Description of Proposed Project similarly admits that Well #8 in the application “will be used to immediately supply construction water.” In addition, page 3 of the LUCS form in the application notes that the use is for Quasi-Municipal. Nothing is said about the need for road construction water. Clearly then, the rest of the proposed wells are not needed for construction, but are instead intended for the long term Resort uses. 4. Use of Well #8, which is an exempt domestic well, for commercial uses such as the road construction or Quasi-Municipal uses proposed in this Limited License is unlawful. Well #8 would need to go through a normal permitting process to obtain authorization for any or all of the uses proposed in the Limited License. 5. There is no proof that the proposed addition of 4 new wells, and what may be a proposed expansion of use of an additional existing well, will not cause injury to one or more existing instream water rights or minimum perennial streamflow on Wychus Creek and/or the Deschutes River, and/or in other nearby surface water bodies. Consequently, under the obligations imposed by ORS 537.143(2), ORS 536.025, and consistent Page 2 of 8 Anuta Exhibit 6 - Page 2 of 15 with OAR 690-340-0030(2)(requiring that the proposed use “will not impair of be detrimental to the public interest”) the requested Limited License should be denied. 6. The proposed use is also not in the public interest for a host of other reasons. This is a proposed use of groundwater, in a Basin already under regulation to protect existing users from further over appropriation of groundwater. To demonstrate that a groundwater use is in the public interest it must be demonstrated that the proposed use “would preserve the public welfare, safety and health.” ORS 537.625(3). Specific considerations that would need to be addressed include: • Whether water is “available” for the proposed use, per ORS 537.621(2); • Whether the proposed use would “injure” existing water rights, per ORS 537.621(2); • Whether the proposed use is within the “capacity” of the resource and would “maintain” stable groundwater levels. ORS 537.525(6), (7); and • Whether the proposed use would otherwise adversely impact “fish and wildlife” or “water quality.” OAR 690-310- 0140(3)(b). Here groundwater in this Basin is not available, absent full mitigation that complies with the rules. The proposed use has not been shown to protect existing instream rights, much less local groundwater wells. The resource at issue is already in steady decline, and allowing extensive water use for things like golf courses in the high desert will only exacerbate that decline and reduce - rather than maintain - stable groundwater levels. And it is already proven that absent adequate mitigation (of which none is proposed in this Limited License) this Resort use will harm or adversely impact fish and wild life as well as water quality. See e.g., Gould v. Deschutes County, __ Or LUBA ___, ___(2021)(LUBA #2020-095 June 11, 2021 Slip Op. p.12) (noting that this Resort’s proposed “consumptive use of groundwater is anticipated to impact an offsite fish-bearing stream, Whychus Creek, by reducing instream water volumes and increasing water temperatures.”)(empasis added)(citing Gould v. Deschutes County, 79 Or LUBA 561 (2019, aff’d 310 Or App 868 (2021)). 7. To the extent that the Department/Director already made a preliminary public interest finding, before publishing Notice of the proposed Limited License, for all the reasons outlined in this comment that finding was in error and must be revisited. 8. There is no proof that the proposed addition of 4 new wells, and the expansion of use of an additional existing well, will not cause measurable reductions in the surface water flows necessary to maintain the free flowing character of one or more scenic waterways, in quantities necessary for recreation, fish and wildlife. Consequently, under the Page 3 of 8 Anuta Exhibit 6 - Page 3 of 15 obligations imposed by ORS 536.025, and consistent with the Oregon State Scenic Waterways Act ORS 390.805 et seq, the requested Limited License should be denied. 9. The 4 new wells that are proposed will all need mitigation, to comply with the Deschutes Groundwater Mitigation Rules found in OAR Chapter 690, Division 505. However, there is no indication in the application if, or if so how, that mitigation will be provided - much less a demonstration that any proposed mitigation will meet the requirements of those Rules. 10. The extent, if any, of the current use of the existing Well #8 on the TBR property at issue is not documented in the application. It is quite possible that some, or all, use of that well has not occurred for 5 or more consecutive years. If so, the use of that well may potentially subject to forfeiture and not available for further use such as that proposed in the Limited License application. If it proceeds with processing of this Limited License the Department should insist that the applicant produce persuasive evidence of the extent/amount of use that has occurred in Well #8 over the last 5 years. 11. Well #8 is, in fact, one of the same wells that the same applicant represented to Deschutes County in the land use proceedings over TBR, would be abandoned. See, Exhibit #1, Map from 2008, prepared by TBR’s consultant, listing Well #8 as having OWRD Well Log # Desc. 756. Compare, Exhibit #2 - Well Log included with LL-1879, which is for Desc. 756. The County relied on those representations, in issuing land use approvals for some or all of TBR. See, Exhibit #3 - Excerpt of Applicant Consultant Newton F&W Mitigation Plan, from County with their highlighting. Consequently, use of Well #8 as part of a Limited License would be inappropriate, likely unlawful, and not in the public interest. 12. Since the extent, if any, of the current use of the existing Well #8 on the TBR lands is not documented in the application, any use of that well above and beyond the existing use levels (if any) must be treated as an expansion of use - that should be subject to additional mitigation requirements under the Basin Plan Groundwater Protection Rules. 13. The exact same five wells that are listed in the Limited License application are also listed as proposed points of appropriate in a pending Temporary Transfer applicantion - T-13703. That application proposes the use of additional water under a Quasi-Municipal Certificate. This is in a Basin where a Drought Declaration already exists, where groundwater is already becoming scare, and where the local Watermaster has already indicated in the Water Availability Statement for this Limited License that the aquifer that these wells will tap is already showing “steady long term decline.” In light of all that, this Limited License is not in the public interest, and it should be denied. Page 4 of 8 Anuta Exhibit 6 - Page 4 of 15 14. One of the new wells listed in the Limited License application is also already listed for use in an expired Permit, also held by Pinnacle. Specifically, Well #5 in the Limited License application is the same as Well #4 in Permit G-17036. A copy of the G-17036 map is attached as Exhibit #4. The same applicant proposes to withdraw 9.28 CFS of additional water for Quasi-Municipal use under that Permit if it is Extended. The impacts of withdrawing the requested Limited License 4.2 CFS, the proposed transferred water, and the water that was originally authorized under the expired Permit G-17036 could be significant. Those impacts have not been addressed or disclosed in the application. Those impacts will potentially create more harm to scenic waterway flows, and further degrade an already steadily declining aquifer. Those impacts are contrary to the public interest. 15. Admittedly, Permit G-17036 is expired. It quite likely that Permit will ultimately be cancelled. However, the same applicant currently has yet another application pending, for all of the same 8 wells referenced in the also pending transfer application. Specifically, Application G-19139 seeks the same 9.28 CFS from the same 8 wells that are referenced in the temporary transfer application, five of which are also identified in this Limited License application (specifically wells #1, 2, 4, 5 & 8). A copy of the G-19139 Map is attached as Exhibit #5. In short, the concerns about excessive use of water in a way that could harm the aquifer, near by well, Whychus Creek and/or the Deschutes River - and that could have other as yet unevaluated impacts on ground and surface water - remain valid even after G-17036 is cancelled. 16. There is no evidence that the proposed 4 new wells (or the existing well) will be operated consistent with the limitations on protection of State Scenic Waterways. In fact, over time the proposed limited use will most likely result in measurable reductions of the surface water flows necessary to maintain the free flowing character of a scenic waterway in quantities necessary for recreation, fish and wildlife. That fact is already proven and accepted by the courts. The courts have already specifically recognized that this Resort’s proposed “consumptive use of groundwater is anticipated to impact an offsite fish-bearing stream, Whychus Creek, by reducing instream water volumes and increasing water temperatures.” Gould v. Deschutes County, __ Or LUBA ___, ___(2021)(LUBA #2020- 095 June 11, 2021 Slip Op. p.12)(citing Gould v. Deschutes County, 79 Or LUBA 561 (2019, aff’d 310 Or App 868 (2021)). 17. Moreover, the consumptive use referenced by LUBA was only the 9.28 CFS. It did not include the 9.28 CFS from either Permit G-17036 or Permit G-19139, nor that 9.28 CFS combined with the water sought in the pending temporary transfer, and then further combined with the 4.2 CFS sought in this Limited License. In short, the already known reductions in Page 5 of 8 Anuta Exhibit 6 - Page 5 of 15 instream water volumes and increases in water temperature would almost certainly be exacerbated by approval of this Limited License.1 18. There is no proof that the proposed 4 new wells (or the existing well) will be operated consistent with the limitations on land uses and/or in compliance with land use laws. To the contrary, some of the proposed water use that is listed in the Limited License application would specifically be on portions of a Tax Lot (#8000), which are not authorized or approved by Deschutes County to be used by TBR. See attached maps Exhibit #6 & #7, showing areas of Tax Lot 8000 that are not approved for Resort use. Yet on the Map provided by the applicant for the Limited License “POU QM” it specifically shows use of the Limited License water on all of Tax Lot 8000, including those parts that are not authorized for the Resort Use according to the Final Master Plan and Water System Plan adopted and approved by the County. 19. The applications currently pending, T-13703, LL1879, G-19139, in conjunction with Permit G-17036, constitute “layered” water rights and approval of one or more of them would be contrary to OAR 690-380-2240. 20. The applications currently pending, T-13703, LL1879, G-19139, in conjunction with Permit G-17036, constitute speculation in water by this applicant and approval of one or more of them would be contrary to the goals & policies in the Basin Plan, as well as the Deschutes Basin Groundwater Protection Rules. 21. To the extent that the Quasi-Municipal use proposed includes irrigation, the Department is precluded from issuing a Limited License for such a use because the “sole purpose” of that Quasi-Municipal irrigation use is not limited to the “water necessary to establish a crop for which no further irrigation will be required after the crop is established.” See, ORS 537.143(6). The proposed use in this case includes irrigation of golf courses, which need almost constant irrigation in this climate, rather than being a crop where there is “no further irrigation” needed. 22. The Water Availability Statement from the local Watermaster contains an error. Section #1 asks the question of whether the “basin that is the source” for the application has ever been regulated for prior rights. The 1 The applicant will most likely claim it has mitigation water available for the 9.2 CFS. That is a hotly disputed fact. The Big Fall Ranch water the applicant represented to ODFW and the County would be used for mitigation, appears to have been moved to another location already. Moreover, there is no demonstration that any or all of the wells involved in the Limited License application have any of the necessary mitigation water approved under the Basin Plan Rules. Any new representations about there being adequate Mitigation should be treated as highly questionable and likely unreliable, given the same applicant’s prior representations that one of the wells now proposed for Limited License, Temporary Transfer, and/or Permit G-19139 use would be abandoned. One is reminded of the old cliche: Fool me once, shame on you. Fool me twice..... Page 6 of 8 Anuta Exhibit 6 - Page 6 of 15 Watermaster mistakenly checked “No.” In fact the Deschutes Basin Groundwater Protection program found in the Basin Plan at OAR Chapter 690, Division 505 contains and constitutes regulation of groundwater in the Basin to protect prior rights. 23. There is no signed LUCS form in the application materials available in WRIS. No further processing of the Limited License application should occur until the Department has a signed LUCS on file, and the Department clarifies with Deschutes County what lands are covered by the LUCS and what lands are not. 24. Given the Groundwater limitations in the Basin, given the already harmed Scenic Waterways, and given the fact that multiple uses under multiple permits/certificates/licenses are currently proposed for this same location, any use that was (inappropriately) approved under any of the permits/certificates/licenses at issue must be conditioned to require detailed and extensive measurement and reporting. Without that sort of conditioning the local Watermaster will unable to tell whether each use is taking only what each permits/certificates/licenses authorizes. Without that sort of conditioning the local Watermaster will unable to tell whether the holder is exceeding their lawful use or harming the aquifer in some other manner. That measurement and reporting should - at a minimum - include: (i) the installation of totalizing flow meters on each well;2 (ii) daily tabulations of exactly how much water was used, under each permit/certificate/license and where it was used; (iii) weekly or monthly recordation of static water levels in each well; and (iv) monthly reporting of all measurements to both the local Watermaster and the Department’s Groundwater section in Salem. SUMMARY The requested Limited License should be denied. The applicant has not demonstrated that the proposed use is completely lawful, and that it will not use water in a way that is inconsistent with the law. In addition, the proposed use of constructing yet another golf course in the high desert - at a location where it is already clear that local streams and one or more State Scenic Waterways will be potentially harmed - is not in the public interest. The applicant is attempting to “stack” or “layer” or speculate with multiple different use authorizations onto the same land from some or all of the same wells. There has been no analysis of the impacts on the resource (both ground and surface waters) of this sort of proposed extensive pumping under multiple rights. Nor has the applicant shown that the proposed use complies with the Groundwater Protection Rules that apply in this Basin. 2 The local Watermaster, in their Water Availability Statement for LL-1879, is already recommending requiring flow meters and record keeping for all wells at issue in that application. Page 7 of 8 Anuta Exhibit 6 - Page 7 of 15 For all the reasons articulated in this comment the Limited License application should be denied. If you have any questions, please do not hesitate to contact me. Sincerely, /s/ Karl G. Anuta Karl G. Anuta c: client Page 8 of 8 Anuta Exhibit 6 - Page 8 of 15 Anuta Exhibit 6 - Page 10 of 15 Anuta Exhibit 6 - Page 11 of 15 Anuta Exhibit 6 - Page 12 of 15 Anuta Exhibit 6 - Page 13 of 15 Anuta Exhibit 6 - Page 14 of 15 Anuta Exhibit 6 - Page 15 of 15 2. On June 22, 2021, the Department provided public notice of the application, as required by OAR 690-340-0030(2). 3. This limited license request is limited to an area within a single drainage basin, as required by OAR 690-340-0030(3). 4. As part of its review to determine groundwater availability, the Department has determined that groundwater for the proposed use will not likely be available within the capacity of the groundwater resource; therefore, water is not available for the proposed use. 5. The Department has determined that groundwater will not likely cause injury to prior water rights, as long as the use of water under this limited license will not occur in conjunction with existing permit, G-17036, as stated in the application. 6. In the Deschutes Basin, a joint study of groundwater resources by the Department and U.S. Geological Survey established a hydraulic connection between groundwater and surface water within the Deschutes Ground Water Study Area (Ground Water Hydrology of the Upper Deschutes Basin, Oregon, Water Resources Investigations Report 00-4162, Portland, Oregon, 2001). 7. Based on the conclusions of the study, the Department has determined that groundwater appropriations have the potential for substantial interference with surface water rights as described in OAR 690, Division 9, and will measurably reduce scenic waterway flows as defined in ORS 390.835 unless mitigation is provided. 8. Mitigation credits have not been provided as part ofthis application. 9. The Department received public comment related to the possible issuance of the limited license from Tana Brown, Christopher Overman, Carolyn Carry-McDonald, David Arnold, Karl G. Anuta on behalf of Annunziata Gould, and Water Watch of Oregon. 10. In summary, the comments received expressed concern regarding impacts to the water table; lack of adequate mitigation under the Deschutes Groundwater Mitigation administrative rules; lack of a demonstrated need for the water requested; relationship of this application to existing permit (G- 17036) and other pending requests (Application G-19139 and T-13703); impacts on neighboring domestic wells; the use-quasi-municipal-is not a short-term or fixed-duration use, as required by the statutes governing limited licenses. 11. The Department has determined that the use is subject to its rules under OAR 690-33-0310. These rules aid the Department in determining whether a proposed use will impair or be detrimental to the public interest with regard to sensitive, threatened, or endangered fish species. Consistent with the rules, Oregon Department of Fish Wildlife has submitted comments, noting that a mitigation plan has been approved by Deschutes County, in consultation with ODFW, in order to achieve no net lo ss of fish and wildlife habitat and provide a net benefit to the resource. This mitigation plan is outlined in the Resort's Final Master Plan, with impacts to fishery resources specifically addressed in the 2008 addendum. ODFW has determined that a better understanding of the proposed uses is needed in order to assess whether they align with the 2008 addendum. 12. The Oregon Department of Fish and Wildlife (ODFW) also commented, noting that a mitigation plan has been approved by Deschutes County, in consultation with ODFW, in order to achieve no net loss of fish and wildlife habitat and provide a net benefit to the resource. ODFW has determined Application LL-1879 Page 2 of 4 Final Order Anuta Exhibit 7 - Page 2 of 4 that a better understanding of the proposed uses is needed in order to assess whether they align with the agreed-upon mitigation. 13. A response to the pj blic comments was received from Janet E. Newman, on behalf of the applicant, Kameron DeLashm~tt and Pinnacle Utilities, LLC. I 14. Deschutes County ¥s indicated that the proposed use is compatible with the applicable acknowledged comprehensive land-use plan. A copy of the land use compatibility statement is in the file. Conclusions of Law The proposed water use will impair or be detrimental to the public interest pursuant to OAR 690-340- 0030(2). Order Therefore, pursuant to ORS 537.143, ORS 537.144, and OAR 690-340-0030, Application LL-1879 is denied. Dwight Services vision Administrator,for Thomas M. Byler, Director Oregon Water Resources Department cc: Jeremy T. Giffin, District 11 Watermaster Aaron Maxwell, ODFW Danette Faucera, ODF)V Deschutes, DEQ John Short, Water Right Services, LLC, Agent -PO Box 1830, Bend, OR 97709 Kimberley Priestley, Water Watch of Oregon -213 SW Ash St STE 208 , Portland, OR 97204 Tana Brown -19820 Connarn Rd, Bend, OR 97703 Christopher Overman 19810 Connarn Rd., Bend, OR 97703 Carolyn Carry-McDonald -20058 Sunglow Court, Bend, OR 97703 David Arnold -19830 Connarn Rd, Bend, OR 97703 Karl G. Anuta & Annunziata Gould -735 SW First Ave, 2nd Floor, Portland, OR 97204 Janet E. Neuman -888 SW Fifth Ave., Suite 1600, Portland, OR 97204 Surface Water Section File Application LL-1879 Page 3 of4 Final Order Anuta Exhibit 7 - Page 3 of 4 If you need further ass istance, please contact the Water Rights Section at the address, phone number, or fax number below. When contacting the Department, be sure to reference your lim ited li cense number for fastest service. Remember, this limited license does not provid e a secure source of water. Water use can be revoked at any time. Such revocation may be prompted by field regulatory activities or many other reasons. Water Rights Section Oregon Water Resources Department 725 Summer Street NE, Suite A Salem OR 97301-1271 Phone: (503) 986-0817 Fax: (503) 986-0901 Application LL-1879 Page 4 of 4 ·' ! " Final Order Anuta Exhibit 7 - Page 4 of 4 MEMO To: Kristopher Byrd, Well Construction and Compliance Section Manager From: Travis Kelly, Well Construction Program Coordinator Subject: Review of Water Right Application G-19139 Date: August 24, 2021 The attached application was forwarded to the Well Construction and Compliance Section by the Groundwater Section. Mike Thoma reviewed the application. Please see Mike’s Groundwater Review and the Well Report. Applicant’s Wells #1 through #7 (Proposed Wells): Wells #1 through #7 are proposed wells, therefore they cannot be reviewed for construction. Construction of these proposed wells shall be completed in a manner that protects ground water resources as required under Oregon Administrative Rules 690-200 through 690-240. During construction of these well, specific attention should be paid to ensure sealing requirements are met and that the wells do not commingle aquifers. The construction of proposed Wells #1 through #7 may not satisfy hydraulic connection issues. Applicant’s Well #8 (DESC 756): Based on a review of the Well Report, Applicant’s Well #8 seems to protect the groundwater resource. The construction of Applicant’s Well #8 may not satisfy hydraulic connection issues. Approved: Anuta Exhibit 8 - Page 1 of 10 Anuta Exhibit 8 - Page 2 of 10 Groundwater Application Review Summary Form Application # G _19139_ GW Reviewer _Mike Thoma_ Date Review Completed: _08/12/2021_ Summary of GW Availability and Injury Review: ☒ Groundwater for the proposed use is either over appropriated, will not likely be available in the amounts requested without injury to prior water rights, OR will not likely be available within the capacity of the groundwater resource per Section B of the attached review form. Summary of Potential for Substantial Interference Review: ☒ There is the potential for substantial interference per Deschutes Basin Rules. Summary of Well Construction Assessment: ☐ The well does not appear to meet current well construction standards per Section D of the attached review form. Route through Well Construction and Compliance Section. This is only a summary. Documentation is attached and should be read thoroughly to understand the basis for determinations and for conditions that may be necessary for a permit (if one is issued). Anuta Exhibit 8 - Page 3 of 10 WATER RESOURCES DEPARTMENT MEMO _08/12/2021_ TO: Application G-_19139_ FROM: GW: _Mike Thoma_ (Reviewer's Name) SUBJECT: Scenic Waterway Interference & General/Local Surface Water Evaluation for Deschutes Ground Water Study Area The source of appropriation is within or above the Deschutes Scenic Waterway Use the Scenic Waterway condition (Condition 7J). PREPONDERANCE OF EVIDENCE FINDING UNDER ORS 390.835: Department has found that there is a preponderance of evidence that the proposed use of groundwater will measurably reduce the surface water flows necessary to maintain the free-flowing character of the Deschutes Scenic Waterway in quantities necessary for recreation, fish and wildlife. LOCALIZED IMPACT FINDING ☒ The proposed use of groundwater will have a localized impact to surface water in the __Middle Deschutes_____ River/Creek Subbasin. If the localized impact box above is checked, then the water use under any right issued pursuant to this application is presumed to have a localized impact on surface water within the identified subbasin. Mitigation of the impact, originating from within the Local Zone of Impact identified by the Department, will be required before a permit may be issued for the proposed use. If the localized impact box above is not checked, then the water use under any right issued pursuant to this application is presumed to have a general (regional) impact on surface water. Mitigation of the impact, originating anywhere within the Deschutes Basin above the Madras gage, will be required before a permit may be issued for the proposed use. Anuta Exhibit 8 - Page 4 of 10 PUBLIC INTEREST REVIEW FOR GROUNDWATER APPLICATIONS TO: Water Rights Section Date 08/12/2021 FROM: Groundwater Section Mike Thoma Reviewer's Name SUBJECT: Application G- _19139_ Supersedes review of Date of Review(s) PUBLIC INTEREST PRESUMPTION; GROUNDWATER OAR 690-310-130 (1) The Department shall presume that a proposed groundwater use will ensure the preservation of the public welfare, safety and health as described in ORS 537.525. Department staff review groundwater applications under OAR 690-310-140 to determine whether the presumption is established. OAR 690-310-140 allows the proposed use be modified or conditioned to meet the presumption criteria. This review is based upon available information and agency policies in place at the time of evaluation. A. GENERAL INFORMATION: Applicant’s Name: Kameron DeLashmutt/Pinnacle Utilities, LLC County: Deschutes A1. Applicant(s) seek(s) 9.28 cfs from 8 well(s) in the Deschutes Basin, Upper Deschutes subbasin A2. Proposed use Quasi-Municipal Seasonality: Year round A3. Well and aquifer data (attach and number logs for existing wells; mark proposed wells as such under logid): Well Logid Applicant’s Well # Proposed Aquifer* Proposed Rate(cfs) Location (T/R-S QQ-Q) Location, metes and bounds, e.g. 2250' N, 1200' E fr NW cor S 36 1 PROP 1 Deschutes Fm 9.28 15S/12E-28SENE 2519’S, 578’W fr NE cor S 28 2 PROP 2 Deschutes Fm 9.28 15S/12E-28NWSE 2958’S, 2316’W fr NE cor S 28 3 PROP 3 Deschutes Fm 9.28 15S/12E-28SENW 1752’S, 3044’E fr NE cor, S 28 4 PROP 4 Deschutes Fm 9.28 15S/12E-29NWSE 1677’N, 1466’W fr SE cor S 29 5 PROP 5 Deschutes Fm 9.28 15S/12E-20NESE 205’S, 434’W fr E1/4 cor S 20 6 PROP 6 Deschutes Fm 9.28 15S/12E-20SWNE 244’N, 1667’W fr E1/4 cor, S 20 7 PROP 7 Deschutes Fm 9.28 15S/12E-17SENW 2446’S, 1180’W fr N1/4 cor, S 17 8 DESC 756 8 Deschutes Fm 9.28 15S/12E-29NENE 900’S, 850’W fr NE cor S 29 * Alluvium, CRB, Bedrock Well Well Elev ft msl First Water ft bls SWL ft bls SWL Date Well Depth (ft) Seal Interval (ft) Casing Intervals (ft) Liner Intervals (ft) Perforations Or Screens (ft) Well Yield (gpm) Draw Down (ft) Test Type 1 3211 - - - 800-900 - -2-18 - - - - - 2 3231 - - - 800-900 - -2-18 - - - - - 3 3274 - - - 900-1000 - -2-18 - - - - - 4 3213 - - - 900-1000 - -2-18 - - - - - 5 3626 - - - 800-900 - -2-18 - - - - - 6 3457 - - - 800-900 - -2-18 - - - - - 7 3119 - - - 800-900 - -2-18 - - - - - 8 3339 830 730 1/15/1991 880-1000 0-18.5 -1.5-18.5 - - 10 0 A Use data from application for proposed wells. A4. Comments: Applicant proposes to draw water from the Deschutes Formation, drawn from one existing 8” well and seven proposed 14” wells for general construction, road construction, and initial quasi-municipal uses. DESC 756 is open below the 18.5 ft of casing and draws water from “frac. Lava” at depths between 830 to 880 feet below land surface. Several of the POAs listed on this application are listed in application LL-1879 and T-13703. This application is requesting water as “backup to Permit G-17036,” which is for six proposed wells in the same area. A5. ☒ Provisions of the Deschutes (OAR 690-505) Basin rules relative to the development, classification and/or management of groundwater hydraulically connected to surface water ☒ are, or ☐ are not, activated by this application. (Not all basin rules contain such provisions.) Comments: The proposed POAs are within the Deschutes Ground Water Study Area Anuta Exhibit 8 - Page 5 of 10 A6. ☐ Well(s) # , , , , , tap(s) an aquifer limited by an administrative restriction. Name of administrative area: Comments: B. GROUNDWATER AVAILABILITY CONSIDERATIONS, OAR 690-310-130, 400-010, 410-0070 B1. Based upon available data, I have determined that groundwater* for the proposed use: a. ☐ is over appropriated, ☒ is not over appropriated, or ☐ cannot be determined to be over appropriated during any period of the proposed use. * This finding is limited to the groundwater portion of the over-appropriation determination as prescribed in OAR 690-310-130; b. ☐ will not or ☒ will likely be available in the amounts requested without injury to prior water rights. * This finding is limited to the groundwater portion of the injury determination as prescribed in OAR 690-310-130; This finding assumes that the existing permit, G-17036, will not be used in conjunction with this use, as is stated in the application. c. ☒ will not or ☐ will likely to be available within the capacity of the groundwater resource; or d. ☐ will, if properly conditioned, avoid injury to existing groundwater rights or to the groundwater resource: i. ☐ The permit should contain condition #(s) ; ii. ☐ The permit should be conditioned as indicated in item 2 below. iii. ☐ The permit should contain special condition(s) as indicated in item 3 below; B2. a. ☐ Condition to allow groundwater production from no deeper than ft. below land surface; b. ☐ Condition to allow groundwater production from no shallower than ft. below land surface; c. ☐ Condition to allow groundwater production only from the groundwater reservoir between approximately ft. and ft. below land surface; d. ☐ Well reconstruction is necessary to accomplish one or more of the above conditions. The problems that are likely to occur with this use and without reconstructing are cited below. Without reconstruction, I recommend withholding issuance of the permit until evidence of well reconstruction is filed with the Department and approved by the Groundwater Section. Describe injury –as related to water availability– that is likely to occur without well reconstruction (interference w/ senior water rights, not within the capacity of the resource, etc): B3. Groundwater availability remarks: There are several wells in the area producing from the same groundwater source as the proposed POAs that have water level records that show a long-term declining trend. There are a few wells in the immediate vicinity of Cline Buttes that do not show the same long-term declines, but the majority of wells in the broader area show significant, monotonic declines (see hydrograph below). A joint study by the USGS and OWRD concluded that this widespread decline, which extends toward Powell Buttes to the east, is due to climate changes and canal lining (which have reduced recharge to the aquifer locally) as well as groundwater pumping (Gannett, et. al., 2013). The specific reason why wells closer to Cline Butte are not showing the same declines may be due to local heterogeneity (lateral and vertical) within the aquifer system, less groundwater pumping in the immediate area, or other factors, but those wells and trends do not represent the regional aquifer-system trend. Since existing groundwater appropriation has been found to be contributing to water level declines in the area, any new appropriation will continue or increase those declines and so the proposed new use is not within the Capacity of the Resource. Anuta Exhibit 8 - Page 6 of 10 C. GROUNDWATER/SURFACE WATER CONSIDERATIONS, OAR 690-09-040 Analysis in Section C is omitted in leu of the Deschutes Mitigation Rules References Used: Gannett, M. W. and Lite, K. E., 2004, Simulation of Regional Ground-Water Flow in the Upper Deschutes Basin, Oregon, USGS Water Resources Investigation Report 2003-4195, 84 p., https://pubs.er.usgs.gov/publication/wri034195 Gannett, M. W. and Lite, K. E., 2013, Analysis of 1997-2008 Groundwater Level Changes in the Upper Deschutes Basin, Central Oregon, USGS Scientific Investigations Report 2013-5092, 34p., https://pubs.er.usgs.gov/publication/sir20135092 Gannett, M. W., Lite Jr, K. E., Morgan, D. S., and Collins, C. A., 2001, Ground-Water Hydrology of the Upper Deschutes Basin, Oregon, USGS Water-Resources Investigations Report 00-4162, 74 p., https://pubs.usgs.gov/wri/wri004162/pdf/WRIR004162.pdf Gannett, M.W., Lite, K.E., Jr., Risley, J.C., Pischel, E.M., and La Marche, J.L., 2017, Simulation of groundwater and surface-water flow in the upper Deschutes Basin, Oregon: U.S. Geological Survey Scientific Investigations Report 2017–5097, 68 p., https://doi.org/10.3133/sir20175097. Lite, K. E. and Gannett, M. W., 2002, Geologic Framework of the Regional Ground-Water Flow System in the Upper Deschutes Basin, Oregon. USGS Water-Resources Investigation Report 02-4015, 44 p., https://pubs.er.usgs.gov/publication/wri024015 Sherrod, D. R., Taylor, E. M., Ferns, M. L., Scott, W. E., Conrey, R. M. and Smith, G. A., 2004, Geologic Map of the Bend 30-x-60-Minute Quadrangle, Central Oregon. U. S. Geological Survey Geologic Investigations Series Map I-2683. 49p., https://pubs.usgs.gov/imap/i2683/ D. WELL CONSTRUCTION, OAR 690-200 D1. Well #: Logid: D2. THE WELL does not appear to meet current well construction standards based upon: a. ☐ review of the well log; b. ☐ field inspection by ; c. ☐ report of CWRE ; d. ☐ other: (specify) D3. THE WELL construction deficiency or other comment is described as follows: D4. ☐ Route to the Well Construction and Compliance Section for a review of existing well construction. Anuta Exhibit 8 - Page 7 of 10 Well Location Map Anuta Exhibit 8 - Page 8 of 10 Application Review Map showing water-level wells and geology (from Sherrod et al., 2004) Anuta Exhibit 8 - Page 9 of 10 Water-Level Measurements in Nearby Wells; water levels below 2650 ft are from wells in the immediate vicinity of Cline Buttes Anuta Exhibit 8 - Page 10 of 10 KARL G. ANUTA LAW OFFICE OF KARL G. ANUTA, P.C. 735 SW FIRST AVENUE, 2ND FLOOR TRIAL ATTORNEY PORTLAND, OREGON 97204 E-MAIL LICENSED IN (503) 827-0320 KGA@INTEGRA.NET OREGON & WASHINGTON FACSIMILE (503) 386-2168 July 1, 2021 VIA ELECTRONIC MAIL (corey.a.courchane@oregon.gov) AND FAX (1-503-986-0901) Oregon Dept of Water Resources Attn: Corey A. Courchane 725 Summer St., NE, Suite A Salem, OR 97301 Re: Application T-13703 Temporary Transfer Request Kameron DeLashmutt/Pinnacle Utilities Dear Mr. Courchane: This office represents Annunziata Gould, a local public interest advocate, on water issues. These comments are submitted on behalf of Ms. Gould. Since the Department has not yet completed its evaluation of this application, we hope that these comments will be helpful to your analysis and decision making. BACKGROUND As the Department well knows, the Deschutes Basin groundwater levels are in decline. Scenic waterway flows are being negatively affected. The ground and suface water resources in the area are being mined and used at a rate that is not sustainable or stable. The Department is charged with managing and protecting groundwater and surface water. The Department is the trustee of these resources, which are owned by the public. The Department is prohibited from allowing over appropriation of ground or surface water. The Department has an obligation to protect senior water right holders in the basin, from harm by new or junior users. SPECIFIC CONCERNS ABOUT THIS PROPOSED TRANSFER These comments are directed at the Temporary Transfer requested by Mr. DeLashmutt and his Pinnacle Utilities LLC (aka Thornburgh Resort or TBR). The Department should deny or condition the proposed transfer due to one or more the Page 1 of 5 Anuta Exhibit 9 - Page 1 of 12 following reasons: 1. There is no proof that the proposed addition of 7 wells, and the expansion of use of an additional existing well, will not cause injury to one or more existing instream water rights on Wychus Creek and/or the Deschutes River, and/or in other water bodies. Consequently under the obligations imposed by ORS 536.025, and consistent with OAR 690-380-8002(2) the proposed temporary transfer should be denied. 2. There is no proof that the proposed addition of 7 wells, and the expansion of use of an additional existing well, will not cause measurable reductions in the surface water flows necessary to maintain the free flowing character of one or more scenic waterways, in quantities necessary for recreation, fish and wildlife. Consequently under the obligations imposed by ORS 536.025, and consistent with OAR 690-380-8002(2), and consistent with the exiting limitations present in the Certificate from which transfer is proposed, the proposed temporary transfer should be denied. 3. Local sources report that the Tree Farm Certificate, a portion of which is proposed for transfer, was not in fact been used year round. It was instead, Ms. Gould is told, only been used in the summer of late. Consequently allowing year round use of the .453 CFS at TBR for 5 years would be an expansion of the existing water right. 4. The 7 new wells that are proposed will all need mitigation, to comply with the Deschutes Groundwater Mitigation Rules found in OAR Chapter 690, Division 505. However, there is no indication in the application if, or if so how, that mitigation will be provided - much less a demonstration that any proposed mitigation will meet the requirements of those Rules. 5. The extent, if any, of the current use of the existing well (#8) on the TBR is not documented in the application. It is quite possible that some, or full, use of that well has not occurred for 5 or more consecutive years. If so, the use of that well may potentially subject to forfeiture and not available for further use. 6. Well #8 appears to be one of the same wells that the applicant represented to Deschutes County in the land use proceedings over TBR, would be abandoned. See, attached Map from 2008, prepared by TBR’s consultant. The County relied on those representations, in issuing land use approvals for some or all of TBR. Consequently use of well #8 as part of a temporary transfer would be inappropriate and likely unlawful. 7. Since the extent, if any, of the current use of the existing well (#8) on the TBR is not documented in the application, any use of that well above and beyond the existing use levels (if any) should be treated as an expansion of use that should be subject to additional mitigation requirements under Page 2 of 5 Anuta Exhibit 9 - Page 2 of 12 the Basin Plan Groundwater Protection Rules. 8. There is no evidence that the proposed 7 new wells (or the existing well) will be operated consistent with the limitations in Certificate 94958. Those include the requirement that the use of water under the Certificate will not “measurable reduce the surface water flows necessary to maintain the free flowing character of a scenic waterway in quantities necessary for recreation, fish and wildlife.” To the contrary, it is already proven and accepted by the courts that the TBR’s “consumptive use of groundwater is anticipated to impact an offsite fish-bearing stream, Whychus Creek, by reducing instream water volumes and increasing water temperatures.” Gould v. Deschutes County, __ Or LUBA ___, ___(2021)(LUBA #2020- 095 June 11, 2021 Slip Op. p.12)(citing Gould v. Deschutes County, 79 Or LUBA 561 (2019, aff’d 310 Or App 868 (2021)). 9. There is no proof that the proposed 7 new wells (or the existing well) will be operated consistent with the limitation in Certificate 94958, that the water use be measured with a flow meter. 10. There is no proof that the proposed 7 new wells (or the existing well) will be operated consistent with the limitations in Certificate 94958, which include that the land uses associated with the water use be in compliance with land use laws. To the contrary, some of the proposed water use that is listed in the Temporary Transfer application would be on portions of a Tax Lot (#8000), which are specifically not authorized or approved by Deschutes County to be used by TBR. See attached maps showing areas of Tax Lot 8000 that are not approved for Resort use. Yet the Revised Map provided by the applicant for the “ON” lands specifically shows use of the proposed transferred water on those same portions of Tax Lot 8000. See, attached annotated Map. Likewise the Table 2 Description of Changes specifically lists in 4 different rows (on p.10) use of the proposed transferred water on Tax Lot 8000. See, attached annotated Table excerpt. 11. A number of the exact same wells are also proposed for additional significant water withdrawal, under a Limited License (LL) application that is currently pending before the Department - LL-1879. That application proposes the use of an additional 4.5 CFS in Quasi-Municipal water from wells #1, 2, 4, 5 & 8 in the current temporary transfer application. The local Watermaster has already indicated in a Water Availability Statement for that LL, that the aquifer that these wells will likely tap is already showing “steady long term decline.” 12. Four of the new wells listed in the transfer application are also already listed for use in an expired Permit also held by Pinnacle. Specifically, wells # 3, 5, 6 & 7 are some of the same wells from which the same applicant proposes to withdraw 9.28 CFS of additional water for Quasi-Municipal Page 3 of 5 Anuta Exhibit 9 - Page 3 of 12 use under Permit G-17036. Specifically, well #3 in this transfer application appears to be the same as well #1 in the Permit G-17036 map; Well #5 in the transfer application corresponds to well #4 in the G-17036 map; Well #6 in the application appears to be well #5 in G-17036 map; And well #7 in the application appears to be well #6 in the G-17036 map. A copy of the G-17036 map is attached. The impacts of withdrawing both the proposed transferred water, and the water that is hypothetically authorized under the expired Permit G-17036 could be significant and have not been addressed or disclosed in the application. Those impacts will potentially create more harm to scenic waterway flows, and further degrade an already steadily declining aquifer. 13. Admittedly, Permit G-17036 is expired, and it quite likely it will ultimately be cancelled. However, the same applicant currently has yet another application pending, for all of the same 8 wells referenced in the transfer application. Specifically, Application G-19139 seeks the same 9.28 CFS from the same 8 wells that are referenced in the temporary transfer application. A copy of that map from that application is also attached. In short, the concerns about excessive use of water in a way that could harm the aquifer, near by well, Whychus Creek and/or the Deschutes River - and that could have other as yet unevaluated impacts on ground and surface water - remain valid even after G-17036 is cancelled. 14. The applications currently pending, T-13703, LL1879, G-19139, in conjunction with Permit G-17036 constitute “layered” water rights and approval of one or more of them would be contrary to OAR 690-380-2240. 15. Given the Groundwater limitations in the Basin, given the already harmed Scenic Waterways, and given the fact that multiple uses under multiple permits/certificates/licenses are currently proposed for this location, any use that was (inappropriately) approved under any of the permits/certificates/licenses at issue must be conditioned to require detailed and extensive measurement and reporting. Without that sort of conditioning the local Watermaster will unable to tell whether each use is taking only what each permits/certificates/licenses authorizes. Without that sort of conditioning the local Watermaster will unable to tell whether the holder is exceeding their lawful use or harming the aquifer in some other manner. That measurement and reporting should - at a minimum - include: (i) the installation of totalizing flow meters on each well;1 (ii) daily tabulations of exactly how much water was used, under each permit/certificate/license and where it was used; (iii) weekly or monthly recordation of static water levels in each well; and (iv) monthly reporting of all measurements to both the local Watermaster and the Department’s Groundwater section in Salem. 1 The local Watermaster, in their Water Availability Statement for LL-1879, is already recommending requiring flow meters and record keeping for all wells at issue in that application. Page 4 of 5 Anuta Exhibit 9 - Page 4 of 12 SUMMARY The requested temporary transfer should be denied. The applicant has not demonstrated that the proposed use is completely lawful, and that it will not use water in a way that is inconsistent with the law and the Certificate under which transfer is proposed. The applicant is attempting to stack or “layer” multiple different use authorizations onto the same wells. There has been no analysis of the impacts on the resource (both ground and surface waters) of this sort of proposed extensive pumping under multiple rights. Nor has the applicant shown that the proposed use complies with the Groundwater Protection Rules that apply in this Basin. For all the reasons articulated in this comment the transfer application should be denied. If you have any questions, please do not hesitate to contact me. Sincerely, /s/ Karl G. Anuta Karl G. Anuta c: client Page 5 of 5 Anuta Exhibit 9 - Page 5 of 12 Anuta Exhibit 9 - Page 7 of 12 Anuta Exhibit 9 - Page 8 of 12 Anuta Exhibit 9 - Page 9 of 12 Anuta Exhibit 9 - Page 10 of 12 Anuta Exhibit 9 - Page 12 of 12 Anuta Exhibit 10 - G-19139 Application Map