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2006-387D-Minutes for Meeting December 20,2005 Recorded 4/7/2006CENTRAL OREGON IRRIGATION DISTRICT A MUNICIPAL CORPORATION OF THE STATE OF OREGON 2598 N. HWY. 97 REDMOND, OR 97756-1219 (541) 548-6047 FAX (541) 548-0243 www.coid.ors December 19, 2005 Deschutes County Commissioners Mike Daly Delivered by U.S. Mail, email, and by hand Dennis Luke (application by hand only) Beverly Clarno 1300 NW Wall Street Bend, OR 97701 Re: Thornburgh Resort Company, LLC Application for Destination Resort Approval No: CU-05-20 Dt: 12/20/05 Hearing Dear Commissioners: I am the Manager of Central Oregon Irrigation District, the principal supplier of water for the proposed Thornburgh Resort. My staff and legal counsel have been working with Thornburgh's agents to resolve water supply concerns for over a year, and have worked out a method of purchasing water for the Resort on an "as needed" basis. The details of this proposal are enclosed for your review. This water will come primarily from lands being urbanized as farm lands are brought into city urban growth boundaries to accommodate Bend's and Redmond's growth. Some of the water previously used to irrigate these fields will likely be needed by the municipalities to provide water for new residents, but our research has shown that only a small part of the water will be needed for this purpose. The rest of the water will be available for other uses, such as instreaming for fish and mitigation credits for groundwater uses. COID is working actively with local groups such as the Deschutes River Conservancy and the Deschutes Water Alliance, and is final preparations for the launch of a local basin water bank in 2006. COID is also consulting with state-level organizations such as the Oregon Water Resources Congress and our congressional representatives to resolve the cutting edge challenges facing the Deschutes Basin on water supplies and use. I am also serving on the National Water Resource Association Board of Directors, representing water interests in the northwest. Document Reproduces Poorly Exhibit D (Archived) Page__(__ of / 3 jC P December 19, 2005 Page 2 All of this work is necessary to ensure that water use decisions in the Deschutes Basin are made with the best information, mindful of short and long-range impacts, and with stakeholders at the table. COID currently irrigates approximately 45,000 acres in the Bend, Redmond, Alfalfa, Powell Butte, and Terrebonne regions of Deschutes, Crook and Jefferson Counties. We expect much of this water will be moving to new uses in the next twenty years, and are working to make that transition as smooth as possible. COID has been transitioning from a purely agricultural supplier into a manager of water as a resource since building the Siphon Power Plant on the Deschutes in the 1980's. We have built state-of-the-art fish screens at our diversion points on the Deschutes, and now run fish-free canals. We have committed to permanently instreaming water for fish in both 2005 and 2006. The County's land use approval role provides yet another opportunity for wise water use decisions. As an applicant comes to the County for approval of a new land use, they also will require a new water use. If the County requires that the applicant has all the water rights already in hand with the application, that right has been bought off the market before it is actually needed, perhaps years before. This creates an artificially high demand for water rights, driving up the price of water on the open market. It also requires that the water be removed from beneficial use on land now, even though it is not needed until later. It also impacts current agricultural users who cannot afford to pay resort prices for water, and may be lured into fallowing land and selling the water at a high price. COID asks the County to consider what method is best to decide who should get the water. Is the water to go to the highest bidder? COID has worked to make water decisions based on what's best for the public, and keeping farm land productive is a statewide planning goal (Goal 3) that Deschutes County has held in high regard for some time. The decision rendered by Hearings Officer Anne Corcoran Briggs last month implies that the Resort must bring all of the water to the table with the application. This decision, if left unmodified, will set a precedent that will artificially escalate the competition for water rights in the basin, and consequently drive the price up, and drive some farmers out. Her analysis of Water Availability on page 25 expressly conditions approval of the application on having the credits in hand now. Some of this water will not be needed for many years, and this policy, if followed, will be a waste of water, against the beneficial use doctrine that is the pillar of Oregon's water law policy. It will, as explained above, also have a significantly adverse effect on farming. COID has worked out an agreement with Thornburgh in consideration of the attached application. Working with the Water Bank, Thornburgh will have its water as it is needed, and should not need to obtain water early, particularly in light of all of the consequences of such accelerated demand on the market. Exhibit _L Page 2 of-/-39 December 19, 2005 Page 3 Our District, like the County, wants what's best for the public. This precedent is not in anyone's interest. It artificially hikes water prices for municipalities, farmers, and even environmental interests acquiring water for fish. It constrains supplies without need. We ask that you, as the leaders of the County, review and revise this portion of this decision. In so doing, you will benefit all parties, and establish a precedent for the future of land use in the County that works with farmers and cities, not against them. Sincerely, /s/Steven C. 9ohnson Steven C Johnson Manager, Central Oregon Irrigation District Exhibit -.L Page -3- of -6-9' December 14, 2005 Project No. 1007-101-07 Mr. Steve Johnson, Manager Central Oregon Irrigation District 2598 N. Highway 97 Redmond, OR 97756 NEWTON E CONSULTANTS INC. Oil Earth, Water and Rock Specialists DEVELOPMENT IRRIGATION PLAN APPLICATION PROPOSED THORNBURGH RESORT Dear Mr. Johnson: ' Enclosed is a Development Irrigation Plan Application (Application) submitted to the Central Oregon Irrigation District by Newton Consultants, Inc. on behalf of Thornburgh Resorts Company, LLC. ' This Application is submitted in accordance with COID requirements for water right transactions with COID in connection with mitigation credits for the proposed ' Thornburgh Resort. Supplemental information is included with the Application based on needs identified in COID Pre-Application Information and Data Request documents, and Application Guidelines. The supplemental information includes narrative descriptions, maps and attachments. Maps and attachments are at the end of the application documents, ' separated by divider sheets for convenience. The supplemental information includes references to sections of the Land Use Application for additional details. We trust that this submittal is consistent with COID Application needs. If you have any questions regarding this submittal, please contact me at (541) 504-9960 extension 211, or ' cell phone at (503) 860-5777. David . Ne on, P.E., C.E.G., C.W.R.E. Principal 2731 SW Airport Way, Suite 100 ® Redmond, Oregon 97756 ® 541 504-9960 ■ fax 541 504-9961 ■ www.newtonconsultants.com Exhibit J0 Page 5 of 13k I l G'BNTRAL OREGON r P IRRIGATION DISTRICT I TYPE OF DEVELOPMENT (check one): APPLICATION FEE: ❑ LAND DIVISION ❑ LOT LINE ADJUSTMENT ❑ SUBDIVISION [R DESTINATION RESORT ❑ OTHER ❑ DEVELOPMENT NAME (if applicable): Thornburgh Resort ❑ ANTICIPATED START DATE OF DEVELOPMENT 2006 ❑ LAND USE APPLICATION DATE OF FILING (actual or anticipated)FebrLarv 16. []05 PLANNED USE OF WATER (check all that apply): ❑ SURFACE DELIVERY (Section 6 applies) ® GROUNDWATER DELIVERY (Section 7 applies) ❑ PROPOSED MUNICIPAL/QUASI-MUNICIPAL WATER DISTRICT 1. APPLICANT INFORMATION (if a business entity, please attach State of Oregon Corporations. Division documentation)See attachment APPLICANT NAME: Thornburgh Utility Group LLC PHONE: (503) 318-9950 MAILING ADDRESS: PO Box 264 CITY:_ Bend STATE: OR ZIP:97709 EMAIL: kameron@bendcable.com CONTACT NAME: Kameron DeLashmutt 2. PROPERTY OWNER INFORMATION See attachment 8 (if a business entity, please attach State of Oregon Corporations Division documentation) NAME: Tharnhucgh RAanrl- onm yo rdT C PHONE: ( ) MAILING ADDRESS: other info. same as applicant CITY: STATE: ZIIP: EMAIL: See attachment 9, Ex. 1 A-10 for additional owner information 3. PROFESSIONAL CONTACTS (Please provide as applicable) ❑ ATTORNEY MArthm n 0-.,.,.1 ene ❑ ENGINEER David J. Newton, 541-504-9960 xt. 211, dnewton@newtonconsultants.com ❑ SURVEYOR For other develo~n n eam con Q t in o matinn age attat-hm nt- o Burdon of Proof, pp. 'J-ii ❑ REALTOR/OTHER Exhibit CENTRAL OREGON IRRIGATION DISTRICT 2598 N. Hwy 97, Redmond, OR 97756 Phone: (541) 648-6047 Fax: (541) 548-0243 www.coid.org DEVELOPMENT IRRIGATION PLAN APPLICATION Date of Submission: December 14, 2005 of ' I 4. Name of Party to Hold Water Rights and Pay District Assessment Thornburgh Utility Group LGc ' If Water Right Use is to be Managed b Another Party Please Provide Name N/A 5. Description of Lands Within Development II (if different than attached Tax Assessor's Map) Tower Range Section Section Tax Lot Number f see attachment 10 See also attachment 9, exhibit A-1,06 (Title Reports s owing location on tax maps.) Is the Development within District Boundaries? ® Yes ❑ No If No, does the applicant request Inclusion? 6. Attachments/Surface Water Delivery (SW) N/A ❑ Location of COID points of delivery on development map ❑ Land Use Application, if filed ❑ Yes ❑ No 7. Attachments/Groundwater Delivery (GW) LEI Copy of GW Application )EI OWRD GW Determination (zone of impact) Attachment 1 Attachment 2 ® Hydrology & Water Feasibility Study AI Land Use Application, if filed Attachment 11 Attachment 9 (on CD) ® Location of well sites on development map Groundwater Permit Application Map (Exhibit B-32) Does water use plan request exit of water right from District? ❑ Yes No Member of Deschutes Water Bank? pd Yes ❑ No Do you plan on utilizing temporary mitigation credits? IN Yes ❑ No See attachment 12 (contract with Deschutes River Conservancy) 2 Exhibit Page of 3 11 11 8. Additional Attachments Included with Application IGW or SW) ,I7 Map of Development including phase notations, planned location of proposed water uses. If a Quasi-Municipal or Municipal water right, also denote the water service boundary Phasing map (revised exhibit B-1.8); groundwater permit applicaetion map (exhibit B-32) IN Copy of Last Recorded Deed Attachment 7 KI Title Report/Subdivision Guarantee/Lot Book Report (issued within 90 days of submission of this application) Attachment 9, exhibit 1 A-106 (Dec. 2001 Title Reports). COID informed applicant that updated title reports are not necessarryy. El Agreements with other Irrigation Districts allowing purchase of water for use in this development 11 N/A ® Detailed schedule of water rights to be transferred for development, includes current owner, quantity in acres, water right certificate number(s), priority dates, and location of appurtency. Attachment 3 ® Purchase Agreements/Quit Claims of Owned Water Rights above. Please include all pertinent information: ® Beneficial Use documentation COID confirmed that it will verify beneficial use for COID ri hts. Purchase Options existing on any additional water rights Attachment 6. Q Water Acquisition Plan to obtain water rights needed for Development. Note by acre quantity and estimated date t necessary to acquire. Application Supplement. r ® Provide written narrative of proposed water use plan. If requested information is already provided in an attachment with this application, note document and page number(s). Narrative should address the following items: ' UHow the proposed water system will serve the size and type of development and uses planned for this area. ® How will water be distributed through the project. Be specific to location, size, and type of facilities planned or existing in development, including how water flow volumes will meet demands. RI How drainage and tail water will be managed including common weather situations. ® If Municipal/Quasi-Municipal Water District is planned, description of the multiple uses of the water i.e. irrigation, fountains, ponds, fire hydrants etc. Application Supplement contains narrative of proposed water use plan. 9. Signature This application is submitteAby David J. Newton o b all Thornburgh Utility Group, LLC. _ 1 1 Exhibit Page $ of 13 8' PROPOSED THORNBURGH RESORT DEVELOPMENT IRRIGATION PLAN SUPPLEMENT December 14, 2005 INTRODUCTION This document presents information regarding the proposed Thornburgh Resort, location shown on Exhibit A-1, location Map and Total Acres, required for the Central Oregon Irrigation District (COID) DEVELOPMENT IRRIGATION PLAN APPLICATION (the Application). This document responds to information needs for the following Application requirements: • Written Narrative of the Proposed Water Use Plan, Application Item 8; • Pre-Application Information and Data Request; and • Application Guidelines WRITTEN NARRATIVE OF PROPOSED WATER USE PLAN HOW WATER SYSTEM WILL SERVE THE DEVELOPMENT & RELATED USES Types of Water Use The Resort water uses are classified as quasi-municipal. Specific types of uses under this overall classification include: • Irrigation of golf courses, landscaping and other common areas; • Domestic uses for single-family residences, cottages, timeshares and condominiums; • Hotel; • Two clubhouses; • Two sports facilities; • Three restaurants; • Two conference centers; and • Lake maintenance. The planned locations of water uses are shown on the attached Exhibit A-1.04, ' Conceptual Development Plan and on the attached Exhibit B-32, Water Right Application Map in the "Maps" section of this document. ' Exhibit Page __9_ of l3 9- December 14, 2005 Page 2 ' COID DIP Application Item 8 Information Amount of Water Needed for the Development ' The total annual volume of water required for the various quasi-municipal uses of the development is 2,355 acre-feet (788 equivalent acres of surface rights at a ground water ' duty of 3 acre-feet per acre). The maximum peak demand rate over relatively short summer periods is estimated at 9.27 cfs (4,165 gallons per minute). The following table illustrates Resort water needs. TABLE OF WATER NEEDS Estimated Full Build-out Water Needs for Preliminary Planning Peak Flow Rate Peak Off-Peak Flow Rate Off-Peak Total Water Use Units CFS GPD GPM Volume CFS GPD GPM Volume Volume Consumed Golf Courses (3) 320 ac 5.82 3.76 MS 2,611 691 of 1.13 0.73 M 509 268 of 955 of 384 of SF Housing 523 0.55 0.36M 248 65 of 0.37 0.24 M 166 223 of 285 of 115 of SF Housing ---M ---af M of of of Cottages/Cabins (250) 250 0.50 0.32 M 224 59 of 0.35 0.23 M 157 211 of 268 of 108 of Condo-Timeshares 175 0.36 0.23 M 162 43 of 0.23 0.15M 105 139 of 180 of 73 of ---M ---af M of of of Hotel (50 Rooms) 100 beds 0.11 0.07 M 50 13 of 0.02 0.01 M 9 12 of 25 of 10 of Club Houses (2) 400 seats 0.09 0.06M 40 11 of 0.06 0.04M 27 36af 47af 19af Sports Facility (2) 120 FU 0.15 0.10M 67 18af 0.10 0.06M 45 60af 78af 31 of Lakes 15 77 ac 0.33 0.21 M 148 231 of ---M ---af 228af 92af Comm. Irrigation 65 ac 1.18 0.76M 530 140 of 0.23 0.15 M 104 55 of 193 of 78af Restaurants (3) 550 seats 0.10 0.06M 46 12 of 0.07 0.04M 31 41 of 53 of 21 of Conference (2) 60 FU 0.07 rOO4M 30 28 of ---M ---af 28 of 11 of TOTALS 9.28 5.98M 4,165 1,326af 2.56 1.65M 1,153 1,045af 2,355af 942af i Exhibit Page /0 of 13S December 14, 2005 Page 3 COID DIP Application Item 8 Information Mitigation water is required for the new ground water permits under which water supply will be provided. Based on the quasi-municipal water use classification and 40 percent annual average consumptive use, the annualized volume of mitigation water needed for the Resort is 942 acre-feet. Based on allowance of 1.8 acre-feet of mitigation credit per acre of irrigated land, 523 acres of irrigation water are needed for total Resort mitigation requirements. Timing of Water Need The Resort will be developed in 7 phases, A through G, between 2006 and 2018. Development phasing is shown on the attached Exhibit B-1.08 (Phasing Map) in the "Maps" section of this document. Water supply and mitigation needs will be developed incrementally for each phase as provided by Oregon Revised Statutes. Water needs for Phase A are summarized in the following table. TABLE OF PHASE A WATER NEEDS POTENTIAL PHASE A SCENARIO Project Avg Year-Round Rate Annual Mitigation Mitigation Component UNITS CFS GPM Volume Volume Acres Golf Course 120 ac 2.18 cfs 978 gpm 360 of 144 of 81 ac Club Houses 1 0.05 cfs 23 gpm 24 of 10 of 6 ac Misc Irrigation 35 ac 0.64 cfs 287 gpm 111 of 44 of 25 ac SF Housing 300 0.23 cfs 104 gpm 168 of 67 of 38 ac Condos & Cottages 50 0.04 cfs 17 gpm 28 of 11 of 6 ac Timeshares 100 0.08 cfs 35 gpm 56 of 22 of 13 ac Conference 1 0.04 cfs 18 gpm 14 of 6 of 3 ac Lakes / Water Feat. 45 ac 0.19 cfs 85 gpm 135 of 54 of 31 ac Restaurants 1 0.04 cfs 18 gpm 20 of 8 of 5 ac TOTALS 3.49 cfs 1,565 gpm 916 of 366 of 208 ac Mitigation water needs and timing for all phases A through G are summarized below. Exhibit Page _jL_ of 13 9- December 14, 2005 Page 4 COID DIP Application Item 8 Information MITIGATION PHASE NEED SCHEDULE A 208 acres 2006-2009 B 141 acres 2007-2011 C 30 acres 2008-2011 D 106 acres 2009-2011 E 30 acres 2009-2011 F 5 acres 2009-2011 G 3 acres 2009-2011 Acquisition of Mitigation Water Method of Water Service to the Development Thornburgh will acquire water for mitigation purposed by purchasing mitigation credits through the Deschutes River Conservancy and by purchasing water rights from COID patrons and from individuals who own land outside of COID. The Resort has already entered into agreements to purchase approximately 72 acres of irrigation rights within COID and 101 acres of irrigation rights outside of COID. See Attachment 3 (Schedule of Water Rights). Thornburgh has also secured 325 temporary mitigation credits for the year 2006 through an agreement with the Deschutes River Conservancy, with an option to purchase 325 temporary credits in the years 2007 and 2008. See Attachment 12 (DRC Contract). Thornburgh is preparing a mitigation plan to be submitted to OWRD and will provide a copy of the plan to COID when it is completed. The water system is planned for 6 wells, up to 4 steel tank storage reservoirs, steel pressurized pipelines for water distribution to places of use, ponds for irrigation storage, and pumps and pressurized pipelines for distribution of irrigation water. Planned water facilities are shown on the attached Exhibit B-07a, Water Master Plan Map in the "Maps" section of this document. Water Source, Water Right Requirement, Name of Water Right Holder Ground water will be used to supply the various Resort uses identified above. Ground water is available for the proposed uses based on evaluation of historic ground water uses in the upper Deschutes Basin, experience with high-capacity wells in the area, and findings of the evaluation discussed in the attached Exhibit B-26, "Preliminary Report, Water Supply Development Feasibility, Proposed Thornburgh Resort, Deschutes County, Oregon': A water right permit for the planned water uses is required from the Oregon Water Resources Department. A permit application is presently being processed by the OWRD based on its finding that the planned uses are consistent with authorized use classifications for the Deschutes Basin (OAR 690-505-0010, 0400) and that water is available for the planned uses. A mitigation plan has also been prepared in accordance Exhibit Page 12 of 13,K December 14, 2005 Page 5 COID DIP Application Item 8 Information ' with OWRD permit requirements and is presented in the "Attachments" section at the end of this document. Water rights for the Resort will be held in the name of the Central Land and Cattle Company LLC, Genesis Development Group LLC, Thornburgh Utility Group LLC, or Thornburgh Resort Company LLC. Wells Water supply for Resort uses will be obtained from at least 6 wells to be constructed on the Resort site. Proposed well locations are shown on the attached Exhibit B-07a, Water Master Plan Map in the "Maps" section of this document. Wells are planned at 18 inches in diameter with steel casing diameter of 14 inches. Well depths will range between 650 and 900 feet below the ground surface, depending largely on the well site elevation above the aquifer system. Well installations (points of appropriation) include the well and well house with electrical ' control panels, pipe and valve systems. The approximate footprint area of the well houses is at least 20 feet by 15 feet. These installations are remote from any COID easements, rights-of-way and infrastructure and they will not interfere with COID ' operations. Wells will be designed and installed to provide peak capacity of 4,165 gpm during relatively short term peak demand periods (primarily summer). The approximate minimum capacity, types of uses and approximate mitigation need for ' each of the proposed wells is summarized below. MITIGATION WELL NO. PHASE WATER USES CAPACITY NEED 1 A Irrigation 3.0 cfs 137 acres ' 2 A Domestic, Commercial 0.5 cfs 71 acres 3 B Irrigation 2.4 cfs 81 acres 4 B Domestic, Commercial 0.5 cfs 60 acres 5 C, D, G Domestic, Commerical 0.5 cfs 33 acres 6 D, E, F Irrigation, Dom, Comm 3.0 cfs 141 acres r TOTALS 9.9 cfs 523 acres Reservoirs for Domestic and Commercial Uses Wells will supply water for up to four steel tank reservoirs loca ted at strategic sites for gravity pressure supply to domestic and commercial water users. Wells for domestic and commercial supply will be located near the reservoirs. Booster for sufficient pressure in some areas. pumps may be required I Exhibit d~ Page 13 of _L32- December 14 2005 Page 6 ' COID DIP Application Item 8 Information Minimum capacity of the reservoirs will range from 40,000 to 300,000 gallons. Reservoir sizes will be up to approximately 70 feet in diameter and about 12 feet high. They will be "tucked" into the landscape to reduce visibility. This storage capacity includes fire suppression water based on criteria provided by the Redmond Fire Department Fire Marshal. The reservoirs are sized to balance storage with pumping demand and to allow circulation of water to avoid stagnation. Reservoir installation sites are remote from any COID easements, rights-of-way and infrastructure and they will not interfere with COID operations. Water will be distributed to domestic and commercial users from the reservoirs by buried pressurized pipelines. Irrigation Wells will also supply water for all irrigation needs. Irrigation water is needed for four golf courses, landscape areas and maintenance of ponds. Ponds will also be used to store water for irrigation. The total approximate irrigated area is 385 acres, including the golf courses. Pond surface area is about 77 acres. Pond maintenance water is needed to offset evaporation losses. Irrigation water will be distributed to irrigated areas from the ponds by centrifugal pumps and buried pressurized pipelines. Irrigation will be accomplished with sprinkler systems ' operated by computer-controlled timer systems that account for climatic conditions (humidity, wind, temperature and soil moisture). HOW WATER WILL BE DISTRIBUTED THROUGH THE PROJECT Water will be distributed through the project by use of steel tank reservoirs and pressurized pipelines for domestic and commercial uses and by ponds, pumps and pressurized pipelines for irrigation uses. The attached Exhibit B-074, Water Master ' Plan Map in the "Maps" section of this document, shows the principal water supply, storage and distribution components. Water will be distributed to domestic and commercial users from the reservoirs by buried pressurized pipelines. The reservoirs will be located at strategic points with sufficient elevation to provide gravity pressure to users. In some cases, in-line booster pumps may be required to provide sufficient pressure. Pressurized main pipelines up to 12 inches in diameter will comprise the main distribution system. Smaller diameter service pipelines will distribute water beyond the main delivery system to service connections. Irrigation water will also be supplied with wells. Irrigation wells will supply water to ponds used for irrigation storage, aesthetic and recreational purposes. Electronic Exhibit .J $ Page J4- of 13 December 14, 2005 Page 7 COID DIP Application Item 8 Information monitoring and control systems will be used to actuate well pumps and maintain water surface elevations in the ponds at the appropriate level. Centrifugal pumps at the ponds will be used to distribute water through buried pressurized pipelines to irrigation systems. These systems will consist of modern and efficient sprinkler systems. Irrigation demand will be determined by computer systems sensitive to climatic conditions (temperature, wind, humidity, soil moisture). Water for irrigation will be distributed in some limited cases by natural drainage ways. These drainage ways will be designed to simulate creeks to covey water between ponds. HOW DRAINAGE AND TAIL WATER WILL BE MANAGED INCLUDING 1 COMMON WEATHER SITUATIONS Drainage and tail water conditions will not exist at the propose resort where management ' actions are required. Irrigation of golf and other landscape areas will be done with high- technology equipment controlled by computer systems. The computer systems adjust water output for irrigation based on temperature, wind, humidity and soil moisture, which matches water application more closely with plant needs. In this case, runoff, tail water and drainage are not issues that require management. IF MUNICIPAL/QUASI-MUNICIPAL WATER DISTRICT IS PLANNED DESCRIPTION OF THE MULTIPLE USES OF THE WATER Water use at the proposed resort is classified as quasi-municipal. The planned water uses are identified in the Table of Water Needs under the above heading "Amount of Water L Needed for the Development". PRE-APPLICATION INFORMATION AND DATA REQUEST I1. Where is the Development and is it within District boundaries? Provide legal description as it appears on the deed and tax assessor's map. The proposed Resort location is shown on the map "Site Plan," Exhibit B-26a in the "Maps" section of this document. Tax lots are shown on the map "Land Use Map," Exhibit I -A2 also in the "Maps" section of this document. Deeds are presented in the "Attachments" section of this document. j Part of the proposed Resort site is located within COID boundaries. The Inclusion Order is presented in the "Attachments" section of this document. j t Exhibit / Page 15 of 13 8r December 14, 2005 Page 8 1 COID DIP Application Item 8 Information 2. How much water (in acres) is needed for the Development? Note if need if for surface water from and irrigation ditch or ground water from a well. If I for ground water, then provide in equivalent surface water acres or mitigation credits. If the Development is to be in phases, denote water requirement per phase. Indicate whether there are water rights either owned, or appurtenant to the Development and who owns the water. Water for supplying various proposed Resort uses will be obtained from ground water. Based on a typical duty for ground water rights, the equivalent water volume in terms of surface water acres would be 788 acres. Th e proposed water uses are classified as quasi-municipal. The required number of mitigation credits for consumptive use is 942 credits (or acre-feet). This 1 amount of credits corresponds to 523 acres of surface water rights. Details on water needs and water requirements for development phases are presented in the above WRITTEN NARRATIVE OF PROPOSED WATER USE PLAN section of this document. 3. What types of water uses are being considered? (quasi-municipal, irrigation, industrial, commercial, pond). If in phases, denote water quantity requirement by use per phase. Be sure to note domestic water in documenting phases. Proposed water uses are quasi-municipal. Specific types of uses under this classification are irrigation, ponds, domestic and commercial. All water for these specific uses will be obtained from ground water. The first phase (A) of the proposed Resort requires the following water quantities for the listed uses: Irrigation 471 acre-feet 155 acres Pond 135 acre-feet 45 acres Domestic 252 acre-feet 84 acres (equivalent) Commercial 58 acre-feet 19 acres (equivalent) The required number of mitigation credits for Phase A is 366 credits. This amount of credits corresponds to 208 acres of surface water rights. More information on phasing and related water needs is presented in the above WRITTEN NARRATIVE OF PROPOSED WATER USE PLAN section of this document. 4. When is the water needed for use? If in phases, denote planned timing of phases. (month & year). Exhibit .I~ Page of /38' December 14, 2005 Page 9 ' COID DIP Application Item 8 Information Phasing and related timing of water needs are presented in the above WRITTEN NARRATIVE OF PROPOSED WATER USE PLAN section of this document. 5. How is the water needed for development going to be acquired? In whose name the acquired water right will be held? In addition, what party will be responsible for payment of the COID assessment? The proposed Resort (Thornburgh Resort) will acquire water for mitigation purposes by purchasing water rights from COID patrons and from individuals who own land outside of COID. The Resort has already entered into agreements to purchase approximately 72 acres of irrigation rights within COID and 101 acres of irrigation rights outside of COID. The 101 acres outside the COID are irrigation rights presently transferred instream. The maximum authorized rate is 1.271 cfs with a priority date of May 12, 1944. The point of diversion is in the SW 1/4 SE 1/4 section 26, near Odin Falls, about 3 miles north of Cline Falls. These rights are in the general zone of impact. Thornburgh Resort has also secured 325 temporary mitigation credits (180.5 equivalent surface water right acres) for the year 2006 through an agreement with the Deschutes River Conservancy (DRC), with an option to purchase 325 temporary credits in the years 2007 and 2008. The acquired water rights will be held in the name of Central Land and Cattle Company LLC, Genesis Development Group LLC, Thornburgh Utility Group LLC, or Thornburgh Resort Company LLC. The Development Irrigation Plan applicant, Thornburgh Utility Group LLC, will be responsible for payment of the COID assessment. 6. Have you contacted the Deschutes River Conservancy regarding the potential of using temporary mitigation credits through the Deschutes Water Bank for Development? Yes, see response to item 5 above. 7. What party will be responsible for ensuring beneficial use and managing the water delivery system(s)? Thornburgh Utility Group LLC. 8. Briefly describe how the water for all uses is to be delivered. Descriptions should include wells or COID points of delivery, sprinkler system layouts to I all lots, necessary easements, rotations of water use, etc. Exhibit Page P of December 14, 2005 Page 10 COID DIP Application Item 8 Information How water for all uses is to be delivered is described in the above WRITTEN NARRATIVE OF PROPOSED WATER USE PLAN, subsection HOW THE WATER WILL BE DISTRIBUTED THROUGH THE PROJECT. Basic system components include wells, steel tank reservoirs, distribution pipelines, booster pumps, irrigation pumps, ponds, and sprinkler irrigation systems operated by climate sensitive computer systems. 9. Has there been any evaluation of present watercourses and tail water management? If so, describe below: Tail water management is not applicable. All irrigation is by sprinkler system with high-efficiency management. 10. Other issues or considerations of note with development, including any special points of interest such as designated wetlands or natural hazards. 1 Natural features and rock outcroppings are shown on the map "Natural Characteristics Geomorphic Map," Exhibit B-21 c in the "Maps" section of this document. APPLICATION GUIDELINES A. GENERAL INFORMATION This information, including name of development, names, addresses of property owner of record, etc. is provided on the attached Application. Attachments required: The following attachments 1, 2 and 3 are in the section "Supplemental Information" at the end of this document. 1. Certified copy if the recorded instrument under which the applicant claims 1 an ownership interest, or a copy of a land sales contract which binds the applicant in the event of approval. 2. A title report and/or a Subdivision Guarantee prepared within the previous ninety (90) days by a qualified title company. 1 3. A copy a ground water application submitted to the Oregon Water Resources Department (OWRD), which indicates that the applicant has applied for the intended use of water as applicable. Exhibit of December 14, 2005 Page 11 COID DIP Application Item 8 Information a. Ground water permit application is Exhibit 16 B-32. b. Thornburgh Project site is in General Zone of Impact. See OWRD Initial Review (Exhibit 16 B-1.65). 4. Map of the division, conceptual development plan, Exhibit A-1.04, is presented in the "Maps" section at the end of this document. a. Exhibit 2 A-1.04 is a map depicting the Conceptual Development Plan for Thornburgh Resort. The proposed resort site is within COID boundaries, but is located approximately 3 miles from exiting COID canal facilities. See Attachment 6 for map showing proximity of resort property to existing COID boundaries and facilities. i. Location, names, and widths of existing improved and "unimproved District canals," laterals, and related facilities. The proposed Resort site is remote from any existing improved and 1 "unimproved District canals," laterals and related facilities by several miles. Proposed Resort improvements will have no impact on District infrastructure. ii. Location of any existing features such as section lines, section corners, city and special district boundary lines, and survey monuments. Section lines and section corners are shown on the map "Site Plan", Exhibit B-26a, in the "Maps" section of this document. Boundary lines of the Redmond Rural Fire District are shown on the map "Fire District Map", Exhibit B-11 in the "Maps" section of this document. iii. Location of existing/planned structures, roads, streets, rights of way, railroads, and any specific points of interest such as rock outcroppings, designated wetlands, wooded areas, and natural i hazards. Locations of planned major roads are shown on the map "Vehicular Access and Circulation," Exhibit A-1.06, in the "map" section of this document. i Locations of rock outcroppings and other natural features are shown on the map "Natural Characteristics," Exhibit B-21c, in the "Maps" I section of this document. ' Exhibit l7 Page 19 of d December 14, 2005 Page 12 COID DIP Application Item 8 Information a.) See Exhibit 3 A-6, A-6a, and A-1.06; see also Exhibit I A-2 and Exhibit 4 B-21 c. iv. Layout of intended land uses for development, including residential, commercial, open space, lodging or recreation. The layout of intended land uses for the Resort is shown on the map 1 "Conceptual Development Plan," Exhibit A-1.04, in the "Maps" section of this document. a.) Exhibit I A-1.02 (revised land use map); Exhibit 2 A-1.04 (map showing residential, commercial, open space, lodging and recreational uses). V. Location and direction of watercourses, and location of areas subject to flooding and high water tables, including tail water to or from surrounding properties. Watercourses in the proposed Resort site are natural draws and drainageways. Some watercourses will convey water between ponds. No areas subject to flooding and high water tables, nor areas subject to tail water occur on the Resort site. The Resort site is remote from COID infrastructure by several miles and flooding or tail water issues are not applicable. vi. Phasing - show phase lines and dates of proposed development on the tentative plan. Phasing and dates of proposed development of phases are shown on the map "Phasing Map," Exhibit B-1.08, in the "Maps" section of this document. ' vii. Locations approximate area, and dimensions of each lot or parcel, and proposed lot or parcel numbers. Tax lots are shown on the map "Land Use," Exhibit A-2 in the "Maps" ' section of this document. The proposed resort site covers roughly 1,970 acres. Applicant will provide additional information regarding approximate area of individual tax lots if necessary. viii. Location, width, and use or purpose of any existing/planned easement or right-of-way for utilities, bikeways, and access corridors within and adjacent to the proposed land use division in relation to COID easements and facilities. Exhibit Page ,6 of 135 December 14, 2005 COID DIP Application Item 8 Information Page 13 No planned easements or right-of-way for utilities, bikeways; and access corridors are planned that would conflict with COID easements and facilities. The proposed Resort site is remote from any COID easements and facilities. ix. Existing/planned dry wells, sanitary and storm sewer lines, water mains, septic facilities, culverts, and other underground and overhead utilities on the proposed land division and adjacent public rows. Principal water system components, including main water supply lines, are shown on the map "Water Master Plan Map," Exhibit B-074 in the "map" section of this document. Principal sewer infrastructure is shown on the map "Conceptual Sewer Map," Exhibit B-15 in the "Maps" section of this document. None of the proposed facilities will interfere with COID infrastructure j' or easements based on our understanding of their locations being remote from the proposed Resort site. a.) See Burden or Proof pp. 37, 63 (discussing sewer plans); Burden of Proof pp. 21-25 (discussing sewer, water and other utilities plans); Exhibit 12 B-7 & B-7a (Water Master Plan and Map); Exhibit 18 B-14 & B-15 (Sewer Master Plan and Preliminary Sewer Map); Exhibit 3 B-35b (Typical Utility Sections). B. INFORMATION/MAP CONCERNING PROPOSED WATER MANAGEMENT PLAN 1. Planned water facilities to serve the planned area, including facility sizes, general location or routes and how the facilities will tie into adjacent areas and facilities. Principal water facilities planned for the Resort are shown on the map "Water Master Plan Map, Exhibit B-07a in the "map" section of this document. The proposed water facilities are integral to water users only within the Resort boundaries and will have no tie to adjacent areas and facilities. r Descriptions of facilities are presented in the above section of this document "WRITTEN NARRATIVE OF PROPOSED WATER USE PLAN." Exhibit Page_gL of !3g 1~ December 14, 2005 COID DIP Application Item 8 Information Page 14 2. Locations, Names, Width, Typical Improvements, Cross-Sections, Bridges, Culverts, Approximate Grades of all Streets, Roads, and Right-of-Way and the Relationship to All Existing and Projected Streets. The proposed locations of principal roads are shown on the map "Access and Circulation," Exhibit A-1.06 in the "Maps" section of this document. ' The planned Resort is remote from any COID easements, rights-of-way and infrastructure by several miles based on our understanding of COID facility locations. Therefore, planned improvements relative to roads, streets, bridges, ' culverts will have no impact on COID operations. 3. Location, Width and Purpose of All Proposed Water Transmittals and Relationship to All Existing Water Uses within 500 Feet, Including Surface and Ground Water Uses. The proposed major water facilities are shown on the map "Water Master Plan Map," Exhibit B-07a in the "Maps" section of this document. It is our understanding that the planned Resort is remote from any COID easements, rights-of-way and infrastructure by several miles. Therefore, planned water transmittals and related improvements will have no impact on COID operations. a. See also Exhibit 12 B-7 & B- 7a (Water Master Plan and Map). 4. Location, Approximate Area, and Dimensions of Any Water Use Proposed and Plans for Improvements of Development Thereof, Including Required Measuring Devices. Locations and other information relative to proposed water uses and planned ' improvements are discussed above under the heading "WRITTEN NARRATIVE OF PROPOSED WATER USE PLAN," "HOW WATER SYSTEM WILL SERVE THE DEVELOPMENT & RELATED USES." Principal water system components are shown on attached Exhibit B- 07a, Water Master Plan Map. Measuring devices will be included in the system by the Thornburgh Utility Company to record usage, manage water use and assess water use fees. a. See Exhibit 16 B-32 (Ground Water Application and attached Water Rights Map) for description of water use and identification of proposed well locations and proposed places of use for quasi-municipal and irrigation uses. See also Exhibit 12 B-7 & B- 7a (Water Master Plan and Map). 5. Proposed Use, Location, Approximate Area, and Dimensions of Any Point of I Diversion, Pump, Storage, or Well Intended for Use Within a Land Division. Exhibit Page 22. of 8 December 14, 2005 Page 15 COID DIP Application Item 8 Information Locations, dimensions, approximate area and other information relative to proposed water uses and planned improvements are discussed above under the heading "HOW WATER SYSTEM WILL SERVE THE DEVELOPMENT & RELATED USES." Principal water system components are shown on attached Exhibit B-07a, Water Master Plan Map in the "Maps" section of this document. 6. Source, Method, and Preliminary Plans for Domestic and Other Water Supplies, Sewage Disposal, Storm Water Disposal, and other Drainage Facility Plans, and all Utilities Relating to Water Use, Including Rotations Needed and Seasonal Need Differences. It is our understanding that all planned utilities for the above needs are remote from COID easements, rights-of-way and infrastructure by several miles; therefore, they will have no impact on COID operations. Source, method and preliminary plans for domestic and other water supplies are described above under the heading "HOW WATER SYSTEM WILL SERVE THE DEVELOPMENT & RELATED USES." Principal water system components are shown on attached Exhibit B-07a, Water Master Plan Map. . No water use rotations apply to the Resort. Seasonal need differences will be managed by Resort water supply infrastructure and no dependency on COID is required. a. See Burden of Proof pp. 37, 63 (discussing sewer plans); Burden of Proof pp. 21-25 (discussing sewer, water and other utilities plans=); Exhibit 18 B-14 & B-15 (Sewer Master Plan and Preliminary Sewer Map); Exhibit 3 B-35b (Typical Utility Sections); Exhibit 16 B-26i (map of proposed reservoir and well locations); Exhibit 12 B-7 & B- 7a (Water Master Plan and Map). ' 7. Description and Location of any Proposed Common Area and Community Facility, Such as Quasi-Municipal Use. Common areas, golf courses and community facilities are illustrated on the Conceptual Development Plan attached as Exhibit A-1.04 in the "Maps" section of this document. ' Community facilities include: 1 2-Conference Centers 2-Club Houses 1-Hotel 3-Restaurants 2-Sports Facilities Exhibit Page 2-3_ of jag December 14, 2005 COID DIP Application Item 8 Information Page 16 8. Proposed Deed Restrictions Including Access Restrictions or Protective Covenants if Such are Proposed to be Utilized. See attached Exhibit 10 B-16, Draft Declaration of Covenants, Conditions and Restrictions in the "Attachments" section of this document. Exhibit -D Page 2--A_ of / 3 MAPS LOCATION MAP AND TOTAL ACRES; EXHIBIT A-1 CONCEPT DEVELOPMENT PLAN; EXHIBIT A-1.04, WATER RIGHTS MAP; EXHIBIT B-32 PHASING MAP; EXHIBIT B-1.08 WATER MASTER PLAN MAP; EXHIBIT B-07a SITE PLAN; EXHIBIT B-26a LAND USE MAP; EXHIBIT A-2 NATURAL CHARACTERISTICS & GEOMORPHIC MAP; EXHIBIT B-21c FIRE DISTRICT MAP, EXHIBIT B-11 ACCESS AND CIRCULATION MAP; EXHIBIT A-1.06 CONCEPTUAL SEWER MAP; EXHIBIT B-15 Exhibit -D Page 25 of /3 8' r Eli m m m m o °4 ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! I "I RZI~V a p' 4pp' 800• 1600' 2400' 3200' 9_19_05 ho r~r THORNBURGH RESORT CONCEPTUAL DEVELOPMENT PLAN - EXHIBIT # A,4 DESCHUTES COUNTY OREGON CD N~ d REVISED A-1.4 clq G:\1000\1007\101\03\Cod\Woter\W1007101-03-'-Site 12:55 02/03/2005 SS i w R.11 East R.11 East 7_f R.12 East G, R.12 East o o 1 - 4 -I-- --1-----~-- ~ I I ' I I earr I I 0 ~ g,'•'~~~~'•'~~I'`'`` i I I ROadl I i4 I I u ' i fn I I O I ; to _ I F t ---8 t - I 'a w I rn i w-4 i CA) a O N ' j`': I V OD I W N~ tOn gCO O :1 UtI I - d- N CD C7 - 102 L a• 0 II w : x \ ° 0 X CD, N m ~C7C~• _a f CD r - ION iT I D~ I I C). g -s c '~..::::;c?7 E ~~3j ?:~.j?I;.i:;:. i ° v i 8 I V OD I N W 0 CD M to o O :•.•t O I n Ixg o o I I a' i iN:..,.,...... o W i I CA I - - - - - - - CD 0 :CA):i;j CL Dcio ;I;;`:.: t. I I o f I I i I I w N g ?a:Sc I i N rn I I ° CID w o 2;. I ~ T I I i I I I I ! gay I ~ i I ! I N 0 0 0 ~ O m II N N O O o o O tT1 U~Q k CD I~ 0 Iw 00_05-j zM~z(A) ~ = ~ oo> ~tntnOy ZOO=M m~ Cn ~z M _o_ v_ _.Z ITI o cnoZ -n 000 -a x m v~~ -U ~ mM~ ~r-30 D to m r O M x -0 C/) ~ r - 'o m D t! wwwww a CONCDCDfDCDa 0) c;v m Z 00'00000 rAx• ° 3>>0>> WNNNN omao~o:qr 'D Iv v CD 0 y 2 in Z5 --174 ~74 -I ~-1-I2 :Eo CL o o z - M C tn +t!) P +O _p (10 C mmmmmm° a M C 'a vO i COD ~ Cpp NEWTON Groundwater Permit Application Map CONSULTANTS INC. i~ Thornburgh Resort EXHIBIT B-32 Earth, Water and Rock Specialists Deschutes County Oregon Ph; 503 742-1800 Fax; 503 742.1801 DESIGNED BY., DRAWN BY, DATE: PROJECT NO. J,Newton S,Schenck January 2005 1007-101-03 FIGURE 1 RFBEf J,I tf EC'.FSi A i 't A" R 2.3idential 7 - e ac. Condo/Hotel 3.3 ac. v 41 ' F c;r ` 3.AtISP. 4o Residential Resideutial` A'. _ 7.4 az. 4.7 n. Residenti It, 20.2 7.9 c 37 - - t az. 38 - ~ .1 35 Residential 36 sldeatial 4.7 ac. 1 8.3 '2 2,JResidential C< 34 8 y' }~r• ` t / sun _ 7 - - - Station =Y N / _ FF v~4 C I.L :S'•,A~,. ' - r. .N_~. Q~ Residential 4 + !✓A h ry { •;rr y i•} 1FF y 33 ~ / r, 4111 Rc&idwtial 4.4 / l] 32 ra r. a 1 A-:L,+.1 t.. 9,6 ;Ar Legend club / House m _ J / 4.6 ac. f` 27 s,A :7 y' Schedule of 1 oni~l,[ a Construction 17.0 ac _ ~a ❑ Phase A 2006 - 2009 45 Phase B 2008 - 2011 R 5genaz6al ~ y Phase C 2009 - 2012 _ ResYlential.4.`4 x. t, / y,r o4rot ■ Phase D 2008 - 2011 / Residentia15.6 / 4 13 Residential 3.9 ac. F A'At El Phase E 2010 - 2013 / _ " ❑ Phase F 2014 - 2018 IYekMrlNta}-~ er<kM~L Iy,7 a. 401 Phase G 2014 -2018 Golf 9 '?7 (oeml 0 to 0.55rn[ia . II SI: J 10.2 4 8 11.4ae. Residmtial 3 R. dermal 11 27.6 ae. RH.9 nth 22 21.4 az. lub House 7 2 9.7 ac. Reaidritie[ Residential 9.2 ac. 7.) 155 ac. 76.6 ac. ..4 R6 olNnunity t:.kld ll 13.0 ac. Center & „ 19 Eonimercial Residential 3 az i S! 595 ac. 5 enillt 4 L . Golf o.0 az. Course se CoursGolf e (18 Holes) 18 (18 Holes) 4.3 ub ac Stab Golf 17 50• t.1 t' 1 rA y,. , aA Maintenance 6oac. A p C~. Otis 29 3. i..,: re, r4-, v~ THORNBURGH RESORT PHASING PLAN - EXHIBIT # AM 1 i+r4/a A AV` I ate- - 3200 9-26-05 DESCHUTES COUNTY OREGON _..k. r N ~ D r REVISED B-1.8 14 Jjj S Lond Pro' is Cline Butte OR dW 040807- lon 040807-bose.dW Fri Feb 04. 2005 - 11:040m O A tD a I:£LL 3466 Y.£LL * 944 7 18 a. 9 WC 54479 1l I 7 I 2 /637 f/ ` Ill Y/ 1]36 / 7 B ~l : w I ~ ! I 17-- WELL ai--jlw-' ._..-tea J- 17 to R~ ',17 20 ,l 11 IJJOI ~LL J476 Z M LL :7J i I i I i 4YELL 7347s I !T1 x 15 RESERVOIR - *ELL I Jsa L . 'I a 101 RADIO - ~ FACILITY ~L __._r _ • •R ~ f \ I e / 79 . O - 4 - 2 1¢ 22 29 49. ~4- .2 28, 2& 7 ~ a WCLL I ~ i - 4. !J - I NEW I m w I NEW f w I: 3669 1 wELL~ ~I ~ tt 301 - 729 29 28 28 27 1 32 32 33 33 34 0 r o c') m a GRAVn PIT I.l > CD o 2 h'f)1 W N I a Y 1V V I 0 WELL 8 mideks URVEYORS~ & PLANNERS ENGBVEERS HICKMAN, WILLIAMS & ASSOCIATES, INC 805 SW INDUSTRIAL WAY, SU17E la BEND. OREGON 97702 PHONE. (541) 389-9351 FAX: (541) 388-5416 EMAIL: p-tmost- M --1--g s~ R T E m g" ~ u G:\1000\1007\101\02\Cod\Woter\W1007101-02-F1-Site 08:49 01/27/2005 SS - ~ < Y u 11 u ' I " ~ - I I - " r I y! i t N~ r ` , • . F i~ x : ~ c 16. w I I I I I z I 'LI , I I f Z Ilk r I ` 'h' .ti.`_ ~ ',~i I ~4.{Wa# N f7v~ - ..I _ ,I/ : ELI f ~S.'•. I ~y ~x'1j~ W ' ~ . . ' it r8U r ~ ~il ~ I I 1 ~ ~ ~ A ~ I ~ , ~ ~ f ~~l ~ , • -L ' - ~ = - - - - y I J o d` - I I I I ` I It. ! I I II to ~ I , I' ~ \ - •I- -c- -'t•;• ~ - i'~ -f ~~~1- } - ~ D . I 5_I\ 1 \~•k~- :91_ - _ I I ~f'r~~ , I I t . I ` _ ~ N N - ` _ ' ' r ~ ` I o I r. I =1 I I I I , ~ I • n~ 00 ' " r hR~.i O ~ ~ II - ~ I SE f{~' , ry - _I ~ ` y. L 1 1 Q z i \11 t 4 <y LLL . r ~ r- m m C7 Z o (D 7 r* T 0) D U) 0 /5' I~ C h e w ~ T - W i t _ t O O $ _ • r a 3i _ £ y r ° r1- a_ x N + w Jo NEWT®N~ CONSULTANTS INC. Earth, Water and Rock Specialists Ph: 503 742-1800 Fax: 503 742-1801 DESIGNED BY: DRAWN BY: J. Newton S.Schenck ' F 13 r 1- iI - l z-T b ; 1 ~ _ _ &~i711n4t Site Plan Thornburgh Resort Deschutes County, Oregon DATE: PROJECT NO. January 2005 1007-101-02 T FIGURE 1 J ie S: Land Pro' is Cline Butte DR\dW 040807- tan 040807-b-e.dW Thu Feb 03. 2005 - 11:15om o ~ TO 502 WFLL 77MOTHY L BENg 5017 REBECCA M BL7JESH ie TL 600 USA 9 IL too AOLE CRESTi E OF REMONSTRANCE J7/2 SW1/4 I5 TO 4700 R 20fD EAGLE GRST C %iB Z 77 _~77 7 19 201il' H R 5700 R 5700 H USA R 5000 TRAIL CROSSING REVOCABLE TRUST " USA EVERETT & EVA 7HORNBURGH 5300 R 1 O STA 7E ~-I + STA 7E OF OREGON ' C \j 1 - Ij ♦ 2000/32224 W70E LEASE FOR ROAD y ♦ FROW 7HORNBURGH TO H FAA - ROAD E S 405 t m ACRES I I ♦ CA + ` 111 ` ` 19 0 20 usA wa m/l, OVER EXlST7NG mPIN W12 OWER 8 LINE EE112 l n 7 380 t 1 PLC 1 Me~ ACRES IV PIT O ; rn m I O I I PGLE CREST m 12001/34659 R 4900 ! W 40' WIDE EASEMENT USA l a I WELL 944 c oJ1 1 D , / / II N C _ _ - R 1400 ART WILLETT / r It I µt38 I O C 7 8 Ii Z 0 R 5100 _'•A 5100 USA USA R 5000 TRAIL CROSSING VOCABLE TRUST ZTL 5100 EVERETT & EVA 7 /ORNBURGH w USA ~ I I : Y' O O 1 m p O O -3 I i O n cl Y o 0 g 510 RES R 1300 AC H ~ a a USA ~ 2 2 C7 MA D 7 g Z R 1300 140f ACRES m USA WELL 5100 R 8000 p IDE POWER 20 IHDE LEASE A M£NT TO CEC FROM THORNBURGH TO AGNES M D£ LASHMUTT ' 20' W142/20E704ACOESS EASEMENT FAA - ROAD BEGINS 1.T, , _ F30 WQRNBU W 7070 K£M r~C7_ l_ 5/34 - R 7900 L_-_ R 5100 EASEMENT -NO WIDTH CHARLES B PRICE USA. OVER EXISTING HONE 1 CHERYL J PRICE 3091215 LINE IN NE714 114 1 KEM TO BENNETT SECTION 30 & WI/4 I 30'tNDE ROAD & SW 114 S£C77ON 29 I POWER EASEMENT I - - 1~ _ - TL 7801 +R 5700 WILLIAM K BENh USA ROBERTA J BEN R 5100 USA { 30 29 ; . J 31 32 0 I ~NI~ s t\ QI C.1 9 2 9 9 ~ I a ~ Cn 1 7 32 R 5100 USA m WFLL R 7700 1 TRAIL CROSSING REVOCABLE TRUST 71. 5100 EVERETT & EVA THORNBURGH I USA ~~Af 19 20 20 21 _ w 1 29 29 28 2 27 R 5100 Sq1 R 7800 + R 300 USA HARRY H. KEW .A7. 14P/346 ' USA 2000/14299 77 N 30' WIDE R ! ~ /2 N112 FROM KEMPTo 7HORNBURfH ~THORNBUN ~2T0 KElll KIL 7N N£ 1/4 S£cnoN 2e I- --1' 1 R 300 61763 ?000/32224 I[ USA FOR RO D I ~1161k & PLANNERS ENGINEERS HICKIWAN. WILLTAMS & ASSOCIATES. INC 605 SW INDUS7RIAL WAY, SU17E 10, BEND, OREGON 97702 PHONE.. (541) 389-9351 FAX.. (541) 388-5416 EMAIL: postmosterdhwo-inc.org R 1501 USA 7L 1 USA R 1504 17L 100 USA USA R 300 USA 49!er'~ R 1501 USA 28 27 / e 33 34 a T HORNBURGH RESORT COAKX7WAL MASTER PLAN EXHIBIT A 2. LAND USE MAP DESCHUTES COUNTY OREGON ~ ~a 4rliE 0~ N (k\1000\1007\101\07\Coa\woter\wtar7lm_m_F3-Want Asa 01/27/2005 ss w -77 _ OT r ~I t > . 7-7 1. -7 K ' I I I 1Y ' ~ \ ._I ♦ ( ~N- 4~~'~~ tom' t'" 'I t1 / r YY , F I' I r~ I ! ~'t.. - rT .:s?i..::J : ~y I yy 1 '~n-StEY \ T- 'S' Y~ ~ i ~ ' :fie? 3 - f• "l•=- ' X - --z -7--~ w ~'4~ `t ' 3 1 x Imo. r • ' .t•: ~ ! , ~ 'tom ~#r - - e cy~ ,i , 1 r -_ra,~ r. .t.'.J, ,BTU/ G \ AN C-.~.~'• - ::2'~r'~'.T ~ n!. - i,' r ~ s ; .5`-qi~ . 1 _T+`'!~"~'•• ~ , t." ' I.:~ ~~I . -`"1~4 ~ n~t~. I Ty' ' 'F°`~:.~f~, x:~'a,~z :-r' :I )t ~ ' :::gp: w•,;f,,• ; tip` ~ir = mss'.: .rr\')~1 Irl ~7 _ r. . III` - ''i. ? _ t.. _ _ .:r. • 4r .c~ ',:,,:2sy: t, - ~l~•c 1 1 ) - i''. .1 'f'''~•, a „yeJ. .v`•~ .t'.:Fek:., . 3 1 ~ v I Y 1 r C-~ Sl \ A . L ` t ".11 fAiAA -41 m 1 " Q I C t ° I I Z , it r. 1 r 77- r -r - - 71 0 0 0 (A D o s - - II a O O o Q O OD O 0 O X X C° cr, _ I~ ~ W W ~ W O ' n U► '1•HOKNBUR6H KESOK•1' NEwToN' 7 CONSULTANTS INC. Earth, Water and Rock Specialists Ph: 503 742-1800 Fm- 503 742-1807 DESIGNED BY: DRAWN BY: J.Newton S.Schenck m 0o m m D p o D a) x o Z °a c= co v w< 3 77 = o (3 O oR CD 0 rL 0 01;r - L-) 5 - o co CD =F - CD D o U 0 CD CL m - mh CL (D a v, 3 m cn 0 o CD (D ~ C CD O D Z; < CD w D a 5 < (D (D o d cn - (D~ - 6 ,Z- y- - CD 77 v T CD 0) _ =r :3 C CD tD 0) (D ° 3 0 (D ° ur 0 ' Cr 6 < Co CD CD 0? Q 3 O _ ' T C 3 _ * N U1 _O o (D m ° _ -n . CD 0 ~ CD ? o Q Natural Features of Site Area Thornburgh Resort Deschutes County, Oregon DATE: PRW ECT NO. January 2005 1007-101-07 FIGURE 3 Jel/re S \Land Pro' cts Cline Butte DR dW 040807-plan 040807-ld.dW Thu Feb 03, 2005 - 12: lopm o n m a p g m ~ ~ 8 Z o a ~ ~ ~ y S = 0 i g W A 8 g ~ ~1 ~ 33 34 -1-l'! ~ X A 0 CD cr °v O 1 ~Q 1 0 ~m Vy N g s N m ~ S H o g a s 1 0 NvoksURVEYOIZS~ & PLANNERS ENGINEERS HICKM",, WILLIAMS & ASSOCIATES, INC 605 SW 1NDUSTR/AL WAY, SU17E !0, BEND, OREGON 97702 PHONE., (541) 389-9351 FAX.. (541) 388-5416 EMAIL: postmosterM"-Lnc.org THORNBURGH RESORT IYL MASTER PLAN EXHIBIT B-11 FIRE PR07EC77ON DISTRICT DESCHUTES COUNTY OREGON pill. 3i 3 ]j 9 N m m m ! = = = = = = = = ! = w = = m jeffreyl S:\Lond Projects\Cline Butte DR\dWg\040807-plan\040807-CMP-REV.dwg Tue Sep 27. 2005 - 8:58om C) c') m a U A I 8 EXISTING BE II 1285 FT NEW ROAD PROPOSED WELL THORNBURGH ACCESS 1637 670 FT EXISTING ROAD -11~4.0 REMAIN r ~°lE L `~\J M1 Ile / 1 / :XISTING UNIMPROVED BLM ROAD 3200 19~ WELL 944 6/ J' L 00 3478 MR, X409 'h8 20 srch ~fi`AU10/FACItITY ~ ~ - 10$'fING FAA~AGCESS ROAD ~si4o ' m / ~ ` TO_BE~_~ OCATED 1 / ROAD-~~~SE~--TB--ACK~~~r(TYP). 20 21 T A P\ ~e° BE~IMPROVE6~ •a 29 28 / i , 70~FT j ssso --PROPOSED FAA a~ 1 ~ ) I A, 1 ACCESS RD _ ea~~sa I I -I I f "R -SETBACK'(- e - o sow 1 EXISTING UNIMPROVED ROAD, ~ >C A 4 Y. V nl 3t 31 _ 33 34 E%ISTING IMPROVED R AD 10 06PROPOSED ORNBURG ACCESS~~ /,•I~/ f~ / 30 FT J ID c) co a T HORNBURGH RESORT IZ3 SURVEYORS ENGINEERS io & PLANNERS COAKMMAL .,w 7Ep PLAN N ' HICKMAN, WILLIAMS & ASSOCIATES, INC O REVISED EXHIBIT A-6= 805 SW R/AL WAY, X. BEND, OREGON 97702 ►~HICULAR ACCESS AND CIRCULA710N U _ PHONE' NE.' (5 (541) 3B9-9351 51 FAX: (547) 388-5416 a $ s w = a EMAIL: post-t-M--inc.org DESCHUTES COUNTY OREGON a o ~ E. REVISED A-1.6 ffrej,f S., Lond Pro' cts Gina Butte DR dW 040807- lon 040607-bose,dW Thu Feb 03, 2005 - 11:54= XD A 00 a I:£LL ~Jd68 r£L I 944 150: 944 i 4 m Z 8 I ~AY,}aq wetL 13J0 WELL O L 9480 8 II vr,.L I II FLL 1 II / T 34]7 V W£u I 3 6 I /FjJB 8 I 7 /\jfI/\ `{I f 7J I i l:'ELL 16JJ / W£LL 54479 ` N N I I ~ I / II I 11. 1138 J474 = 7 8 ~ 9 r7 1 16 17 PS_PS - A `TTTL~ ~ I I ~ ~ I _ ~ t 54( 45 I J . ON-s/TE ' 'TREAMENT OAC 00 gpd 149,3 55 / It f.ELL CRA4EZ PIT ~ • a-ps-4. El 44- U fb . 17 ~ESERVOlR~'- / 17 19 -2 + 10 I I ~ / I A/. RESERWIJ 19 S' J - - n 15 NE \\\1 . ORE i 9J5H L I I 04101 a RADIO FACILITY J D y r y. New. I yD LLOrSER R y~ 7l g ti I 19•.0 5. Q 11 20 1 z1,, 28 28 i27 H ~ q ~ s `b, ,ter i , ;SEVER L/Fr m\' - r ~ _ -STATION 55 I - - 4F5 psPS V, a p5 TT F _ / NEW - /yD - `"p P~ / ri 7'S ps Sd Sd a ` Sd y`c 8d r _ I 4~ - I J6 9 i TREAMENT I.O AC 375.700 gpd I ,'I Exrsr. wEeL t 66 TO (9E ABANDONED " W.- 30 29 AFTER UCTION 11127 Jy6 f4y 31 32 32 33 33 34 n C7 A m a 11 as ° c v° kv C) 1 ~W --A, y ti I s N " a s w i UR & PLANNERS EERS Milks I HIC"AN, WYILLIAMS & ASSOCIATES, INC 905 SW INDUSTRIAL WAY, SU17E 10, BEND, OREGON 97702 PHONE.. (541) 389-9351 FAX (541) 388-5416 EMAIL: postmosterdhwa-I--g THORNBURGH RESORT EXHIBIT B-15- CONCEPTUAL SEWER MAP DESCHWES COUNTY OREGON !q > F 33 z . i£ m ~~ku A A ATTACHMENTS 1. GROUNDWATER PERMIT APPLICATION. 2. OWRD INITIAL REVIEW OF PERMIT APPLICATION 3. SCHEDULE OF WATER RIGHTS ACQUISTION & APPURTENANCY 4. MITIGATION PLAN (TO BE SUBMITTED) 5. COID INCLUSION ORDER 6. COPIES OF PURCHASE OPTIONS 7. COPIES OF DEEDS 8. STATE OF OREGON CORPORATE DOCUMENTS-BUSINESS REGISTRY 9. LAND USE APPLICATION 10. TAX LOT NUMBERS FOR PROPOSED RESORT LANDS 11. PRELIMINARY REPORT, WATER SUPPLY DEVELOPMENT FEASIBILITY, PROPOSED THORNBURGH RESORT 12. DESCHUTES RIVER CONSERVANCY CONTRACT Exhibit -D Page -32- of 12/14/2005 11:07 5039860901 WRD 1ST FL PAGE 01/09 OREGON WATER RESOURCES DEPARTMENT State of Oregon Water Resourm Department 725 summer St NE, Ste A Salem, OR 973014266 Phone M (503) 986-098U Fad: (503) 986-0901 wwwA?fW.statc.037.1m FAX TRANSMITTAL T0= FAX MOM DATE., 1 s --1 - .0o s~_ FAME: . INCLUDING COVER SKENT FROM: A4 wrtJ3 FWM: (505) 916-0 AAR7&- si*1n ~cr WATER RIGNM Wder Rights inbanrdon Ad)adboom Wilmdectrio conceumn I Find Yroolt IFlerrials /Cc I -A tn cam FAX: (503) 956-M1 TEt3R4I+C.AL 9MVIGT3 • Hy6ogephics • (bound we" • InlbrmMdM serWem • Enfo t • wrier ure Reputing FAX: (563) 986.0902 FIELD SMVICES • Region/ LWsons • 1i Ifts Hydrogtephics MORMWWASGION • t4sMd 16 wdcrnWber DIIIECI`OR's OMCE wrier Ittem es Comm nim► • Leglskdoo son Rules • Pabiic Entonsslon ADM ISTRATMSItVICIM • Haub / Accounting • Haman ReMMM / pen"nd • wrier Deve:opu mt Loa Fund • Sbpport Swim FAR. (303) 016-0903 or MO-9164004 1 Exhibit _D of 13 8' 12/14/2005 11:07 5039860901 - Oregon Water Re"urew Department 729 Summer Strcat NE, Suite A 1 Salem Omgon 97301-1271 (503) 98&09W wwwmatstate.onus WRD 1ST FL PAGE 02/09 ~ w~aaM; aM a, ann~ Application for a Permit to Use Ground Water .Please type or print in dark ink If your application is found to be incomplete or. inacearate, we will return it to you =any requested infonnation doss not apply to your application, insert "n/a. " Pledre read and refer to the- instructions when completing your application A srnnmary of review criteria and procedures that are generally applicable to these applications is available at www.wrd.state.or.us/publication/reports/index.shtml. RECEIVED 1 APPLICANT INF'ORMA77 N FEB 0 92005 A. Judividnaka WATER RESOURCES uGPT SALEM, OREGON Applicant: IM Mailing address: Of sue av Phone: lave wtdk CAW *Fax: *&Mail address: B. Or pubstions . (Oarpo►~ons, assacta~o~1+~P~'~zY~.~tsraratcar~arrtes, ~,ped~COrclrm++lcaPanatio►u1 Name of organization: ThornbutFA Utility Group, LLC Name and title of person applying: Kameron Delathmutt, Managing Member Mailing address of otgsnization: 2447 NW Canyon Drive Redmond OR 97756 Phone: 541.504-2808 541-330-8479 (call) >W soft *Fax: 541.548-0682 *E-Mail address: Knmerml bendcable.com Ground WaterA Exhibit Page _-2, 9 of 13 # Opttona! i~formatioa Contact Person: Martha O. Pagel (mpagel®schwabe.com) Schwabe, Williamson 8t Wyatt 1011 Liberty St SE, Salem OR 97301 503 796-7712 fax 503 796-2900 ~f 12/14/2005 11:07 r 5039860901 WRD 1ST FL permit extension application for the ground water permit, and proposing to cancel t round water permit, or subscqua d cardficate(8). The tentative priority date for this application is February 9, 2005. PAGE 03/09 Questions about the status of your application, processing timelines, or your upcoming, proposed final Order should be dir=ted to our water. Right Information Group at 503-986-0801. Feel ,Free to call me at 503-986-0815 if you have any questions regarding the contents of this letter. Please have your application number available if you call. Address all other correspondence to: Water Rights Section, Oregon Water Resources Department, 725 Summer ST. NE, Sum A, Salem, OR 97301-1271, Pax: 503-986-0901. Sincerely ita . Huffman WOW Rights Application Caseworker G- 16385 web 0530530643 you 05-30530643 gw A G-16385 Page 6 Exhibit D Pane All of /AZ 12/14/2005 I~ 11:07 5039860901 Application File Dumber: G-16385 WRD 1ST FL Applicant: THORNBURt3H UTILITY GROUP, LLC.; KAMERON DELASHMUTT, MANAGING MEMBER County: DESCHUTES watermaster: District 11 Priority Date: FEBRUARY 9, 2005. Source: SIX WELLS IN DESCHUTES BASIN Use: QUASI-MUNICIPAL USE Quantity: 9.97 CFS FURTHER LMTED TO A MA3MAUM ANNUAL VOLUME OF 2355 ACRE FEET Basin Name & Number: Deschutes, Basin #5 PAGE 04/09 Well Locations: WELL 1: SENW, SECTION 28, TOWNSHIP 14 SOUTH, RANGE 12 EAST, W.M.;1800 FEET SOUTH AND 2335 FEET EAST FROM NW CORNER, SECTION 28 WELL 2: SENW, SECTION 29, TOWNSHIP 14 SOUTH, RANGE 12 EAST, W.M.;1655 FEET SOUTH AND 2750 FEET WEST FROM NE CORNER, SECTION 29 WELL 3: SWSW, SECTION 21, TOWNSHIP 14 SOUTH, RANGE 12 EAST, W.M•; 1100 FEET NORTH AND 400 FEET EAST FROM SW CORNER, SECTION 21 WELL 4: NESE, SECTION 20, TOWNSHIP 14 SOUTH, RANGE 12 EAST, W.M.; 2885 FEET SOUTH AND 750 FEET WEST FROM NE CORNER, SECTION 20 WELL 5: SWNE, SECTION 20, TOWNSHIP 14 SOUTH, RANGE 12 EAST, W.M.; 2590 FEET SOUTH AND 1860 FEET WEST FROM NE CORNER, SECTION 20 Exhibit 1 12/14/2005 11:07 5039860901 WRD 1ST FL t 7. PROMT'IY.Omm-a'S1E p, 'Da u x►wn ilil'ihEtAnl~ where. ou a to t~ytxf, ya Y pc+upus 4~po~+ attd: use wac~? 11 yep. (ap to. W-tion.3 I&O d wawr ps"lopm011. R) ® No (-Pkoe eTim* the d¢proprtata bw' beloiw ) ~q 1 have assxros+dad'aascaneAt oc wti~ author►aakion pcrtpiZiit~ access. I do 'no autmdy hips WA NO •sri"d adbn-ft.asu mcnt pumitt6l; wmm. Q W tan ~tit►n mr art resanulst:Is scot gcnenpy, bac>1It19e bd only VMded reads 1 do mlot.OW..t St. gipte-p4W stibmetsibit lmcie, and 000 Appikadon is for irtigatnd and/or domealt was oeiy (ORS 274.040 . Gist ft mamas and mailing a&d mr s of a. AMCted landownars. REG.EIVF _ rrn. n a__0>; ORi=uUN >S AI EM _ _ . . A. ~!r► Iloforms&n Number of'wmli(s): d' Name. of nearest susfsce water body: DuchkER 114YOW DistanEe ftom weut<sy to strtant ot.►nke: I) 2M miles eaaksa D'O*fttcs River 2) 3.5 sdlm Io.D*dmtea River. 3) 2,44 miles aeC6M l r 4) 3.22 milft tb l3ndtiuWA'Ri~q g) 3.S nsi]ss to,D.eachutas Rivas . 6) 3.41. Ruilee to , iutea, River 7) . if distme fmm surlbm water is tees half ana mile,.Jndjem elevadam dlffsr"c bd'two m norm swfim wager and well had l.) 2) ~l. 4) ' I L Wolff CBMScftftks iPcHcaaatba mxm+a srtbyfrfrDoiartnteitJer*adrabatcrian4ndnnfi a t~fx ~i+afdit ff'A&WrIka6rudycnvmirvdpiswaasdmactpyofBieti►~a111cnrorx~ar slogr+Aid~rx Id>myirbw:~f d~gb~,;~6r rn hmffwtthddsqFftttm 'omA wlw rsatt*r wqp WDVIod&*VMdmVw donttljsll,WOW p►oc~edtogr~olrii,F'8t~r+a~da"aafBte~6i~it ~ie~h~aiNOibearod►tsb~isd'dr.~/iaarcbn~af~(naraia~allroBA~a dm►j~M in ar~at~ etl•undpra twatN'wetl.eat+serrurarafMx Well(s)will bemotractadby:TeIraaramg . ~ Address: o!!iil! Slrtte WeII . Completion data: welts 1, 2, sad 3, eemalaing walls by 2010 Gkound Wawa PAGE 05/09 Exhibit D Page 42- of /3 8~ 12/14/2005 11:07 5039860901 WRD 1ST FL PAGE 06/09 lease provide a deseniptian ofyour well4mlopmetc (mach addiiiorral'shaefs (fanded) " ' ' ° ' • ' inlervnh~ bin deplp pa'ot ~oa~i . e71''. MAW, T~*arAtemo ':lt(e:`irlit may•ly' etil`dtpdt Mt.d*h MVMCCf. 1w4w. 70ral;vroli cli~inR.-. MCgliiR. . ptrtotrbed A>Nnkr beedtr~ mauuoiryF depth 1 18" 1+4"-sues! -NO' 70.0-80t1.' Notc, l 6M Air Tube -80..0.9W 8 1$1' 14"-steel -900' 700.801k' Note 1 6W 60V Air Tube -I300-900' 3 0... 14'-st=4 1,000' 80x900' Note I 7110' 700' AirTnbe, 4011-1.000' A 18!' MkStidi -V1,OOl1' !306-400' Note I 7PQ' 100' ,4.it-Tube 000.1'OOO' S I$" 14"moeil -900' 7•.10.80R' Nate 1. 600' Air Tube _800.9011' 6 is, 14 Lacel l10' 700.800' We 1 600' '8110' Air-Tube -SOM 0' NOW-1: Mhtitnum sett depot 20 feet, seat depilts tit be detettftitted during vv~ll.oontltraaetioo.~oosfrfaxtbtig dt4ttlut ofvrater bmwiag zones and v=s-comcttion poteAtial far iviffirottt zones. C, Agar Flows If your water well Is flowing'attcsian. describe your wetrr'coiarol and conservation works: t-[fl n n ?enl: SALEM, OREGON 4, WATER Ust - Pi+r~ero~ihc tr~k:ttl►eio+hfetIFarnxneds i&on'iMo/'rw1d#is'kvAdrawtnap hawmuhwaht)wnmdarl howrak~Prr !vtinrwnte•sraot+eyntrp«t turlet=.Yourmnvfillamas7WesnarrdjFrvtRrjmw-.uspsmikeyrwidm A. Type(s) of'Id*4) Quasi-Municipal .Sec lbrofbtiallarspr,r,►s~lexliv+drre~►tdrwrs. • lfyour proposed use is damesde, indle to the number of.households to be supplied with water: • irynur proposed use is irrigaftn, please :attach Form I • If your proposed use' is minh% attach f'brm R If your ptoposed use is munletpal a. attach Form M Wyour proposed 06 is tommemial/.iildoetrisl, attach ltonn Q' Grorurd lfalen•3 Exhibit ~D Page of /.3 F 12/14/2005 11:07 5039860901 WRD 1ST FL I & Ainoa~esf Wrtttr'provide the pnbductiod:rata in•galiatns per rMttate (oan) and ft kW annual ai1ttn>: of v r' Yalu tMd from cacti well, fan each source or aquifer, :fbr oath us& Y•ou do- not neW to'proviide source information / if you am submitting a Wei lag with your application. F 1 1 1 1 ::1~{~Y,',• w4. ~ ,~I ~ : J. ;~T Y ail Y . ~ .I il. l~ 'PadMes Fut. iAquf* Quasi-rnuttta(pbl 4.474 gptin 967 raiilitm gal ; MAQD® gy# ONUFUZ L. Rates to be,eatablishod' durirt ;VAder System / Rcmvrfir design acrd wolf installatW& E. M kidalrai Rome If VA R"%Mted What is the alwdrnum, inatsrithawUt tote awWdr. jMt wll) lac used'1 4rd74 je(4.97efb), tRefim*yarWp&aobn aObbamdem--wwmwO aVeriod Q(vse Indietdo the. drno of year you pmpoxe to. use ibe water. Year Round (J~'Ara~eohrxr~rerr.bra,~n~s~s~ay;►~a~raewouldaMd~ MorNr'1-16tra6Mr:~li1 t A If you c wail baba afulripitgi wtmrd b land, i7krrse give the fatal p ~i'Muuicipal an Inrdudes number af'acres where water will be.upplied or. used: apprcooiatitdp 425 left irrigation (ll~u~alnd~erahoeddG~r~n'wA/lSoer~dioopblsr/~ 7- 1q. W-AM MM&GEMEl!aT r4.Olvem bn What oquipment wiU you use to pump venter tarn your yell(s)? ® Pump (glut: harsepower and pump type), le>dH~-4010E1Q T,lectdc vertigo( tutb hw or submerslble pumps 0 Other neans (desefiber B. Tumnanort RF.6GIvE How will you traftport water to your phwe of use? FEB O g 2005 Q bitch or canal (give average width and de0b): WATER RESOURCES tiEPT Width aALEM, OREGON 1s the ditob or chrnal to'be lined? 1H Yn 13M. I Ja'Pita (give diameter and total Itngth): ' To be designed oansidsring flow rates (and fire flaw), raervofth (tanks, lako, anal distribution needs Diameter 10" and less LLcngd, p Other (describe) GrouN d WWOM4 PAGE 07/09 Exhibit Page of / 3g 12/14/200 11:07 5039860901 WRD 1ST FL PAGE 08/09 I _ C. Apprieaden/Distribnti n Method What equipmm will ym use to ly wa[br't6 your pJ1mof asd? 'Wdl BPS: bnotacr pumps, pmisurfa d 1 pi.oine dbuibudon system, end tcmvoita{tanks &.Mds) win ktrp[aiy water ro plsces ofQuasWurddpa l use. Irrigalion sir iand.ipplitation mdibod (cbook all that ap*): Flood 'High-prasnrti sprinkler 0 Look lam ore aprii kttr .rfi 19 Grip Water cannons 0 Center pivot system p.)-brA lines ~ *Wheel iiriee REC EW D * Siphon tubed up god. pipe v ft furnows ® Odd, describe. FEB n 9. 7flt1~ YSistribuEbn ntetl►od WATER RESOURCES DEPT W NWat pipe flvin sow= 19 In-11110 stomge (tank or pond) 13 Opera canal SALEM. OREGON 'A•Coaaenvltioa, What rlie cla will you use ;bo.aowwve water? 'Why dikl yyau *how this-distributW or l pplieation nietgod? Fpr axw' is )rytiu i m using apdnlclor jt~ri~tior reRftq~ than, &ip itrigstiuii, opledn. If you heed addidorW span. attwh a sepame.shdet water delivery pmssure.nip nrstcm..lrrigatim *mmit-thm conb~ol goems and stabs-of4he-art water a licatim g amw Education cu miter me and consecvatioc. 'iiViuer flee will be• manaVA ibio b raw opffatioea• tra dataesharee, owr1~ iar:,~ss~a+ld rr ~aan~o-~r eAlad rryr erg ampkaadAft I -6 ,a', Add m Proposed date aousouation will begin: 20" _ PropaSed date consutw0an will be ooMpletocii 2010 Proposed date ben facial water nse vein begins. Before 2M B: W thin 2years after pfxmit Weed In asoordsncc withltemdadii w raft conditions. ~im•s~rdd.Wtiw~Yary~►yotrl~a►~e,Pro+K~/nsba~Y;aarNontpd~eabeoh,e~rigiledna~a~!~e +~c 1) The applicant TE2%t es miiipation wlil•be ragaitcd, meant to OAR. 690-505.05W et 60S. The applicant will pmvidc a detailed mltigation plan attwnotiee•fivw OWPM on the mitigation obligation. r 2) Please we attached Hydrology Report for additional infommtioL Groawd •Watr,l Exhibit I Page ,5 of /3K 12/14/2005 11:07 5039860901 WRD 1ST FL L b t r IReMgNTS PAGE 09/09 The Department cannot process your application without sc nue information showing the source of water 1~d laeation of water use. You must include a map with this application form that clearly indicates the township, range, section, and quarter/quarter section of the proposed well location and place of use. The map must provide tax lot numbers. See the map guidelines.sheet for detailed map speoifiicatiO6. By my signature below I confirm that I understand: • l am asking to use waterspecifoally as described in this application. • Evaluation of this application will be based on Information provided in the application packet. • I cannot legally use water until the Water Resources Department issues a peatnit to me. • If I get a permit, I must not waste water. • If development of the weer use is not according to the teams of the permit, the permit can be canceled. . The water use must be compatible with local comprehensive land use plans. • Evert If the Department issues a permit to me, I may have to stop using water to allow senior water right holders to get water tIV are entitled to, and all information provided in thjf ppiiaetion is true and correct to the best.of my SWEtu eofAmlim t (-09 ' ' VRq ittt'ttre sreeb: 'rowYV. wntslarernr. as 1 mfflawahm) / ` Use FEB 4 9 2005 WATER RESOURCES DEPT SALEM, OREGON Gn w Wurer/6 Exhibit D Page _4_- of /,3'3 Or egon Water Resources Department l,. lJ North Mall Office Building ' 725 Summer Street NE, Suite A Thetktore It. Kulongmki, Covemm- Salem, OR 97301-1271 503-98-09 A FAX 503-9866-0904 04 Certified Mail=Return Receipt Requested THIS IS AN INITIAL REVIEW OF APPLICATION G-16385. THIS IS NOT A WATER RIGHT PERMIT AND IS SUBJECT TO CHANGE AT THE NEXT PHASE OF PROCESSING. August 12, 2005 THORNBURGH U'T'ILITY GROUP, .LLC Kameron Delashmutt, Managing Member 2447 NW Canyon Dr. Redmond OR 97756 , Reference: File G- 16385 Dear Mr. Delashmutt: This document is the Department's preliminary analysis of your water use request called an Initial Reviev: (IR). The purpose of the IR is to snake a "frst-cut" evaluation of the application, specifically focusing on whether the use is restricted by statute or rule and whether water is available for the proposed use. The IR is also meant to highlight issues and determinations that may preclude approval of the use or that may lead to restrictions. This letter is to inform you of the unfavorable preliminary analysis of your water use application. The unfavorable analysis stems from the Department's determination that the proposed well is hydraulically connected to the Deschutes River and has the potential for substantial interference. When the Department determines that a potential for substantial interference with surface water exists, it is required to not only evaluate your application with respect to ground water laws and rules but it is also required to consider laws and rules governing the (hydraulically connected) surface water source. Initial Review Determinations: In determining whether a water use permit application may be approved, the Department must consider the factors listed below. Based on the information you have supplied, and a review of your request by the Department's Ground Water/Hydrology Section, the Department has made the following preliminary determinations. Each paragraph is labeled either "favorable," "limited," or "unfavorable." "Favorable" paragraphs will not adversely affect the review of the application; "limited" paragraphs will likely cause limitations to what was applied for; and I G-16385 Page 1 B-1.65 Exhibit 7) 7 Page 4r of / 3 g ~i i "unfavorable" paragraphs will likely prevent issuance of a permit (unless able to be addressed through mitigation. See the mitigation section below.) 1. Favorable: Use of groundwater for the proposed use is not restricted or limited by statute or rule. 2. Favorable: The ground water of the Deschutes Basin is classified for irrigation under OAR 690-505-0400(1) . 3. Ground water is available for the proposed use. However, the Department has determined that the proposed ground water source is hydraulically connected to Deschutes River and will have the potential for substantial interference under OAR 690-09. The following limitations and public interest considerations related to the surface water source must be considered in the evaluation of this application: I A) Unfavorable: Surface water is not available at any time of the year due to prior, , 11 senior water rights on Deschutes River and downstream waters. OAR 690-410-070 and 690-400-010(11). B) Unfavorable. The proposed use of hydraulically connected ground water with the potential for substantial interference is not allowable in the Deschutes Basin from April 1.5 through September 30 of each year (OAR-690-33-120(2)(a)). C) Limited: The mainstem Deschutes River is a State Scenic Waterway, if a permit is issued, it will contain the following condition: 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. The applicant requested the use of water from six wells in the amount of 9.97 Cubic Foot per ' Second (CFS), with a maximum total volume at full buildout of 2355 Acre Feet (AF) for quasi- municipal use year round. Summary and Options Because of items 3A and 3B above, use of 9.97 Cubic Feet per Second (CFS), with a total maximum volume of 2355 Acre Feet (AF) for quasi-municipal use from six wells in the ' Deschutes basin cannot be allowed. ' G-16385 Page 2 B-1.65 Exhibit Page 1 1 1 i 1 1 1 11 Overcoming the Unfavorable Determinations Because of the location of your well(s), unless you provide mitigation, by law, the Water Resources Department is required to deny your application. The unfavorable findings of this IR may be overcome if you provide mitigation pursuant to, the Deschutes Ground Water Mitigation Rules, OAR 690-505-0500 through 0630, and under House Bill 3494 of the 73'd Oregon Legislative Assembly. These Mitigation rules provide a process under which ground water applicants may mitigate for the impact that their proposed ground water use would have on surface water :flows, if approved. The Department has determined your mitigation obligation to be 942 acre-.feet of water annually. The required mitigation is based on the following use(s) described below. 942 acre-feet for 2 355 acre-feet of maximum volume for quasi-municipal use year round Location of Mitigation: The Department has determined your mitigation must be located in the General Gone of Impact - defined as anywhere in the Deschutes River Basin above the Madras Gage. which is located below Lake Billy Chinook. Options: To satisfy your mitigation obligation you can either complete a mitigation project as described in the attached administrative rules or obtain 942 qualifying mitigation credits from an individual or mitigation bank. If you are interested in obtaining mitigation credits you may want to contact the Deschutes Water Exchange Mitigation Bank at (541) 382-4077 or contact the Department for a list of other mitigation credit holders. If you decide to purchase mitigation credits at this time, you must submit a documentary evidence form demonstrating that you have obtained mitigation credits. The mitigation bank should provide you with a complete form. Or if you obtain credits from another individual, you will need to work with that individual to complete the documentary evidence form. Blank forms may be obtained from the Department at the above address or the Bend Region Office. If you are proposing to implement a mitigation project you must identify and describe the project in sufficient detail so that the Department can make a preliminary determination as to whether the proposed project will likely meet your mitigation obligation. Please contact the Department for further information on mitigation projects and what needs to be included with your proposal. In addition to the mitigation obligation noted above, additional information is required to complete the processing of your application. Please refer to the ADDITIONAL INFORMATION REQUESTED section below for details. Withdrawal Refunds: G-16385 B-1. d e 3 " DI Exhibit Page 4 9 of 11 I If you choose not to proceed, you may withdraw your application and receive a refund (minus a $50 processing charge per application.) To accomplish this you must notify the Department in writing by August 26, 2005. For your convenience you may use the enclosed "STOP PROCESSING" form. ADDITIONAL INFORMATION REQUESTED: ORS 197.180 requires your water use be compatible with local comprehensive plans. You have submitted a land use information form signed by the appropriate local planning officials. However, the form notes that the land uses to be served by the proposed water uses involve i discretionary land use approvals, specifically a Destination Resort Master Plan. As of February 9, 2005, such approval was not being pursued. Prior to permit issuance, you may be required to submit evidence to the Department that land use approval has been obtained. To Request an Administrative Hold At your request, the Department can automatically place the application on-hold for 180 days. An administrative hold for more than 180 days may be granted upon a finding by the Director that the request is reasonable and necessary. 'To request delay of the processing your application notify the Department in writing by Thursdayi Please be sure to specity how long you would like your application to be on held. 1 1 To Proceed With Your ApplicatioLi: If you choose to proceed with your application, you do not have to notify the Department. Your application will automatically be placed on the Department's Public Notice to allow others tilt opportunity to comment. After the comment period the Department will complete a public interest review and issue a proposed final order. Finally, in the event a permit is issued, the following conditions will likely apply: Measurement, recording and reporting conditions: A. Before water use may begin under this permit, the permittee shall install a meter or other suitable measuring device as approved by the Director. The permittee shall maintain the meter or measuring device in good working order, 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. G-16385 B-1. ate 4 Exhibit Page _O of _L3?' B. The permittee shall allow the watermaster access to the meter or measuring device; provided however, where the meter or measuring device is located within a private structure, the watermaster shall request access upon reasonable notice. Within 'five years of permit issuance, the permittee shall submit a Water Management and Conservation Plan consistent with OAR Chapter 690, Division 86. The Director may approve an extension of this time line to complete the required Water Management and Conservation Plan. The time line for submittal of a plan under this permit does not alter the time lines for submittal of a plan under any other order of the Department. GROUND WATER. MITIGATION CONDITIONS Mitigation Obligation: Ground Water Consumptive Use: 942 acre-feet in General Zone of Impact (anywhere in the Deschutes River Basin above the Madras gage which is located below Lake Billy Chinook) Mitigation Source: Obtain 942 Mitigation Credits, or suitable replacement mitigation that meets the requirements of OAR. 690-505-0610(2)-(5), 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 the 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. Use of water under authority of this permit may he 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 provided the required mitigation is maintained. The permitee shall provide additional mitigation if the Department determines that average annual consumptive use of the subject appropriation has increased beyond the originally mitigated amount. 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 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. 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 G-16385 B-1.4ge 5 Exhibit i permit extension application for the ground water permit, and proposing to cancel the ground water permit, or subsequent certificate(s). The tentative priority date for this application is February 9, 2005. If you have any guectinns; Questions about the status of your application, processing timelines, or your upcoming Proposed Final Order should be directed to our Water Right Information Group at 503-986-0801. Feel free to call me at 503-986-08 l 5 if you have any questions regarding the contents of this letter. Please have your application number available if you call. Address all other correspondence to: Water Rights Section, Oregon Water Resources Department, 725 Summer ST. NE, Suite A, Salem, OR 97301-1271, Fax: 503-986-0901. Anita M. Huffman Water Rights Application Caseworker G- 16385 wah 05-30530643 you 05-30530643 gw A I G-16385 B-1.4ge 6 Exhibit Page of / 3 B' APPLICATION FACT SELU-T Application File Number: G- 16385 Applicant: THORNBURGH UTILITY GROUP, LLC.; KAMERON DELASHMU-17, MANAGING MEMBER County: DESCHUTES Watermaster: District I 1 Priority Date: FEBRUARY 9, 2005 Source: SIX WELLS IN DESCHUTES BASIN Use: QUASI-MUNICIPAL USE Quantity: 9.97 CFS FURTHER LIMITED TO A MAXIMUM ANNUAL VOLUME OF 2355 ACRE FEET Basin Name & Number: Deschutes, Basin #5 Well Locations: WELL 1: SENW, SECTION 28, TOWNSHIP 14 SOUTH, RANGE 12 EAST, W.M.; 1800 FEET SOUTH AND 2335 FEET FAST FROM NW CORNER, SECTION 28 WELL 2: SENW, SECTION 29, TOWNSHIP 14 SOUTH, RANGE 12 EAST, W.M.; 1655 FEET SOUTH AND 2750 FEET WEST FROM NE CORNER, SECTION 29 WELL 3: SWSW, SECTION 21, TOWNSHIP 14 SOUTH, RANGE 12 EAST, W.M.; 1100 FEET NORTH AND 400 FEET EAST FROM SW CORNER, SECTION 21 WELL 4: NESE, SECTION 20, TOWNSHIP 14 SOUTH, RANGE 12 EAST, W.M.; 2885 FEET SOUTH AND 750 FEET WEST FROM NE CORNER, SECTION 20 WELL 5: SWNE, SECTION 20, TOWNSHIP 14 SOUTH, RANGE 12 EAST, W.M.; 2590 FEET SOUTH AND 1860 FEET WEST FROM NE CORNER, SECTION 20 B-1.65 Exhibit -h Page _S_3 of ~3g WELL 6: SENW, SECTION 17, TOWNSHIP 14 SOUTH, RANGE.12 EAST, W.M.; 2375 FEET SOUTH AND 3615 FEET WEST FROM NE CORNER, SECTION 17 Place of Use: NWNE SWSW NENE SWNE SECTION 21. NWNE NENW SWNE SENW NENE SENE SWSW NWNE SWNW SESW SWNE SENW NWSE SENE NESW SWSE NENW NWSW SECTION 17 NWNW NESE SWNW NWSE NWNE SENW SESE SWNE NESW SECTION 29 NENW NWSW NWNW NESE NWNE SWNW NWSE SWNE SENW SECTION 28 SENE NESW NENW NWSW SENW SWSW NESS NESE SECTION 30 swst SESE SECTION 20 TOWNSHIP 14 SOUTH, RANGE 12 FAST, W.M. 14 DAY STOP PROCESSING DEADLINE DATE: AUGUST 26, 2005 PUBLIC NOTICE DATE: Tuesday, AUGUST 16, 2005 30 DAY COMMENT DEADLINE DATE: Thursday, SEPTEMBER 15, 2005 B-1.65 Exhibit Page 5, ~ of /3 REVISED TABLE 1 i ESTIMATED FULL BUILD-OUT WATER NEEDS FOR PRELIMINARY PLANNING 55% OCCUPANCY (550 HOMES OCCUPIED) September 20, 2005 The following revised table shows adjustments in water demand for golf courses, single family homes, lakes and commercial irrigation. Changes in irrigation demand were made using "cushion" built into the original estimated demand. These adjustments were made to shift water to 55% occupancy of 1,000 single family homes (550 occupied at any one time). Original demands in February 2, 2005 hydrology report were as follows: Single family homes; summer & winter occupancy at 40% amounted to total annual volume of water use at 170 acre-feet. Adjusted to 550 homes with total annual volume of 301 acre-feet. Peak demand for single family homes originally taken at about 1,280 gallons per day per home for additional planning cushion. Adjustment included allowance of 678 gpd for peak demand based on off-peak demand of 452 gpd/home times peaking factor of 1.5. Golf courses were estimated at 120 acres each, 3.0 acre-feet per acre. Total estimated acreage was adjusted to 320 acres, 3.0 acre-feet per acre. Lake area adjusted from 85 to 82 acres, 3 acre-feet per acre evaporation. Commercial irrigation maintained at original estimated total of 65 acres. Note that after these adjustments, the total water demand does not change significantly, as expected. Mitigation obligation is 942 acre-feet. Original estimates of water demand were made recognizing that more precise definition of irrigated area, lakes, etc. were not available at that time; therefore, "cushion allowance" was attempted to help account for refinements. TABLE I B-1.65 Exhibit 'D Page 5~5 of /3 $ li I; I! !j i 1 7 D t PstimaLed Full Build-out Water Needs for Preliminary Planning Peak Flow Rate''= Peak Off-Peak Flow Rate Off-Peak Total 3 Water Ilse Units CFS GPD GPM Volume CFS GPD GPM Volume Volume Consumed Golf Courses (3)' 320 ac 5.82 3.76M` 2,611 691 at` 1.13 0.73M 509 268of 959 at' 384af SF Iloosing 7 550 0.58 0.37M 259 69af 0.39 0.25M 173 232af 301 of 120af SF Housing - -M ---af M of of a1' Cottages/Cabins (100)' 100 0.20 0.13M 92 24 of 0.14 0,09M 63 82 of 106 al' 42 of Condominiums (150) 150 0.31 0.20M 137 36af 0.20 0.13M 90 123af 159af 64af Timeshares"' (150) 150 0.31 0.20 M 139 37 of 0.20 0.13M 90 121 of 158 of 63 AI' Hotel " . 100 beds 0.11 0.07 M 50 13 of 0.02 0.01 M 9 12 of 25 al' [Oat' Club Houses (2)" 400 scats 0.09 0.06M 40 11af 0.06 0.04M 27 36af 47af 19af Sports Facility (2)" 120 FU " 0.15 0.10M 67 18 of 0.10 0.06 M 45 60 of 78 of 31 of L.akcs1S 82 ac 0.35 0.22M 157 246af --M - ---af 246 a1' 9911' Comm. Irrigation 65 ac 1.18 0.76M 530 140 of 0.23 0.15M 104 55 of 195 of 78 of Restaurants (3) " 550 seats 0.10 0.06 M 46 12 of 0.07 0.04M 31 41 of 53 of 21 of Conference (2)" 60 FU 0.07 0.04M 30 28af ---M --af 28a1' Ilaf TOTALS 9.27 5.97 M 4,158 1,334 of 2.54 1.63 M 1,141 1,030 of 2,364 at' 942 of B-1.65 Exhibit -j Page _S,e of l3 g 1 4 7 r**4 Wr, . =9 0 N W lz 00 z oC o 0 O W N N M ti LLLI J W W W ~ ~ W C f 06 Z z Z z z z c Go r- co cv) CID Q ~ ~ N N ~ co ~ 1 O M M M ~ M - LLF M N c O r- a r- ~ a' T" a' T- a' OC ~ a' C6 C6 C6 c6 c6 c L Ln j LO v J H H H H H H H o 0 0 0 0 0 U U U U U U a O LO L a co N O O O ~p N O - N O ~ Q LO O > > > ~p O `O 2 O r~r y N W cO w O O O O w G c C c c c c e "a V 'a 'a a a r_ a C a it a s c c c c E E E E ~ Q) E E E 0 0 0 '2 o a a a s 0 0 0 N N N N N t L L t m t m c E E 2 2 E E E ' ' ' 0. a a a.. CL a. 0. U C ~ > N C C L C~ O c E C O > O O 8 C)6 o - L ~O N N L U) t O S ~ U W3 ii VVV co (DC ] 0 ch i 0 0 Z v v v v v v ~ ti ti ~ ti ^ co ' ^ co n . ^ V Go 00 co co U C M LO M Lf) M Lf) W) M M V [ l? I^ ~ CCo co ccoo ~ m . t~ O U M rn N l0 2 tL v c c0 Go LIC) M . t0 .GR) N U O O) N E c m 0 0 rn M 0 L v, L c 0 ai m a O a` 0 M _M U 0 Exhibit 7D Page of ATTACHMENT 4-MITIGATION PLAN (TO BE SUBMITTED) Exhibit Page, S8 of /3~ .r cw✓ lY~ 1G 1"b"IG[1 1 ~ ILL nLUI K.N VU 1 i + m.IltNipRHil, . ax"" cum WIN SEIM 1111 WOO r 12l16t11:06,0M SD-10M. 000SMS811.90 sSeiow .40"". 00 DESCHUTES COUNTY CLERK CERTIFICATE PAGE ~vTescO ti~p~grcE~uy ~Sto amokp& Q a~~xfir. This page must be included if document is re-recorded. Do Not remove from original document. Exhibit -D Page:~of 138 DEC-12-2605 14.12 AMERITITLE REDMOND t CENTRAL OREGON IRRIGATION D19MICT OF LAND IN-CLUSION 7 51 SEE EXHIBIT "A" -7q(a0Z(2) WHEREAS, Kamoron DaLmhmutt, representing himself to be the agent for the owner(s) Harry H. Kam Jr, as to Parcel 1, and Everett R Eva Thornburgh, Ambers Thornburgh and Agnes DcWhmun, Trustees of the Trail Crossing Revocable Trust, as to Parcels 2 and 3, has heretofore filed with the Hoard of Directors of the Central Oregon Irrigation District a petition praying for change of boundary and the inclusion of the following described land to-wit: WITHIN the DistrieL AND WHEREAS, the Board of Directors of the District has heretofore caused notices to be published in the manner presmibod by the law that mid petition would be heard at the regular meeting of the Hoard hold in the District office at Redmond, Oregon, on October 12, 2004, as designated in said notices, which notices directed that any and all persons interested in said petition should appear before be Board and show caeca, If any exist, why such petition should not be approved, and it appearing to the Board Isom an examination of the file In connehction with this Molina that it was in all ways regular and legal and that no persons or interested ponies have appeared to o*ct to the petition as filed and an record, or the inclusion ofsueh land within the Dhnrict as requested and It further appearing from a reading of the petition that petitioners have agreed to pay their than of the District indebtedaess heretofore incurred, or which might hereafter be incurred in the operation of the District, now IT IS HEREBY ORDERED, that the above described lands be, and the some are hereby included within the . boundaries of the Central Oregon Irrigation District. IT IS FURTHER ORDERED, that this order be filed forthwith in the County records of Crook, Deschutes, and Jefforaon County, Oregon. f~ Dated and signed at Redmond. Oregon. this day of l l/L'IQ (9.c.,r. _a o o Cwporato Seal; IRRIGATION DISTRICT +ti t ltlt l &A ~v.. Art State of OREGON: C. ss (county of Deschutes: On this / t day of tj•3~ '~-p 0 personally appeared Stevan C. Johnson, who is the Secretary-Manager *(the Ctotral Oregon Irrigation District, a Quasi-Municipal Corporation is the State of Oregon and that the seal or stamp affixed to the fore-going instrument is the corporate seal or stamp of said corporation, and that said Instrument was signed and sealed on behalf of said corporation and they acknowledge that said instrument to be his voluntary act and deed. ,t--p OFFICIAL SEAL yr J NOTARYLEBLPUB SE CLARK C,~,;~ LIC - ONEOON ~t. ,e' COMMISSION NO. 354438 MY t OuMISSNk1 p~ipES FEB. ti, 2W Hefore mo: ~,.J~.~ Notary public After Recording Return To: ' Jd%rson County Of IC1sU Rneords COID Kathlssn B.1Marston, Cotxtty clnttt 2004005528 2598 N. Hwy 97 Redmond. OR 47756 11jilftlul 1 $30.00 1112612004 10:63:25 AM 0-01.1 Cnt.l stnel WIT! tto,oo tst~.ol steno ta.oo Exhibit --P Page & of 139' 7 L✓ 1! 11 I 1 Ltl.-1 ~-~1~b7 14 % 1.3 1-MR I I 1 I Lt IKtUI'UIW 1 .J l wdJ i' . lc -t oq. jqt o {3) EXHIBIT A LEGAL DESCRIPTION PARCEL I: (Tax Lot 47800) In Township Fifteen (15) South, RANGE TWELVE (12) EAST OF THE WILLAMETTE MERIDIAN, Deschutes County, Oregon. Section Twenty-none (29): Northeast Quarter, East Half of the Southeast Quarter, Southeast Quarter of the Northwest Quarter, Southwest Quarter of the Northwest Quarter, Northeast Quarter of the Southwest Quarter and the Northwest Quarter of the Southwest Quarter (NE'/., EI/i SEV4, SEIA NWV4, SWIA NWV4, NEIA SW%, NWV4 SWI/4). EXCEPTING THERE-FROM the Southeast Quarter of the Southeast Quarter (SEI/4SEV4). ' Section Thirty (30): Southeast Quarter of the Northeast Quarter, and the Northeast Quarter of the Southeast Quarter (SEV4NEI/4,NEIASEW). PARCEL 2: (Tax Lot 05000) The East Half of the Northwest Quarter (E1/2.N.W1/4}, the South Half of the Southwest Quarter (S112 SW1/4) and the West Half of the East Half (WI/2 E1/2) of Secti S t on even een (17), the Northwest Q Quarter (NI/2 uarter (NWI/4), the West Half of the Northeast Quarter (WI/2 NEi/4), the North Half of the Southwest of the S th a~ Q ou west Quarter (1EAST OF THE SWI/4) of Section Twenty (20), all in TOWNSHIP FIFTEEN ) SOUTH, RANGE EXCEPTING THEREFROM those portions thereof conveyed to Key T.V., Inc., an Oregon corporation, by deed recorded September 13, 1977 In Book 2S8 Page 166 Deschut C , , es ounty Deed Records. PARCEL 3: (Tax Lnt 67700) The Northeast Quarter of the Southeast Quarter (NEI/4 SiEI/4) and the South Half of the Southeast Quarter (Si/2 SE1/4) of Section Twenty (20); the Southwest Quarter of the Southwest Quarter (SWi/4 SW1/4) of Section Twenty-one (21); the North Half (N3/2) and the North Halt of th S th H lf N e ou ( a I/2 -au InTO~'HP FIFTEEN. (15) SOUTH, RANGE TWELVE (12) EAST E pM p OF T WILLAMETYE ERI 1A EXCEPTING THEREFROM that portion thereof conveyed to Key TV., Inc., an Oregon corporation, by deed recorded September 13, 1977 in Book 258, Page 166, Deschutes County Deed Records. S WE ~ i al aou n ~oRO0K j w195134 1 cow" THAT TN! VMM #C 1"0jMW VVa gECEMl4 FOR FIGOO D aN TNF 5th MOP AND Rgoof4 P IN M IM S RECOMM OF SAID C OUMV MF M 1 951 34 A MAN Cf] !r COUNTY Cumm W OWY J 4p.,, olrtv 60 Nov 1) 9 zut)~ Exhibit Page Of /33' TOTAL P.12 SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:36 P.02 Attachment 6 1 - Exhibit D Page Lot of / 3 8' PURCHASE AND SALE AGREEMENT FOR WATER RIGHT IN COID j This PURCHASE AND SALE AGREEMENT FOR WATER RIGHT IN CO1D ("Agreement") is entered into as of June, 2005 (the "Effective Date") by and between Generation .Development, Inc., an Oregon corporation ("Seller') and Central Land and Cattle Company LLC, an Oregon limited liability company ("Buyer"). RECITALS Seller owns 11.25 acres of water rights (the "Water Right") within the Central Oregon Irrigation District ("COID"), and included in Certificates of Water Right Nos. 76358 and 76714 that are held by COID. The land to which the Water Right is appurtenant (the "Land") is described in Exhibit A. attached hereto. Seller no longer requires the Water Right for irrigation purposes on the Land and desires to sell its interest in the Water Right to Buyer. Buyer desires to acquire Seller's interest in the Water Right as a possible source of water for mitigation purposes in conjunction with Buyer's future ground water use, in accordance with COID's Ground Water Patron Policy. t{ AGREEMENT Now, therefore, for valuable consideration, Seller and Buyer agree as follows: 1. Sale and Purchase. Buyer a to urchase the Water Right for the sum ofkm er acre, for a total of NO" (the "Purchase Price"). Buyer shall pay the Purchase Price as follows: (a) upon execution of this Agreement, Buyer shall deliver to the Title Company (as hereinafter defined), as escrow en a certified check in the amount of (the "Deposit"); and (b) the balance of the Purchase Price shall be paid by Buyer at the Closing (as hereinafter defined) by certified check. 2. Deposit. The Deposit shall be credited against the Purchase Price at the Closing and is nonrefundable so long as Seller complies with its obligations under this Agreement. 3. Escrow. AmeriTitle Title Insurance Company, located at 756 SW eh, Redmond, Oregon (the "Title Company'l, will serve as the escrow agent for this transaction. The Title Company shall hold the Deposit in escrow in an interest bearing account until the Closing Date: (as hereinafter defined) or sooner termination of this Agreement under Section 9 below. 4. Buyer's Conditions. 4.1 Quitclaim Deed. At Closing, Seller agrees to execute and deliver a Quitclaim Deed conveying all right, title, and interest in the Water Right to Buyer. The Quitclaim Deed shall be in a form acceptable to COID. 4.2 Water Right Inorm ation. On or before the Closing Date, Seiler will provide th c following information necessary to assist Buyer and C"OID in completing a • • n • • n • M.'.•-•L\\T T/++s •.I ...+M.n •i+••.w •7• i. /'••r1 Exhibit Page-0 of/3s- i t~ transfer application ("Transfer Application") with the Oregon Water Resources Department a. An Affidavit Attesting to the Use of Water (OWRD Form A for Transfer Application), including supporting documentation. (A copy of Forrn A is attached to this Agreement.) b. An Affidavit Indicating Seller consents to the transfer of the Water Right (the "Transfer"), or Seller's signature on the Transfer Application to indicate consent. 1 1 C. If Seller is not the sole owner of the Land described in Exhibit A, or if the property is subject to a mortgage, deed of trust or other lien, Seller shall provide Buyer with written consent of the other owner(s) and lienholder(s). d. Any records in Seller's possession regarding the Water Right. e. In addition to the above information, Seller will provide reasonable assistancc in completing the Transfer Application by providing additional information that may be needed to complete the Transfer Application. 4.3 Other Water Right Purchase AMeme This Agreement is NOT conditioned upon the closing of Buyer's separate agreement to purchase an additional 5.6 acres of water rights that are jointly held by COED and Seller under an agreement between COID and Seller, dated June 2, 2005. This Agreement shall proceed to • Closing regardless of the status of Buyer's separate agreement to purchase additional water rights from COID and Seller. 5. Denial of Transfer Application. If OWRD denies the Transfer Application, Seller will not be required to refund any of the Purchase Price;-but Seller agrees to continue to assist %yer in supporting any revised application that may be developed by Buyer and COID in an effort to gain final approval of the Transfer, or in pursuing any administrative or judicial appeals. Seiler shall not be obligated to pay for any of the costs of preparing, filing, or pursuing approval of a revised application or of appealing any decision on the Transfer Application, other than the cost of providing the information required under Section 4.2 above. 6. Assessments and Fees. Buyer shall pay any COID assessments for the Water Right that shall become due after the Closing Date (as hereinafter defined). Seller shall pay any water right transfer fees imposed by COLD. 7. Seller's Representations and Warranties. Seller represents and warrants to Buyer as follows: a. Seller has used water on all of the Land, in accordance with the terms and conditions of the Water Right on the Land at least once during the past five years. No period of five or more years of nonuse of the Water Right has occurred during; The last fifteen years. b. To the best of Seller's knowledge, the portion of the Water Right appurtenant to the Land is valid and not subject to forfeiture for non-use. ~ n N r .1.In t1Tf I nr ♦ 1/T". I'. . f r. , /wn FT+• I!.\!T T1~t~ 1 •►n M•f. n.!'•1tT Al /~l'~T►~ Exhibit Page _4~ of / 3 C. Seller owns the Land to which the Water Right is appurtenant and has full power and authority to enter into and perform this Agreement in accordance with its terms. d. There is no condemnation proceeding, litigation, action, suit, or proceeding pending, or threatened in writing, which affects the Water Right. ' Seller s representations contained in this Agreement are true and accurate in all respects and shall be true and correct as of the date of the Transfer. g. Closing. The closing of the transfer of title to the Water Right (the "Closing") shall take place on a date chosen by agreement of Seller and Buyer, but no later than August 26, 2005 (the "Closing Date"). Closing shall occur at the offices of the Title Company. Each party shall pay one-half of the escrow fees, recording fees, and other Title Company charges. 9. Remedies. Time is of the essence of the parties' obligations under this Agreement. IF BUYER FAILS, WITHOUT LEGAL EXCUSE, TO PERFORM ANY MATERIAL OBLIGATION UNDER THIS AGREEMENT, THE. DEPOSIT PAID BY BUYER WILL BE FORFEITED TO SELLER AS THE SOLE AND EXCLUSIVE REMEDY AVAILABLE TO SELLER FOR SUCH FAILURE. IF SELLER FAILS, WITHOUT LEGAL EXCUSE, TO PERFORM ANY OBLIGATION UNDER THIS AGREEMENT, OR IF ANY OF SELLER'S REPRESENTATIONS UNDER SECTION 7 ABOVE ARE UNTRUE OR INACCURATE, THEN BUYER, AS BUYER'S SOLE REMEDY, SHALL BE ENTITLED TO EITHER: (1) TERMINATE THIS AGREEMENT AND RECEIVE A RETURN OF TILE DEPOSIT, OR (ll) SEEK SPECIFIC PERFORMANCE OF THIS AGREEMENT; PROVIDED, HOWEVER, THAT IF SELLER SHALL HAVE ALLOWED OR TAKEN ANY ACTION TO PREVENT BUYER'S ABILITY TO OBTAIN SPECIFIC PERFORMANCE ON THE TERMS AND CONDITIONS SET FORTH HEREIN, THEN BUYER MAY PURSUE ANY OTHER LEGAL OR I EQUITABLE REMEDY. S lle ' ' e r s Initials B er s Initials All rights and remedies of the parties shall survive the Transfer. 10. Miscellaneous. 10.1 This Agreement shall bind and benefit the successors and assigns of the parties hereto. Buyer may assign its rights under this Agreement to any entity controlled by or under common control with Buyer or otherwise qualified to use the Water Right, but will not be released from its obligations hereunder. 10.2 All communications under this Agreement shall be (i) in writing, (ii) delivered to the parties at the addresses set forth herein (or as designated), and (iii) considered delivered either (a) upon actual receipt if delivered personally or by fax, a-mail, or ' an overnight delivery service; or (b) at the end of the third business day after the date of deposit in the United States mail, postage pre-paid, certified, return receipt ' r requested. n 1 f` r „t t.. nT. . Plr • ~ r^ n . . ♦ /Y I. F'r•..rti rI1A •\I . Tr ' T • I'. ~ . ' r 1.. I 1 t / I r1 ' Exhibit Page &5 of /3B' ~I 10.3 No waiver will be binding on a party unless it is in writing and signed by the party making the waiver. A parry's waiver of a breach of a provision of this Agreement will not be a waiver of any other provision or a waiver of a subsequent breach of the same provision. 10.4 No modification or amendment or attempted waiver of any provision of this Agreement shall be binding unless in writing and signed by the party to be bound. ~i ~I r r r r r i r 10.5 If the patties agree to arbitrate any dispute or claim that arises out of or relates to this Agreement, then such dispute or claim shall be resolved by arbitration in accordance with the then effective arbitration rules of (and by filing a claim with) Arbitration Service of Portland, Inc. Judgment upon the award rendered pursuant to such arbitration may be entered in any court having jurisdiction thereof. 14.6 In the event a proceeding of any nature whatsocvcr is instituted, or the services of an attorney are retained, to interpret or enforce any provision ofthis Agreement, the prevailing party shall be entitled to recover from the losing party all expenses actually incurred and reasonably necessary in connection therewith. The determination of who is the prevailing party and the amount of reasonable attorney's fees to be paid to the prevailing party shall be decided by the arbitrator(s) (with respect to attorney's fees incurred prior to and during the arbitration proceedings) and by the court or courts, including any appellate court, in which such matter is tried, heard, or decided, including a court that hears a request to modify, correct, or vacate, an arbitration award submitted to it for confirmation as a judgment (with respect to attorney's fees incurred in such court proceedings). 10.7 If a provision of this Agreement is determined to be unenforceable in any respect, the enforceability of the provision in any other respect and of the remaining provisions of this Agreement will not be impaired. Oregon law governs this Agreement. 10.8 Both parties warrant that they are not required to pay any real estate commission or other fee in connection with the Transfer, and shall indemnify the other party against any claims or demands asserted as a result of its actions in connection with the Transfer. 10.9 On the Effective Date, Seller shall execute, acknowledge, and deliver to Buyer a Memorandum in the form attached as Exhibit B. Buyer will pay all recording fees for the memorandum. in the event Buyer elects to terminate this Agreement under Section 9 above, Buyer shall execute, acknowledge, and deliver to Seller a statutory quitclaim deed releasing any interest in the Water Right. 10.10 This Agreement contains the entire agreement of the parties with respect to the Water Right and supersedes all prior and contemporaneous agreements between them with respect to the Water Right. Executed and effective as of the day and year first above written. SELLER: GENERATION DEVELOPMENT, BUYER: CEN'T'RAL LAND AND NC• CATTLE COMPANY LLC I7 Exhibit -D ~9 of /3 8 Page ( By: Crcorge Iinlc t Its: President By. eron Del Its: Manager ' r n wn wnr~.wr.~.nn~rr•.+nrrrr•wY.T nAn Yrl. Tr.r, nrwYr tT /•~l.nrn Exhibit Page & T_ of r q F r r WHEN RECORDED MAIL TO: Central Land and Cattle Company LLC 2447 NW Canyon Redmond, Oregon 97756 MEMORANDUM OF PURCHASE AND SALE AGREEMENT This Memorandum of Purchase and Sale Agreement.("Memorandum") is effective as of June , 2005, between GENERATION DEVELOPMENT, INC., an Oregon corporation (the "Seller"), and CENTRAL LAND AND CATTLE COMPANY LLC, an Oregon limited liability company (the `Buyer"), with respect to that certain Purchase and Sale Agreement for Water Right in COID of even date herewith (the "Agreement"). Pursuant to the Agreement, the Seller has granted to the Buyer, on the terms and conditions stated in the Agreement, all righ4 title and interest in the water right appurtenant to the real property legally described as:. Exhibit B see Exhibit A attached hereto. G 0 The rights and obligations with respect to the Agreement commence as of the date thereof, and shall expire in accordance with the terms of the Agreement This Memorandum incorporates all the terms and provisions of the Agreement as though fully set forth herein. This Memorandum is solely for recording purposes and shall not be construed to alter, modify, amend, or supplement the Agreement, of which this is a memorandum. Executed on the day and year first above written. GENERATION DE LOPMENT, INC. RAL LAND AN CATTLE CO. LLC °J By. G ale, Preside k Kameron De ' I Manager STATE OF OREGON ) 5s. Wg' CHRIS ANDERSON County of~ CgM5"IDN hb~3pBEAT :,'a ~ iIs instrument was acknowle4md be ore me onVne„'i_"f"."` ,1by Hale. President of Generation Development, Inc., an Oregon corporation, on behalf of the corporation. Notary Public for Oregon C.Q,.:» My commission expires:_.r?"-' / dTr2aC,' STATE OF OREGON rr ) ss. County of%-Q-~~llt.l,T~ This instrument was acknowledged before me on ~Wl 2005, by Kameron DeLashmutt, as Manager of Central Land and Cattle Company LLC, an Oregon limited liability company, on behalf of the limited liability company- AdEkk OFFICIAL SEAL CYNTHIAAZOLLNEA Notary Public for Oregon NOTARY PUBLIC-OREGON My commission expires: COMMISSION NO. 399177 IinY cawu,I:;slaN FVPIr;as Nov r < - / r 091 ' Page I of I EXHIBIT B w , w , cow^^_ • - T^w •T wow Exhibit -D Page r of /3 i SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:36 P.03 rU.RCHASE AND SALE AGREEMENT FOR AFATlER RIGHT IN COID This PURCHASE AND SALE AGREED EW FOR WATER RIGHT M, 001D ~ ("AVWmCW') is entered into as of . 206 (the ``Effm1w Date by attd bct%vm '~{I Billic W. Oalc~ an individual Ctelle rl Centm! Land and Cattle Company LLC, an Oregon limitad liability company, ('Bu all RECITALS Staler owns.12.83 acres of%wer rights (the "Water Right") within the'Central Oregon Irripion District and included in Certificates of W t r Right Nos. 76158 arrd 76714 that tiro hold by COLD. The land to which the ltrsrter Rig.it. is apluteratnt (the "Land') is Jescribed in Exhiltit A s ttached hereto. Seiler no loner tcquires the Water WSM fbr itription purposes on the Land' and desires to well her intem-st in the Water Right to Et'ycr. . Buyer desires to acquire Seller's interest in the Wow Right as a possible source of v.-at+er for mitipoon purposes In conjunction with E!uyW,s Mum Vou:W water as`, in accordance with C©IWs Grmuad Water Patron Policy. AGREEMENT host.'; themfom, for valtyb1c; con ratfim, Seller and Buyer agree as followvs; 1. Sh Ulater Right for tie sure of IM ac(e, fai a tow of -PurdiosR: Fria). Buyer shall prey the Ptitx~ltasc .Puce as .tolto~s.: . (a) upon execution ofthis Agreement, Buyer shall deliver to the Title Company (as b cinaficr defined), us esergur aWmt, it ccrtiiied check in the 2n=n(o Ok "Daposyit"): acid (b) the balance ofthe Purchase Price'sWl be paid.by Buyer a( the Closias (as hereinafter defined) by certified check. 2. Deposit. The Deposit shall bc.rrWitcd against the Pumbas+e fte at tile Closing. MW is rwnrerundable so long as Seller complies'with her'ebligations under this ASmawat. 3. Escrow. AcitcriTitle 'tithe Insurance Company, located at 756 SW Oh. Rodmond, Oregon (the "Titic Contpany)! Vdil serve as the essraw ageot ror this tratrsmion. The Tills Company shall bold the Deposit in escrow in an interest bearing account witil the Closing Date (as hercioafter doflin©d) or sooner tetmmiuation of this ,A lgeement under Section 9 below. 4. Buyves Coaditlops. 4.1 QRitc laim QW, At Closing. Seller agrea to Oxeculd.and deliver a Qnitcluim Deed +conv*ng all light, tithe, and intered in the Water Right to Buyer. The Page I of 5 PURCI AN: 1,`` SALE AGREGh11-:NT FOR WATER RIGHT IN COID rd~rryrg~3s',±R~+~+cnrlsanraeos Exhibit _D Page f of 13 SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:37 P. 04 ` i Quitclaim Dried s*A be in a form. acceptable to COLD. The Quitclaim Decd mccttted and delivered under this walon•shall be'recorded p:7orto the iticoril5ir#g: of tlt+c deed conveying ;the Land to .f oe I OAR Lih k1je a lee ~W. K t. 4.2 Water Rt: . natiOn or before. the Cloiin$ Date. Seller will provide the tbllo%ing inforntation ncummy W. assist Buyer and COID in completing a ,I twsfer ftliration ("'T•ransfer Application") with the Or%on 'leaser Resouros iI . Dcpirtsnent ("0WRD'): L An Af idevit Attesting-to die Use-of NVm& (ONVRD Form A for Tmnsfor i I Application), ic►oludi:ng supporting documentation. (A copy of Form A is II attached to this Agroctncnl.) b. An Affidavit indicating Seller conwas to the tmttafer of the NNIzer Right (the "Transfer"), or Seller's sipaturre on tbs Transfer Application to indicate conserrn. . C.- if Seller is nest the sole m-ner of the Land described in Exhibit A, or if the S ll h ll H d e a d er, er s propony. is, subject to a moripp,. decd of trust or o "ide Buyer with *rked consent of the other +ownct(s) and lic hholder(s). d. Any :records if Seller's possession regarding the Water Right.. c, In addition to ttLp abovd ialbrmation. Seller will provido mnaonabls assistance t in 000 ►leting the Transfer AppliUloh by prom idi•ng additional information that may be.necded to, c.7omplew the Transfer Application. 4,3 Lenin Sale Agmienl.' This Agre' emcnt is conditioned upon the closing of Seller's separate agreement, dated ~e, o~ to sell the land an or .~c " before November A-2005 to J &c; LAgU r 4&4&.7 i 5. Denial st"f t"artsfer Appilealloni IfO%VRD detut:s •the Transt"cr Application, Seller- wilt not be roquind to.rAnd any of the Pur we Pace, but Seller agrees to continue to assist Borer in supporting any miscd appiicad*n that may bodoveloped by Buyor'and COO in an effort to gain final Vprovttl of the Transfer, or in pursuing mry administradve or judicial. appeals. Seller shag not be obligated to pay for any of the costs of preparing, filial;, or pursuing, approval of a revised application or of appealing any decision on the r Applimition, other than the cost otproviding the information required under f e S Tran ~ r~ r l Section 442 above. 6. Assessmenfis, and recs. Bu)vr shall pay any COID assessments for the Wator RiSM Mat shall become due after the Closing Datc (2s.heM='llcr*r1T e.4 Scher shall pity any wager right transfer ices impnsed-on Seller by COIty. .7. Selter.'s Reeprescntuliam and tivorranties. Seller n*rascstts and'warrants to Buyer as follows: Page 2 of S PURCHASE AND SALE AGREEMENT FOR WATER MGM IN COID .pdxJ] E7t~iti38'F9S~t~!fC?,9itgNF.). . Exhibit -D Page 96 of /38 5L'IiwAUL w I LL I AMS WYATT Fax: 503-796-2900 Dec 14 2005 13:38 P.05 a. Sailor has. used %%mW on all of the. Lttrtd, in accordance Whh. tile tcrnts a bd conditions of the Nvate r Right on the 1xid at toast anoe during the past rwe yews. NO period'of five or tnoro.yeam of nonuscof the Water Right has occurred daring the'last 'fiflcen years. . b. To the -bw of Selli.es k wfledge,.the poruion.orthe 1k'utetRight appurtenant to the Land is valid and not subject to Porfeiuve for item-usc. C. Seiler owns the Land to which the Writer Right is appurtenant and has full power and authority to enter into and perform thts Agreement in accordawc with its terms. d. There is no condowatian practedWS, litigittion, action, suit, or *=eding prattling, or thrcatoned in writing, which affeets.the Water Right. Seller's re rCSetrtaticros' caatslmd In this Agreement are true atA accurate in all respects s and shall be true and'crtea.as ofthe date-of die Transfer. 8. Closing; The. closing of thew transfer. of.ke to the- lVater Right (thc "Clming") .s' W1 take place shnultmWouslywhit closing of 5eKes agreement to sell the Land to fie-e- L'Agwam no ' . dr:beflam liovamber30, 2005 (the "Cloft Data")'. Cia iri$ sttalT. occur at,titra a txs o1'.the Title Cvrttparty. Each party shall pny-one half of the woos, fm, recoMi ng fbcsy and other lltle'Comoany aharges. The Quitclaim Deed executed-and dclivored under Section d; i shall be trecorded prior to the retarding of the decd conveying the Land to J ~ ~nt+~rt,t .1+rrx.r rlcr.cr. 9. Rernedim rwit is-of the essence of the part & obligations under this Agrrcrnant. IF BUYER FAILS, WITlvOUT LEGAL C-XCUSE,. TO PERFORM ANY'MATERIAL OBLIGATION UNDER THIS AGREEMENT, THE DEPOSIT PAID BY BUYER WILL BE FORFI' M,, I) TO SELLER AS THE SOLE AND EXCLUSIVE RF&IEDY AVAILABLE TO SELLER FOR SUCH FAILURE. IF SELLER FAILS, WITHOUT LEGAL EXCUSE, TO PERFORM ANTY OBLIGATION UNDER THIS AGREEMENT, OR IF ANY 'OF SELLER'S WRESENTATIONS UNDER SECTION 7 ABOVE ARE UNTRUE OR INACCURATE, THEN BUYER, AS BUYERS SOLE RIIIEDY, SHALL BE ENTITLED'I'O; EITHpR: (I) T-.epm RATE THIS'AGREEMENT AND RECET~ A RETURN OF THE DEPOSIT, OR (Ib SEEK SPECIi*IC PERFORMANCE OF THIS AGREEMNlT; PROVIDED, HOWEVER, HAT-IF SELLER SHALL HAVE ALLOWED Q TAKER; ANY ACTION TO PREVENT BUYEW9 ABILITY TO OB`FAov SPECICiC PERFORM. bNai ON THE TERM AN CONI7 MOILS SET FORTH HEREIN, THP.N I3U'I'`ER 1WAY PuRsVE ANY''arkER LEGAL OR i EQIJITABLL REMEDY. ■ IF THE..LAND SALEREEI~RRM TO. IN SECTIONS 4 AND 8 FAILS TO CLOSE THROUGH NO FAULT OF SELLER, THEN: SELLEtt MAY CHOOSE TO TMMINATE THIS AGREEMENT. IF SELLER TERMINATES THIS AGREEMENT, THEN BUYER SHALL RECEME.A RETURN OF THE'DE.l'O IT. i I'age 3 of 5 PURCHASE AND SALE AGRE.ium'i, T rook iV riz.. Ricaff iN COi'D . yda►rit:iy$!1JBIy~rbf~J]''.'9~s841 Exhibit Page I of /3 K aUMWh3t WILLIM WYATT Fax:503-796-2900 Dec 14 2005 13:38 P.06 w Sed~tial$ B s tads i All.rWits arttl remakes of the parties shall survive the Transfer. Ji l l 10.' MISCOlsnttitas. 10.1 This Agreement stuill bind and benefit the sucC'essors and assigns of the parties hard. Buyer may assign its rights under this Agrement to any etitity controlled by or larder common contmi with Buyror or otfieM-se qualified to use the Water Rigbt, but wilt, not be released from its obligations homwder. 10.2 All cornmunlcations under this Agreement shall be (I) in wJrhin& (H) delivered to the parties at the addwsses set faith heroin (or as designrsted), and (iii) considerod delivered either (u) upon actual receipt i fdcliyemd personally or by fax,. e.lnmrtil; or an overnight delivery service, or (b) at tba- and-of the third business day after the date ofdeposit in the Unitcd States mail, postage pre-paid, certified; return receipt reyyticsted. IOJ No waiver +aill be blinding oil a partyuoliiis it is'in writing and signed try the party making the waiver.. A parry's waivarof'a breach ofa provision ofthis Agreement will not.* be a waiver of any other provisiiaa or a waiver:-of a stibsequm breach of the same proAslori. 10.4 No niodificadgri or amendment or attempted waiver orany provision of this d s Agrmnacnt shall be bin ing unle s in writing and signed by the party to be Bound 10.5 If the parties agrcc to arbitrate any dispute or ciaintn that arises out *for relates to this Agreemment, then such dispute or claim snail the rosolved by arbitrntion in accordance with the thou of1'ectiv+e arbitration rules of (and by filing a claim with) Araitration a~crvicx of Paitlarid' ltic, ]txl~tiicnt upon thatnv~d rcttdcread }rtiirstiaat. to such arbitration may be enter+cxf in any court having jurtsd"ietion thereof. 10.6 In the event a prodding: of any:naturc whatsoever i mtituted, or the services of art attorney arc r+ctiiin4 to inter ret,or enforce arty provinion Of tbi& Agreement,' The prevailing party dead be entitled' to recover from the lasing party all expmes actually incurred and teasonably necessary ire conriml,o n therc%vith. The determinalion of who, is the pre"vuiling party and the amount o f'reasonable attorney's fees to bo paid to the prevaiiling party shall be decided by the arbitrator(s) twith respect to attompys fees incurred prior to and during the arbitration ppccedivgs) and by the couruor counts, including any arppcllate court: in which such matter is trier!, heird, or'decided, inchttdiiig a court that hears a reyrxest to modify, corrocT, or v►acgtc, a0 art>dtration award submitted to it for confirm add" sea a yudgtt and (with respcct to ahbrnWi f+ es im* umcd ht such court pracerdiitgs). 10.7 If a pro-%•isiort, of this Agreement Is dede Wried to be unenforceable in any respect, the enfbreei bility of the provision in any other respect and of the remaining Pagc 4 ors PURCI IASE AND SALT; AGi M.N.TE ' FOR WATER RIGHT IN COR) Exhibit -D Page 22 of /3g 1 o6nwhoc WILL18M5 WYA11 fax:503-796-2900 Dec 14 2005 13:39 P.07 ptxrvisf ons of.this A moat wr'11 trot be impaired. t on law erns this Ag:'cctticnt. I&S Botb pw1jes v%wrrnt that they am eat xegttimd to M., any roal to c omtoissian or other t'cc in oonneciion with the Tmnsfer, and sbail indemnify the Other Party against any claims or demands asserted as a result of its actions in connection with the Transfer. 10.9 On ttia Effective Date, welter shall execute, acknowltdg% and deliver to Buycr a Momordndum in the Form attadmd as Exhibit B. Buyer will pty al! :rCwortli% fees far the. menwmAdum. In the event Boyer elects to (mminata this Agrcemal under Section J abovet, Buyor shah-execute.,'acknowledge, anal deliver, to Seiler a . s'tat wry quitclaim dot:d releasing any laterest in the Water Right. 10.14 This A rates contains the entire agreaixw of the parties with respw to" 1Yater Rs*gt calf supemcdes.all prior and con'tetr+poranam aErccmcnts benveen them +w~ith respect to" wow Right. Executed mW clVective as of the day aad you first above written. SELLER: BILLIE W, GALE BAYER: CENTRAL LAND AM) CATTLE 004%vMPA.NY LIZ Billie W. Laic amccao>l1 Aei Its: Mar&W Page .5 of 5 PURCHASE AND SA-M AGREEMENT FOR WATER RIGHT IN COO pdxiii:l>3~+'ibt~i B.hiC3tStt:973fi~.1 Exhibit 71D Page _2_31 _of 1 SCHWABE WILLIAMS WYATT Fax:503-796-2900 I' Dec 14 2005 13:40 ' Bx6iliit'A" . LgdI Dosedp lae of do .and I P. 08 j THE SOt1Tti A W OF TOG ~ WJAWFM OF THE NOR'rN6AST allA MR IX IK NMI OF ~I $WtWN to, TOWWl M 45 OMM, PME I& Mgt OF I* WUAMEM L1 ONW, OMCWM CIJ TY. MGM. 9NO"Al VOWAR A IM WEST NALT OF IM ~ OF WE N109TWM t UMM OE 7M t70Ai1t, W RUtll'N:R'WM2 ~WW INIM N81141 0 UMM W o 7X ww"'if WUTK'"E sm=NOWP1q.0E8 wgsOwiN ;drA ORi. r 1 r i PW i of l =11113IT A PIACH A$E AMU SALE AQR EMEN FOR WATUa PJGHT 1N COID Exhibit Page 94 - of F _ SL'HWAUL WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:40 P.09 t _ iC rblbk it r' 111TER RECORDED MAIL TO.- Central Lod aid Caulk Company LLC 2447 N"Al Canyon 9Waiwd, Organ 97756 r~ - IMEWIORAI"W- t OF PURCHASE AND SALE AGREEIIILNT ?his Mcnwrandom of Purthase and Same Agrmnemt-(°`Mernoraitdu&j is effective as of WOO- 21l45,,.bct ! OILLM IC GALE (tha "Seiler"), and CENTRAL LAND ANM CATTLE COMPANY ,I.LC, an Ouqun limited liability company (tire. "BU)per"j, with respect to that. eertn'in Pur+cbuasc and Sale Ag awnt for Water RISM in COLD *fcm date hcmwbh (the "Agmemew"I t to th a Agnerrnq, 4hc Seiler has Omii ~d to tree i3u;ter, o the tivx and. csriditinjis sued in ttie. Agt+ecrnem, ail right, title and Inte rm irk wautr right appurtcnorat to the real -Pro*ity ligi* dcscrt'bed I as: . sty Exhtbh A sttached btmto. The rights and obligations with respect to the Agreemat eornnieam as ofthu date thereof, acid Stall cxpvc in =ardatrce with the terms of the A stain. This hlmormndtutt incorporates all the term and pro~visim of the Ag ment as though'fully act 66 I~cr+eia. 't'his hienwrindum is solely for rowding purpose and shalt not be cor~atrued to slier, modify, amend, or supplcrnem the ARreenwnt, of which this is a tmettusrmtdum. Executed ors t'hit•dn3'and )vAr fast above +rTitim r BILLIE W' . GA' LE CEPTTRALIANAAND CATTLE CO. LLC ' W.4MQ %V Ga%V Gait $y- STATE O1= OREGON ) V.N.4Z Courity 6 b.,.This inoro meat was acknowledged beforemtnc an STATE QF' OIi SGON ) , )SS County _ILZ 2845. by Billie lv,. Galt. Wary trrrblic far Or+cgon l4tyco~rrmnissitsn.narpires;~2_rC~___1 r"~' This instrument ♦~w acknowledged before inc on e, 2il05, by Kamc= De1.ashnnM. as WaWr ofCenml Lmd.and.Cattla Company LLC; im Ord Nestled liabili y, on bcW(of the liWtcd Iiitbility. cuattpany, Notary Public for Ore . Gv+ ~!y corttniiasian AWMNLCARTOR N0TAWVUMJ04WEW*N cxpi +r,OWtrsr(~or era r ~ ArYR~'it4681CiN 'P ~ESdq Y1r Pale Y .t f. i ,WHASC BIT 0 AND SALE t OREEN4M'T FOR WA'1 BR IGJ tT IN COID - pelt i«1s~+il~smit~dCiiZFt3~~ts4:t r Exhibit Page of /3 8 aunwnnt wiLLIAm5 WYA11 Fax:503-796-2900 Dec 14 2005 13:41 P.10 BRYANT,EMERSCN#'FIT Fax:5415481895 May 26 2005 12.44 P. 02 SALE AGREEMENT FOR WATER 1UGHTS AND RECErrT FOR EARNEST MONEY DATE: May .LA , 2005 SELLER: Estate Of Virginia B. Wakefield Seller c/o Tom Wakefield, Personal Representative 3355 Farm to Market Rd, Midvale, Idaho 93645 BUYER: Central Laud and Cattle Company, LLC Buyer Kameron DeLashmul t 2447 N.W. Ceayvn Dr. Redmond, OR 97756 RECITAL: Seller desires to sell to Buyer and Buyer desires to purchase from Seller certain water rights (the "Water Rights' located on property having the following legal description (tho "?rup " The North One-Half of the Northwest Quattar of the Southeast Quarter (N r4 NW 114 BE 1/4) in Section 8, Township 15 South, Range 13 East of the Willamette Meridian, Deschutes County, Oregon Also known as. 2486 NW Hemlock AVenue, Redmond OR 97756 AGREEMENT: I Now, therefore, for valuable consideration, the parties agree as follows: 1. Sale and Purchase, Buyer agrees to purchase the Water Rights from Seller and Seller agrees..to sell all of Seller's Water Rights, consisting of 19 acres to Buyer for the sum oIs per acre of water rights (the Vu 6A ie Price"), 2. Earnest Money. Seller hereby acknowledges receipt of the sum of S paid, by Buys: u earnest money. The earnest money shall be applied to the Purdh se Price on the Closing Date, as that torte is defined below. 3. Payment of Purchase Price. The Purchase 1'rriee shall be paid as follows; Pop 1.Sale Agreement and ' Receipt for Earnest Money c3AWPS1~RLi~01PRPSA'x'g1wAxr.~tBLD, VlrBuis~FitlalDeLagknuttHMwateraiphtarpolgt) Exhibit Page 4, of 13 SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:41 P.11 i BRYANT, N,FIT F'ax:54154m% May 26 2005 12:44 P. 03 3.1 At closing, the earnest money shall be credited to the Purchase Price. 3.2 At closing, Buyer shall pay the balance of the purchase price in cash. 4. Closing. Closing shall take place simultaneously with the We of the Pmperty on or about May 27 , 2005 (the "Closing Date"), at the offices of first American Title Insurance Company, Sit3t*M Oregon. Bach party shall pay one-half of the escrow fee. Quitelaim Deed. At closing, Seller agrees to execnto S. quitclaim deed in favor of Buyer, eonveying.all of Seller's right, title and in in the Water Rights to Buyer. The deed shall be su'a form acceprtable to COID. 6, Conditions 6.1 Buyer's obligation to purchase the Water Rights is contingent on sattisfaetion of each of the following conditions being completed by Seller prior to closing: 6.1.1 An affidavit Attesting to the Use of Water (OWRD Form A for Transfer Application), including supporting.documontation. ( copy of Fortis A is attached to tkia •.Agretn =t,). 6.1.3 Art Affidavit indicating Seller's consent to the transfer of the Water Rights (the "Transfer'), or Seller's signature on the Transfer Application to indicate consent. 6.1.3 Any records in Seller's'possession regarding the Water'Right. 6.2 Upon closing of the sale, thereafter, the Seller agrees to assist the Buyer at Buyer's expense, as follows: 1 6.3.1 Geller and Bijyr+rr Her, , , to caopwr Lr, wills COID i" ompletinp, r awswi steps to chop the typo of u9c and location of use of the water Right by filing a transfer application ('Transfer Applioation'j With the Oregon Water Resources Department ("OWRD'j 5.1.2 Seller will provide reasonable assistanc0 iii corripleting the Transfer Application' by providing additional information that maybe needed to complete the Transfer Application. s.2 Buyer's obligation to purchase the Water Rights is contingent upon Closing of the sale of the property, Page 2.Sole Agreement satd Receipt for Earnest Money Q,:Nvffl.51\KA\01PRO8ATR1wAF D, VwgniolFnalDeL.a UtwM wader xi&tLV d(8J) Exhibit -D Page-T7 of SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:42 P.12 BRYANT,BCRSON,FIT Fax,54154818% May 26 2005 12:44 P. 04 7. PosseSslan. Buyer. shall be entitled to.possessian of the Water Rights for tr=sfcr innnmiawly upon closing. 8. BeAer.'g RepTesentatio s. Boller represents and warrants to Buyer as follows. ,I 7.1 Seller has used water on all of the lead in accordance with the terms and conditions of the Water Rights on the land at least once during the past five years. j 7.2 No period of five or more years of non-use of the Water Rights has occurred ' ' years during the last Sfteen 7.3 To the beat of Seller's knowledge, the portion of the Water Rights appurtenant to tie land is valid and not subj act to forfeiture fbr non-use. 7.4 Seller o-w= the land to which the Water Rights are appurtenant and has full power and authority to eater into and perform this Agreement in accordance with its terms, 7.5 Therc is ono condemnation proceeding, litigation, action, suit, ,or'proceeding pending, or threatened its writing, which affects the Water Rights. Seller's representations oantained in this Agrmnent are true =d accurate in all material respects and shall be true and correct as of the date of the Transfer. 9, landing Effect/Assignment. This Agreement shall bind and benefit the successors and assigns of the parties hereto, Buyer may assign its tights under this Agreement to any entity oontrolled by or under common control with Central or otherwise qualified to use the Water Rights, but will not be released fawn its obligations hereunder. 10. Assessments and pees. Buyer will pay CODA assessments that become due after closing aid Seller will pay any seller transfer fee huposed by COID. 11. Remedies. TIME IS OF THE ESSENCE REGARDING THIS AGREEMENT, If the conditions. described in Section 6 above are satisfied or waived by Buyer and the transaction does not thowafter close, through no fault of Seller, before the close of busineas on the Closing Date, Buyer shall forfeit the earnest money deposit to Seller as liquidated damages, If Seller fails to deliver the water rights on the Closing Date or otherwise fails to consummate this transaction, the earnest money shall be ref coded to Buyer. These are the sole and exclusive comedies for breach of ft Agreement by either party. Page 1Sale AgreeMout and Receipt for Earnest Money .0:1Wp515RLBT1MOSATMww rrL, vj*ni&,yi,wmeiscbauiaM wawa Rbds+d(zj7 Exhibit of SUHWAR WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:43 P.13 BRYPNT-EMERSON,FIT Fax:5415481895 May 26 2005 12:45 P. 05 oil 12. Attorney Fees, In the event action is instituted to enforce any term of this Agreement, the I prevailing patty shall rocovcr $om the losing party reasonable attomay fees incurred in such action as act by the trial court and, in the event of appeal, as set by the appell»te courts. I 13, Nodes All notices and communications in connection with this Agreement shall be given i . in writing and shall be transmitted by certified or registered trail, return receipt requested, to the appropriate party at the address first sot forth above. Any notice so transmitted shall be deemed effective on the dato it is placed in the United States mail postage prepaid. Either party may, by written notice, designate a different address for purposes of thin Agmm=t. 14. E;atire AEreemeint. This Agreement sets forth the entire understanding of the parties with respect to the purchase sad sale of the Waiter Rights. This Agreement supersedes any and all prior negotiations, discussions, agreements, and understandigs between the parties. This Agreement may not be modified or amended except by.a written agreement executed by both pasties. 15. Applit able Law, This Agroement shall be construed, applied, and enforced in accordance with the laws of the state of oregolL IN WITNESS WHEREOF, the parties hereto executed this Agreement the day and year set forth above. f , SELLER: BUYER, Tbc Estate of Y' ' 'a B. Wakefield Tom B. Wako Representative and Cattle K=wron DeLashmutt, Page 4.3ale Agreement and Readpt for Earnest Money o xw nvazTieaoe,+TMwnWtet o, 0m wain Rw~=.wpdtAi? Exhibit Page _74:2_ of /3 $ OtonttnUL WiLLin1110 WTAII taX:bU3-1,4b-ZJUU Dec 14 2005 13:43 P.14 1 Sarah Short 1490 ~}ir 1 t" tr t Ord,, . n 9?7S6 Re: Option 11gwrt1 for. Water Right i Dear Satah-Slwct.: INS lcttcr Cmfirm your agreemant with Comm 'I "lad and Cattle Cohnpany LLC ("Central"), to sell an irrigation waw right act m:rWn lands }'on own. For the purposes cif titis. ititeragmcment *`Agr mr), Wo refot tp }'Die t s "WICrs " 11"s:c~t~tcndlRc~itrt}„e , Sencrs Own 0e acrem or iuctd (the ""UM") loo' mod within the Ccwral Of IMW-Kioa District (."CORY), and ictclu0ed in Ce ificate of Wa<tcr Rigtttt (ft -Wafer Right") that is head by COTD., The [.and k dMrihtd in Attacluncnt 1 atmc-&-d hereto. ScIlers no longcr mgWre tht Water Right l'vr irrigation purposes on the I. nd and"- r.c atW sell their interest in the hater Rion. Cc tttrol dcs}t W m bIlic3 an option to Acquire Sellers' hourest in the Wafer Itigltt as a possibic matte: carwater for mitiption puqxus in conjunction with future ground a%tcr tcsa. in t aewrilance with Ca b's Ground Wa.k-r I'Et mn Policy, tf this option is exarcisctl, the Sellers and Centra} ithtettd to coop mm. %gtlt C{YTt3 in mnpletliv" wemaxy suss to Clums' e, the type: cif tesc and imation of use of the, WatcT Right by filittj a transfer applicltion (`rrarrsl'ctr Application" ) . . t~itft,tlXe tJrcgo~tt L~rm.Gr F~c.~ar~ ly>rpartrhtent ("'~C)~ViiD"). Agti'eerhsent Seik:r5 antd ~chttraf adrec as fo}la«s: . 1. Sellers give Ccntral ;tat esefusive option (the. "afiti6W) to ptir6ase the %V;tjor R's, it. car , die purchase price c~ per acne (the '`Purchase Price"). 3. As considaration for the Option. Ccrtruf will ray to SAIcr's the amount rM per acre ( .or a tahtal of upon vxc~`thtimt of t i5 Agreement (the "Optiva " Ucratim •rhe option CWE n shal l be cresclited against tho Phhnchhtse Prim and jr, nonwf'uttdable so long as W ors comply w M their obl*10 ' ' raider this Mm-nose.. 3. Ceatt'ah 1YkRt E"'1"•ercisc the option %%itwn 6o darns of the date Cott which this tl-i ement is thlh t EU by t _ wa, ttht wt e pamcimutua } a"~ to acn mtension. Central shall cxerarsc this Option by depositing tho r4Rii fining Pttrchme Price mho 15serow on Sciirrra° bhzlthif: 4. Agieriutle * itle Insurance Compan , lacatryd at 756 SW Cf`~ Simid, R dmond, OM#Dn, >,t iIl ;C aq t c •scraxty a ► ht f►h' Ibis. trau: ( - Exhibit Page 9Z of ~3 8' ounwnnt wILLIM WYAll Fax:503-796-2900 Dec 14 2005 13:44 i P. 15 5. Upon hem of tbe full Purchsea Price try Cent.** Scliers will. proNide the rollming infomwtion no=mq to assist Central and COLD in co up sting tfiiTrtu"-mTe-r Ap-piica"tion 1p be leld a;nth the tart f}: a. An AMidmit Attesting to tits: uw.or Watcr $1t VRDTemu A for Transfer Applic&icn), including stuip rung: wanicntattom (A Copy of Form A is to m!hcd io this Agrecm r,, to j b. An Affidavit indicaling Sallen-1 consent to the transfer of the 'eater Right (the or Sellers silpature on the TrunAr Application to indicate ~-ott,;cn1. C. If the Seller Are not the sole o ~r of tht Boer y described in Attachment 1. or if the pmpcrt is subject to tta rnonbi, dedar, n. t°itltmec of written notice to tW lienhuldcr(s) of the pn %:d't~~at4r night Trttnstf r. Within 00d„a~a*.s. Sc:Iters shall pmr~sdc •Grntcal aa1111h wTtt cnnscrtt fl the hrrtholder(s), as provided in 46, ba:low'; d. Any mconls in Se lle-' pos x:nion rs prdin~ g tiw Water i lb- c. In addition to the aye inf6rmOon, the Sr.4 :r's %ilCoroii*.dr*mm;onable assistance in Cgrn Pleting the Transfer Application by providing additional inrormatio n [bat may, bo herded to cwmp6~ the'i`r is Applickatlon. G. ~~rithit 30itai° rafdclic►ry.o{'tft l:urclysc [~rik t~ C:~amw,ott behalf atScllcrs, ~4c;llcr shall PrmaclC Gttttrtl ;+v3i u'ritic~a:ccanst~sst tsa tltt: irsfth~utcr" Rraht'frotn al! ii~'an`iIW puns. " ~Ilcrs.arc: usable: to prcaa+r u atrrittcn ►stsenty t c►tt~~ i~ mn r" to texmina t is ricmcWl 1 ¢li~^ nia itcn tali ts~ tl►c Scllc= tt n 3tlZlnvs al~ thi ccP cirntinn o'"t`K ,~.petli rit3edthiS D c" : 'tJ' "~a;rmtn:ttirnt a!'tt Arc~ • t, Gt'ttti tt s i t~tx- e ` led iot:a Mutt i rf % t Piit~ uu;i``Priutr T+~rn Scllc:rs --w 0 ' C- c.+~v, eacrt t-i"ax tl botinn - ~rtrtintt, ai~hielt ' . ttre ftlret ibble. 5"et .ny shall instruct rs4row to tt: ui said amounts to Crzit tvitlttt l5'tlny5 k}.x: dais: 6ru'ritign tint's- of to rktion. 7. lr tix: Transfer Aolicat3on is.ds:rticd by the Q~tI~. Sellers ♦rsi71 not be rcttin'd to ref Wial acre of the p4mhuse ice..'but Soltc*.rs agree to 66ntinuc to n:IIst Ccn&4 in supponS a4 tc-OS 'd apptic tticut t nt"mayr be dcvol apod by Ccntrtl. and COID in tin efrort kr uoin octal approa•ai of the Traiisf%~r, or in parmuing omy adtnini:arative oraudkW npt* S~cllos shall nett be li .arils! to l for any, of tlx: costs of prep tring, filing„ or pw-wing approval Ora rc%ind appficatir n or ofaftpciAlRg art}° ch:eislwrt on the Tn.. osrer 'Applic:ati , colter than the cost orpro'iding the information rep u'red unckr Smdoin 4 a wre. ii. ~ert~rtrni xl 11 a; ttTv C4iD ttssesacri tts ror tl WtttciRi ,lift that sloth brt ctimc~dty---aftV the tie on which the Optio to s e, cry a , 9. ScHers repta:aa:nt and --warrant to Comral as foilt+a+ : n. Std len have used %Nlatcr oat .ail of d w Land, in we(mit-nm,41i the, terms and concur of thc. Water ftht ou t'he Land at Imt once during the past rive years. Exhibit Page $ of /38 SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:45 P.16 No.pn 0d of fr,a or mom years of nonuw of the ttfatet' R's tt hasOWUMd during tht: wl fifteen yeois. b. To the lmo of Sellers` lent %Ilddp- thi: portion of the Wit W- R$20111 tppttrtt:mattet to the Land is valid x id not subject to 1'orfeiiurc for 110n use. c. seliers own the, I.arai to whic h the Water Ric+hit is appttrte na nt and have full rm-,vur Hite! utthority to t:ntt~~r into assd paforrn this, Agn*e rent in Decordarctx With its . tams, d. Thm is no conclattntation proewding, Iitiglkion, action, suit, or pt+ccc dittg di + or threatened in writing, which affects tier Water Right. Sellers' resrt rttatians cpritairnd in this Agi~smt.~rtt:ire ttuc and rtcwratt in all material ruspccis and shatll be tnm and correct a of the Joe of tho Transfer, l ft. 7 tint: is,nf that: t st:nec of thr p'zrtia~s' ttbligatitttts urtd this Arrartnrt t. W CENTRAL FAILS, -sVMJQU1' LEGAL EXCUSE, TQ COMPL LIT: TI'IF PURCHItSG OF 't'1•IE PROPERTY OR Pl RFORM ANY MATERIAL ORL.IGATlMI UND R TINS AGRE1=. ND T. THE QP-nON CONSiDEKATION NAID BY CC-NMkL WILL 113L FORFEITM'1'O MILLER AS THE SOLE AND EXCLUSIVE R NEEDY AVAILABLE TO SELLER FOR SUCH 1 AILUR'L. x SCUMS' Itdtiah.0 t initials tt"Setiors fail, exit xxvt t~ xl exoww. to perfo m ant , rn-alm ial obligation under this Agreement, thco Ce;ntrW, a Ccntral's sole rernedy, shell be ennitled to dthar: (1) a n:tum or the option Consicle:r rtir,+n; or (ii) to seal srrt 111 ire r=formance of this Agracmewstt: provids.d, ht►'+~cti~e~r, tlr.►t if Staler girall ha;° stticv+t~ect yr tale~n nny uctiDn tq prcw~ent Cent r tl's; ability to abWn Mxvifin performance on the terms and conditiow; scat forth lu-min, tho Central may ptsrs w any other legal or egWtable remedy. 11. rill rights and remedies of the partizi shall survive t}te Transfee. 17.. s Agreco tt shall bind an trt:ne iE tlw scu:tx aril assigns e3f the parties lte:rtato. Central may assign its rights under this AW.ettte w 'Ui -4my e6thy ~bntroilvd by or tinder common vontro) with Camml or o4wrw.ise gw1if ed to use the Urater Right, but will not be rateased from its oitligation% ttrc~cundev. 11 All, t tttt9rittuticat.lt~its uatlur t us .~►gneemcstt shall bk (i) in %ej1in#, (ii) der%vracl to the portico of tlrit titldivsses set forth herein (sir as 63ignati4 and(W) cotwidered delivered upw actual r ipt if deli-wred pcrsc welly tar by fax., e-nutil., or ran overttig tt dean+crV sc r ricv, or at the t ail oftlte third business day #ftar the date cif dt jxws, in' the Linitcxt State mtril, postrir : (tic-pain, c tiffcal, rtim rx r cirt r uc:sterl 14, No,modification tsr zunc?tidmr--nt or attempted ~'ai~~cT Otarts~ txot'isicut ofthis }1t n emcnt Shill k binding 1rt 1cu in writin and si.oncd Oy the portyw to be bound. Exhibit D Page $a, of /3 8" SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:45 P.17 ' In rite v`1"e:rtt a proe ex~i'tag of any "atom wlsats per is iiuttittttt*clx bs'thy: set r'i ttf art 15. ti : , n anomey are retained. to interpret ar e:stforcc any pmvislon of this Ag mOmt, prL.Maing }party s3tst11 be e:ntitlcd w recover frorn the losing party -Al a-XpeO~ etctmlly i ° in connection thermvith. In the Cvent of A pmcoxiing, bl y neaess incurwd and rwsc na the amount tlt~reat shall be detrrmineed by tlttr *gw or arbitrator, ;wd shall hichrel+e fctN- rc~~cti~. Wd wq=sts inewred on any appvw or If a provision of this Agreemertt is dmerrtminvil to bo unentoraeabie in any, tespec4 the 16 . cmromtittbiuw orthe provision in any other r1:'ai' pct and of the. rcri -doing provisions ofthis ' Ag-mme nt %v!H flat be itt'rp ncd. C?rrrpa low goveras this Agminam. Aher i i on or o ss pay art} teal cstatc i;orn f Both parties warn m that dwy arc not r tired 17 . fee to connection Mth tltc'1`xrtrtsfw, and shall indemnify tax: ottu:r p grty' aonst any ' ' ' es , rarrsl claims or dettrr dS rise W-d as a result of its actions it mungvtion with the T ' 1fCCr bW &-Ares to Fecord a memorancltttst e)ftlti5 A~re~:metti, ~cilr~ a'it} sxeGtitc mxl 111 . deliver a me owmndum tq Ce:ntsal. Central -Mll draft and pay all * ordiag fee, far the men onfldum. 'rhis r' e;mtn14*obtains the entirc at rtmamcnt of ft pirdes with rmpect to the'I'racnsfor 19 . een and su erserics all prior and contemporaneous agrm-ments bew.°. thom. This Agreament sWI become cf ccovc when si d by tire: partics. NVQ MV providing 1-,%o copies ofthis lettar Amxinem. If vit are willing, to acimi this ' A,gtY`avent, plew sign and return tmth ctr ci to ono. plc will rrttun cent- fulb, signed orijhnal for you nocords. SEL1.E.M. CLNTRAL COMPAVI 1AZ. (P'rintud . W, itsr Its: ' f3atex t - Q Date : j AND CATTLE Exhibit '7 Page 93 of l38" 1 Dec 14 2005 13:46 P.18 SCHWABE WILLIAMS WYATT Fax:503-796-2900 Owwr owns foe sitnplc titic to tint mal property, described in E.thitsit A attached hereto, tagctltec with aiI improvements. situatedon it located ut.5 110100 85`9treet, Redrnond, Or~Vu.'f'he "Apiiotioo" h=vihaftoris refen vd to as 11horaburgh." Tito real proo;rrty MW irnpmv+ertnots, together r~w pmpcrly nrl with all other rights, lt~*i#mtents, and tenements Appurtenant to the irnproventents, are cotiective)y referred to twe in as the "Property." RECITALS; A 1 ~I li 1.0 THORNB>' MORI RESORT COMPANY, LW, an. Qt7e+eort lErrtitcd linbitity company {"Opllionec"} opt."tonce desires to acquire in option to purchase ills Propwy on the tarns and conditions herein seated. Chvrtcr has agrcrl to grtnt Opticnr.ee ail exclusive option to pumbase the Pmpcrty and the parties dcAre to cvidewc their agraecrr ent regarding, the vp"t. The parties therefore as= as follows: AGRElrltIENTt ' OM ON A.GREE1t'TF.14'T AND AGREEMENT OF PURCHASE AND SALE DATE: Se:ptc,rtl~r ~s, x~(fS. ~ ~ .FROI+vi:. GARY L: 31<cC.A.RE, Ttlmsteees of tiles McCabe. Amoy Trust ('Usr acr') set: on 1. Grant of Option Greer, for good and va"Ic consideration reci elf it of which is ncknowlcdgao by ON%=r, , grants to 'Optionere t1w sole and cxciustve option to pure dw Property in the mawar aril for the price stated in this Agreement For the c onsideration staled herein, Owner grants Optionce the sole and exclusive option to purchase the Property in' the manner and for the price stated, in this At limit. 'I'ris option shall be valid so long as Opuiance pa~% the following ojWgn g:n+xnents:.. 1.1 The; sum of nor to execution ofthis agreement, receipt orwhieh is homby ocknowled od, by Amer. Page 1. OPTION AGREEMENT AND AGREEMENT OF PURCHASE AND SALE G-'#7.'l~tt Rrat~~xbd;tsCr.+xr'lZrxtd~^acg#~F'YiQt~tSATS:JIGt~st~1'C~►~~t~ [itC *AN^r.iS1ftF,RSQ}1 ~e ZFrrrwtt.tsr J~TTORyL+r~ AT 141 P1 %W E E71 psi P:7.6G~[4S~ pSbh" DpCC~Ns rtu11"Qrr = C46.24 M "X W.1 Im Exhibit -l) Page -ZA_ of /3 8~ SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:47 P.19 ;.2 The sum, o f or before D=iiIber 30.2 - 1.3 The sum ~gittnirtg with the lust paymni due Scptcrttber 20, 2005,.pW. ~ likcpayment clue o the? flay oreach nxmdl therm ter =01 clositw. (Th semis shall not be +cr oditcd agrrinM. the x'=1M' P1 iaa.) t, All option paymmus referenced in this wotion aft rtenrefactdablc. 1.5 paya mts arc to be made to O%vrter at p.0. $ox 1743, Vwdrnond, Oregon 97756. Sectiba 2.' Optiitm Term 2.1 Term. TISO teem Of tlto Optlon ,(the" initial Torm") shall commence upon macution wd shall coartinue to May 20, 2006.. 2.2 Surclse of Option. Tliis option shall be oxerrasod, if at alt, by written notice (the *E=r+cisC Notice") Sim by Optioncae to Owner at least 60 clays prior txi e:ipsing; which notice shall .state that. Optiatwe has cltrcted to exercise this option, Novided, howomr, olosing must occur prior to May24, 2006. Iii%option maybe c. vend only with ti t to the entirety ofthe Propert}, artd nothiug contained, herein shall be cwLwttuad as perrtfitti I Optionce to purc~a less than all of the "Coy pnrsurunt to this 60u, [lean. cxox+aisc of this cation, Optiot= simil bt obligates to purchase the Property fram O'er; and Ownerslmll be obligated to WI the Prope rtyto Optiomee for tfte price and in the maw heroin sot forth. 2.3 Wore to Exemise Option.. If Optionee fails for any rcmun to =cr6w taus option in the manner sot forth hcrc.itu Optionee shrill huc uo &M 6r claiin agaisu►K or imacst in the Propaty or any of ft Option Moaey Payments, ant= Optiance is entitled to a refund of the Option Money Paymmts w6dw another pro'visim of this Agreement. In the event of the future to • exomisc the 0ptiaVN Optionce shat! provlda Qw-w with any icrs Mn=ts flan Owne r* reasonably may deem Ach % txotn the public cocord anycload on title w the rropcrtysri aece tryfpr thepurpose of rcruovia is attn'butable to the g=t or existence of this option. S4dion 3. Purcitase Moe 3.1 Pureb;use Price. The Purchase ice for. the Property (the "'pwtt-ms e Price-) aball be 31 Pzwmeut of 0it;;0DAV iee► Tha purchase price for the Property shall be payable as follow- p"aaeI OpTlo\,, AGp ElrMENT AND AGREEMENT OF PURCHASE AND SALE :+io~r~ai~xt:dtt~ts,+,~~rarc~bc-n+or~u~ls'''t1ot:,sru.s~,~cau:~ra~r.+!v~trn~+l 8ltYAhC'T F.~iGRS+D:~ k f1"t'~I;.t1+ A:.Cs'a~+rGAt taw mis a ~et,!,Vkt~YJ:~• PO M47T Ate, OMaNAr-M010 r~I.Y [„Lt+ = Exhibit -T) Page gS of /3 $ 1 SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:47 P. 20 3.2.1 Thc*t1't'ta tI ba jWd io cash it eltzi tg. Tl1C0Pt1" p4ynsxetnts ouch referetnced. above shall be c=wied against this atnowA. 3.2.3 The badattce be cti rW *n a promissory state secured by a trust deW on the subje m properly, v<h wtorest-only paymmis v unt from ciosh c„ until ScptimbcrZA 2007, whew the entire balance shalt tie due wid payable. 11w rote frnm stall srub to fially+ comply with Exhibit 13. Section 4. Rt€es 4.1 Optionm ln. tltamrernt Owner breaches any-team or provision of this Asreement, alien optionc:e, as its exclusive mnedy and in licit of airy other ripli.of, may either (1) 1CPIn448tD this Agent and. obtain the return of ail Option Monoy Payments. ptr.-vi+pusty paid W O%law, or (2') tetxle r petfortrtaneeof tlnc obligsntions of 0lWonee and specifiWly enforce all oblijaOons ofOw ner. E.%= pt .(or and any =fte remedies: taservt d. clsvWhere: in tbis'Agr rtteni, tianee ti~aives ft rig* to purme any remedy in lane or equity against O far odd than the Minedies spcci ft+ed Ad v*.. mctuding any action for daznrao~s, in the event of a default by Owner. 4.2 t)srtter. 'in the e V alt Optionro brra ha w.yMm or provWon o.fthis A*exri 6hi nand re:,gartitewss af± tbar ft breach aacu before or after QpIW" potifr.cs Onmor oftho exaMsc of the Option, (hen Owner, as its exclrusivo remedy and in lica.o zany other relief, sltali Tie entitled to to rrfittatte taxis Agne+e ent by gi*S Mitre written noka'of tmninadon and to regain all 01nion MonejrPaymenupaid byr Opfwncc,. . 4.3. .0dLer Remdie& The limitations on remedies set fog h in this +Yrt. Shalt not p ludey eithergarty from sockingrrr abluit xns injt Live relief or from seeldog recovery apahm tht athcr under any mtractual indemnity sec fortis herein or ras oaitnsing physical darYtrrgd or injun- to pecsotns or property. Section S. Conditions Ptmcedebt to {Closing to addition to my other conditions contained is this Agreeme Agreement, sm'farth below are: certain conditions precedent for the batnafit of Optionee (the "Con&ions"). ''Cave Con4tions am h4ended, solely for the it nefit of Opdotvwe attic! Optionce shall have the right to waivc, bywritten notice, any of the Conditions, giving the Exercise notice shall not constitute such a waiver. In tine evcat any dition is riot satisftect orwaived on or heforv tbeb dcadlinc for satisfaction specif;t d tnorcin, thtm Optivrtee shall [have dw right to tecu imw this Af,;reoni~nt, by giFlaj 'Ovhir r notice of tc in tka More the d line expires, to obtain kite return of thoOption Money Payfitttnts pair!, and to excraiso any ietnedyavaitable to Optionce iii lhu evira that the sgbom Couffiticm was not satisfsed'byrmn of a breach of this Agroctrtcnt by O%vwr. Xf't}ptior ee does not Owper tiotice of term1hatim bAorc tli applicablo dcadliiae, then Optiottec shill be deemed to have wti'ved tho tmiiination Page 3. OPTION AGREEKr--NT . JND AGRE Ex T O PURCHASE AND SALE o.wrsiFotrtutisuie,&Ni ~-~t~rn got taro t ~rw tm MVAN 7; 91EL1t.C X & arrcrr,w ' ATif~7QYQ V~: ll41N 8B8 $1N, CtiT~CiFCENli$T~ Pd~t~O%+s7 nEptr~x~. 6a~atkcvrtbs.~aaa trstx ca+u ~xye iAx;att s~y.tmr. Exhibit -D Page CP of SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:48 P.21 privilege with rat to file Coritiitian in question. The Conditions opce4fically delinewed in the swon the followiw i 5.1 0n the Closing late, W Title Campax• (de.fined Wow) shall be ready, xwiiliisg, wA aisle tp issue, and shall issue to Aptimtee upon i~ordation*ofthe Owres geed mentioned below, the ti la insurance policy rcqtdr+ed by Section 7.1. ' S.2 On of before the Closins Date, N*wr :hail We perfomtcd all of the coverwtts, emoidow, &Srwncats, and prams to be perfmmed by it under this A►grwtnent. f Section Title r shrstl nit cause, Pem,1t, or suffer any mallor to be recorded with respec! to tht~ PropWy during the Term. Section 7. Closing ' ' " " 7.1. l ime and Place. Closing offt sale and,pumbase of the Property (the Closing ) slxdl occur oa a date (the "C1t~sing Date") selected byr4ptionce, best xn all events di Cfosing'shaIl occcir not sooner titan 60 days after the Exem;si Notice is g#tcst, but no later titan May 20, 2086. Tlie exmw for tba Closing * been eswWished at the office of Westarn Title & Esorow (*a "Title Company-), in R.ed m nd, Mott. 7.: tw•tvsia$ tbfigations. On crbalbre,thc ClosingD4te, Ownor and OlAlottce shall deposit the fo&mr inn documents and floods hi escrow, and. • dw Title Company shall close c=ow in accordance witt the instnwdons of Owner and Opfloaft. 7.2.2 O vrter sisa11 deposit tits fallowittg: (1) 'T'he com%byttttca 41mmaosa described in.this A~,'tc+Cr ail, duly execntcd Ww i m ow =l cdoedt A, duly. executed 'affidavit certifying that 0V zer is not a forcllp persort, trust, 1rxCtnerShip, or corparatiatt in contptiareo Myth the roqui. cments of IRC 4, 1145; (3) Such documc'ms as Optionee or the Title Company may require to evidence the authority of Owner to" commmate this 1=000ion; Ow (4) Such other dommettts and finis, includis)g (witltput limitation) cwmw instructions, as are required otOwneir to close the talc in accoidwoo widi this AiWecmcnt. Page 4. OPTION AGnE.M2MfT AND AGREEMENT OF PURCHASE AND SALE rwnstWF41cii~r hicCsep,7~lra l,:r rncxss}4e F1~u~Zrr:M~►e(+mt ~ BftYA.'Yi; ES(~RSOSh.' Fe }'ri"~11.ur ~aaaa.x ctt~~~rx~ P.O W'l7IY4t ' . I~DVd~rq p t87~A~ YCSFrwn~ r.~tf i ~sr 1~xhibit --I:> Page 8r? of SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:49 P. 22 7.2.2 Opdoaae Khali doposft the .folio%iing: (1) Thccash paymept.specificd in Section 3, minus anycradits avatiableto (Wonce wider the terms of tills A twat (2) Suclt documents as O nncr or the Trite Compagy may Rquir+e to ev'idmce the authority of O7iptiome to cmuummmu the a mismdon dtyttto nplstod; (3) The exwoW natc, guarani and tract de W securing the note in the subjW pmperty, and 'i ~/y{~ (4) Suclt othor doceum* alnd funds, including (svitl mt if rotator) V~b QW itzxtructions,, as am r+evired oroptiottce to close the sale iod pumb"C oftbe Ptu y In acedrdana i with this AV-at mnt. 7.3 Costs. Option= and Ovmcr each shall pay one balf of ttte escrow foe of the Title Contpa»y tivith respect to the Closing. osmer " pay the premium for the title insumncc policy than Owstcr is obligated to proAde, to O e c, and for all conveyance or en aise talcs payable by reason of the purchum aad sale of the Property. 'Optioaec shall pay tits fec (czolusivc 'of silty 0MV0 ucc or QV01sc tax) for r+ecordit the conv%iwc documents mfcrred to herein. 7.4 Proratlons. All items of cgwnso incurred by Owncr with respect to the ProrsWy sltau bcpaidbyOwneratCfo6n&%withoutpt lion.Anmdpropottytoixesmdcissdssinentspayablc*hh respect to dw tax year in v.-bich Closinit occurs sliall. be pre stud. between Owner and Opptionce as of the Closing Date. 7.5 Faire Tsx D eferml. Ow= leas adi iscd Opi ipuce that the Prropcny leas b;:~u claWf &l . 0reca tax deferral, Op!lionto accepts cn mt as farm use pxoperiy artd has been giv and vW . vul ilk pay any was imp, by z~sc►n ora hiss sed respowi>~il+ty to retain the property in in flute deferral Gf the f8m dererml staum 7.6 'tale Insurance kolicics. As soon as pieaticabto aftarClosing, and in any event no latest than 30 days aftertke Clusing0lc, Owiiar shall causo the Titlee Compmyto issue its sUOtdW form a Owttow S=dard Title lit mcc Polky, in (be amount of the Pm assn Prict; inntirm fare, simple title to the p r vested in Opdone~ =Wed only to the Permitted Sxc*tiohs. Section & Co ve ance n y At the Closing, O%vow skull oxcauto, ackwwledge, mW deNve r to Optionce a Statutory AY'aaranty Deed convc: ing rite Property to Optionce, submit ortiy to tiro Permitted Excepdans send u tmin decd smuing the note rcfWv6=d above. Page 5. OPTION AGREEMENT AND A GMENT OF "CHASE. AND SALE ' ~ {'r.~ti~►psuE►Rr~1Es'.asCtl,~~Gabo-'Chc:+aburglsSOP'1'to~t.swt~AaitF~ib1#~'~'~.~p~7tz~n) t~St~ ~.ti~t; X~s~RS(ly F.! ~i'1'ct~,ur . At9L7~V Al 40 3 e6wA is V.%M : P0,M147 M l~fGd&~DI.D!1CICOMS 7r9"M 7PAP" :kE 7 SWItat MOM I= Exhibit Page $ of SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:50 P. 23 Swum '9 Paasewcrrt pptioncc shall entftled to exclusi~'e~ aftlnc I'c+opss}'s alter the Cioeing Dolts. S.rctiatt IQ. Access 40 Pratsorty ! p.I Ater owner grants to Opt+cnes and its opals tine light to enter On the Propcrty at any reasonable tizu* bcibre the Closing We for tltc purpose of coadocting tests or stn &S that Optionee may n MIMPTy or appr6prime in connWtion with its acciuisitiotn of the Ptnpsrty, ow= shall cooler "optionce in nmkk4 such toasts mid studies' No soil tom or drilling shOl b# undectakcn witlaoat Ciro obtaining Owrtees approval with meet to thoaleMS alained to perform =h work awl the lie.don and purpose oMe tests or drilling: 0ptionce SWIM we rfcrc with or distr * the rights of any tercets of Owner in {fission of arty portion of titc Property. Opt'lo= ' 811413.pxotect, deknd, and hold Ow. = harmless frtam xa y loss, liultllity, or damage to perI snns or property sirgexgcr!'ar`t latedaaQptinnrc'sacti~~ticsontheFro}cny IfOpdowefails tocxercise itte Option+ and purd we the Propeq. Op6onec shall fully com. e. Owner f6r anj ph)VwW d o to the Propcrtyor any lien, ancum>tmwe, or charge on it attribi able to Opfience's activities pursuant to this prMgraph. In the cvent (puonce !'ai'ls to oxmis+e the 0ptiozn, Optiauw shall deliver to Owner a legilble copy of any resorts, Studies, wd drawings owned by Optiarcce that relate to the Property, ' St:ctlpa >E I. NY-uraottes and Represe ntatirms Of Owner i 11'1 AS Ts. Qptionec represents that it has nemptcd-and cx,cd this Agreement on. the basis of its own examinadon and pmotnat l~ro~rledge of the i'coperty; that i?tvncr anal. O%E~ier's . ads have tnatlc tro t Xtrst?nt on,'warrants`cs, or ether agTwmests conccriiml; inters MOWS to tba Propa % that goner ad Os.%- Ws agc= have made no 49MM911t Or promise W alter, repair, or improve the Propeaty, and that Optiornm t*os the Property its the condition, bwvn or u wn, "istug at ft time of this Agmawnt, " I$ Sedl6n 12, M-0, ce"Gacous provisions 1~ 1<Z, i 1~.'ialrtt+onunm Before tiae Possession elate, Owner shall martniaut t!zc l in the some condition as it now exists, ordinary wear and tear eatcVtod, and shall not cause or pcrtnit any ~l waste, 112 t ersh ip. Dwiag the Trans, 09vrter' t not. $cti, cone= to sell, assign, lease, or otherwise transfer the PropWy Or arty part of it, nor gtatrt rut option to any third party to acquire all or any pordson cif it.,. Page G. opTIQN Aonwc- 1T AND AGR tI ^ f of PuRcmko ANO.SALE Ga'4~~es1'.~PF'AS~'tcalEats~+sL~fc~Cetrr ibornb~a~h`CtP'r10I+t.SA1.EA►GttEF~}T.~p~ ttaYA`r7iEatl~3(~SQ ~e•3'lT~ll.err xrtew+ns ~T taw ra, ~t as7 c~ax~xfy,a.~r~is Exhibit ^D Page 89 of /3 8~ SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:50 P.24 Secteou 13. Waiver Fair by 0%%'W or Optiatt, ' cafarec ' right tinder this AV, em cnt shall itol be dreor to be. a waiver of that 401 Or of 4W other right. 1 Section M Notices All loth n qt ked or permitted to be given slutl l be in viq ift and Sltnll be demull ghvn and.recoNed upon peraonal sm4ce or deposit iu the United States mi aii, ruined or rc red mail, yaatage.prepald, gttttrn te~ipt requested, acldre.as fcalWrs: TaOwmr: Gra ' =d Susan McCabi . P.O.99~ 1743 Rodmwnd, OR 97756 To Optioneet The foreong addresses maybe ch=ged by written notice, given in the tune Manner. Notice given in am xnumer other titer the wanucr set foxth above shall be'eff c;&--a when received by tttc'pany fiat whom h is intended. Section 1.S. Attorney Fees Tf litigatiarn is instituted with aspect to this Asrocxment, the prevailing party shall be entitled to recover from the .losin arty, in addition to all o9 r sums and allowablo costs, its reasonable attorney fees, both in preparation for ttW at trial undiuty o 0ed or rcviex such WrI t ni'tb be sit by_ the court betbie which the mattes is beard. 5aidon 16. Rhk of Loss 0%%i w shall bear the risk: of all loss or tltidu* to the 11'rop rty f om alt catws, thrOugh tixe Pa mssion Date. If, before the Closing Date, and regardims of-,%'Mhertile Examise.Nl'otice has yet given or is subsequondy *+att, 411 or part of the Pmperty is dttrttagod by fire or by amt other been cause of any nature or if all or any portion oftbtr Pwpcrty is taketi by coWestmaticar. or if nlty'such cxmclemtmtiou is threatened, Ovmer shall give Opi1lon ae written trotice of sttch event. Optiorie#imy terminate tWS. Agmctnettt liy. giving wn'*nan notice to Oio snvr within 15 days following rcccipt'by Optics:ec a~f written notice from 0h mcr afstich cat hilly or~condcmna 4 and N ner will return to Optionpo the qp&n Momy 1r scats., prcviauAy paid. if Opftm does not elcxt to termitrste this gags 7. OPTION ,AOREEIIr ENrr AND AGREETvSEN'T OF PURCHASE AND SALE =VAN T. so.+s t' M9-to +►t t 0 ~ w'tr 6 ~7 z, r v+~ ae0~~.~VffICA~ X~ta~E gp, paKaST :t~.EPHtkR i>a►rt,.sax~s~ ~',ot~urysma~ Exhibit J) /3 g' Page cm-of SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:51 P.25 Agreement, then this Ag=ment shall continue In face and, if Optionee exercises the OrJtlort and ttrc Ptoptxty is conveyed to Optiot, tben all iitrest vfOt~ar in atxi tv any iilsttr p><ee or cizdawatiam awards that may be payable to thin an accourn of such cmunity or cowtonrimion . slu~il. be; essigttcd to !Dprianc~e at Cl~o~ing, s Sedtort 1 !..Inee grntitttt,.Atodiiicstti , or A mend. men.ts 'f ltis e~+~iuut ccmt~ir~s tlae retire e.~ccmr~t of t3~ ~artica ~~th respect #o ~e Pro~:crty mid s "males al prior written sod oral t~cgotWimo and a nent5 with respect to the Props vW. AnY modifkaetons, *mgcs, addf.tiatts, or delc6ow to this Agm=ea must b o approvtad by 0%% and .Ogtiouea, an Ming.. . Swine 18.. Bepresentudom . > Owmer and Opt Onw have each been mpre ww by s to legal counsel of choice with respect to this transaction. F-N.cgpt as odicreuisc lirmided in "Secdon 16, each pbrty a ' responsible for all attomey. Pecsincurred by it wide respect to this Agree =nt, Section 19. Counterparts; Preaouns This Agreement rmay bo executed in ow or inom =tttetparts, all of which shall be comidered one wW the same Agreemant and shall be effective witettt ot'LA' or amore coumcgmns have ' been signed and delivered by Owner' and Optiome. With rat to any prone umd, each gender uiia shall include the other gender and the sumgWai r and tivc plural; as the content a* room Section 20. C`sgveming W q I.nEargtretallon This Agreement statlt be Sovmd by the lu+6ss oforWn. In ft ewlt a court ofcomgetccrt jmisdlction trolls any pextion of this, Agreement to be void cr uncnfomeAlc as written, O%vrte,7 and bptionce intend ft t (1) flat purdott of ft Agreentctit be mfiKW to the extent perniitfed by' law, and (2) t1 a balzma of ft erncnt Tewdtt in full force and offcct. Srclhnt 21, Time Is of the 'Esschce Time is of the wsme of this Agrecm nL Suctioia 22. Authortk to F,xecata , Eacli person executing this Agreement sm bclt.'tlf of Ownrx and Optivnee, reVedve ly, , authority to di; so. wartidis his or her 1 N T ~as o OPTION AM>rtt ENT AND AGREEME j OF hURCRASE AND SA3. ~;;1Y~~i11£FF;RI6~r~Fs~tatc'1~.~o~b~-lwt9''~'7!~}btSAtlil4~itiffW~~1't'+►F~r? ~u1h~"l",~lE1~SQ~1 RFrt'Cl~.ttr AnOM"AT 00 Niu B.w• aw+~+rerre p,~yq~tp. q~,WCV'~'.~84A73 Exhibit Page gl of /39' SCHWABE WILLIAMS WYATT Fax:503-796-2900 . Scctin$ ?.3. Stutsttety I~Istal~it' L.! A A 1 ~I Dec 14 2005 13:52 P.26 THE P'ROPERTY VESMRED IN THIS INSTRMENT WJAV NOT BE-WM1IN A FIRE PROTECTION DISTRICCTPROTECTING STRUCL'LT S. THEPRO1'EIt VISSUBJECI' '1'O1. ND USE LAWS AND REGIJLATi"ENIS,T'ftAT,1'N.F O'R:FORESTZONIESKAY NOT AUTIJORI E CONSTRUCTION OR SITING OF ARESIDENCE A1'''[3 THAT GMAT LAwSUTCS AGAINST,FARIVUNGG OR FOREST PRACTICES AS DEFINED WORS 30.130. IN ALL ,T.O7+ E& BEFORE SIm1a`IG OR ACCEP">K161G..T1-uS INSTRUN ENT,' THE PERS.GN TRANS>*ERRING,FEE'T'ITLE S1IlQ~D I?-4QU=.ABOUT''1~1C'I'EM0'kVS RIGHTS, IF ANY, UNDER.CII~P':t"ER 1, OREGON LAND'S 20415 (BAS LOT MEASURE 37 CUM)). BEFORE SIGNING OR ACCEMNG TWS INSTRUMENT;, THE 'PERSO14 ACQUIRING FEE TITLE TO THE PROPERTY 'SHOULD C'HIRCK NVrrN TITE APPROPRIATE CITY OR COIIN"rY PL,A NNIING DEPART-NM NT TO VERIFY APPROVED USES, THE VOSTENCE OF FIRE PROTECTION FOR STRI3CTURES AND TUE RIGHTS OF NEIGHBORING PROPERTY O'%VNERS, IF ANY, U DER CHAPTER Y, OREGOk LANNIS 2W (BALLOT MEASURE 37 (2"4)). Y USE QI~' THE PROPEIZITY DESCRIBED IN' Tats :1NS CR i Erb O LES I~IQI ai~ OF A,pInACAUL "NIT USE ~ LAWS 1i~i~FD- . . lit;EiGU.I.ATtOn. EEFOLLI» Slt"&Nj1jG OR. rtC'C4PTIING THIS INSTRUlyTEltiiT, THE PENON ACQUIRING FEE TITLE TO THE P90PERTY SHOULD CHECK W.1-M IKE APr`R0PRI4TE . CITY OR COUNTY PLANNING UEEN-RT1i LENIT TO' VERIFY APPROVED USES AND TO DETERMINE ANY LThUTS ON LAWSUITAGAINST IFA1Ma,tNG OR FOREST PRA CES AS DEF'Ii'W. N ORS 30330 AND TO INQUIRE ABOUT TM RIQGRTS OF NE1GH00RING PROPERTY. OWNERS, I Al'CY1 UNDER CHAPTER 1, OREGON. LAWS 305 (MAGGOT MEASURE 31(2004))• Section 24. CenradaillialItY (3kitrwand Optima. ttrtd tltcir amts, accottnttattts, atioFaoys~ and cotsvitmits s>t treat this Agreement and all inforntation obtainer or c ccltanged inemcction with it w 6oid{etttial abd shall rcpt disclose the terms or this Ageartcnt or any informAia.0 reiaft to it ttr'.vy person other than th+c copsnkants mul the onthies eaga d to assist itt the consattmt44in 'of Ws,'Ajrce mcnt, such as the Taste Company. If die Option is. ut et reised, ibm Optionee shall retttrta to Owner ati documsntszmdin,formationdelivamdtoOpticnwi byOAmcr..Nodiingcwtainedhminshaltopen. te to prevent or limit the right of homer or Optboft to diselow the tenets of this A m t of any other Wormation dating to it in cemjuctction with any litigation; bnd'use p ooeediu& or adwr pmeaft imstituiod whiz respect to tads Agrecut art or tltc Properly. Page 0. OPTION AGREEMENT AND AOREISMENT 1 OF PURCHASE AND SALE G~i~NP53'~I~F~iii't~alFa~tun'1~tC~bew'FtWrst'.~►r~Qp'~iQk,SAY.F.~GREF.at£.yT:sti}+d(r~ a CIS A Elks A V).1E~~Q'f,Kd -ft MMK O~~ 1~756C1?~ TE' 7 !C 1,A 9* tst ~~It r'~+y ~.1aC~5 Exhibit -M) Page a!.- of 131 SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:53 P.27 Se di4n "5. Golf Mewbersh* As an ittdwOMcnt m cdcdng into t}tig A incA 00 0= &d'J'0~vledgc5 and,c *aats to no solfG ub owner that ommcrsat bepwidcd anhouarM tiftisneVtfinembddV' to theT at the Uornbu* Resort. The bon Im-time golf niemba ship tit "to Tributo GoIrClub shall be without dues, 't'his 6t'ctime mambersbip shall be good for the lifcthm ofboth Gm y L. McCabe and' Suam L. McCabe. Section 26. Exchange of Note dbitatiQn for Lots Optior4e jm+d Ownw father agree that 10wnces request, 0w= may exaty the antwuttl etuc W& r the promissory .nc tC in tho amount ~ an fina ,st in a lot or' Ws at she Ttwmburgh Resort, The mnounts will be credited a+,gabW to PuEth se Pr9.cC- for said lo>ia. J. Ms. an almtkm is made, the atnttunt oftlir note shall be crrditvd against the p~urattasc ofa lot or tali. $crtlQn 17. No -Ami0ment. opti Owner furtbo ra that Or4iwea will not "SiV any rights or delegate any duties uaft Agreamcn out tie conscnl of Ownat. « Ot'1~'l~ER: rwiOOE ~^dl~f6X jn Q~ r l< 4a gy: lAM►i 1•~`r: PA'e~ Lk A' „ Name: c A,uctttnents: Exhib i A : Pea aaY ' Exhlbit'B--~Forin of Now PAP lll. OPTION AGREEMENT AND AGRPEMIAN i' ' O PURCHASE AND SALE I G.L 'PSt~EPF101RntEsart`A~cCab~t~ymribuz~hR~l"t1tl~t8f►L GR~ Atdd~.,Kpd(~rk:a) . AR %NT, Uluts"A r fc".%o J ~crro~ra w* u~~r ra,acxsxt tlms~tl. gt~'tTeSN p7;9FOra~ fpFMpc~C~lsss~'~~ sac x~u Exhibit -D Page g' of 13 8- SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:55 P.30 I E?edzs,l~io., t7~tilS7•ff p4c.mo.5 . I P Lk 17ia Sawbasly 1422 fox cram best Hwrolram5(t owm QMtatta• SE lA) or& Won XTownsmp 14 Soadt, Rem p 1% Bw oT dw WiftumUc Matmew Do*wo tom, Otaps, lying West ur 11ro camalim of an Dadva" juva. zXCEMM40 Tint a strip oflud do in urwm ftcczwvm of w*1 isdmdbw u tl 8cbinwft.K a pdo It Is 38 foot Wca of dw SmAnx antrar of the Southwest slaerirr *f fa soathtw quarw (Sw W SE i&) sodlon W. On= Nmth to at pwra 30 fiaet South of on WCA bank of iho Down ics •Rivm Onm WRzlg tdwg o t p&mUd to and 30 Ted West 4 dw Wass ba* of Ow Dr sdunes Rives to am p uat cioawe dl umdmi n ; •PARMll; 1 '1 W Sotrthmiy 1422 fwA of the 30WOyrst Qcrattet (SW 3a> df "an 26, To p 14 South, RarW 12 Eat of the WgmwAtc tmeidiw Dcsdwtes Cowty. orvV 1, lymR Weal of ft Mina of &a Desdrutas Rya. mcep=4G mom a snip o1`bAd 6Q fax i.n width, thcemiirw of wWch is d scn'ba! as the _ West rm of said Swewn X 1 Exhibit 'D Page ~q_ of .1Lnw1 111- 1 11 LL 1 1111 1111 1 Fax: 503-111-1111 DRAFT. Dec 14 111, 11:11 1. 11 PURCHASE AND SALE AGREEMENT FOR WATER RIGHT IN C010D This PURCRA,SR ND SALE:A' REEMENT FOR WATER RIGHT IN COED ("Agreement') is entered into as of, (o / , 2005 (the "Effective Date") by and between Generation Development, Inc., an Oregon corporation, and Central Oregon Irrigation 1 District ("COID'). ~as ' "?$ativa district ora~.P.. ursaaat to Oregon Reyised,Statutes Cha . ..pier. . . i 545 ("Sellers' and Central Land and Cattle Company LLC, an Oregon limited liability company. . C-Buyee). RECITALS Pursuant to an agreement between Sellers, dated June 2, 2005, Sellers each own an interest in 5.6 acres of water rights (the "Water Right") within COID, and included in Certificates of water Right Nos. 76358 and 76714 that are held by COID. The land to which the Water Right is. appurtenant (the "Lead") is described in Exhibit A attached hereto. Sellers no longer require the 'Water Right for irrigation purposes ova the Land and'desire to sell tbeiur li6rests in the Water Right in Buyer. Buyer desires to acquire Sellers' interests in the Water Right as,a.possible source of water for mitiga~d6n purposes m conjunction with Buyer's future'ground `rater use, in accordance with COID's Ground Water Patron Policy, AGREENTNT Now, therefore, for valuable consideration, Sellers and Buyer agree as follows. L-- Sale and Purchase.' Buyer agrees tv purchase the Water Right for the sum off" r acre, for a total of the "Purchase fAc, e'~*. Buyer shall pay the Purchase Price to Seller Generation Development, inc. as follows: (a) upon execution of this Agreement, Buyer shall, deliver to the Title Company (as hereinafter defined), as escrow agent, a certified check w the amount of (the "Deposit"); and (b) the balance of the Purchase Price shall be paid by Buyer at the Closing (as hereinafter defined) by certified check. 2. 'Deposit. The Deposit shall be credited against the purchase Price at the Closing and is nonrefundable so long as Sellers comply with their obligations under this Agreement. 3. Escrow. AmeriTitle Title Insurance Company, located at 756 SW e, Redmond, Oregon (the "'t'itle Company"}, will serve as the escrow agent for this transaction. The Title Company shall hold the Deposit in escrow m, an inter est bearing account, until, the Closing Date (as hereinafter defined) or sooner termination of this Agreement under Section 9 below. h. Buyer's Conditions. T,. Y r Y tir rr. rrr,4 . -IM A \ R\ r A T V1 . n'r. r-r+. rr,.+~.• T./~K .7.r , rnn~ r..r....., .+...-~e.rr~ Exhibit -3) Page(~5 of 439- SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:56 P.33 CRAFT + 7. Sellers' Representations and Warranties. Sellers represent and warrant to Buyer as follows: a. Seller Generation Development,.I c, has used water On all'of the Land, in accordance with the terms and conditions of the Water Right on the Laxad at least once during the past five years. No period of five or more years of nor se of the Water Right has occurred during the last fifteen years. b. To the best of Sellers' knowledge, the portion of the Water Right appurtenant to the Land is valid and not subject to forfeiture for Lion-use. c:. Seller Generation Development, Inc. owns the Land to which the Water Right is appurfenant and'Sellers havefiill power and authority to enter into and perform this Agreement in accordance with its terms. d. There is no condemnation proceeding, litigation, action, suit, or proceeding pending, or threatened in writing, which affects the Water Right. Sellers' representations contained in this Agreement are true and accurate in all respects and shall be true and correct as of the date of the Trausfer. 8. Closhag. The closing of the transfer of title to the Water Right (the "Closing's shall take place on a date chosen by agreement of Sellers and Buyer, but no later than August 26, 2005 (the "Closing Date"). Closing shall occur at the offices of the Title Company.. Each party shall pay one-half of the escrow fees, recording fees, and other Title Company charges. 9. Reinedf es.' Time is of the essence of the parties' obligations under this Agreeuierrt.. IF BUYER FAILS, WITHOUT LEGAL EXCUSE, TO PERFORM ANY MATERIAL OBLIGATION UNDER THIS AGRE24EN T, THE DEPOSI'T' PAID BY BUYER WILL BE FORFEITED TO SELLERS AS. THE SOLE AND EXCLUSIVE RIMBDY . 'AVAILABLE TO SELLERS FOR SUCH FAILURE, IF SELLERS FAIL, WITHOUT LEGAL EXCUSE, TO. PERFORM ANY OBLIGA'T'ION UNDER TILTS AGREEMENT, OR IF ANY OF SELLERS' REPRESENTATIONS UNDER SECTION 7 ABOVE ARE UNTRUE OR INACCURATE, THEN BUYER, AS BUYER'S, SOLE REMEDY, SHALL BE ENTITLED TO EITHER: (1) TERMINATE THIS AGREEMEN'T' AND RECEIVE A RETURN OF THE DEPOSIT, OR (11) SEEK. SPECIFIC PERFORMANCE OF THIS AGREEMEN'T'; PROVIDED, HOWEVER, THAT IF SELLERS SHALL HAVE ALLOWED OR TAKEN" ANY ACTION TO PREVENT BUYER'S .ABILITY TO OBTAIN SPECIFIC PERFORMANCE ON THE TERMS AND CONDITIONS SET ]FORTH HEREIN, THEN BUYER MAY PURSUE ANY OTHER LEGAL OR EQUITABLE REMEDY. Seller's Initials 961ler's Initials Buyer's Initials A r r P- A n7l • -6- - • r r A e4T+11V". -I " TTT A ft. T%T Exhibit Page_ of SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:53 P.28 pRMSSORY IN07M . 2006 ('Dew aFClo~ . ' We the undenigned promise to pay to 010 order of GARY L. Nice E 't'rasEce of the McCabe Fumlly Trust, of Redtrmd, Oregon, int a e Vale o t!m from e r is ► papa a sia y installments of ttut less th pumirrg 30 days from the clue of the note, until ScptomWr 20, ZONG7, ~+~ficn ft enter ba ncc a principal Wired inicrest.shaall be duc acid pa}~ if gmy monthly insud'f=ou wider this imte arc not paid who due and remains unpaid afka fiflecrt (15) dvYa, the entire principal =:iorutt outstanding l rrder :md accruc d interest thereon shall at oi= become dire and payable at the option of the boldet. ' if this irate is placed in the hands of an attarncy for t;ollccri.trn, we prarttise aYxl age to pay holdc~s rcamablc attorneys Pees and coliecdon coats, el^en thoagh no suitor actkm is flied Immon-, howcvcr, if a suit or an actiinz is filed, the amou"A of such rthsnname :dtdmeys fps shall be f xod by the court,, or courts in which the suit or action, including any' alrpeal therein, is tried, heutd or de ided. THORNBURGH Rz RT,14. . )3y: t RY T in consideration of Holder selling pmpaty 'to Borrower cote tion in which flit Clur,mtor lu:rein lies tt►c flu* *1y vw*9:4 ip and cif the bOnOfits C'Omixrg to Gus=' tor, the unclers'Vcd guaruntems the fb itltfbl performaaee'of tt twve pmMissoty'note* to aiivt s presentrne;t4, and ttgticc of default of said promise stove and Furd cr agt as f ollot's: 1, Ci~tarad:tor gu~mntccs pr OPI and satisfactory perfaromme of the' abdv'e prorniml sxxtc in aecpttiance ail of its x ant! coaditlons. 'If tori.6%v ;r do.rattit~s in .its performance with of its obligaOWS tmdertbe pwrdiss~oty nd~tsr =0009 to its terms and tmWitims, Guaras►tur *211 pay to Halder atl po Wcnts, nixes, darnuges, O(M and cxp=% tai. Molder is cnWed to dace or rcwver fzom Borw%ver by rettstm of the tenor of Owpwatissory note or on defwtt, . 't`his gua ntee steall cant nue in fates until all ab'iigatior+s oC Hormwer under the Page I' PROWSSORY NOS ('j3'VJt'STi~P~tl.l8o~i<:~ti0.i1~~itG~do+711+yr+ibaeghkLNS•fAWld~'.'1',NOY`~.vpd(roem~ , ~~YJIri"!'~ P.hit+SL+iCIDZ xt Frl'C13;eu Ar" M3LV" AT 1AW t=Xt~ttBtr„~„ a14iDW L'/UKiE.LnAti4.`:~7~ PAGELt p-1 ~o.poowas ~wrc,*pt~r~r~si 1Ft F~ Exhibit -D Page 9g of /.3 F( SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:54 P.29 e abovg promissory note bave been 5011sftt4 of' until BOrTuWees IiaWlity to Holder under the promissory note has bem c mplet* awharpd: wbichevnt Pest oc=' Guarantor sb?I not be disclsapd frcmi tiAtiitity ttcxc w4or as Iw'$ os MY obligation her6a by the Donvww to Folder cairns vutsiaatding. 3, Guaranior shall be jointly and sevaully liable for all obligations under this pramtep. "Iles pwantm may be cafbm ad apitrst either Ch=rotor s*at*t Iy or inst all GIL--ntmiars t 4. Notice pf ace ptanw of this pm-mex is zxpreWy wa1ved d notice of dcroolt in the' tlahtedness guar t is fix Y riv by the GuwunWr. paymmi ofanyr teed hereunder . Tiffs ~ara~ttee shah ba btodit~~.on G~rantar. and its te~tnl ~pa~c~rrtati~"ce. . clay af_ , DATED this . _ N.W. DAVID CU"MATl H.APk~1r~,: Page 2 - PROMISSORY NOTE, • G;~'~'I"~IyE1'F~I1Rrcdi~te`~+IcG~+rzlsarrcbaa~hlCti"ST~1,1.1~[~'tNt1°t'L,N~rtuaa+) Exklemf ' PAGagF.k' luJi1wr.oams*N ik FIT01,ur ArmR;£r. . ^T %Ar u~s.rs. i~+swaa~xwvw:x ro O*X asr . oo~pCxv ~r:~.,moeaL TCtFSMquE rSif'. S.tbt1•rt YAX (~~9~ aAU! Exhibit -D Page 9 of / 3 g' aunwmot wiLLIWm WYAII tex:503-796-2900 Dec 14 2005 13:57 P.34 DRAFF Exhibit B WHEN RECORDED MAIL TO. Central Land and Cattle Company LLC 2447 NW •Canyon Redmond, Oregon 97756 MEMORANDUM OF PURCHASE AND SALE AGREEMEM This Memorandum of Purchase and Sale Agreement ("Memorandum") is effective as of - 2DO5, between GENERATION DaEV'ELOPMI✓NT, INC., an Oregon corporation, and CENTRAL ' OREGON IRRIGATION DISTRICT, an irrigation district organized under Oregon. Revised Statutes Chapter 545 (the "Sellers') and CENTRAL LAND AND CATTLE COM>PA_Iy LLC, an Oregon limited liability company (the "Buyer'), with rosped to that certain purchase and Salc Agreement for Water Right in COID of even date herewith (the'-Agreement'). Pursuant to the Agreement, the Sellers have granted to the Buyer, on the terms and conditions stated in the Agreement, all right, title and interest in the water riglxt appurtenant to the real property legally described as: see Exhibit A attached hereto. The rights and obligations with respect to the Agreement commence as of the date thereof, and aatl expire in accordance with the terms of the Agreement . ms Memorandum incorporates all the terms and provisions of the Agreement as though fully set Aorth herein. This Memorandum is solely for recording purposes and shall not be construed to alter, modify, amend, or supplement the Agreement, of which this .is a mem6randum. . Executed on the day and year first above written. G NEKAT[ON D . I.OPMENT, INC. Gc a e, President L OREGON IRRIGATION DISTRICT CENTRAL LAND AND CATTLE CO. LLC By: Kameron DeLashmml, Manager. . By. (Printed Unme) STATE OF OREGON ) CHR S►ANDERSON NOTARY PUBLIC-ORMON County of i ~plom s W COMMISSION EXPIRES MA 18 2007 ' This instrument was acknowledged before me on 2005, by George IRale, President of Generation Development, Inc., an Oregon corporation, on behalf of the corporation. Notary Public for Ore' on~,R-'~-°- My commission expires- ao Page 1 of 1 EXMIT B r.w \1rV w ~ r T `+wF•.- r.^^ 1fT ~ IIITFti w. r•~r..l ~ w.~..1-++. ' Exhibit __D R Page I00 of _43 { SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 13:58 P.35 BRAFF .STATE.0F OREGON ) County of ) This instrument was acknowledged before me on 2005, by K.ameton DeLashmutt, as Manager of CenfaaI Land and Cattle Company LLC, an* Oregon limited liability comapany; on behalf of the limited liability company. Notary Public for Oregon My commission expires: STATE OF OREGON C°umty of ) This instrument was acknowledged before we on. , 2005, by P as of Central Oregon Irrigation District, an irrigation district orgenind under Oregon Revised Statutes Chapter 545. ),rotary Public, for Oregon My commission expires: I 1 'I ~I li 11 Page 2 of k EXMIT B . ~~T MTT l A • r r. • ryT T~1ti .TN Vw, ~r.w • RR111~ ,T T~I~w~. w ~ w/'4T Exhibit D Page f Q~- of /38- VU11UnUL NILL In19J WT AII rax:SUJ-lyb-ZSUU Dec 14 2005 13:58 P.36 W-11 6 r-11-14-.Y,:;,.: ~~6•k~ F u 1 1 1 1 A r + • r Qp~~~^ Nip k ~ti'~''! `I~r\•~. .•1 b~~~'ri6:sT;~ i:i F` V.µ1:.......... ..Yw.1 . n :C III:. pis°,:.,: ~'i1V94L91•-'.!:; YID . INI i"e~~~ ~ ~r.•CL :o:w 'ice ::i;;•' i iit Exhibit --C> Page foa of 13R' V iunL7L 11 ILL I MPIQ Ir I M t I FdA.3UJ-l.'JO-Z~UU UGC 1 4 LUUJ { U~ P. 37 , • :•'.-'3, ~ b:'.: ti`;.+ `C :"'t,':+'.c it •...,a.'' 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I y t r a'.: T _ '•,:X-: 'r>, .:t ;rfi;•c;•N?:-•i',; ~4,;', r`i;•.r'•. fti`:':':~;: ,`0''r+ ..7,;. ':y~r::.l<':: t, j . T,'1.. ord...'; ;k';~ .r~,.. 't. tij c. , 1.!r r•Y.y,. . Mr. a•`r'4 • r•'r+ t.•, - is _ ! Iri .J: , •'L i :;•t;~' _ `it's r air G- r II •.1' f .1 \r a y. , tr J bt 17 Page /O$ of 13~ SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 14:17 Attachment 7 I Ll I - P. 43 Exhibit '--D Page / O of SUHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 14:18 _ P.44 IIIIINLI Ameriltle o-0 Oni:.1 . iltwr2i . TWS RAC 0a.00 011.00 01000 f#~0P Alkr:rcwrdiog retum to: . T)rot~abuelh Rtuptt Gtr~tarrx LLG . 2447 NW CatO^oA Drive OR 97756 Und! a d mee is req*WW all jWWM%nFY1MT0' taxsmMmeam shall be seat to 9EANFXACt YO~,jt118 ~ ~ - The Mowing addnas, Opq iWOPPMA Mtagh Reran 22M LLc W _2MMM Drive R9dmaaA OR 97756 Eatadw No. ' PJM336ICZ STATUTORY WARRANW DEED Chtaries B. Pr1ca sad Cheryl J. Price, as tenants by'the e o irety, Graz vr(s) hereby omvey sad warraar to Thornburgh Resort Company, LLC, as Oregon Limteed Liability Company, Gno tee(s) the falla wwg deacnb'ed real ptoperty is the County of Dceebubes sad State or Oregon. ft e of aDaraAbrances except as gmcificaily act forth herein: .The Northwest Quarter of the Southeast Quarter JXV%j4081/4) of section Twenty-nii". (25) . ' Tow4skkip. Fifteen (16) south,' kangt Tvmlvv (12), IROt of. the willametee meridian, Deachuter, County. omuon Acct No, 124974 131200 00 07900 The above-descabW pwp%V is free of a aeumbraoces mqt aU thoso iWim of retard, if oz% or. of oho date of this deed and those shown below, if m)r The true and scwal oosaidera an for this coavayause is PURSUANT TO AN 1RC 1031 TAX DEFERRED EXCHANGE ON BEHALF OF GaRANTOR/GRAN TEE. THIS, INSTR AR4T WII.L NOT A . OW USE OF THS MOMTY DESCRIBED IN THIS INMIDAENT IN YIOLATLON OF'APPLICA LAND M LAWS AND REMILAT/ONS. BEFORE SIC KM OA ACC MKO THIS 3NSTRV , TIM PMWN ACQUotG FEE TnLE TO THE FROPBRTY mm= cmcK wnH THE APPROPRIATE GYPY oit COUNTY PLANNING DEPARTMENT TO vmuFY APPROm vsES AND TO DETBRMINB ANY Lu4rm ON LAWSUITS AGAINST FARM~INN,G OR FOREST PRAGTTCES AS DEFINED IN ORS 30.930. Dated thus dyy of ( t t L~-WI, , . / -xs;-r Ch/arks B. Puce Cheryl A*4-a Stars bf Omm County of DESC'HUPPS ~f This iashun.=t was aclmowledged betbne rue on Z 8, 2005 by Charles B. Prioo and Cheryl L Price, (Notary Public for Ckagoa) My txmrmissioa axpira9_/(~ /I CKSM YII~A jNoNO .1 Ah°rr~ortla Iahtmto Amarli~ IS OREGONAVENUE, 6 Exhibit --D Page 11C) of L' ~ SCHWABE WILLIAMS WYATT Fax:503-796-2900 Ltl.~1C^CGCJJ LtJ•11 M'CItI I11{.i IV-&I ,.nW A. MenTitle ofts.fQ,aaravr•..ty i I . J 1 TMS SPACE RESERVED FOR RECORDERS USE After recording retur'+r t0. 0E0N1Tli Cum OFFICIAL 01~ Thorobtagb Resort Qzm-WI LI.C mm IRP . CO1i111T CLm' t' kedin OR X977556 i UPW a cbange is requested all 10 021113 PH tax wtamenta eha0 be OgN to p.il Or"i, ltmi NNW Ile fouowing ate: X0..00 ~t3.00 N>ti0.00 •d.0o Tltombtugk Resort Company, Id,c t rr c~ilFr,tASm 2aa7NW Camm Ddye 6LANEX Z FYOF s • , Aadmond, OR 97756 ORK9H~t 0 Bartow No. RD072396CZ STATUTORY WARRANTY DEED William K. Bennett and Roberta I. Bennett, as tenants by the watirety, Graomr(s) hereby convey and waroat to Thornburgh Resort Company, LLC, an Omgon Llat#ted Liability Company, Omnee(s) the IbUowtos deaenbcd rash p gmdy im the County ofDftChptea,and State of Oregon, fie ofeammibrances except sa spvMcauy set 1Lt& httreilE The Southeast Quarter of the Southeast Quarter (SE114Si~I/4) of Section Twenty-nine (29), Township Phleen (IS) South, Range Twelve (12) Bast of the Willamette h1m idian, Deschutes County, Oregon. Acct No. IS"07 151200 00 07801 mm above.deser,'bad ymporty is fiea of enaunbr=om exeept 4 those horns of mcord, Zany, as of the date of this deed and those shown be(sav, .zany; The true and actuil cumaidcratiou for this eorrreyaoce is $600,000.00.' THIS INSTRUMBNT WILL NOT ALLOW USE OF THEYROPF.RTY DESCRIBED W TE= INSTSL%UW IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE SIGNINO OR ACCWM40 Ttd'I$ INST'RVhIE T, THE PERSON ACQUIRING FEB TITLE TO THE PROPERTY SHOULD CHECK WrrH TEM APPROPRIATE CITY OR COUNTY PLANNING DEPAILTMIDM TO VERIFY APPROVED USES AND TO DETEKhMIE ANY LDArrS ON LAWSUITS AGAINST FARMING OR FOREST PRACTICES AS DEFINED IN QRS 30.930. Dated this r day of WII iqm K. K;ba* . Benton State of Oregon Comity of:Jks jmm"- `1 Thin art was ttClom before run b~Wrlfiam K. Aa~ett and Inhere J, Bennett N!m) Mycomminion 1 Afforr AmuN forl ~ tIA 15 OREGON AVENUE, 9ENO Exhibit -3b Page /11 of 13 8 Dec 14 2005 14:18 P.45 - - I I .-w SCHWABE WILLIAMS WYATT Fax:503-796-2900 LC\.-LC-GCRJJ Lv. LL A ■d\1 1 4 I I..r.. 1~F/,1 uru Dec 14 2005 14:19 L JYL 7GJ J4C! P.46 r. G eG.7' Amenitle THISSPACI II ICI W Cub) iltNsa EMI r AfkrracoMdMrg t m. Mwrd,eap Resort Ccatpaoy. LLC 2M7 NW Canyon Dave Rwrovnd,, OR 9-/54 UotU a change iE mwested all tax mtumft Sw be seat to N The fbllowft addm a: IN~eYt~q>~"rrA61~0 iIEANEX "7PY0F Oi#QNA! Ea.., OFi3CER Thoobvwx ]resort Caaaatny, LLC 2447 NW Canyon Drive - RadtanR& OR 97750 BseadwNo. ' ' . RD072824CZ STATUTORY WARR4N'1"Y DRED Bend Cable CommunieWous, LLC; an Otregou'Limited LittbSity Company, who aegatred diitle as BCC, LLC, an Oregaa Lh*ed Liabl ity Company, Gnator(E) hereby coway acid rvarmttt to Thornburgh Rtraort Commpany, J.W, an Oregon LW ed Liability Company, Crraatee(s) Poe wowiog descnl ew teal property bi me Covaly'of Deschutes ®d State of Oregon, free of encumbrswAs except as sp ottkaUy set forth herein: SEE EXHIBIT A WHICH 1S MADE A PART HEREOF BY THIS REFERENCE Acct No. 124949 Acct No, 134951 Acct No. 124951 151200 00 07701 151200 00 0500E 151200 000501 The abova•deacdbed praperty is free of enc=*rm i 0M V4 all those hems of to o4 Lf any, as of the date of this dead and those shows below, if astir: The tree sa4 admt oowldeadoe *r this conveyance is S35,000.00. TFUS INSTRUMENT WIL.LNOT ALLOW USE OF THE PROPERTY DESCRIBED IN Tli1S iNSTRUMM W VIOLA71ON OF APPLICABLE L4M USE LAWS AND REOUJ.A77ONS. BEFORE SIGNING OR ACCEPTM 7N S INSTRUMENT, TfM PERSON ACQUIRING PEE TITLE TO IM PROPERTY SHOULD CFYEM WTrH THE APPROPRIATE CITY OR COUNTY PLANNIINO DEPART aW TO VERIFY APPROVED USES AND TO DETERMENS'ANY U W= ON LAWSUITS ALARM FARMING OR FOREST PRACTICES AS DPYD*D IN ORS 30.930. Dated this _!q day of P An L f , Base Cable Ca bane, I.LC . eIJ9 Thomas FL Pah+m Treasurer of Baod cable Ptopordes, Irn„ Mena" Member Sate cf ornon Camay of Lame This ilr,neia ivaE`itictmwiotlged boinad me bn l- Lm? i 41 .2005 by Thames K. Pehver as Tsssalaer for Bend Cable- Pr opert'ca, fur:, formerly (mown os Bend Cable Comaamicatimre, Iwo. as Maoaghtg Member for Bend, Cable Cbmm®icatiom, LLC. Curly )mown as B= LLC, (Notary Publ1 fvr Om$on) My cosaaission expires ~D'3o ^2oa Yr OFFICIAL MAL AKU K Kri1 FLL~ ILUM NOTARY P111?LiO-OREGON eY Ct1>IL cc r:.::ss a:; ko. s r5a70 t19t0t: Mall' 5 OC190.2005 Altar raooedng, retain 10 ArtlGdtlC 150REc,ON Ar1!U4UF. WV Exhibit -D Page t t 2 of /"38' 111 n r~ f~ 11 11 11 11 r 1 SCHWABE WILLIAMS WYATT Fax:503-796-2900 UtC-1'1- 1?J lu; ld HrlhKi I I I l.b PQ"LrLM Dec 14 2005 14:19 P.47 1 541 ".1G S 54Lr V. Wtpl S Pt . :Zgigl'T •J1w TMAT :029=5=931 TRACT A: Beginning at the center 1/4 corner of Bection 20, Township 15 SOUtth, Range 12, Bast of the Willamette Meridian, Deschutes County, Oregon, the true point of beginning; tAeace North 05.44,2e West along the centerline,, 653.40 feak;, thence North 00008154" Rest, 200.00 feet; • thence Soutp 88946,26" East, 653.40 feet to the North-South centerliriei thence 800th 00006,540 West, 200.00 feet to the true paint or beginning. TRACT 4% Beginning at the South tenter 1/16 corner of Section 20, Township 15 South, Range 17, Bast of the Willamette Meridian, Deschutes County, Oregon; thence North 00406,54" Bast along the Vor'th-south cemt*vlige, 179.75 feet to the tram point of beginning; thence North 89.153106" (Peat, 208.71 feet; thence North 00006154• Mast, 208.71 feet; thence South 88°57'06" Rapt, a•bS.71 feet'tv;,the said centerline; tgeaee South 00006 540 West along.said centerline, 208.71 feet to the true point of beginning TRIb= C- Beginning at the Vast 1/4 corner of section 20, TownBhip 15 South, pange 13, East of the Villaloette Meridian, Deschutes county, Oregon, the true point of beginningr• thftae South 001061370 West along the East line of said Section 20, 208.71 feet; ' thence North'96044136° Meet, 208.71 feet; thence North 00°06137" Eaat,'20e.71 feet to the East-West centerline of said Section 20; thence south 88044126" East, along.said centerltne,..208,71 feet to the true point at Deg4pnilrog. Acct No. 124949 151200 00 07701 Acct No.124951 151200 00 05002 Acet No. 12495Z 151200 00 05001 SD072WMa 7=0L-n- - Exhibit 7D Page ! ( of /3 SCHWABE WILLIAMS WYATT i \1V iG LWU/ L~•,VV 1 too. Fax:503-796-2900 Dec 14 2005 14:20 P.48 M r15 1& ~uwor 1t~t•, cou~r~r c.~c`p 00/ww 03;20;!6 PA.. $15.00 "1100 Oo.00 ".00, DESCHUTES COUNTY CLERK This page must be included if document is re-recorded.. Do Not remove from original. document. 1 CERTIFICATE PAGE Exhibit `-D Page 1 1,q of !3 8' SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 14:20 P.49 L~.M ac nw.+ a~• w 1 ~ r.~• w.~ . r.r.. i . . w . o~b3 _ 5lgTce1 (Z-) of ui w~ - . ti ..r . • IaE6t5MflEi 000N1'Y rne4AL 1 Q AF7,'irR REMRDING RETURN TO: NNW IYp, d0iat11Y CLi~ BRYANT, E11KMON & MTCH' N P.Q BOX 457 Il 1 I~l'~I MDMOND, OR 977% TAX STATE11 MM TO BE SENT TO: TRAIL CROSSING REVOCADLE TRUST 0-p tinsel SUM4 low e/o Bperett't'horabttrg, ~'raatee 930.00 Sts-M 810.00 18.00 . Terrd ane OR 97760• RE-ts> D TO CMU= LH7GAL Di;SC~> ayAS FEE oY ~SO and o. 2003-38853 BARGAIN AND SALE DEEP Fee No.'' RVZ=TTTHORNBURGHandTVATHORN11MC t, BusbandandW'ife,Chmk' ,~t,bargam, se11s arc caavcy ;zeta EVERETY 7 HORNBLrROE9 and ~EVA_ TR03LN WRCH m AMBERS . . 7oz-4BUaa sndAGNESDeLA~9B0YI M TradmaftheTRATLCBOMiNGREV'OCABLETRUsT, Grantee, the 641 wiOg descd'bed real propeity, situatod in the County of Deschutes, Stato of OMSD% to=wit: SEE EXHIDIT "A" ATTACTIED HEIWO RESBRRVD0 to Grantors a life estate in said property for and for extracting or mining mi c ass on'tho property for the life of Grantors and for the life suzvivor. EXC PTINO all covenants, conditions, easements, and rights of way of record, if achy. This iastrgmeat will not allow use of the property described in this instrument in vlolatlon of applicable land use btwa and rlepalata"oKm Before•sigaing or accepting this iprtrtiment, the person acqu jug lee title to the property shoed cheek wttu the se riate wiry or eo~q~ p4nniag department to veM approved uses and. . to determine any limits on hmsazb against farming err forest pradlees as de tiiod ln'OVS 30.930. The true and actual consideration for this conveyance includes other propady or value given or promind which is the whole of dw mmideration, DATED this et dayofMamh, 7003. 1JR EVA STATE OF OREGON ) County pfDeschictea )98 DALE: IU1Qi2GH 51" 2-003'' Persotuaily Wasted the above-named EVERETT THORNBURGH and EVA THORNBURGH and acknowledged the foregoing insbumcut to be their voluntary act and deed. BONA AuL BEAL. r~ornav PuauccuON Notary Public far on coMNiasiON NO. 470 Ny Commission Expires: Ib~ZZ.! Zop~ 11 11 a: r urneasnaearascx. 3MXV 'c BwuWN ec wren . wra ATRff&"41AW ~w IFAW =V AN194M Two =I'M r~x p.q sww6 Exhibit `m Page (1 of ./5r- SCHWABE WILLIAMS WYATT Fax:5U;i-/bb-ZSUU DEC-12-205 1446V 1-r'tK l I 1 1 L.t XhMLI VU UeC 14 ZUUb 14:L1 r.ou 1 541 Yd5 542'f t' w 2-ob3 "~7g1(a f (.3-) . i~~ i wr+ ~wwwww ■ ~ IM+ Z I . . . 93IMMIT "A" ]PARCEL 1: The South=g Qumla of Section 5ixtaen_ (161 TOWNSW FIFTEEN (15) 50trm RANGE TW13LVE (12) EAST OF TIjE WaJAMETTE MERIDIAN, Deschutes County, Om800 EXCEPTING THEREFROM that portion &cmof conveyed to T.V., Tnc., an OM= Deschutes County Deed e 645 a 1981 in Book 342 at 16 d d J , p g une . e Corporation, by dead recor Rxords. PARCEL. H. The East Half of the Northwest Quarter ( B Y. NW 114), the South Half of the Southwest Quarter S th SW 114) and the West Half of the East Half (W l/r B Y2) of Section Sever*m (17); the Northwest Quarter (NW 1/4), the West Half of the Northeast Quarter W % NE 1/4); the North Half of the Southwest Quarter (N Ys SW 114) and the Southwest Quarter of the Southwest Quarter (SSW 1/4 SW 1/4) of Section Twenty (20), all is TOWNSHIP FIFTEEN (15) SOUTH, RANGE TWELVE (12) EAST OF THE ME1Rm1AN. EXCEPTT]NO THEREFROM those peon thereof conveyed to Key T.V., Inc., an Oregon corporation, by deed recorded Septemitm 13,1977 in Rook 258, Paga 166, Deshcaiea Cow* Deed Records, PARCEL W: The Northeast Quaztar of the Southeast Quarter (NE 114 SB 1/4) and the South Half ty (20); the North Half (N K) and the North 114) of Section Twe ter (S Y SE t n Qaat , x of Ate Southeas WHof the South IWf (N Y. S K) of &atior Tw (28). aU in''OWNSFIW 1'11"tEN (15) RAN B TWELVE (12) BAST OF 1H1 AMEM MERIDIAN. SOUTH , EXCEPT'WO TYl$RMOM that portion thereof conveyed to " T.V., h=, err Oregon corporation, by deed rocorded.September 13,1977 in Book 258, Page 166, Deschutes Cowily Dad Records. PARCEL IV: The Southwest Quarter ofthe Southwest Quarter (SW 1/4 SW 1/4) of Sectiou -one (21). in TOWN" PDqSBN (15) SOUTH, RAN(YE TWELVE (12) EAST OF M Twenty ' . WII I.AMRTTB MERIDIAN. PARCEL. V: Lots One (1) and Tiva (2) of the Northeast Quarter (NE 114) of Section Four (4), TOWNSMP FOURTEEN (14) SOUTH. RANOR T1 LQLTEEN (I3) BAST OF THE WKLQAETIE MERIDIAN. Deschutes County, OraBon. PARCEL. VI! Thanportion of the NW 1/4 NW 114, Section 3, Township' 14 South, Range 13 JLW M., Deschutes County, Oregon, lying betwm On nodmay W=dary of the said fo4ty am parcel and the existing (mm lino locatod to the South of said line at a distance varying from twenty to Btty feet. Bar1R & Sale Dead 0'1'1b\THORNBUR1a8SD66}}Drs5CH.wOd F7 fGrr r1AYANT, FJ msom 1h hTfOANE118.R NMY . ABC YYE87~lY~~6Ptl IJXEMYC RWw01~ WEaiWl077S601M TEIEPIgIrE (6+7) iM31H ry~{p»awtMe Exhibit '--b Page of 45y SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 14:21 P.51 . .Wib-"iG. FR.V~ aY•au n~.~~.u. .VJnMW a J^!a ,mow .r.G. .w . y r t 0li01N In =wry OFncu L IIEOOI S y~ 101NGY ~LAlICR1iNtP., ,00twff am MW 1111111 $36.001 o-0 RAW 5%niQ PAT 06Ii0~E008 03,30;Z! 830.00 X33.00 •30.90 WOO DESCHUTES COUNTY CLERK CERTIFICATE PAGE r This page trust be included if document is re-recorded. Do Not remove from origiriai document. Exhibit Page 1 of g i r r 1 r 1 r I~ SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 14:22 P.52 7-tb5- H4(ot t ii ww" Arm RlSC0litT MG. RBTURN To.. oYI & Mcb, LLP ifriYod 032:25 IT1 ]PO 139M 40 04 4 sty, . PAT. Redmond OR OWN 81111.00 611.00 KOM 0.00 MAEL TAIL sT'A1ZMWM TR: ;tmKsis T,i'orlibprgb; 7}aata , . . . of the li vo 7%vm1 m Zb lnrrvocabie Credit 9bdhr Trait 197 NW Yucca Redmand, OR 9776 BARGAIN AND SALE DEED ZVXRrff THOPMURGE~AMMRSTHOMURGrHiwdAGMSDELASMarIT, TRUSTEES of the Trail Crosft Revocable 'Mast, Geraaters, gm; bargain, sell grid covey unto 1t1:V RM THOIKPI URGH,AMMRSTROINN IBGHaadAGNE MEL4SMVMT,TruimmofdoEE a7bornburgh Cte&SbdterTraat,Gmatee,18.3/4%ofthefvllowingdoscdb pmperty,coosisftofappraxinatciy1308acaac of land im lmv Cline Bum, Deschutes County, Oregon; in ft f jg wjng deOrnxd real property. to wit: 'fax Lei:1512 7700'(*p ely'640 Acres) Tax Lot 1512 5000 (appxoximmly 675 acres) Mara Particularly described on'attadhed Exldbit "A" SUMEGT TO: all thow itoms of earned and those apparol q= the land, if any, as of the date of this decd and those shown below, if nay: and the. grantors wi0 warrant and lbrow defend die said premises and evory pact end parcel thereof against the lawful eloimg and' deri mWe of all persons whomsoever, accept those chiming under the above descriibed'ancumbeaaces. This Iwtmmt wM not allow use of the property described to 0& jusUnunent in vioUtbn of applicable land use laws and regalations. Before signing or magtlag this lnserument, the Parma acgairmg fee trill to the property ahoald u:ineclt with the appropriate 44ty or county planning deportment to verify aliprove;d once and to Ooh rmiae any limits on lawsuies egaink farming &i forest prAegices m defined in ORS 30."0, The tnu and actual consideration for this conveyance is zero dollars ($4-)and other good and valuable consideration required by Grantors, tract document upon the death of Eva Thombwa DATED this day of March, 2005. THE TRAIL, CROSMG REVOCABLE TRUST ~ ,veret[ Thornbargiy T> trso a Ambers Tbmmbor$k Tivstee . DGLash®u "ivatee Bargabi & Sale Deed ouwvstwr~~oro~eurn~tYC~ a~~tii~n,~u~m:y~er a~a.,~gwasroosl as~+rruvr, u~aaOfv krrr~crr.~. ~fe+s~►yfw . ON wwrMsvil~~ AVIS" na>Maw. araaoH vrreso.oa fElHM1011E~6,f161 ' Mfr {xt1 aaFU~e Exhibit b Page 1 S of !3 1 i 1 SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 14:22 P.53 LGl.~1t~CCJC.I.J lY•1tJ t7II:J1~ flX-3A Mw 1 .xrl 7r.• .74tr r•.Gr STATE OF OREGON ) •sa County afDeectspQutes ) On&iaL,oayofMmh,2405,p=MdlyappearedtheabovcimmodEvece nomhnikAmbCt Tb=burp and Agnos DcLaslunnt% Co-•Imm= of the Traci Crossing Ravocable Tivst, and aalmowledged the foregoing kownent to be Choir vahmtery as mW deed. Q VEMON wrw to§Lz- OREWN coEnusam goAa~T06si Notary u61~ lw far Oregon Bargain Sale Dead Cr IM733%ffAjlTfWL1a=j TrAjj araossag R*vo&kb'* rcvselbatwid, mwav d"a.wparall AtYAn r N As Pace, ur Armpp Q dI,okW Mi EVEn9pE NAMEMlE mmatn4v RQJgON7. Q1~i0N Ar06V700 IiSPP111DNE W1 MFl1i1 WiOI (xt~ ~IEIE Exhibit :D Page 11 9 of / 3 9 SCHWABE WILLIAMS WYATT Fax:503-796-2900 aIC~.-ic-GWJ a`1 • i~ rn R:1,\ 1 A 1 W IwH &A W 1 Dec 14 2005 14:23 P.54 z0c)5. (qq'toI C3) R Y E?GiIB1'I' "A" PARCEL M The Bast Half of the Northwest Quarter (B NW 1/4). the South Half of tho Southwest Quarter (S % SW 1/4)and the Weat Halfof the East Half ( (W V2. E %s) of Section Seventeen (17); the Northwest Quarter (NW 114). the West Half of the Northeast Quarter (%V ch NE 114); the North Half ofthe Southwest Quarter (N11.2 SW 1/4) and the Southwest Quarter of the Southwest Quarter (SW 114 SW 114) of section Twenty (20), all in TOWNSHIP FtF EEN (15) SOUTH, RANG1? TWELVE (12) EAST OF THE WHI AMEM MERIDIAN. EXCEPPTING TH13REFROM those portions thereof conveyed to Key T.V.; Inc., an Oregon corporm*m, by deed recorded September 13. 1977 in Book 258, Page 166, Deschutes County Dcod Rzoords. F, IRC13L III: The Northeast Quarta' of the Southeast Quarter (NE 1/4' SE 1/4) and the South Half of the S.quom st Quarter (S1 /2 SE 1/4) of Section Twenty (20): t1►e North Half (N V.) and tlto North Half of tt►c South Ralf (N Y. S 'r4) of Secdaa Twenty-d& (28); all in TOWNSHIP FIFTEEN (15) SOUTH, RANGE TWELVE (12) BAST OF THE WRIAME-17M MEMIAN EXCEPTING THEREFROM that portion thereof conveyed to Key T.V., Inc.. an Oregon corporation, by dead recorded September 13,1977 in Book 258, Page 1660 Dewhutas Coimty Deed Records. PARCI~1. IV- The Southwest Quarter of the Southwest Quarter (SW 114 SW 1/4) of Section Twemy-one (21) in TOWNSHP FIF'PLN (15) SOUGH, RANGE TWELVE (12) EAST OF THE WAd.AMETTB MERIDIAN all located in Descbutes County, Oregon o~sncan~.rKr ac e.: ~w+ EXI'IIB. 1T "A" aar,+ Z zmzmAm x mcti, W ATONVO Y!KrL W m mV8m pr~w,o~eGOaorradosm RX P411 SWUM Exhibit -1 Page 120 of 138 SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 14:23 P.55 JJCV-IG-CW.! ty.1a rN .Li~•. i~r .w...1 . r~~-..~ AFTER RECORDING RETURN TO: BRYANT RNOU ON & FITCR FO. i6kar. R=rdOND, OR 97756 TAX STATRMENTS TO HE SENT TO: AGNES N. DeIASHMUTT 4043 NM1 XAVIBR -RTMWW IYWC fLldfiftlilti~ *VON IIINI~ Oi;98;31 PII . 0-f ttMeli BLOW= fftNtfY 01/31 . IN 05.00 61i.00 a0.0010.00 BARGAIN.ANA SAI:,E DREri EVGRETTTHORNBURM Ud EVATHORNBURGH,Haibud and Wife, Granters, grant, bargain, sdis and covey unto AGM M. DE LASfQV1U1 T, Grant oo, the Jbllowing described zeal property, situated in tbc, t~nuntyofDemehtrtes, Srato of Oregon; trrwix . . Parcel V: The and half ofthe Northwest Quarter (E )i NW ] J4) ad the West half of the Nore st Qo®Rer(W %NR tl%of SeWon Thirty 0), Township Fifteen (IS) South. Rap Twdve l2) East of the Willamette an RESl31 y" to Grantors a life estate in said property !bu and ft mm cting or mining minerals on the property for the life of Grantors and Am the latee survivor. EXCWMG 4 vomot% eonditiooa, easements, and rights of way of record, if any. This luMmatt wiil not allow ane of the property descrlbad is this lzdmment is vlaUtion of AppWAble land else lairs and rr ftelsrl1atlosa. Before sigatag or Acceptlag tbb batremat, the persona hiaS fee tltk to the proper~p shoaldcheek witb the appropriate city or county pleaaing departmestto ver approved am And to deetrsrelrfae say Undis on Im, agAtnst hrming or forest pradlees mm declined is ORS 30.930. Tbb true and actual oration for this movayance includes, other properly or value pven or promised wbicb is the wbole of the eonsidera<iotq. DATED tW.s 'U R! day of March, 2003. -v--__,&4;IA.,s7 U,4 Uvfwjrff T H ti J I EVA 7HORM H STATE OF OR1100N ) County ofDeschuta ) DATE 3 /Z5 L603 personally the ebwonamed EVUM THORNMMGH Arid EVA THORNBURGH amt acknowledged the foregoing inst uuW to be thdr voiunmy act and deed. oFF1t:IAL SEAL RONALd A ' Ness N~HO. sse+~v my Corxrmi"ion Bxpires.. 10 wit jto03 aNr~V BRYANT ZMMSQN & FMH dYOWCO RIMY M WEST EMAMCH AVENUE M RW of IIkaMOf0.CM*9rnG4m Exhibit Page t_~ of / 3 SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 14:24 P.56 ' DEC-13-2005 13:49 AMERITITLE REDMONV 1 541 923 5427 P.02 !!II AEC !2"?00S 15:09 AMERITITLE XNP cS 5413897711 P.01/01 46 XNOW Au MAN in' rAmw PANO on 'I 1 =LE Co., II ~d Nib r1~le~ 1k ft" of fie airy d 0?! fft . i,~irh~r o1T~d O,riesn 1R IM. eesliwlM rM. i ar sat~sl. ~Yw A"wir ANP4 L.~.A=..~fJJLm.q, wp - ' and ~rarwis hom atmtmmt -w m*M AN *mob ow. wm aw ate,. ~orM~ ~ at b " Ii 0 ~~ns "rte + w rrqu Arr~or.t rum I: In Twt htp 16 Soittie. >to~e L' fat lis t "ILIUon on. a: ltd, • PAL 11: In 7a oe'shio lei lraioy_ _ ip< _ 4 r,u.: _y'am- 3resioq 30: NB = r p soetlnn E9: aft* > , 1;Eift, swum%, c E , ]hilt!". PAL III : Ea I t:uew 33 SombA pe u amt. CAL t ~ 5ccti4at 35: ~ a ' r• To R-W od a aw 4 aw aMOr+ 1o mm rral,na #Mm► Amift aaot.rws h+ ; ILe am atw a" ssswi/take pi/ Aw tY Nrrclr., i tottM of /tirtl, i 1..... am"" Ub Awf Mt , • rya' itiYrm iRM► +Yiit a fi} ~ w ap" . ' ~ err 1w Edw or ib *awe* 1aw d irt~ a~p~aMt Q M 1!i . h .tea 4 r -*,-a 40w~ ' ioy itr ~w► arM lM• rrrtR ~ ~ +,rr1Yr otr AR, r! M/ it ~ *moR i r~ ' ~ . ~ rri >frf Me Yee i+` - _ . - , • ft: fawtiM ifor it W aoproto orot d wwrptirwr w~~ ~t..~a araire fAtrw F ;~1.~. `w .Mw.i.1M ~r w~.r ..r r •.r.wi ant ad o1. _ tows' • •AbIY:r..rm.ntlr"" .$no swomm*noMao" h amow4 .~.`w6.~irywtl/4~i.~ s Y'k ' a Mum ■s NAM a, am 4w A= mod... liiode or Arai. arf rrR • ~ • ' 1 71 Trra a a+ I TOTAL P.02 Exhibit _D Page ( Z2 of /.3 SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 14:24 Attachment S 1, P. 57 Exhibit -D Page (23 of J? SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 14:25 Business Registry Business Name Search New Search Business Entity Data P. 58 12-13-2005 12.40 Registry Nhr Enti e Entity Status Jurisdiction Registry Date Duration Date Renewal Date 260927-91 DLLC ACT OREGON 01-04-2005 01-04-2006 Entity Name ORNBURGH UTILITY GROUP LLC rorelgn Name New Sea ch Associated Names Type GT GIST-RED AGENT Start Date N1-04- F 05 1 Resign Date b f Record 745562-84 VV&W LEGAL SERVICES, INC.' Addr i.. TTN:.ROY D LAMBERT Addr 2 1211 SW FIFTH AVE STE 1600-1800 CSZ [PORTLAND R 7204 Count D STATES OF AMERICA New-Search Name Historv Business Entity Name L Nam NName Start Date End Date ORNBURGH UTILITY GROUP' LLC EN 01-04-2005 please read before' ordering Copies. New Search Summarv History Image Action Transaction Effective Status Name/Agent Dissolved By Date Date Date Chan e 01-04- ARTICLES OF 01-04-2005 FI Agent 2005 ORGANIZATION C 2005 Oregon Secretary of State. All Rights Reserved. Exhibit -D Page 2A of SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 14:25 P.59 Business Registry Busyness Name Search New Search Business Entity Data 12-13-2085 14:00 Registry Nbr Entity r►ne 7' nt! Status jUrisdiction Registry Date Duration Date Renewal Date 229147-90 DLLC ACT OREGON 07-07-2004 Entity Name ORNBURGH RESORT COMPANY, LLC Foreign Name New Search Associated Names Type pg PRINCIPAL PLACE OF USINESS Addr 1 447 NW CANYON Addr 2 CSZ DMOND R 7756 Count TED STATES OF AMERICA Type GT GISTERED AGENT Start Date 004 7,07- Resign Date of Record 745562-84 SWW LEGAL SERVICES. INC. Addr 1 TIN: GREG MALLORY Addr Z 1211. SW 5TH ST STE 1800 CSZ ORTLAND R 7204 Country KINITED STATES OF AMERICA Type PNANAGER Name RON ELASHMUTT 11 M Addr 1 447 W CANYON Addr 2 CSZ DMOND R 7756 .1 1 Count TED STATES OF AMERICA Type G AGER Name AVID CHAPMAN Addr i 2553 OLD AVE 52 Addr 2 CSZ A UINTA A 2247 country TED STATES OF AMERICA New Search Name History I Nam Name Business Entity Name e tatu start Date End Date ORNBURGH RESORT COMPANY LLC EN CUR 07-07-2004 Please read before ordering Copies. New Search Su*rnmary HXstory I Image ransactlon Effective Name/Agent. Exhibit "D Page _.125 of ~7 I 1 1 SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 14:25 P.60 Date Action Date Date Change Dissolved B 08-01-. ED ANNUAL 08-01-2005 FI 2005 PORT 07-08- . OTICE LATE ANNUAL 07-08-2005 SYS 2005 07-07- ARTICLES OF 07-07-2004 P1 ,A,gm. t 2004 RGANYZATION ® 2005 Oregon Secretary of State.' All Rights Reserved. Exhibit -D Page 1211 of l3~ SCHWABE WILLIAMS WYATT Fax:503-796-2900 Dec 14 2005 14:26 P.61 Business Registry Business Name Search New Search Business Entity Data 12-13-2005 Registry Nbr EntiteY SEtatu Jurisdiction - Registry Date Duration Date l~f: V i Renewal Date 255613-90 DLLC ACT OREGON 12-06-2004 01-01-2020 12-06-2005 Entity Name ENTRAL LAND AND CATTLE COMPANY LLC Foreign Name New Search Acenclatpd NamPe Type kG# EGISTERED AGENT Start Date 10~ Resign Date Name EG LORY Addr 1 SWW LEGAL SERVICES Addr 1900 SW 5TH AVE CSZ PORTLAND ILOR 7201 1 1. Count TED STATES OF AMERICA New: search Name History Busin Entit N a Nam e y ess ame a P t atu Start Date End Date ENTRAL LAND AND CATTLE COMPANY LLC EN CUR 12-06-2004 Please read before 6rdering Copies. i,qgw acar cta zi1 p1 11 myti story Image Date Action ransactio Date Effective D t Status Name/Agent Dissolved By a e Change 12-09 2005 NOTICE LATE ANNUAL 12-09-2005 SYS 12-06- ARTICLES OF 2004 RGAN7zAnON f12-06-2004 FI Agent Q 2005 Oregon Secretary of State. All Rights Reserved. Exhibit Page l of i ATTACHMENT 9 LAND USE APPLICATION (ACCOMPANYING AS SEPARATE DOCUMENT) Exhibit --D Page tZ.$ ofd An*Hwwr 10 THORNBURGH RESORT Burden of Proof Statement for CONCEPTUAL MASTER PLAN AND CONDITIONAL USE APPLICATION FOR DESTINATION RESORT Tax lot 5000, Tax lot 5001, Tax lot 5002, Tax lot 7700, Tax lot 7701, Tax lot 7800, Tax lot 7801, Tax lot 7900, Tax lot 8000, T15S, R12E, Sections 17 and 20 T15S, R12E, Section 20 T 15 S, R 12E, Section 20 T 15S, R 12E, Sections 20, 21 and 28 T 15S, R 12E, Section 20 T15S, R12E, Sections 29 and 30 T 15S, R 12E, Section 29 T15S, R.1 2E, Section 29 T15S, R12E, Section 30 Submitted by: Schwabe, Williamson & Wyatt, P.C. 354 SW Upper Terrace Drive, Suite 101 Bend, Oregon 97702 ' Peter Livingston, Attorney at law (503) 796-2892 Myles Conway, Attorney at Law (541) 749-4019 February 16, 2005 i pd x/1 12188/138798/131-1/1274805-1 Exhibit 7t Page 129 of _L7 1 ATTACHMENT 11 PRELIMINARY REPORT, WATER SUPPLY DEVELOPMENT FEASIBILITY, PROPOSED THORNBURGH RESORT (ACCOMPANYING AS SEPARATE DOCUMENT) ' Exhibit Page 130 of Purchase Agreement For Temporary Groundwater Mitigation Credits This Purchase Agreement For Te orary Groun water Mitigation Credits (this "Agreement") is entered as of '200r, (the "Effective Date"'), by Thornburgh Utility Group LLC, an Ore . corporation with offices at 21+7 NW Canyon Dr., Redmond, OR 97756 (the "Purchaser") and the Deschutes Resources Conservancy, an Oregon not-for-profit corporation, with offices at 700 NW Hill Street, Bend., OR 97701 (the "DRC"). ' RECITALS A. The DRC is dedicated to improving water quantity and quality in the Deschutes Basin through the use of market-based mechanisms. The DRC holds a charter from the Oregon Water Resources Commission (effective February 14, 2003) to operate the Deschutes Water Exchange Groundwater Mitigation Bank. ("Bank") to obtain, hold and assign Mitigation Credits (defined below) pursuant to Chapter 659, 2001 Oregon Laws (HB 21.84) and OAR chapter 690, division 521. The DRC works to acquire water rights to dedicate to instream flows for flow restoration purposes and to generate awards of groundwater Mitigation Credits front the Oregon Water Resources Department ("Department"). The DRC makes Mitigation Credits available for purchase to applicants to the Department for groundwater permits in the Groundwater Study Area of the Deschutes Basin. B. The Purchaser has applied to the Department for a permit to use groundwater ' within the Groundwater Study Area of the Deschutes Basin (Groundwater Application No. G-16885). The Purchaser seeks to purchase temporary mitigation credits from the Bank in order to offset its Groundwater Mitigation Obligation (defined below) ' associated with its permit application arising under OAR 690-505. C. The DRC desires to sell Temporary Mitigation Credits (defined below) to the ' Purchaser and the Purchaser desires to purchase Temporary Mitigation Credits from the DRC, on the terms and subject to the conditions set forth herein. ' AGREEMENT NOW, THEREFORE, in consideration of the covenants and agreements set forth herein, the parties hereby agree as follows: 1. Definitions 1.1 As used in this Agreement, the following terms shall have the following meanings (such definitions to be equally applicable to both the singular and plural forms of the terms defined): Y December 3 t . "Calendar Year" is the period from January 1 through Dc J PAGE I pdx/112188/ 138798/MOP/1261376.2 EXHIBIT B-31 Exhibit ~t Page t3 I of _L3 T "Documentary Evidence" is evidence that valid mitigation credits have been obtained and assigned to satisfy a mitigation obligation. "Zone of Impact" is an area assigned by the Department based on the impact area of mitigation water or groundwater pumping within the Deschutes Groundwater Study Area. "General 'Lone of Impact" means anywhere above the Madras gage on the Deschutes River. For wells determined by the Department to have a localized impact on surface water, additional Zones of Impact are Metolious River (above Metolious River Mile 28), Squaw Creek (above Squaw Creek River Mile 16), Middle Deschutes (above Deschutes River Mile 115), Upper Deschutes (above Deschutes River Mile 185), Little Deschutes (above Mouth of Little Deschutes) and. Crooked River (above Crooked River Mile 13.8). "Groundwater Mitigation Bank" is an entity formed under OAR 690-521 for the purpose of acquiring, holding and assigning Mitigation Credits. Only such a bank may acquire, hold and assign Temporary Mitigation Credits. "Groundwater Mitigation Obligation" is the amount of mitigation water that a groundwater applicant must provide to obtain a groundwater permit as determined by the Department. These obligations are expressed. in acre-feet of mitigation water or Mitigation Credits required to meet the obligation. "Mitigation Credit" is a means of accounting for mitigation water, calculated in acre-feet, made available by a mitigation project. One Mitigation Credit is equal to one acre-foot of mitigation water. Mitigation Credits are determined and awarded by the Department upon completion of a mitigation project and verification by the Department. "OAR" is the Oregon Administrative Rules. "Permanent Mitigation Credits" are Mitigation Credits based on projects that permanently provide mitigation water, such as permanent instrearn transfers of water rights. ' "Temporary Mitigation Credit" is a Mitigation Credit awarded by the Department based on water rights that are leased instream under OAR 690-5>21. These credits are only valid for the year in which the water is leased. PAG17 2 pdxrl 1218911.1879x1MUP/1261376.2 EXHIBIT B-31 Exhibit 17 Page 1_3 Z of _Z,5 S- i 11. Specific Provisions 2.1 (iroundwater Application. TheTemporary Mitigation Credits acquired under this Agreement by the Purchaser are solely for the use of the Purchaser in fulfilling, either partially or fully, the Groundwater Mitigation Obligation associated with the Groundwater Application, G-]5385, filed in the name of Thornburgh Utility Group LLC. 2.2 Mitigation Credits. The DRC agrees to sell the Purchaser 325 Temporary Mitigation Credits in the General Zone of Impact for use during the calendar years 2006, 2007 and 2008 in association with the Groundwater Application identified in Section 2. 1, under the following terms and conditions identified in Sections 2.2 and 2.3. Illx)n execution of this Agreement, Purchaser shall pay an initial payment in the amount of $22,750 to purchase 325 'Temporary Mitigation Credits in the calendar year 2005. To exercise its use of the 325 Temporary Mitigation Credits purchased for the calendar year 2006, the Purchaser shall give written notice to the DRC no later than October 1 K', 2005 of the Purchaser's intent to use the credits otherwise the DRC shall have no further obligation to supply Purchaser mitigation credits in 2006 under this Agreement. Additionally, upon execution of this Agreement, Purchaser shall pay make a further payment of $9,750 to secure an Option to purchase 325 Temporary Mitigation Credits in the calendar years of 2007 and 2008 at $70 per credit, and a further payment of $500 for an account set up fee. A total payment of $33,000.00 is due to the DRC upon the execution of this Agreement in the form of cashier's check or other certified check. 2.S Exercising Option to Purchase Credits in 2007 and 2o08. To exercise its Option to purchase Temporary Mitigation credits for the calendar years of 2007 and/or, 2008, Purchaser shall make payment of $22,750 to the DRC, no later than . January Lv1 of each calendar year for which the credits are requested. Payment shall be in the form of cashier's check of other certified check. 2.4 Continuing Mitigation in Future Years. The Purchaser hereby i R l n es u acknowledges that in accordance with the Deschutes Groundwater Mitigation OAR. 690-505, mitigation water must be committed for the life of the associated groundwater permit and that failure to comply with any required mitigation obligation shall result in the Department regulating the associated ground water right, proposing to deny any permit extension application for the associated right, and proposing to cancel the associated permit." OAR. 690-505-0620 (3). In accordance with its Bank ' charter, the DRC agrees to use commercially reasonable efforts to obtain sufficient instream leases in the appropriate Zone of Impact to provide the Purchaser with Mitigation Credits in years subsequent to 2008, when so requested by Purchaser. The Purchaser acknowledges, however, that the DRC cannot assure or guarantee that water is available to generate Mitigation Credits in the appropriate Zone of Impact, or that Mitigation Credits will be approved. by the Department. The Purchaser may obtain ' other Mitigation Credits or take other mitigation actions satisfactory to the Department to mitigate the impacts of appropriations under the Purchaser's permit to use PAGE: 3 pdx/I12188/138798NOP/1261.376.2 EXHIBIT B-31 Exhibit ~1 Page /33 of groundwater in the Groundwater Study Area of the Deschutes Basin associated with this Agreement. Upon the Purchaser's written request, the .DRC: will advise the Purchaser of the price of Temporary Mitigation Credits for the irrigation seasons subsequent to 2008. e.5 Documentary Evidence. They DRC will complete and submit the Documentary Evidence form supplied by the Department to the Purchaser and issue the 'T'emporary Mitigation. The DRC will not be required to assign Mitigation Credits prior to the issuance of the Final Order by the Department for the groundwater application described on Section 2.1 above. 2.6 Permanent Mitigation. At any time, the Purchaser may acquire Permanent Mitigation Credits to satisfy .its Groundwater Mitigation. Obligation associated with its permit described in Section 2.1 above. Tile DRC is not responsible to issue any refund to Purchaser under this Agreement in any circumstance, including upon the Purchaser purchasing Permanent Mitigation Credits. The decision to purchase: Permanent Mitigation Credits is made solely at the discretion of the Purchaser. 9.7 Changes to the Mitigation Credits. At any time, the Purchaser may request to purchase additional Temporary Mitigation Credits from the .DRC, beyond the 315 Temporary Mitigation Credits acquired pursuant to Section 2.2. The price f'or any additional credits will be the market price at the time of any new agreement between the parties. The Purchaser hereby acknowledges that it understands there is no guarantee that additional credits will be available for purchase beyond the terms of this Agreement or for years subsequent to 2oo8. e.8 Warranty. The DRC warrants that the mitigation credits provided under this Agreement have been established and approved in accordance with the applicable requirements of the Department, and may be used for mitigation purposes in the. "General Zone of Impact." The DRC gives no warranty, expressed or implied, as to the validity or enforceability of the Mitigation Credits program, as established by administrative rules of the Department. The Purchaser acknowledges that the legality of the administrative rules adopted by the Water Resources Commission authorizing and. establishing the basis for Groundwater Mitigation Banks, Mitigation Credits and groundwater appropriations in the Deschutes Basin are currently being challenged in the state courts of Oregon. The Purchaser hereby acknowledges that the Mitigation Credits subject to this Agreement are temporary in nature, being based upon annual instream leases, and that temporary credits from instream leases may not be available in. specific: Zones of Impact in years subsequent to 2008. e.9 Termination. If the Purchaser meets its mitigation obligation by satisfying that obligation with mitigation credits or water rights from a source other than the DRC, the DRC shall have no further obligation to provide mitigation credits to the Purchaser in association with the groundwater application described in Section 2.1 and this Agreement between the Parties shall terminate with no refunds due to the Purchaser. PAGE 4 pdxr112189/138798IMOP/1261376.2 EXHIBIT B-31 Exhibit -1 Page 1A of J.3Y- ,I . i groundwater in the Groundwater Study Area of the Deschutes Basin associated with this Agreement. Upon the Purchaser's written request, the DRC will adN ise the Purchaser of the price of Temporary Mitigation Credits for the irrigation seasons subsequent to 2008. ' 2.5 Documentary Evidence. The DRC will complete and submit the Documentary Evidence form supplied by the Department to the Purchaser and issue the 1mporary Mitigation. The DRC will not be required to assign Mitigation Credits prior to the issuance of the Final Order by the Department for the groundwater application described on Section 2.1 above. 2.6 Permanent Mitigation. At any time, the Purchaser may acquire Permanent Mitigation Credits to satisfy its (.groundwater Mitigation Obligation associated with its permit described in Section 2.1 above. The DRC is not responsible to issue any refund to Purchaser under this Agreement in any circumstance, including upon. the Purchaser purchasing Permanent Mitigation Credits. The decision to purchase Permanent Mitigation Credits is made solely at the discretion of the Purchaser. 2.7 Changes to the Mitigation Credits. At any time, the Purchaser may request to purchase additional Temporary Mitigation Credits from the DRC, beyond the 325 Temporary Mitigation Credits acquired pursuant to Section 2.2. The price for ' any additional credits will be the market price at the time of any new agreement acknowledges that it understands there is The Purchaser hereb between the arties y p . no guarantee that additional credits will be available for purchase beyond the terns of ' this Agreement or for years subsequent to 2008. 2.8 Warranty. The DRC warrants that the mitigation credits provided under this Agreement have been established and approved in accordance with the applicable requirements of the Department, and may be used fir mitigation purposes in the "General Zone of Impact." The DRC gives no warranty, expressed or implied, as to the ' validity or enforceability of the Mitigation Credits program, as established by administrative rules of the Department. The Purchaser acknowledges that the legality of the administrative rules adopted by the Water Resources Commission authorizing and establishing the basis for Groundwater Mitigation Banks, Mitigation Credits and groundwater appropriations in the Deschutes Basin are currently being challenged in the state courts of Oregon. The Purchaser hereby acknowledges that the Mitigation Credits subject to this Agreement are temporary in nature., being based upon annual instream leases, and that temporary credits from instream leases may not be available in. specific Zones of Impact in years subsequent to 2008. 2.9 Termination. If the Purchaser meets its mitigation obligation by satisfying that obligation with mitigation credits or water rights from a source other than the DRC, the DR.C shall have no further obligation to provide mitigation credits to the Purchaser in association with the groundwater application described in Section 2.1 and this Agreement between the Parties shall terminate with no refunds due to the Purchaser. - PAGI 4 pdx/l'l21asn3s7ysMOr/12Gr376.2 'EXHIBIT B-31 Exhibit Page 1_35 of a J 111. General Provisions 3.1 Notice. Notices sent under this Agreement shall be in writing and sent by certified or registered mail, return receipt requested, postage prepaid to such party at the address set forth above or to such other address specified by a party and delivered to the other party by written notice in accordance with this Section 3.1. Notices are effective three (3) days after placement in the U.S..Mail to the addresses of the DR.C and the Purchaser stated above. 3.2 Assignment. The Purchaser may assign its rights and obligations under ' this Agreement to any other person or entity for use in connection with any water right established under the Groundwater Application specified in Section 2.1. The 1urchaser shall provide Notice to DRC of any such assignment 30 days prior to any such assignment. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. 3.S Resale. Mitigation Credits purchased under this Agreement are solely for use with the Groundwater Application described in Section 2.1 of this Agreement and may not be resold or transferred to another groundwater application, permit or certificate, subject to Section S.2; provided, however, that the DRC may withhold its consent to an attempted assignment if such assignment involves the resale of the Mitigation Credits. J iJ 1 3.4 Remedy and Limitation on Damages. No refunds will be given for any payment pursuant to Section 2.2 or 2.3. The DRC; shall not be responsible for any indirect, incidental, special or consequential damages associated with the purchase ofthe Mitigation Credits or the DRC's performance or non-performance under this Agreement, including any damages attributable to installation and development of groundwater wells or other water diversion and delivery facilities developed by the Purchaser. The Purchaser acknowledges that its application for a permit from the Department to use groundwater and any and all development of wells and other facilities required to deliver water under its groundwater permit was done voluntarily and was not done in reliance on this Agreement. .5.5 Governing Law; Jurisdiction and Venue. This Agreement shall be governed by, and construed in accordance with, the laws of the State of•Oregon applicable to contracts executed and to be performed in Oregon. The parties irrevocably consent to the jurisdiction and venue of the state courts located in Deschutes County, Oregon in connection with any action relating to this Agreement. 3.6 Attorney's Fees. If any dispute arises in connection with the interpretation or enforcement of this Agreement, the prevailing party in any such dispute will be entitled to recover all of its attorney fees, paralegal fees, costs, disbursements, an other expenses from the non-prevailing party, including without limitation those arising before and at any trial, arbitration, bankruptcy, or other proceeding, and in any appeal. PAGE s pdx/ 112188/13879WNJOP/1261.376.2 EXHIBIT B-31 Exhibit '7D Page Z<,_of /3~ 3.7 Arbitration. Any dispute arising out ofor in connection with this Agreement, which is not settled by mutual agreement of the parties within sixty (so)- Clays of notification in writing by either party, shall be submitted to all arbitrator mutually agreed upon by the parties. lit the event the parties cannot agree on the ' the arbitrator, then the arbitrator shall be appointed by the Presiding Judge (Cavil) of Circuit. Court of the State of'Oregon for Deschutes County. The arbitrator shall be sclected within thirty (30)-clays from the expiration of the sixty (GO)-day period fbllowing notification of the dispute. The arbitration, and any litigation arising out of or in connection with this Agreement, shall be conducted in Bend, Oregon. The applicable arbitration rules for the American. Arbitration Association commercial arbitration rules shall apply unless the parties agree in writing to other rules. Insofar as the parties may legally do so, they agree to be bound by the decision of the arbitrator. 3.8 Amendment; Waiver. This Agreement may not be amended or modified ' except by an instrument in writing duly executed by the parties. Waiver of any term or condition of this Agreement shall only be effective if in writing, duly executed by the party to be bound thereby, and shall not be construed as a waiver of any subsequent breach. or waiver of the same term or condition, or a waiver of any other term or condition of this Agreement. ' 3.9 Headings. The headings in this Agreement are for convenience only and shall not affect the interpretation of this Agreement. 1 1 s.lo Severability. If any provision of this Agreement, or the application hereof to any person or circumstance is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions hereof and the application of' such provision to such persons or circumstances other than those to which it is found to be invalid, shall not be affected thereby and shall remain in frill force and effect. 3.11 Entire Agreement. This Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and undertakings, both written and oral, among the parties hereto with respect to the subject matter hereof: 3.12 No Third-Party Beneficiaries. This Agreement is fbr the sole benefit of the parties hereto and their successors and permitted assigns, and nothing herein, express or implied, is intended to or shall confer upon any other person. or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. [Signature Page Follows] 1)AUE: 6 pdx/1121 88/ 138798/N101VI 261376.2 EXHIBIT B-31 Exhibit ! Page ! 3_? of 15-9 Late. Deschutes Resolarres Conservancy Si ure: _ Meru R i ;1~.~r Print: nRL_ Qr~,~~, o s Title: Date: O!- Pncrs 7 pdx/ 1 1 2 188/ 13879WMOI'/ 1261376.2 `l'he. parties hereto have issued this Agreement to be executed as of the Eff"ctive L'u Signature: j 4xt"Z4-~;-W-41 c,~ Print: Title: Date: EXHIBIT B-31 Exhibit T) Page /`3 of /3 g