1. Oregon Department of State Lands Annual Land Management Report October 2009 An annual report to the Land Board on land management activities, including annual revenues and expenditures for Fiscal Year 2008-2009.

2. Background of Annual Report  The Strategic Plan calls for the Department of State Lands to make an annual report to the Land Board.  The Annual Report is a compilation of land management activities for the past fiscal year (July 1, 2008 to June 30, 2009).

7. 2008-2009 Land and Mineral Rights Sales Land Sale Applications$ 500 Land Sales$ 200,851 Sale of Mineral Rights$ 79 Subtotal Land Sale/Application Revenue Deposited to Land Revolving Fund $ 145,851 Note: Only proceeds from the sale of Common School Fund lands or interests are deposited in the Land Revolving Fund. Total Land Sale and Application Revenue$ 201,430

8. Performance Measures and Targets Return on Asset Value: 3% to 5% 08-09 Actual: 0.8% Annual Increase in Net Operating Income: 3% to 5% 08-09 Actual: 49.9% Annual Increase in Gross Revenue: 5% to 7% 08-09 Actual: 21.5%

9. Highlights of Land Management Activities New authorizations: 243 Completed range inventory: 41,500 acres Noxious weed control: 848 acres Juniper thinning: 690 acres Completed New Carissa removal Completed portion of John Day River structure inventory: 59 uses Acquired 640 acres of in-lieu lands in Crook County Commenced sale process for 3,221 acres in SW Oregon

10. Highlights of Land Management Activities (Cont.) Completed 7 land sales for $200,851 Completed and submitted EPA 104e request for information on 75 sites within Portland Harbor Superfund Conducted archeological cultural resource surveys on 3,600 acres Completed Stockade Block Area Management Plan on 230,000 acres Completed Rogue River Navigability Study Completed rulemaking on Special Uses, Easements, Sand & Gravel, Public Recreational Use, Wave Energy, Land Sales & Exchanges

11. Highlights of Land Management Activities (Cont.) Completed in-lieu land transfer of 119.06 acres of land to resolve erroneous land sale Completed acquisition of 4 acres of land within South Slough National Estuarine Research Reserve Completed DSL headquarter building improvements Completed seven SB338 Go Oregon Economic stimulus projects

12. Projected Land Management Actions for FY 09-10 Complete land exchange with Guistina, Oregon Dept. of Forestry, and Deschutes County and Oregon Military Dept. Complete land sales on 14 parcels of land in NE Oregon and SW Oregon Complete Ward Road parcel conditional use permit (CUP) Implement South Redmond, Stevens Road and Stockade Block Plans Complete sale preparation on 25-30 parcels of land in Lane, Benton, Polk, Lincoln, Coos, Curry and Douglas counties Continue in-lieu selections of 1,576 acres of land

13. Projected Land Management Actions for FY 09-10 (cont.) Initiate Central Oregon Area Management Plan Complete noxious weed treatment on 1,000 acres in eastern Oregon Complete 30,000 acres of rangeland inventory Complete rangeland improvement on 300 acres: juniper thinning; 1.5 miles of waterline development; 5 miles of fence construction Complete Snake River waterway inventory Complete DSL headquarter building improvements and energy efficiency control by converting existing pneumatic air control system to DDC air control system

14. Projected Land Management Actions for FY 09-10 (cont.) Continue work with other agencies and OPAC on marine reserves and territorial sea plan revision and sea floor mapping. Continue coordination on Portland Harbor Superfund investigation natural resources damage assessment, and early action with Superfund area. Complete Portland Harbor boundary survey project under SB338 Go Oregon Economic stimulus package Complete Waterway Leasing, Grazing and Marine Reserve administrative rulemaking