Attachment__1B_EERSupplemental8.pdf

City of Portland (Bull Run) Land Exchange, MTH No. 199

ENCUMBRANCE EVALUATION REPORT

City of Portland (Bull Run) Land Exchange

MTH No. 199

DEFINITIONS of terms used in this evaluation:

ADMINISTRATIVELY ACCEPTABLE – Outstanding rights that will not interfere with the use and management of the property. Land will be conveyed subject to administratively acceptable encumbrances, which are to be listed on the Warranty Deed to the United States.

ADMINISTRATIVELY WAIVED – An outstanding right that has potential to interfere with the use and management of the land and has been approved by the Regional Forester or authorized line officer. Written recommendation must state that a diligent effort to remove the outstanding right was made and discuss the potential impacts on future use and management of the land. The approved outstanding right will be listed on the Warranty Deed to the United States.

UNACCEPTABLE (formerly “REMOVE”) – Outstanding rights that are legally or administratively unacceptable, and rights that are not clearly defined or that might unduly interfere with land management and seriously impair values. Unacceptable encumbrances are to be removed before title vests in the United States.

OGC WAIVER (formerly “UNOBJECTIONABLE”) - Blanket clauses, encumbrances and exceptions that are provided for informational purposes, and do not affect the validity of title.

These items will not be listed on the Warranty Deed to the United States.

Preliminary Title Report for Issuing Title Insurance: Ticor Title Company, Preliminary Report, Order No. 3626043774CDW-TTPOR50, Supplemental No. 8, effective date of November 19, 2015.

Owner(s) of Record: City of Portland through its Bureau of Water Works

Legal Description:

The following described tracts of land situated in Township 1 South, Range 5 East of the Willamette Meridian, in the County of Multnomah and County of Clackamas and State of Oregon:

PARCEL 1A - The Northwest one-quarter of the Northeast one-quarter of Section 23 in the County of Multnomah.

PARCEL 1B - The South one-half of the Southwest one-quarter, the Northeast one-quarter of the Southeast one-quarter and the South one-half of the Southeast one-quarter of Section 23 in the County of Multnomah.

PARCEL 2 - Section 24, EXCEPT THEREFROM the North one-half of the Southeast one-quarter of the Northwest one-quarter in the County of Multnomah.

PARCEL 2A: The North one-half of the Southeast one-quarter of the Northwest one-quarter of Section 24, in the County of Multnomah and State of Oregon.

PARCEL 3 - The Northwest one-quarter of Section 26, in the County of Clackamas County.

The following described tracts of land situated in Township 1 South, Range 6 East of the Willamette Meridian, in the County of Multnomah and County of Clackamas and State of Oregon:

PARCEL 4A - The Northeast one-quarter of Section 18 in the County of Multnomah.

PARCEL 4B - Unnumbered Lot in the South half of the Southwest quarter of the Northwest Quarter of Section 18 (also shown in Deed of record as the South one-half of Lot 2) and the South one-half of the Southeast one-quarter of the Northwest one-quarter of Section 18 in the County of Multnomah.

REVISED PARCEL 5 - Lots 1 to 3 inclusive, the Northwest one-quarter of the Northeast one-quarter and the East one-half of the Northwest one-quarter, all in Section 19 in the County of Multnomah.

PARCEL 5A: The Southeast one-quarter of the Southeast one-quarter of the Southeast quarter of Section 19, Township 1 South, Range 6 East, in the County of Multnomah.

PARCEL 5B: The South one-half of the Northwest one-quarter of the Northeast one-quarter of Section 30, Township 1 South, Range 6 East, in the County of Clackamas.

PARCEL 6A - The South one-half of the Southwest one-quarter of Section 20 in Multnomah County.

PARCEL 6B - The South one-half of Northeast one-quarter and the Southeast one-quarter of Section 20, in the County of Multnomah.

EXCEPTING THEREFROM the Northeast one-quarter of the Southeast one-quarter of the Northeast one-quarter of the Southeast one-quarter of said Section 20.

PARCEL 7 - The Northeast one-quarter of the Northeast one-quarter, the South one-half of the Northeast one-quarter and the Northeast one-quarter of the Southeast one-quarter of Section 30, in the Clackamas County.

PARCEL 8 - The North one-half of the North one-half of Section 32 in the Clackamas County.

The following described tract of land situated in Township 2 South, Range 6 East of the Willamette Meridian, in the County of Clackamas and State of Oregon:

PARCEL 9 - The Northwest one-quarter of Section 12.

The following described tract of land situated in Township 2 South, Range 7 East of the Willamette Meridian, in the County of Clackamas and State of Oregon:

PARCEL 10 - Lots 1 and 2 and the South one-half of the Northeast one-quarter of Section 2.

These parcels contain 2438.61 acres, more or less.

Forest Service Surveyor, Roberta Romio, has completed a legal description verification form on July 24, 2014. She had updated an LDV on October 8, 2015.

General Exceptions listed on Schedule B of Commitment for Title Insurance as follows:

1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records; proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.

OGC WAIVER – All taxes and /or assessments shown by the public record must be paid prior to conveyance to United States. This is a generic general exception allowed by OGC.

2. Facts, rights, interests or claims which are not shown by the Public Records but which could be ascertained by an inspection of the Land or by making inquiry of person in possession thereof.

OGC WAIVER - site inspections of the property has been performed by USDA Forest Service personnel. Additionally, the landowner signed a statement indicating that there are no easements or reservations not of record.

3. Easements, or claims of easements, not shown by the Public Records; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water.

OGC WAIVER - Forest Service personnel have performed a site inspection of the subject parcels. Items not of record have been identified, and their disposition determined in the below.

4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. The term “encroachment” includes encroachments of existing improvements located on the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land.

OGC WAIVER - Forest Service personnel have performed a site inspection of the subject parcels. Items not of record have been identified, and their disposition determined as indicated below.

5. Any lien for services, labor or material heretofore or hereafter furnished, or for contributions due to the State of Oregon for unemployment compensation or worker’s compensation, imposed by law and not shown by the Public Records.

OGC WAIVER - A site inspection has been performed by Forest Service personnel. There are no recent structures or improvements on the subject parcels. There are no known liens against the City of Portland.

Specific Items and Exceptions:

6. The subject property is under public, charitable, fraternal, or religious organization ownership and is exempt from ad valorem taxation. Any change in ownership prior to delivery of the assessment roll may result in tax liability.

UNACCEPTABLE

7. The Land has been classified as Forest Land, as disclosed by the tax roll. If the land becomes disqualified, said Land may be subject to additional taxes and/or penalties. (Affects Parcel 2A) UNACCEPTABLE – Taxes and penalties cannot be against federal government concerning land classification.

8. Intentionally Deleted

9. Any adverse claim based upon the assertion that: A) Some portion of said land has been brought within the boundaries thereof by an avulsive movement of the South Fork, Hickman Creek and unnamed creek or has been formed by accretion or reliction to any such portion. B) Some portion of said property has been created by deposit of artificial fill. And Excepting; C) The rights of the public and governmental bodies for fishing, navigation and commerce in and to any portion of the premises herein described, lying below the high water line of the South Fork, Hickman Creek and unnamed creek. D) The right, title, and interest of the State of Oregon in and to any portion lying below the high water line of South Fork, Hickman Creek and unnamed creek.

OGC WAIVER

10 Any policy of title insurance issued under this application would not insure a legal right of access to and from said Land. Insuring Provision 4 would be deleted. (Affects various tracts) OGC WAIVER - Lack of legal right of access to and from various lands is not an issue, since the property will merge with other National Forest System lands which abut these subject parcels.

11 Rights of the public in and to that portion lying within streets, roads and highways. (Affects various tracts) UNACCEPTABLE – WILL BE REMOVED: public access is restricted.

12 Intentionally Deleted

13. Reservation in Patent from the United States to William Gardner, for the purposes of a right-of-way for ditches and canals constructed by the authority of the United States, recorded on March 2, 1893, Book 194, Page 91, Multnomah County. (Affects Parcel 2)

ADMINISTRATIVELY ACCEPTABLE

14. Reservation in Patent from the United States to Edwin Bradford, for right-of-way thereon for ditches and canals constructed by the authority of the United States, recorded on August 19, 1895, Book 227, Page 22, Multnomah County. (Affects Parcel 2)

15. Reservations in Deed from the United States to the Oregon and California Railroad Company of

Oregon, for “Yet excluding and excepting from the transfer by these presents, ‘All Mineral Lands’ should any such be found to exist in the tracts described in the foregoing, but this exclusion and exception according to the terms of the Statute shall not be construed to include lands containing coal and iron”, recorded on December 13, 1901, Book 283, page 442, Multnomah County. (Affects Parcel 1B)

ADMINISTRATIVELY ACCEPTABLE – ALL MINERALS WILL MERGE WITH TITLE

16. Reservations in Deed from the United States to the Oregon and California Railroad Company of Oregon, for “Yet excluding and excepting from the transfer by these presents ‘All Mineral Lands’ should any such be found to exist in the tracts described in the foregoing, but this exclusion and exception according to the terms of the Statute shall not be construed to include lands containing coal and iron”, recorded on November, 30, 1903, Book 313, Page 300, Multnomah County.

(Affects Parcel 1A, 1B and 5)

ADMINISTRATIVELY ACCEPTABLE – ALL MINERALS WILL MERGE WITH TITLE

17. Reservations in Patent from the United States of America to Hiram Hall, for a right-of-way thereon for ditches and canals constructed by the authority of the United States, recorded on February 10, 1920, Book 797, Page 450, Multnomah County. (Affects Parcel 6B)

ADMINISTRATIVELY ACCEPTABLE – WILL MERGE WITH TITLE

18. Reservations in Patent from the United States of America to Joseph W. Kenna, for a right-of-way for ditches and canals constructed by the authority of the United States, recorded March 9, 1920, Book 157, Page 140, Clackamas County. (Affects Parcel 9)

ADMINISTRATIVELY ACCEPTABLE – WILL MERGE WITH TITLE

19. Easement from the City of Portland to the United States of America, for roadway and telephone transmission, recording date October 24, 1957, Recording Number 37998, in Book 1868, Page 438, Multnomah County. Also recording date October 7, 1957, Recording Number 15038, in Book 531, Page 552, Clackamas County. (Affects Parcels 6A, 6B, and 7 (Road 1211)) UNACCEPTABLE – the reserved timber reserved rights and nonuse clause are unacceptable for the portion along the affected lex parcels. Termination Segment of Road would be executed addressing only the Road 1211 lying on subject lex parcels, since the existing easement reserved timber rights and nonuse clause which is unacceptable. The Termination Segment of Road would need to be executed and recorded prior to closing if Parcels 6A, 6B or/and 7 are included in the land exchange (lex) thus this exception would be deleted.

20. Intentionally Deleted.

21. Easement from the City of Portland to the United States of America, for a right-of-way for a road, recorded April 23, 1962, Recording Number 16026, in Book 2112, Page 444, Multnomah County and also recorded on April 25, 1962, Recording Number 8610, in Book 602, Page 601, Clackamas County. (Affects Walker Prairie Road across Parcels 1B, 2, 3, and 5 (Road 1010)) UNACCEPTABLE – timber, COP assigns, and road approach reserved rights are unacceptable. Release and termination of the reserved timber, COP assigns, and road approach would need to be executed and recorded prior to closing if Parcels 1B, 2, 3, and/or 5 are included in the lex. The easement addresses a road segment which is exclusively within the lex. Once release and termination is executed and recorded thus this exception should be deleted.

22. Easement, as contained in Ordinance No. 115203, from the City of Portland, Multnomah County, to the United States of America, for a right-of-way for a road, recorded date May 24, 1962, Recording Number 20945, in Book 2117, Page 415, Multnomah County. Also, disclosed by City of Ordinance

115203, approved May 22, 1962, Multnomah County. (Affects Walker Prairie Road (Road 1010) across Parcel 4A) UNACCEPTABLE – timber, COP assigns and road approach reserved rights are unacceptable. Release and termination of the reserved timber, COP assigns road approach and nonuse clause would need to be executed and recorded prior to closing if Parcel 4A is included in the lex. The easement addresses a road segment which is exclusively within the lex. Once release and termination is executed and recorded then ADMINISTRATIVELY

ACCEPTABLE.

23. Easement from the City of Portland to the United States of America, for a right-of-way for a road, recorded on January 2, 1964, Recording Number 00034, in Book 633, Page 566, Clackamas County. (Affects Parcel 10 - Thunder Rock Road #1027000 across Lots 1 and 2) UNACCEPTABLE – the reserved timber and reserved rights are unacceptable. In addition, the road is decommissioned. The right-of-way only addresses this road across the affected lex parcel. Release and termination of right-of-way easement would need to be executed and recorded prior to closing if this Parcel 10 is included in the lex.

24. Easement from the City of Portland, a municipal corporation to the United States of America, for a road, recorded on May 16, 1968, Recording Number 19272, in Book 619, Page 1101, Multnomah County and also recorded June 4, 1968 as Recording No. 68-10360, Clackamas County.

(Affects SE1/4SW1/4 of Parcel 1B and NE1/4NW1/4 of Parcel 3. Road 1010-400)) UNACCEPTABLE - timber reserved right is unacceptable. This road is decommissioned and no longer needed. Release and termination of right-of-way easement would need to be executed and recorded prior to closing if Parcels 1B and/or Parcel 3 are included in the lex.

25. Easement from the City of Portland to the United States of America, for a road, recorded on October

8, 1974, Recording Number 46354, in Book 1010, Page 1112, in Multnomah County. (Affects Parcel 4A - NE1/4NE1/4 (Road 1509)) UNACCEPTABLE - timber reserved right is unacceptable. Release and termination of timber reserved right and nonuse clause would need to be executed and recorded prior to closing if Parcel 4A is included in the lex. Easement addresses solely Road 1509 affecting solely subject lex parcel. Once release and termination is executed and recorded then

ADMINISTRATIVELY ACCEPTABLE.

26. Easement from the City of Portland to the United States of America, for a road known as FS Rd.

No. 1008, recorded on December 18, 1974, Recording Number 56510, Book 1020, Page 880, Multnomah County. (Affects NE1/4SE1/4 of Parcel 1B; NW1/4SW1/4, S1/2S1/2, NE1/4SE1/4, Parcel 2; NW1/4NE1/4, NE1/4NW1/4 (lot 1), S1/2NW1/4 (which includes lot 2), NW1/4SW1/4 (lot 3) of Parcel 5 (Road 1008)) UNACCEPTABLE - timber reserved right is unacceptable. Release and termination timber reserved right and non-use clause would need to be executed and recorded prior to closing if Parcels 2 and/or Parcel 5 are included in the lex. The easement addresses solely road across subject lex parcels. Once release and termination is executed and recorded then

27. Please be advised that our search did not disclose any open Deeds of Trust of record.

UNACCEPTABLE – There are no Deeds of Trust involved in this land transaction.

28. If requested to issue an extended coverage ALTA lenders policy, the following matters must be addressed.

UNACCEPTABLE – This is not a lenders policy.

29. Any claim based on the failure to comply with the provisions of Governmental Laws and

Regulations regarding the division of land.

UNACCEPTABLE

30. Property taxes in an undetermined amount, which are a lien not yet payable, including any assessments collected with taxes to be levied for the fiscal year 2015-16.

UNACCEPTABLE – All taxes and / or assessments must be paid by the landowner prior to conveyance to United States of America.

Items Not of Record:

N/A

Water Rights

See water report

Mineral Rights All mineral rights are included in land exchange.

Prepared and updated by: Gianna Vaccaro August 5, 2014 Updated August 6, 2015, December 1, 2015