WEN.307_EXHIBIT B_LDV.pdf

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Land Acquisition Appraisal - Washington Cascades Phases I-V
Solicitation number
1240BE22Q0017
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This solicitation requests land appraisal services. The Forest Service Pacific Northwest Region seeks proposals for appraisal services to determine the fair market value of approximately 5,000 acres of land across five phases of the Washington Cascades acquisition. Offerors should have extensive experience appraising rural land and familiarity with Uniform Standards of Professional Appraisal Practice. Proposals are due by April 22, 2022. The period of performance will be from date of award through September 30, 2023. Award is expected by May 13, 2022.

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LAND DESCRIPTION VERIFICATION

NON-FEDERAL LAND

(Ref. FSH 5409.13, Chapter 30)

Purchase/Exchange Name: (WEN-312 / SNO-219) & (WEN-307 / SNO-217)

Forest Name: Okanogan-Wenatchee Tract No.:

Assessor’s Parcel Number:

21-13-09000-0001; 21-13-19000-0001; 19-13-03000-0001; 19-13-05000-0001;

19-13-17000-0001; 19-13-19000-0001; 19-13-29000-0001; 19-13-31000-0001;

19-13-33000-0001; 131931-31001 (Yakima); 19-14-07000-0001; 19-14-11000-0001 thru 19-14-11000-0015; 19-14-13000-0001; 19-14-15000-0001; 19-14-16000-0001;

19-14-17000-0001; 19-14-18000-0001; 19-14-20000-0001; 19-14-21000-0001;

19-14-22000-0001; 19-14-23000-0001; 19-14-27000-0001; 19-14-28000-0001;

19-14-33000-0001; 19-14-35000-0001; 19-15-13000-0001; 19-15-15000-0001;

19-15-17000-0001; and 19-15-19000-0001.

County, Town, or Borough: Kittitas County & Yakima County State: Washington

1. Legal Description: (Include subdivision part, Section, Township, Range, Meridian; or lot, block, warrant, parcel, grant, etc., as appropriate.)

See attached “Recommend Legal Description for Appraisal”

2. Area: Official (Public Land Survey)

18376.23 Acres

Record (title/deed/county)

Actual (land survey, infor.)

Tax Assessor’s (taxing authority)

3. Record Documents:

All documents reviewed are located in the electronic LDV case files, see the two attached LDV narratives for links to casefiles and see the exhibits provided with said narratives for a list of all documents reviewed.

4. Comments:

The acquisitions by the USA are currently contemplated to occur under three separate conveyances, legal descriptions have been prepared for those conveyance documents and are on file within the project casefiles. The legal description attached with this Verification Form is that recommended for appraisal purposes and it contains all of the lands involved in the two cases cited above. Should the USA be in a position to acquire all of the involved lands under a single conveyance this description may be used for that purpose, provided it is recorded in both Yakima and Kittitas Counties.

The legal description for the above described lands, proposed for acquisition by the UNITED STATES OF AMERICA, has been reviewed for technical sufficiency and acceptability for acquisition purposes and practicability for locating boundary lines.

Acquisition of the above described lands is recommended based on the legal description referenced thereto, or in Preliminary Title Report/Policy of Title Insurance

No. , dated , and issued by:

For purposes of acquisition, the acreage is _18376.23 acres._

Land Surveyor, USDA Forest Service Date

September 20, 2021

Recommended Legal Description for Appraisal:

Willamette Meridian Kittitas & Yakima Counties, State of Washington

T. 19 N., R. 13 E., secs. 3, 5, 17, 19, 29, 31, and 33.

T. 21 N., R. 13 E., secs. 9, and 19.

T. 19 N., R. 14 E., secs. 7, 11, 13, 15, 16, 17, 18, 20, 21, 22, 23, 27, 28, 33, and 35.

T. 19 N., R. 15 E., sec. 13, lots 1 thru 5, SW1/4NE1/4, and S1/2NW1/4;

sec. 15, lots 1 thru 4, S1/2NE1/4, and S1/2NW1/4;

secs. 17 and 19.

EXCEPTING THEREFROM that portion of lot 1 of section 9, T.21N., R.13E., W.M., described in the conveyance dated June 15, 1916 from Northern Pacific Railway Company to the United States of America, recorded on October 14, 1963 under Kittitas County Auditor’s Number 45690, Volume 31 on Page 306, and containing 0.88 acres, more or less.

ALSO EXCEPTING therefrom that portion of lot 1 of section 9, T.21N., R.13E., W.M., lying below the ordinary high line for Lake Kachess, as excepted in the conveyance from Plum Creek Timberlands, L.P. to Central Cascades Forest, LLC., recorded on March 4, 2015 under Kittitas County Auditor’s Number 201503040031.

The areas described aggregate 18376.23 acres, more or less.

2021-09-20T11:55:39-0700

Jonathan B. Drew II

LAND

DESCRIPTION

VERIFICATION

WEN-307 & SNO-217

Central Cascades Forest, LLC, Partnering with The Nature Conservancy

Case# WEN-307 & SNO-217

Okanogan-Wenatchee National Forest, Naches & Cle Elum Ranger Districts

In Sections 3, 5, 17, 19, 29, 31, and 33 of T.19N., R.13E.

And In Sections 9, and 19 of T.21N., R.13.E., Willamette Meridian, Kittitas & Yakima Counties, Washington

Jonathan B. Drew II USDA Forest Service Land Surveyor

Oregon PLS# 89396 Maine PLS# 2545

All documents reviewed and cited in the creation of this report are located in the electronic LDV casefile and here:

https://usfs.box.com/s/du4lz3a9kadybhls1zwcnd01bf8hb6z6

Table of Contents

Pages 7 & 8

Pages 9 & 10

Pages 11 & 12

Pages 13 to 15

Pages 15 to 24

Pages 27 to 39

Pages 40 to 43

Pages 44 to 64

Title Page

Table of Contents

Blank

Vesting Deeds Legal Descriptions

Background

Subject Lands Identification

Diagrams Showing Current Boundary Status

Originating Title Documents

Encroachments, Surveying & Posting

Deed Exceptions

Riparian Boundaries

Access

Mineral Rights

Water Rights

Justifications for Changes to Legal Description

Zoning

Area

Acknowledgement

Appendix A – Title Insurance Exceptions Review (Kittitas)

Appendix B – Title Insurance Exceptions Review (Kittitas)

Appendix C – Additional Relevant Documents

Appendix D – Survey History Pages 65 to 69

PAGE INTENTIONALLY LEFT BLANK

Vesting Deeds Legal Descriptions:

Kittitas AFN# 201503040031

Yakima AFN# 8102834

Legal Description Verification Narrative Known As Case# WEN-307 & SNO-217

In Sections 3, 5, 17, 19, 29, 31, and 33 of T.19N., R.13E.

And In Sections 9, and 19 of T.21N., R.13.E., Willamette Meridian.

Kittitas & Yakima Counties, Washington Okanogan-Wenatchee National Forest Naches & Cle Elum Ranger Districts

Background:

The subject lands, involving lands in 9 sections within two townships, are located about 15 miles Northwest and 12 to 16 miles Southwest of the town of Cle Elum, Washington. Title to the subject lands currently resides in Central Cascades Forest, LLC.

The recommended legal descriptions and Land Description Verification forms can be found on pages 3 to 5 of this report. These include the two descriptions recommended for use in conveying separately the lands residing in Kittitas County and those located in Yakima County to the United States of America. The narrative section of this report is intended to:

Support the language used in the recommended descriptions, outline the relevant title documents and survey records reviewed and describe what affect they may have on the subject lands or their boundaries.

Note: This report utilizes the following abbreviations to cite documents:

(see YEAR document) OR (see AFN 12345678) refers to the documents summarized in “Appendix C”, found on pages 44 to 62 of this report.

(see YEAR map) refers to the documents summarized in “Appendix D”, found on pages 63 to 67 of this report.

Subject Lands Identification:

The subject lands are identified in this report by the following identifiers: (See also Subject Lands Identification Map. shown on page 8 of this report)

Co. Parcel # 046635 036835 145234 155234 445334 465334 565334 585334 665334

Yakima #

County Tax Map 21-13-09000-0001 21-13-19000-0001 19-13-03000-0001 19-13-05000-0001 19-13-17000-0001 19-13-19000-0001 19-13-29000-0001 19-13-31000-0001 19-13-33000-0001

13193131001

Twp. & Rge.

21N., 13E.

21N., 13E.

19N., 13E.

19N., 13E.

19N., 13E.

19N., 13E.

19N., 13E.

19N., 13E.

19N., 13E.

19N., 13E.

Section Parcel Name 9* Overlook Road 19 Amabilis Mountain 3 Big Creek 5 Coal Creek 17 Manastash Ridge W.

19 W. Fork Bear Creek 29 Bear Cabin 31* Yakitt County 33 E. Fork Bear Creek 31* Yakitt County

*Note: see the “Deed Exceptions” section on page 12 of this report for more details.

Subject Lands Identification Maps Township 21 North, Range 13 East, Willamette Meridian.

Township 19 North, Range 13 East, Willamette Meridian.

Sec. 9

Sec. 19

Sec. 3 Sec. 5

Sec. 17

Sec. 19

Sec. 29

Sec. 33

Sec. 31

Diagrams Showing Current Boundary Status Township 21 North, Range 13 East, Willamette Meridian.

Section 9 Section 19

Section 3 Section 5

Section 17 Section 19

Section 29 Section 31

Section 33 Legend

Corner Remonumented from Original

Evidence under State Authority

Corner Remonumented from Original

Evidence under Federal Authority

Original Corner Lost, Re‐established by

Measurement under State Authority

Original Corner, no other records located

Original Corner, records indicate lost

Line marked as National Forest Boundary

Originating Title Documents:

The subject lands are a portion of the lands originally ceded to the United States of America by “Treaty with the Yakima” in 1855. They were then granted to the Northern Pacific Railway Company under Act of Congress approved July 2, 1864 (13 Stat. 365), entitled “An Act granting lands to aid in the construction of a Railroad and Telegraph Line for Lake Superior to Puget’s Sound, on the Pacific Coast, by the Northern Route” and by the Joint Resolution of May 31, 1870 (16 Stat., 378). These grants vested sometime in the 1880’s upon satisfaction of the terms in said act and the exact location of these granted lands were later fixed by the completion of the official government surveys (see 1911 & 1915 maps) after which the subject lands, among many other lands, were conveyed from United States of America under two patents.

1916 Serial Patent No. 526326, Document No. 303.5, BLM Serial Number WAORAA 007667, issued on April 24, 1916. This patent included all of the subject lands in Township 21 North, Range 13 East, W.M., among many other lands, and contained no reservations to the United States.

1918 Serial Patent No. 630219, Document No. 322, BLM Serial Number WAORAA 031497, issued on May 13, 1918. This patent included all of the subject lands in Township 19 North, Range 13 East, W.M., among many other lands, and contained no reservations to the United States.

Encroachments, Surveying & Posting:

Records related to the condition and perpetuations of the original corner monuments and the records of surveys along the bounds of the subject lands were reviewed and are listed in the “Appendix D” on pages 63 to 67 of this report. Diagrams showing the status of the controlling original corners for the subject lands, as according to said records, are provided on pages 9 & 10 of this report. None of the controlling corners or lines of the subject lands were physically inspected as part of this report. There are no concerns identified in the review of the survey records except as provided below and in the “Riparian Boundaries” section on pages 13 to 15 of this report.

A new National Forest boundary line will be created following acquisition of the subject lands, being the North line of Section 5, T.19N., R.13E., W.M.. No records beyond the original survey were located related to several of the controlling original corners along this line however ortho-imagery show a clear management line along most lines surrounding said Section 5. Along the East 1/2 of said North line there is indication of a possible timber trespass, approximately 1.3 acres in size, by the adjacent owner to the North in Section 32, T.20N., R.13E., W.M., see below for diagram. Said adjacent owner holds an easement right over the subject lands, (see AFN 362953), in the immediate vicinity of the area of concern. It’s possible the existing management limits are the result of exercise of its easement rights or otherwise at the consent of the owner of the subject lands. The historical imagery shows the harvest took place between 2014 & 2017 and as such there is no potential the limits of this occupational line to have perfected unwritten title.

It is recommended said new boundary line be marked and posted as soon as practical following acquisition of the subject lands.

2015 Image

The acceptance of title in the subject lands will result in the elimination of 35 miles of current National Forest boundary, of which 24.5 miles are noted as having been marked with National Forest boundary signage in the past. All of the noted existing boundary signage surrounding the subject lands will be in error following acceptance of title and is recommended to be de-posted following acquisition. De-posting involves removing all signage indicating the presence of a National Forest boundary line and should be completed as soon as practical to avoid confusion of the public, land managers and law enforcement as to the ownership and public land status of the subject lands.

Deed Exceptions:

The recommended legal descriptions provided in this report includes several exceptions as required to omit lands from the standard Public Land Survey System descriptions and to be consistent with what the current owner can convey.

Each description provided herein includes an exception designed to convey only the lands residing in each county, excluding the lands within another county, specific to the Kittitas / Yakima county line which crosses within Section 31, T.19N., R.13E., W.M..

The other two exceptions in the recommended legal description relate to subject lands in Section 9, T.21N., R.13E., W.M. and are included as exceptions in the Vesting Deed (see AFN 201503040031). One of these addresses the existence of an out-grant parcel conveyed to the United States of America (see AFN 45690). The second exception excludes lands below ‘the ordinary high line’ of Lake Kachess. This exception was likely introduced into the chain of title descriptions by persons under the assumption the state had title to the submerged lands, as would normally be the case. In any case the exception must carry forward in the proposed conveyance to the United States of America as the lands conveyed to the current owner by the Vesting Deed do not include any lands below said ‘ordinary high line”. See the “Riparian Boundaries” section below for more information on the county line and for a discussion regarding title to submerged lands omitted by the Lake Kachess exceptions.

Riparian Boundaries:

County Boundary (Little Naches River):

The two recommened legal descriptions provided in this report were drafted to convey the lands situated in the Yakima County and those situated in Kittitas County.

The boundary line between these counties is located across the subject lands in Section 31, T.19N., R.13E., W.M.. The portion of the county boundary in said section is described as, “along the main channel of the Naches River”, as codified in the Revised Code of Washington under RCW 36.04.190 (Kittitas). The “Little Naches River” is the main branch and source of the “Naches River” as they are now known. As an ambulatory boundary it is subject to the movement over time with the channel. However, given both affected parcels are to be conveyed to the United States of America at the same time, or as near as practical, and the parcel descriptions reflect a common boundary there are no concerns related to this riparian boundary.

Lake Kachess Boundary:

The state of Washington identifies Lake Kachess as a navigable body of water in its map document titled “2009 Statewide Navigablity Assessment” however no adjudication by a federal court has been located which would settle the question definitivly. The grant of the subject lands by the United States of America vested in the ownership of the railraod company prior to statehood, making them subject to the ‘Dislaimer of Ownership’ clause found in Article 17, Section 2 of the Washington State constitution, wherein the State disclaims “title in and claim to” submerged lands which had vested prior to statehood (1892, Scurry V. Jones (4 Wash. 468)). This is dispite the fact the patents for the subject lands were issued after statehood, as a concequence of the public land surveys having not been completed (1905, Kneeland v. Korter (40 Wash. 359)).

Federal and State case-law related to these questions have developed the generalized rule for Washington: For uplands patented or vested by the United States before statehood and abutting a navigable body of water, ownership extends to whichever line is farther out: the line of ordinary high water or the government meander line (1908, Brace and Hergert Mill Co. v. State (49 Wash. 326)).

Section 9, T.21N., R.13E., W.M. was made fractional in the original survey by the meanders of Lake Kachess, creating Government Lot 1 in place of the SW1/4 of the SW1/4. The vesting deed for the subject lands excludes lands below the “ordinary high line” and also excludes a parcel of land previously conveyed to the United States of America (see AFN 45690) refered to herein as ‘shore lands’. When conveyed the description for the ‘shore lands’ included the meander line as its westerly limits and extended easterly to include lands above the line of ordinary high water as it existed at the time of survey, between 1910 and 1916.

The documents reviewed show that since that time erosion has overtaken much or all of the ‘shore lands’ previously conveyed, making them submerged lands owned in fee by the

United States of America. Some of the remainder lands within said Seciton 9 have also eroded, making them submerged lands owned in fee by a predicessor in interest to the current owner of the subject lands, refered to herein as ‘gap lands’. These ‘gap lands’ reside between the “ordinary high line” and the easterly limits of the ‘shore lands’ as shown in the below diagram. The remainder lands within said Section 9 are the subject lands for this proposed acquisiton. The Recommened Legal Description provided herein recognizes the grant can only extend to said “ordinary high line” or to the limits of the ‘shore lands’, whichever is closest. Said “ordinary high line” is an ambulatory boundary subject to erosion, reliction and accretion.

The language “ordinary high line” was introduced as an exception into the chain of title sometime after patent, possibly under the assumption the state of Washington had claim to the submereged lands. The grantor, or their successor in interests, in the first conveyance document in which it appears, is the owner-in-title to these ‘gap lands’ because they were effectivly reserved by the grantor by language of ommision. Had this language not been included the boundary would be fixed & entirely consistant with that of the ‘shore lands’.

The possible owner-in-title to the ‘gap lands’ include: Plum Creek & Burlington Northern (and their various corporate entities through time). If all deeds in the chain of title use this language then it would be held by the original patentee, Northern Pacific Railway Company and their successor in interests. In order to cure the existance of these ‘gap lands’ and secure title to all of said Section 9 the owner-in-title of these ‘gap lands’ will need to grant or quit claim the ommited lands. Risks associated with these submerged lands remaining in private ownership primarly relvolve around hurdels to future development within the ‘gap lands’area, for example a boat ramp, dock or other improvements built out beyond the line of ordinary high water and over the ‘gap lands’.

Access:

Access to the subject lands is achieved over a series of Forest Service roads (FSR) over existing easements across private lands and over other NFSL, National Forest System Lands. The subject lands on whole have adequate access as a result of having been largely managed as commercial forest lands by the several timber companies in the chain of title. A network of private roads appurtenant to the subject lands provide additional access and largely begin and end within each parcel or are allowed under existing easements where they do cross over NFSL. These private roads do not cross over other private ownership except for one road as noted below in the Section 5, T.19N., R.13E., W.M. description. Forest Service roads cross the subject lands under existing easements in favor of the United States of America, these easements will merge on title.

All portions of the private roads identified which are located on the subject lands will be conveyed with the fee lands. No easements were located allowing for any of the trails identified as crossing over the subject lands, however these legal access questions will be cured upon acceptance of title in the subject lands as they will pass with the underlying fee ownership.

The subject lands are located in four different Forest Service road cost share agreement areas, being the “Little Naches Agreement Area” (see 1971 document), the “Amabilis Mountain Agreement Area” (see 1965 document), the “East Kachess Agreement Area” (see 1967 document), and the “Cabin Creek Agreement Area” (see AFN 298264). As a result of these agreements there has been a long history of reciprocal easement grants for the road systems to allow for the various road networks within the agreement areas. Assignments and conveyances of these agreements and of individual easements affecting or benefiting the subject lands and in favor of private parties have been granted to other parties, by assignment or as successor in interests, and as such the general statement can be made that the subject lands are: subject-to any valid outstanding rights related to the easements and road cost share agreements of record. The outstanding mineral interest holder and the remaining private lands accessed by some of the roads in question are the primary beneficiaries of these outstanding rights.

Access and road infrastructure specific to each of the subject lands is outlined below. Diagrams are provided which show Forest Service roads which encumber the subject lands in Red and private roads appurtenant to the subject lands in Blue. Road easements issued by the United States of America which benefit the subject lands are not shown but those located are included in “Appendix C” on pages 44 to 63 of this report, these provide for legal access to the subject lands over the adjacent NFSL to a public road.

Section 9, T.21N., R.13E., W.M.

Forest Service Roads:

A) FSR 4818-000 aka “East Kachess Road No. 2105” (see AFN 338309) B) FSR 4824-116 aka “Firekill Road No. 2277C” (see AFN 340893 & 453362) C) FSR 4824-115 aka “Overlook Road No. 2277B” (see AFN 340893) D) FSR 4824-000 aka “Kachess Ridge Road No. 2277” (see AFN 338309, 340893) E) FSR 4824-114 aka “Kachess Ridge Spur No. 2277A” (see AFN 338309, 473239)

Private Roads:

F) Private spur road originating from FSR 4824-000 in the NE1/4SE1/4 of Section 9.

G) “Corner Road” beginning in the SE1/4SW1/4 of Section 4, extending into Section 9.

FSR 4818-000, indicated as road “A” on the above map, crosses over Section 9, 8 and 5 and as such may remain subject to use as access to the remaining private lands, currently owned by Steven C. Fury & Nancy E. Lawton, lying in Section 5. Similarly FSR 4824-000 could be subject to the same use as it originates from said FSR 4818 in Section 8 and crosses over a portion of Section 5.

Additionally, FSR 4818-000 continues across Section 5 and ends in Section 33, T.22N., R.13E., W.M., on NFSL however no easements were located in favor of the United States of America over approximately 1 mile of this road in said Section 5 to allow access to its lands in Section 33. See the map above and on the right for more detail. Note: Said private roads in Section 5 are not being conveyed by this proposed acquisition.

Section 19, T.21N., R.13E., W.M.

A) FSR 4822-000 aka “Amabilis Mountain Road No. 2182” (see AFN 326517) B) FSR 4822-118 aka “Amabilis Beacon Road No. 2182A” (see AFN 351408) C) FSR 4822-125 aka “Cornice Road No. 2182E” (see AFN 403220)

D) Private extension of FSR 4822-000 and spur roads originating in the NW1/4NW1/4 of Section 19.

FSR 4822-118, indicated as road “B” on the above map, crosses over Section 19 and 30 and at one time tied into FSR 4828-119, crossing over lands currently owned by Cascade Land Conservancy and by Forterra NW in Section 29. The last .70 miles of said FSR 4828-119, ending at the East line of Section 30, is indicated as closed or “Basic Custodial Care” in the Forest Service Infra database although aerial photographs indicate the road surface is free from vegetation and may be actively utilized for recreation or otherwise. This route may be subject to serve as alternative access to the private lands in Section 29 whose primary access is by FSR 4828-000 and Starks Road out of the town of Easton. However, no easements for the use of FSR 4822-118 in favor of the private lands in Section 29 were located. See the map above and on the right for more detail. Note: Said private roads in Section 29 are not being conveyed by this proposed acquisition.

D

D

Section 3, T.19N., R.13E., W.M.

A) The private extension and spurs of FSR 4110-116 aka “North Big Creek Road No. 1901”.

B) Private spur road originating from FSR 4110-116 in the NE1/4SE1/4 of Section 4.

C) The private extension of FSR 4110-115 aka “Sigans Road No. 2004G”, with spur roads.

D) The private extension of FSR 4110-111 aka “Greek Creek Road No. 1934-A”.

“Big Goat Trail No. 1304.1” and “Big Creek Trail No. 1341” are unmaintained hiker-only trails shown on topographic maps and Forest Service trail database as crossing over Section 3 with Big Goat Trail crossing the North line of Section 3 and ending at its Junction with Big Creek Trail which crosses the East line of the Section at several points

Section 5, T.19N., R.13E., W.M.

A) FSR 4110-000 aka “Log Creek Road No. 2004” (see AFN 201403010002) B) FSR 4110-116 aka “Big Creek Road No. 2004.1” (see AFN 201403010002) C) FSR 4110-121 aka “Log Saddle Spur Road No. 2004F” aka “Agate” (see AFN 351409) D) FSR 4110-119 aka “Lean-To Road No. 2004E” (see AFN 201403010002) E) FSR 4110-118 aka “Anderson Camp Road No. 1932” (see AFN 201403010002)

F) FSR 4100-140 aka “Cole Creek Road” (see AFN 362953)

Note: see also Kittitas PTR Exemption #28 review for more information.

G) Private spur roads originating from FSR 4110-118 at several points in Section 5.

H) Private spur road originating from FSR 4110-000 in the NW1/4SW1/4 of Section 5.

J) FSR 4110-117 aka “Antler Road No. 1901” beginning on the East line of Section 5.

K) “Switchback Road” originating from FSR 4100-140 in Govt. Lot 5 of Section 4.

L) Unconstructed access road easement, not evident road was built (see AFN 199612180017)

FSR 4100-140 aka “Cole Creek Road” (see AFN 362953): Originates at “Cabin Creek Road” in the NE1/4 of Section 21 (T.20N., R.13E.) thence crossing private lands, other than the subject lands, in Sections 21, 28 & 33 (T.20N.), thence continues across the subject lands in Government Lots 1 & 8 of Section 5 (T.19N., R.13E.), thence continues across NFSL in Section 6, thence continues to its terminus in the SW1/4 of the SE1/4 of Section 33, (T.20N.)

No easements were located in favor of the United States of America for this road across the S1/2SE1/4 of Section 28(T.20N.), all of Section 33 (T.20N.) or Government Lots 1 & 8 of Section 5 (T.19N.). Additionally a spur road, FSR 4110-240, originates from “Cole Creek Road” on private lands, other than the subject lands, in Section 33 (T.20N.), thence continuing across the subject lands in Government Lot 1 of Section 5 (T.19N.), thence continues across NFSL to its terminus in Government Lot 3 of Section 4 (T.19N.). No easement in favor of the United States of America was located allowing for the portions of this road over private lands in Section 33 (T.20N.) or across the subject lands in Section 5 (T.19N.).

“Goat Peak Trail #1304” is a hiker only trail shown on topographic maps as crossing over the subject lands in Section 5. No easement was located allowing for this trail. From the East line of Section 5 about 1000 feet of the trail crosses through open forest and then continues approximately 1.1 miles northerly through the section over an existing private road, labeled “G” on the above diagram, to its junction with the “Anderson Camp” road, FSR 4110-118.

Section 17, T.19N., R.13E., W.M.

A) Private extension of FSR 1911-780 with spurs, beginning in the N1/2N1/2 of Section 20.

Manastash Ridge-West Trail No. 1388, aka No. 1323, and Upper Big Creek Trail No. 1388.2, aka No. 1388A are Single Tread Off Highway Vehicle trails shown on topographic maps as crossing the subject lands in the S1/2 and the E1/2NE1/4 of Section 17.

Section 19, T.19N., R.13E., W.M.

A) FSR 1911-785 aka “Door Way Road No. 1911M” (see AFN 464542) B) FSR 1911-000 aka “Bear Creek Road No. 1911” (see AFN 503992)

C) Private spur road originating from FSR 1911-785 in the E1/2SE1/4 of Section 19.

D) Private extension of FSR 1911-785 beginning in the E1/2SE1/4 of Section 19.

E) Private spur roads originating from FSR 1911-000 in the SW1/4 of Section 19.

“Cub Creek Trail # 943A” is a Single Tread Off Highway Vehicle trail shown on topographic maps and Forest Service trail database as crossing the subject lands in the NW1/4 and in the SE1/4 of Section 19.

Another trail is shown on older maps, as shown on the right, and follows West of and along West Fork Bear Creek to a point in the NW1/4 of Section 19, thence climbing steep slope northwesterly to the West line of the section.

Section 29, T.19N., R.13E., W.M.

A) FSR 1911-000 aka “Bear Creek Road No. 1911” (see AFN 414705) B) FSR 1911-780 aka “Bear Cabin Road No. 1914” (see AFN 454083) C) FSR 1911-784 aka “Backdoor Road No. 1914C” (see AFN 464542) D) FSR 1911-786 aka “Side Door Road No. 1914N” (see AFN 464542) E) FSR 1911-769 aka “Front Door Road No. 1912A” (see AFN 503992)

F) Private extension of FSR 1911-780 originating in the NE1/4NW1/4 of Section 29.

G) Private spur roads originating from FSR 1911-780 in the NW1/4 of Section 29.

H) Private spur roads originating from FSR 1911-780 in the NE1/4 of Section 29.

“Bear Creek Trail # 943” is a Single Tread Off Highway Vehicle trail shown on topographic maps and Forest Service trail database as crossing the subject lands in the W1/2SW1/4 of Section 29.

Section 31 T.19N., R.13E., W.M.

A) FSR 1900-000 aka “Little Naches Road No. 197” aka “Naches Pass Road” (see AFN 477638 & Yakima AFN 2696352) B) FSR 1911-765 aka “Dew Claw Road No. 1911T” (see AFN 498420)

C) Private spur roads originating from FSR 1911-765 in the SW1/4SW1/4 of Section 30.

D) Private spur road, FSR 1913-941 aka 1923G, originating from FSR 1913-000 in the

NE1/4NE1/4 Section 36, T.19N., R.12E., W.M. with two spur roads stemming from it.

Pyramid Peak Trail # 941 is coincident with 4WD Nachess Pass Trail No. 4W-684 and is a heavily used Off Highway Vehicle Trail shown on topographic maps and Forest Service trail database as crossing the subject lands in the S1/2 of Section 31.

Section 33, T.19N., R.13E., W.M.

A) FSR 1911-711 aka “East Fork Bear Creek Road No. 1912” (see AFN 443849) B) FSR 1911-770 aka “Eagle Road No. 1912B” (see AFN 503992)

C) Private spur roads originating from FSR 1911-711 in the NE1/4 of Section 33.

D) Private spur road originating from FSR 1911-770 in the NW1/4 of Section 33.

Mineral Rights:

The subject lands are subject to outstanding mineral rights, specifically the “Reserved Oil and Gas” rights. The mineral rights were separated from the fee ownership by the reservations made in a deed (see AFN 521473) and correction deed (see AFN 556253) from PCTC, Inc. to Plum Creek Timber Company, L.P.. This deed reserved unto the grantor two specified mineral interests, being “Reserved Oil and Gas” and “Reserved Minerals”, and “Timber Rights”.

Subsequent to that conveyance these separated interests were conveyed separately to three parties. The “Reserved Minerals” and “Timber Rights” were eventually reunited with the surface estate however the “Reserved Oil and Gas”, conveyed to Meridian Oil Inc. (see AFN 521475), remains outstanding.

Access rights by the “Reserved Oil and Gas” owner were established in said reservation deed and have been further stipulated and defined through assignments and agreements (see AFN 539737 & 199604080028). All of the subject lands are subject-to the access rights of the owner of the outstanding mineral estate, being Burlington Resources Oil & Gas Company L.P., a Delaware Partnership (formerly known as Meridian Oil Inc. and Burlington Resources Oil & Gas Company), and a wholly owned subsidiary of ConocoPhillips. Said owner has affirmed its ownership to the said “Reserved Oil and Gas” over all of the subject lands in a Notice of Claim to Severed Mineral Interests (see AFN 200810130018).

A review of the LR2000 database, operated by the Bureau of Land Management, indicates there are no unpatented mining claims located on the subject lands and there are no active claims located within the entire townships the subject lands reside within.

Water Rights:

A search of the Washington Department of Ecology’s Water Resources Explorer does not indicate any water rights affecting or benefiting the subject lands.

Justification for Changes to Legal Description:

The legal descriptions recommended for use in the two proposed conveyance documents is included as on pages 3 to 5 of this report. This description is in substantial agreement with that of the Vesting Deeds and the descriptions which were provided in Title Commitment File No.

382355AM (Kittitas) & 359716AM (Yakima). Variations in method and format of the description of lands within the Public Land Survey System are many and common. The recommended description provided herein uses the format prescribed by the Bureau of Land Management, being the current standard for the conveyance of lands by and to the United States of America.

Should the title commitments be updated in the future they should be requested to utilize the legal description recommended herein as the description being insured.

Zoning:

All of the subject lands are classified as “88 – Designated Forest Land”, under the Designated Forest Land Statute (R.C.W. 84.33). Under the statute the land may be removed from this designation if sold or transferred to an ownership that makes the land exempt from ad valorem taxation. In general the zoning requirements should not conflict with the uses exercised on the majority of NFSL.

Area:

All areas utilized in the conveyance documents shall be the official acreages, as provided in the original surveys of the section subdivisions, less the identified acreages for the exception parcels.

The record area, from originating deed (see AFN 45690), was held for the ‘shore lands’ excepted parcel within Section 9, T.21N., R.13E.., W.M., being 0.88 acres. No adjustment were applied for the existence of the ‘gap lands’ area lying below the “ordinary high line” exemption as its area cannot be accurately quantified without extensive survey. See the “Riparian Boundaries” section on pages 13 to 15 of this report for more information.

An area calculated using the most current available GIS datasets and imagery was used to quantify the lands residing within Yakima County within Section 31, T.19N., R.13E., W.M., being 55.8 acres. This approximation utilized the center of the Little Nachess River as the dividing line and the BLM’s CadNSDI official dataset for the section lines within the Public Land Survey System. Kittitas County shows the tax parcel in their county as 595.2 acres, leaving 65 acres remaining from the GLO area. Yakima County shows this same area as 50.1 acres.

For the purposes updating lands status information for each forest the following acreages of the subject lands are approximated:

3,610.68 acres fall within the Wenatchee National Forest, Cle Elum Ranger District.

2,722.88 acres fall within the Snoqualmie National Forest, Naches Ranger District.

Acknowledgement:

I, Jonathan B. Drew II, a registered land surveyor in the State of Oregon and Maine, do hereby acknowledge that the forgoing Legal Description Verification certificates, accompanied narrative, and recommended legal description were drafted by me at the request of the USDA Forest Service and are in conformance with the BLM Manual of Surveying Instructions, 2009.

Jonathan B. Drew II, Oregon PLS# 89396 Maine PLS# 2545

September 20, 2021

Date

Appendix A – Title Insurance Exceptions Review (Kittitas) A review of the exceptions listed in Schedule B, Part II of Title Commitment File No.

382355AM, issued by AmeriTitle and bearing a commitment date of June 25, 2020, was conducted during the creation of this report and is summarized below:

Note: There are a number of documents not included in the Title Commitment, see the “Appendix C” section on pages 44 to 62 of this report for the description of all documents located and how they affect or benefit the subject lands.

1) Any defect, lien, encumbrance, adverse claim, or other matter that appears for the first time in the Public Records or is created, attaches, or is disclosed between the Commitment Date and the date on which all of the Schedule B, Part I—Requirements are met.

General exception, request OGC Waiver or remove.

2) 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.

All taxes to be paid and property to enter tax-exempt status.

3) Any 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 persons in possession thereof.

4) Easements, liens or encumbrances, or claims thereof, which are not shown by the public

Likely to be several easements not of record benefiting the subject lands, those affecting have been located however several are not identified in the Kittitas PTR.

5) Discrepancies, conflicts in boundary lines, shortages in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public

See the “Encroachments, Surveying & Posting” section on pages 11 & 12 of this report for details on potential encroachments. See also the “Areas” section on page 26 of this report for more detail on acreage determinations.

6) (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water.

(a) There are no known unpatented mining claims.

(b) All patents & Acts were issued by the United States and any such reservations & exceptions will merge with the United States upon acceptance of title.

(c) No water rights appurtenant to the subject lands were located, see the ‘Water Rights’ section on page 25 of this report for more information.

7) Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the public records.

No known issues related to this exception affect the subject lands.

8) Any lien for service, installation, connection, maintenance, tap, capacity or construction or similar charges for sewer, water, electricity, natural gas or other utilities, or for garbage collection and disposal not shown by the Public Records

No known issues related to this exception affect the subject lands.

9) Indian tribal codes or regulations, Indian treaty or aboriginal rights, including easements or equitable servitudes.

The subject lands are a portion of the lands originally ceded to the United States of

America by “Treaty with the Yakima” in 1855.

10) to 18) General Taxes and Assessments

The exceptions are unacceptable and should be removed

19) Lien of real estate excise sales tax upon any sale of said premises, if unpaid.

The exception is unacceptable and should be removed.

20) This property is currently classified under the Designated Forest Land Statute R.C.W.

84.33. Sale of this property without notice of compliance to the County Assessor will cause a supplemental assessment, interest, and penalty to be assessed.

The lands will become federal lands and any assessments or penalties as a consequence of the proposed conveyance will need to be cleared.

See the “Zoning” section on page 26 of this report for more information.

21) Possibility of unpaid assessments levied by the Kittitas Reclamation District, notice of which is given by an amendatory contract recorded in Book 82 of Deeds, page 69, under Kittitas County Auditor's File No. 208267, no search having been made therefore.

Document cited was not provided by the Title Company and was not reviewed as part of this report. All outstanding liens, levies, taxes and assessments to be paid and current prior to closing.

22) Cabin Creek Road Right-of-way and Use Agreement, including the terms and provisions thereof, Recorded: July 19, 1962. Volume 110, Page 436. Instrument No.: 298264 Between: Northern Pacific Railway Company, The United States of America and Boise Cascade Corporation. Affects: Sections 17 and 19; in Township 19 North, Range 13 East, W.M.

The exception is Administratively Acceptable except for changes to the Affects section as described. (see AFN 298264)

The subject lands identified as applicable to this agreement include Sections 3, 5, and 17, T.19N., R.13E., W.M. as all or part these sections fall within the agreement area boundary. The exception is believed to be in error in omitting sections 3 & 5 and by including Section 19 as being affected.

The United States of America is a party to the agreement for its lands within the agreement areas. Following the proposed acquisition the United States of America will become successor in interest of Northern Pacific Railway Company for the subject lands within the Cabin Creek Agreement Area.

23) An easement including the terms and provisions thereof for the purpose shown below and rights incidental thereto as set forth in instrument: Granted To: The United States of America, its successors and/or assigns. Purpose: Road. Recorded: December 23, 1965.

Instrument No.: 326517. Book 121, Page 121. Affects: A strip of land 66 feet wide, lying 33 feet on each side of the centerline with such additional width as required for accommodation and protection of cuts and fills, along and across Amabilis Mountain Road No. 2182 affecting a portion of Section 19, Township 21 North, Range 13 East, W.M.

The exception is Administratively Acceptable and will merge on title with the United States of America upon acquisition. (see AFN 326517)

24) An easement including the terms and provisions thereof for the purpose shown below and

America, its successors and/or assigns. Purpose: Road. Recorded: May 9, 1967.

Instrument No.: 338309. Book 125 of Deeds, Page 343. Affects: A strip of land 66 feet wide, lying 33 feet on each side of the centerline with such additional width as required for accommodation and protection of cuts and fills over and across East Kachess Road No.

2105, Kachess Ridge Road No. 2277 and Kachess Ridge Spur Road No. 2277A, affecting portions of Section 9, Township 21 North, Range 13 East, W.M.

United States of America upon acquisition. (see AFN 338309)

25) An easement including the terms and provisions thereof for the purpose shown below and

America, its successors and/or assigns. Purpose: Road. Recorded: August 18, 1967.

Instrument No.: 340893. Book 126 of Deeds, Page 371. Affects: A strip of land 66 feet wide, lying 33 feet on each side of the centerline with such additional width as required for accommodation and protection of cuts and fills over and across Kachess Ridge Road No.

2277 Extension, Firekill Road No. 2277C and Overlook Road No. 2277B, affecting a portion of Section 9, Township 21 North, Range 13 East, W.M.

United States of America upon acquisition. (see AFN 340893)

26) An easement including the terms and provisions thereof for the purpose shown below and

America, its successors and/or assigns. Purpose: A road. Recorded: December 4, 1968.

Instrument No.: 351408. Book 131, Page 547. Affects: A strip of land 66 feet wide, lying 33 feet on each side of the centerline with such additional width as required for accommodation and protection of cuts and fills, along and across Amabilis Beacon Road No. 2182A affecting a portion of Section 19, Township 21 North, Range 13 East, W.M.

United States of America upon acquisition. (see AFN 351408)

27) An easement including the terms and provisions thereof for the purpose shown below and

America, its successors and/or assigns. Purpose: A road. Recorded: December 4, 1968.

Instrument No.: 351409. Book 131, Page 550. Affects: A strip of land 66 feet wide, lying 33 feet on each side of the centerline with such additional width as required for accommodation and protection of cuts and fills, along and across Log Saddle Spur Road No. 2004F affecting a portion of Section 5, Township 19 North, Range 13 East, W.M.

NOTE: By Partial Termination of Easement recorded September 24, 1980 and November 4, 1980 in Volume 137, Page 426 and Volume 139, Page 486, under Auditor's File Nos.

445825 and 447020, the easement shown under paragraph 1 of instrument recorded under Auditor's File No. 351409 was released and terminated by the United States of America.

United States of America upon acquisition. (see AFN 351409)

The note included with the exception is accurate however does not apply to the subject lands and should not appear in the final conveyance document.

28) An easement including the terms and provisions thereof for the purpose shown below and rights incidental thereto as set forth in instrument: Granted To: Barbee Mill Company, a Washington Corporation, its successors and/or assigns. Purpose: Construction, reconstruction, use and maintenance of proposed and existing roads. Recorded: August 18, 1970. Instrument No.: 362953. Book 14, Page 268. Affects: A strip of land 60 feet in width, lying 30 feet on each side of the centerlines of the existing roads and proposed roads over and across the Northeast Quarter of Section 5, Township 19 North, Range 13 East, W.M., and portions of Sections 27 and 33, Township 20 North, Range 13 East, W.M.

The exception is unacceptable and should be removed. (see AFN 362953) This easement will allow for access to the lands of the United States in Section 6 and the subject lands in Section 5, T.19N., R.13E., W.M. however several of its provisions are problematic in that they may trigger unappropriated obligations and contain insurance requirements. Further it allows for the construction of new road, over a proposed route across the subject lands in Section 5 by the Grantee, Barbee Mill Company, to access their lands in Section 32, T.20N., R.13E., W.M..

Recommended curative action is for the current owner of the subject lands to terminate this easement, at least insofar as it pertains to Section 5, with the Barbee Mill Company. The current owner may also wish to reserve an easement in its conveyance to the United States of America for this road across the subject lands in Section 5 (T.19N.) because it provides access to their lands in Section 33 (T.20N.).

The United States of America should determine if they require legal access over FSR 4100-140, aka “Cole Creek Road”, to access the subject lands in Section 5 or its own lands in Section 6. It is recommended that as part of this conveyance they receive a new easement from Central Cascades Forest, LLC. across the lands they own within

Sections 28 & 33, T.20N., R.13E., W.M. and separate from this conveyance acquire an easement from Barbee Mill Company for that portion across their lands in Section

28. See the “Access” section and “Section 5” subsection on page 19 of this report for more information.

29) Any rights, interests, or claims which may exist or arise by reason of the following matters(s) disclosed by survey, Recorded: March 12, 1981. Book: 8 of Surveys Page: 35 Instrument No.: 369374 Matters shown: a) Original meander line of Lake Kachess; b) Erosion line. Affects: Section 9, Township 21 North, Range 13 East, W.M.

The exception is unobjectionable but should be removed.

The lands which may be impacted by this exception reside between the line of ordinary high water of Kachess Lake and the original meander line. These lands are not included with the subject lands as they are excepted from the conveyance by language in the Recommended Legal Description and the Vesting Deed. See the “Riparian Boundaries” and “Deed Exceptions” sections on pages 12 to 15 of this report for more information.

30) An easement including the terms and provisions thereof for the purpose shown below and

America, its successors and assigns. Purpose: A road. Recorded: March 4, 1976.

Instrument No.: 403220. Book 69, Page 257. Affects: A strip of land 66 feet in width, lying 33 feet on each side of the centerline with such additional width as required for accommodation and protection of cuts and fills, along and across a portion of Section 19, Township 21 North, Range 13 East, W.M.

United States of America upon acquisition. (see AFN 403220)

31) An easement including the terms and provisions thereof for the purpose shown below and

America, its successors and assigns. Purpose: Road. Recorded: July 22, 1977. Instrument No.: 414705. Book 86, Page 306. Affects: A strip of land 66 feet in width, lying 33 feet on each side of the centerline with such additional width as required for accommodation and protection of cuts and fills, along and across Bear Creek Road No. 1911 affecting a portion of Section 29, Township 19 North, Range 13 East, W.M.

United States of America upon acquisition. (see AFN 414705)

32) An easement including the terms and provisions thereof for the purpose shown below and

America, its successors and assigns. Purpose: Road. Recorded: July 28, 1980. Instrument No.: 443849. Book 134, Page 443. Affects: A strip of land 66 feet in width, lying 33 feet on each side of the centerline with such additional width as required for accommodation and protection of cuts and fills, along and across East Bear Creek Road affecting a portion of Section 33, Township 19 North, Range 13 East, W.M.

United States of America upon acquisition. (see AFN 443849)

33) An easement including the terms and provisions thereof for the purpose shown below and

America, its successors and/or assigns. Purpose: Road. Recorded: September 29, 1980.

Instrument No.: 446023. Book 137, Page 721. Affects: A strip of land 33 feet on each side of the centerline with such additional width as required for accommodation and protection of cuts and fills, along and across Bear Cabin Road No.

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