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The regular meeting of the Board of Directors of the Central Oregon Irrigation District (COID) was called to order by President Carroll Penhollow at 9:20 AM on November 13, 2007 in the District office.

Directors present were Carroll Penhollow, Paul Kasberger, Tom Burke, John Robbins and Robert Borlen. Also attending were Steve Johnson, Secretary-Manager; Liz Dickson, Attorney; Jenny Hartzell-Hill, Substitute Assistant Secretary, Larry Roofener, Operations Manager, Cary Penhollow, Watermaster, Bob Beal, Hydro Engineer, and the visitors shown on Exhibit “A”.

1. OPEN FORUM

• Bill Dolf, a Bend resident, discussed ORS 105.682 and the Court hearing case. He explained that Deschutes County District Attorney Duggan has a bar complaint filed against him regarding his negligence to acknowledge and respect private property. DA Duggan’s rebuttal has referenced ORS 105.682 and Prescriptive Easement language. Mr. Dolf presented the bar complaint and response (Exhibit “B”). Mr. Dolf suggested that COID respond to the rebuttal by DA Duggan. The Board will review the documents presented and discuss their position after review. Steve Johnson presented the letter he sent to Mr. Don Horton with Bend Metro Park and Recreation District regarding gates and installation (Exhibit “C”). Liz Dickson defined the prescriptive law, specifically the adverse definition and the 10 year period. Mr. Dolf is making attempts to get an interest group to back him on these issues and offer more support in numbers and financially. He is presently working with Deschutes County Farm Bureau. COID’s plan is to post the signs as stated in Exhibit C in 3 locations. COID will continue to work on this matter and will install vehicular gates if vehicular traffic increases.

2. MINUTES:

Bob Borlen made a motion to approve the minutes. Following a second by Tom Burke, the motion passed unanimously.

Chairman Penhollow changed the agenda to New Business as Linda Zivney from Zivney Investments was in attendance to discuss Endowment Fund Investment Potential. Included as Exhibit “D” are the COID’s current investments and information on Professional Fixed-Income Management.

3. TRANSFERS / INCLUSIONS:

Carroll Penhollow reviewed the following transfers with the Board. See Exhibit “E”. It was noted that the transfers are movements of water to align the property correctly.

PBC Permanent: Total 0

COC Permanent: Total 3.55

COID (Pasmore) .30 Off

COID (Lewis) .50 Off

COID (SJCSH) .20 Off

Monson 1.00 On

Sanowski Trust 1.20 Off

Sanowski Trust 1.00 Off

Sanowski Trust 2.20 On

Hollander .35 Off

Hollander .35 On

Carroll Penhollow made the motion to approve the transfers as reported. The motion was seconded by John Robbins and was then passed unanimously.

Paul Kasberger discussed keeping the numbers on water rights going out with what COID has purchased coming in. Steve Johnson is looking into the filing for conserved water on the K-Lateral. Steve is checking with Deschutes Soil and Water.

Steve reported that there is currently 166 acres of water in the COID reserve pool, the total average is 179 with year end reserve estimate of 200 acres or more.

COID is evaluating the possibility of COID water being used by North Unit Irrigation District (NUID). The process is under research and review and the pros and cons of this use and benefit. This could potentially give COID more flexibility with the irrigated use of the water. If the federal NUID legislation passes, COID will explore options with NUID.

4. REPORTS:

A. Water Report –

A written report (Exhibit “F”) was mailed to the Board prior to the meeting.

B. Operations and Maintenance Report –

A written report (Exhibit “G”) was mailed to the Board prior to the meeting.

C. Hydro Report –

A written report (Exhibit “H”) was mailed to the Board prior to the meeting.

D. Financial Report

A written report (Exhibit “I”) was mailed to the Board prior to the meeting.

E. Manager Report –

The written Manager’s Report (Exhibit “J”) was mailed to the Board prior to the meeting.

5. BILLINGS & PAYROLL:

John Robbins moved to accept the payroll registers and billings as presented. The motion was seconded by Bob Borlen and passed unanimously.

6. OLD BUSINESS:

• Exit Fee: Leslie Clark and Steve Johnson discussed that the current resolution in place does not cover movement of water for beneficial use and Exit Fee. Collectability of Exit Fee: The District can not lien to collect the money for the fee.

Bob Bolen move to establish and approve a resolution to establish an Exit Fee per the memo from Leslie Clark effective November 13, 2007. The motion was seconded by Tom Burke and passed unanimously. This resolution will be printed and ready for Board signature at the December meeting and logged as Resolution Number 2007-15 (Exhibit “K”).

• OWRC Conference: Details of the schedule were reviewed. (Exhibit “L”)

• Elections:

Division 2 – Certificate of Election was dually noted. (Exhibit “M”)

The Board recessed at 12:39 for lunch.

The Regular Session of the Board of Directors meeting was reconvened at 1:00 p.m.

7. NEW BUSINESS (continued):

• GCC Lease Review: The Board reviewed the GCC Lease Proposal, proposing an addendum to the existing agreement to extend the contract. Steve proposed continuing the monthly rate for the agreement and expenses. The Board was in agreement.

• Quiet Title discussion was presented by Liz Dickson. The purpose is to place all of the Central Oregon Irrigation Company Properties into Central Oregon Irrigation District’s name. She updated the Board on the progress of this process.

A motion was made by Bob Borlen and seconded by John Robbins to adjourn the Regular Session at 1:18 PM. The motion was unanimously accepted.

ATTEST: CENTRAL OREGON IRRIGATION DISTRICT

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Steven C. Johnson, Manager Carroll Penhollow, President

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Robert Borlen Thomas Burke

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Paul Kasberger John Robbins