Peter Goldmark Photo: Deisenhofer/DNR Florian St. Mount near land Helens. trust state Left: Photo: Kelly Heintz/DNR. (NRCA). Area Conservation Resources Cover: the On 79.64.100 79.64.030 RCW and 79.10.010, RCW statutes: RCW following by the required information provides annual report This Lands of Public Commissioner A stand of large Douglas-fir on Douglas-fir of large Astand Mount Si, Natural Mount

64 24 20 65 59 10 31 14 6 4

InformationContact and Acknowledgments Timber Management Data Fiscal Management Data Aquatic Resources and Lands Recreation Protection Resource TrustLands FinancialManagement A Messagefrom the Commissioner DNR RegionsDNR Map This was report prepared by the Washington State Department and expended during account for the revenues DNR generated,DNR collected of Natural Resources (DNR). Fiscal and Timber pages Fiscal Year 2011. www.dnr.wa.gov format at: in PDF is available document This 360-902-1125,TTY: 7-1-1 TRS: Phone: 360-902-1016 [email protected] E-mail: WA 98504-7003 Olympia, Box 47003PO &Outreach Communications DNR format, contact: in alternate thisinformation an needing persons for or disabled copies, For

Stories 2011 2011 Data Fiscal

T Data imber

Contents 2011 Fiscal Timber Stories Data Data

A Message Over the past Flying over our forest: As a pilot three years, our I often fly across eastern Washington. from the focus has been on I have watched with alarm as diseased weathering the and damaged trees continue to grow in Commissioner economic downturn number and severity. That is why, at the and resulting end of 2011, I initiated a process to assess of Public budget crisis. We’ve and take action to address forest health worked hard to do issues across the state. Lands our business more Borgford Mill groundbreaking: The efficiently and create first of many ribbon-cutting events to savings wherever reopen a mill that uses sustainable forest Peter Goldmark, a possible. I am proud statewide elected official, biomass to create 34 new rural jobs. is Washington’s thirteenth to report that these Commissioner of Public efforts have served us Puget SoundCorps launch: On the Lands since statehood well. Through sound shores of Commencement Bay, with in 1889. decision-making our partner agencies, I was proud and prudent management, our agency has to recognize our veterans who are been able to deliver on its obligation to the working to clean up Puget Sound. By beneficiaries. consolidating four programs into one, we simultaneously streamlined government, Most importantly, we have been able to start saved taxpayer dollars, and attracted new giving back to the local governments that funding to create new jobs for veterans are desperately in need of relief. In 2011 we and young people. reduced our management fee percentages in order to send more of our non-tax revenue This annual report, our first electronically to beneficiaries. More recently, we proposed published, tells the story of our sending $10 million back to cash-strapped stewardship of the public’s lands and timber counties from our management our commitment to manage the State’s accounts. These efforts will help get more resources sustainably; make decisions money to local governments at a time when based on sound science; and make they are struggling to provide core services in decisions in the public’s interest and with their communities. the public’s knowledge. We have done all this without limiting our ability to preserve our treasured natural resources and support jobs. Some examples: Nisqually Aquatic Reserve Dedication: For the first time, this annual The most recent in a number of aquatic Peter Goldmark eport report is published reserve designations, the dedication of the Nisqually Reserve demonstrates our Commissioner al R digitally. of Public Lands u commitment to protect critical habitat in the nn Puget Sound. lint / DNR 2011 DNR A 2011 F ryan : B 4 ht g i R I am proud of what DNR has been able to accomplish, despite the economic storm that swirls around us.” D 2011 A DNR raft nn u R al eport 5

6 2011 DNR Annual Report and wild geoducks geoducks wild and Increased demand demand Increased counterweight to counterweight forestry products products forestry decreasing state state decreasing a weak housing housing a weak from Asia for for Asia from market and market and has been a been has budgets.

Jane Chavey / DNR 2011 DNR Annual Report 7 imber imber Data T

Fiscal Fiscal Data 2011 DNR has has DNR into tapped the talent staff its of to come up with innovative save to ways money. Stories Staying true to our strategic plan, plan, strategic our to true Staying to steps concrete taken DNR has By eliminating underutilized cell more negotiating and phones efficient calling plans with carriers. carriers. with plans calling efficient cellular 69 service for DNR cancelled firefighting, for needed not phones critical other or assessment landslide work. safety public increase income from leases. These leases. from income increase payments lease increased have steps aquatic, agricultural, commercial, for and rights-of-way communications, uses. land trust state . By and and

ort 2011 p e

By eliminating 125 fleet vehicles vehicles fleet 125 By eliminating million $3 DNR saved 2010, in

Weatherization and other upgrades upgrades other and Weatherization energy improving substantially are Retrofitting lighting fixtures, including department’s the at lighting, LED new

R nnual Financial Efficiency Measures Millions Save us the by public,DNR has diligently managed financesto reduce expenses and improve efficiencies. With a careful on the dollars eye entrusted to A aircraft hangar in Olympia reduced annual annual reduced Olympia in hangar aircraft safety improved costs and energy efficiency in many DNR-owned leased or many efficiencyin year. this buildings managing work schedules to reduce driving driving reduce to schedules work managing vehicles, fuel-efficient more using and less $500,000 about agency spends the vehicles 100 Another vehicles. on annually 2012 in fleet the from be removed will maintain to DNR continues yet 2013, and water engines, fire of numbers sufficient vehicles back-country other and tenders, from public the and forests our defend to wildfire. security. Management re u More Non-Tax

rchitect Revenue to Schools, Schools, Counties, Other

rtesy of NAC A Beneficiaries u o

universities, , C During 2011, Commissioner of Public Lands Peter Goldmark and counties proposed—and the Board of enschneider

B. B Natural Resources approved— benefit reductions in the fees from timber sales that DNR uses to when DNR manage state trust lands. Fees dropped from 30 percent to 27 earns more Timber Markets percent for state trust lands and Regained Ground from 25 percent to 21 percent income from for trust forestlands managed Prices for logs from DNR-managed for county revenues, providing the lands it state trust lands recovered more revenue to beneficiaries. somewhat from post-recession lows (Chart, top right) throughout Fiscal Year (FY) 2011, manages. thanks to the indirect influence x / DNR

of higher foreign demand for i Northwest timber from private ale M lands. (Federal law bans the export D of unprocessed logs from state trust lands.) Unfortunately, the economic pressures that a depressed home- building market places on local sawmills is moderating the near-term outlook for DNR timber prices and production goals. New Region Managers During FY 2011, Commissioner of Public Lands Peter Goldmark

completed appointments for

eport critical management in DNR’s major administrative regions: Ben al R u Cleveland (Northwest Region), nn Todd Welker (Southeast Region), and Susan Trettevik (Olympic Region). 2011 DNR A 2011 8 State Forest Income and Revenue for Management

$100,000,000

$80,000,000

$60,000,000 Total State Forest State forest Revenues income $40,000,000 Revenue for management Projected $20,000,000 Revenue for Management

$0 25% 25% 25/23% 23 / 21% 21%

2009 2010 2011 2012 2013

DNR Timber Volume Sold and Projected Sustainable Targets

700 million board feet Sustainable 607 harvest planned 600 for Western WA

500 Projected 400

300 2011 A DNR Sustainable harvest planned 200 for Eastern WA 60 nn u

100 R al eport FY ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

Western WA Sold Eastern WA Sold 9

10 2011 DNR Annual Report could go to better tobetter go could this one are often often are one this wasting energy energy wasting burned on site, site, on burned Slash piles like piles Slash and heat that that heat and uses.

Bryan Flint / DNR. Opposite page: Photo Courtesy of Boeing to the public that provide jobs, working forestlands forestlands working help maintain maintain help and other benefits benefits other and habitat, clean water, Forest Forest biomass can can biomass

2011 DNR Annual Report 1 1 imber imber Data T

Fiscal Fiscal Data Initiative Biomass 2011 Stories made Commissioner Goldmark’s Goldmark’s significant strides in 2011. ill

umber Mill in in Mill umber eopens M nitiative nitiative hirty-four new, green jobs jobs green new, hirty-four artner R iomass I iomass NR B ilot P ilot sing forest biomass, such as logging logging as such biomass, forest sing he reopening of a long-closed of reopening he re- to been able project has he the and mill this of reopening he enormous economic impact it has had had has it impact economic enormous operates it which in community the on DNR’s in successes visible and early are Initiative. Biomass Forest U treatment health forest or slash working maintain helps thinning, provide that Washington in forests other and jobs, water, clean habitat, benefits.public T L Springdale open the T Springdale. this of a result as been created have in biomass forest By utilizing project. company the system, efficient a highly of thousands save eventually will month. costs each energy in dollars T D P T is 2011 in Springdale in mill lumber DNR’s in success visible and early an Borgford Initiative. Biomass Forest one as 2010 selected in was Bioenergy projects. pilot department’s the of will niversity niversity

ands

eport 2011

iofuel B he department is working with with working is department he

Goldmark biomass initiative

rust L rust R nnual viation niversity to foster a biomass-to-aviation a biomass-to-aviation foster to niversity S Department of Agriculture awarded awarded Agriculture of S Department he grants complement a DNR- complement grants he egislation passed in 2011 as part as of 2011 passed in egislation A DNR continues be a leader to in developing a sustainable forest biomasseconomy create to renewableenergy. A of Washington to determine the the determine to Washington of biomass forest of volume sustainable forestlands all from be can collected that of piece State—akey Washington in to need will firms private that knowledge for backing attract financial successfully their projects. T University the by study commissioned of Washington and Washington State State Washington and Washington of U state. the in industry fuel U U the to grants in $80 million a coalition of businesses, environmental environmental businesses, of a coalition develop to entities government and a sustainable create to recommendations Washington in industry biofuel aviation State. initiative the in step important Another the when 2011 September in place took heritage. T heritage. L the pilot fuel a biomass-to-aviation develop sustainability the demonstrate project to aviation and forest our matching of T 12 2011 DNR Annual Report ▲ Zirkle Fruit Company,Zirkle the School trust to replace trust trust toreplace trust School 2006. Today, care the 2006. under With a 180-day growing growing a180-day With apples, blueberries, cherries, cherries, blueberries, apples, bidder, successful of the in auction lease at public in parcel the irrigation, and Common the for acquired a 1,143-acre was parcel Benton County was offered offered was County Benton public schools. revenue tobuild provide grapes— wine and pears, lands— these from products season, productive soils, soils, productive season, lands sold or transferred. transferred. or sold lands

Af Be In August of 2005, of 2005, August In ter f ore

in recent years. several orchards and vineyards planted ◗ per acre than normal; and regions that generated higher production ◗ ◗ practices; and sustainable land management tolessees implement management best ◗ increase were: revenue in the Factors R Revenues Program Up Agriculture program. agriculturein the leasing previous year to $13.7 million by 11.8 from percent the

evenue 2011 for FY increased Maturing and higher yields of Adequate rainfall in the dryland Favorableprices; commodity landDNR managers working with

share rent—and use study results from rentstructures—cash versus crop alsoDNR continues to evaluate leasing identified candidatesas for public auction. process and criteria when leases are willlessees kept be informed of the process on state trust lands. Current interested access parties to the leasing publicThe auction process allows all state trust lands in 2011. leases of irrigated agriculture on saw successfulDNR public auctions for statewide.) production helps build public schools state trust lands in agriculture and grazing revenues. (Revenue from 85 percent of the rents, which will help stabilize school trust to establish equitable methods to set cash Washington State U water by planting seeds seeds bywater planting virtually eliminates soil soil eliminates virtually Wollweber uses ‘direct ‘direct uses Wollweber niversity and elsewhere erosion and conserves conserves and erosion attained a50-bushels- attained stubble of last year’s year’s of last stubble directly though the the though directly seed’ farming that that farming seed’ crop. This year he year he This crop. land lessee Gary Gary lessee land per-acre yield. per-acre School trust trust School

2011 DNR Annual Report 1 3

imber imber Data T

Fiscal Fiscal Data conversion conversion by DNR will Forest Trust Trust Forest help maintain of threat at 2011 Stories managed uses. Community viable small forested areas to other The

’s NR’s

and

rust L iparian iparian ights chool T asement Program asement Forestry R E managing businesses family small Helps forests. working their maintain to forests for funding available maximizes The bill forest small from purchases easement long- to committed are who landowners sets a study up also The bill forestry. term funding long-term for look to group program. the for solutions R Water S for the on withdrawal a water Authorizes DNR to allow will that River Columbia trust school of acres 2,100 to up irrigate Benton in agriculture for leased land will parcels the irrigation, With County. $300,000 more approximately yield public for non-tax revenue in annually to likely amount year—an each schools years. future in increase environment. It also helps DNR's local local DNR's helps It also environment. funding partners with government liability and contracting aquisition, protection. hris Gregoire enhance D enhance Gregoire hris to be to

rust orps’ C ound iomass to Jet Fuel Jet to iomass S

egislature and egislature L the 2011 by passed measures everal ommunity T Forest S C Governor by law into signed efforts trust and lands other state more areas manage to sustainably: and efficiently Builds on ongoing efforts in Washington’s efforts Washington’s in ongoing on Builds fuel biomass-to-aviation forest emerging the among links stronger create sector to renewable and products, forest aeronautics, 11) page sectors. (See energy Community Forest Trust Forest Community the Creates DNR. target DNR by to It allows managed conversion of threat at areas forested small need would These forests uses. other to be self- to revenue enough produce to only and community local and entities; sustaining forests’ the guide would needs conservation management. Puget ‘ Puget Forest B Forest Helps DNR and other agencies deal with with deal agencies other DNRHelps and holds It efficiently. more vessels derelict by accountable vessels derelict of owners knowingly for a misdemeanor it making block up, break sink, to a vessel causing the contaminate or channels, navigational Derelict Vessels Derelict C Provides critical funding to maintain the the maintain to funding critical Provides state- of acres million three to access public’s 20-21) pages (See lands. recreation managed he Discover Pass The Discover Consolidates the administration of four four of administration the Consolidates programs Corps Conservation Washington for jobs creates and program one into 24-25) pages (See youth. and veterans LegislativeAccomplishments 14 2011 DNR Annual Report one thousand employees employees thousand one comes from Department Department from comes participating in the DNR DNR in the participating to firefighting and state and to firefighting trained and available and trained to department, with over with department, of Corrections inmates inmates of Corrections 830 as needed. Additional Additional needed. as interagency approach approach interagency be dispatched to fires to fires dispatched be fire-fighting capacity capacity fire-fighting 1,044 1,044 Correctional Camps Camps Correctional state’s coordinated coordinated state’s Program. DNR also also DNR Program. ’08 largest on-call fire on-call largest participates in the in the participates Fires Fou Fires DNR is the state’s state’s the is DNR ’09 mobilization. ’10 577 ’11 Average 10-Year 10-Year g Fires 549 ht

Salmon Fire Photo: Canadian Bird Dog 17,203 32,680 A cres B cres ’08 ’09 urne ’10 ’11 25,439 d 7,604 acres for 12.7 million acres wildfire protection protection wildfire Washington State Washington and state-owned of private, tribal DNR provides forestlands in in forestlands 2011 DNR Annual Report 1 5 imber imber Data T

Fiscal Fiscal Data defensible defensible produced DNR by illustrates how 2011 Stories ravages of of ravages space can save homes wildfire. A video A video from the in in

Monastery Complex Fire Complex Monastery onastery Fire oldmark visited the site to meet with with meet to site the visited oldmark M fires most dramatic year's the One of the was homes. 29 destroying September, early efforts the by saved were homes Many homeowners’ by and firefighters of space.’ ‘defensible called is what of use Peter Lands Public of Commissioner G evacuees. many the Firewise DNR of guidance and help the With Washington 89 staff, prevention fire recognition earned have communities their for Community Firewise a as Washington work. prevention wildfire second-most Firewise the has State The Firewise nation. the in Communities solutions local encourages program leaders, community homeowners, by and firefighters, developers, planners, property and people protect to others wildfire. of risk the from ummary ort 2011 p e

R nnual In partnership with Washington Department Department Washington with In partnership Bureau the from funding with and Ecology of a DNR completed Land Management, of program, exchange barrel burn successful wildfires reduce to helping with credited State. Washington in quality air improve and in barrels burn illegal 770 in turned Residents bins. composting free for exchange Wildfire Prevention Wildfire To help reduce the chances of wildfires wildfires of chances the reduce help To and burning outdoor from escaping the forestland, on DNR-protected campfires ban burn a statewide initiated department contributed This 30. September 1 to July from DNR’s required that wildfires fewer to wildfires the of 94 percent Overall, response. were 2011 in lands DNR-protected on human-caused. Due to unusually heavy precipitation late in in late heavy precipitation unusually to Due start the of summer, early and spring the by delayed was season wildfire Washington’s than cooler was The year a month. almost both dry were hot, periods the and normal recent of average the than shorter and fewer than lower activity was also Lightning years. normal. 2011 Wildfire S Wildfire 2011 DNR’s resource protection mission includes wildfire control, community fire prevention, andforest health assistance state to and private forest landowners.

A Resource Protection A combination of over-crowded stands, imbalanced tree species mix, and the reduced role of naturally cleansing wildfires are factors behind the poor health of forests, especially on the east side of the Cascade Mountains in Washington State. Forest Health in Eastern Washington The Douglas-fir tussock moth is one insect causing forest defoliation in Eastern Washington. This cyclical problem can be significant, especially in forests that face many other insect and disease problems. Damage caused by the moths can kill up to 40 percent of the trees in affected stands during an outbreak. → Read more The declining health of forests in Eastern Washington spurred Commissioner of Public Lands Peter

Goldmark to initiate eport the State’s forest al R u nn health warning system. / DNR 2011 DNR A 2011 ohler K 16 16 Glenn El podado bien hecho cuesta menos, disminuye el daño por tormentas y les ayuda a tener una larga vida. Para más información, visita dnr.wa.gov/urbanforestry

MEnsajE dE sErviCio PúbliCo ausPiCiado Por la ofiCina dE arboriCultura urbana dEl dEPartaMEnto dE rECursos naturalEs dEl Estado dE washington, En ColaboraCión Con El sErviCio forEstal dE EE.uu.

Front & Back of bookmarks printed in English & Spanish

Urban Forestry Legislature Forest Health ▲ With funding from the U.S. Forest Invests Warning System Service, DNR’s Urban and Community Mitigating forest losses to insects, In response to significant Forestry Program promoted diseases and wildfires earned the deterioration of forest conditions a statewide anti-tree topping attention of the state legislature, throughout eastern Washington, campaign in 2011 to increase public which appropriated $2 million Commissioner Goldmark initiated understanding of proper tree care. for this urgent work in the face a Tier Two Forest Health Hazard This campaign helped to educate of trying fiscal times. Using these Warning. A group of science and communities throughout Washington funds, DNR accomplished an forestry experts will advise him about the negative effects of tree

additional 10,000 acres of tree on the severity of the threats 2011 A DNR topping and encouraged proper thinning and hazard reduction and corrective actions that can tree care. Along with an informative projects on high-risk private, be taken to protect Washington web page, DNR offers educational state and federal forestland. forests. → Read more materials in English and Spanish These projects prevent the loss of nn u to promote better tree trimming forestland value as well as create R al practices. immediate-term jobs in our rural eport communities. 7 1 18 2011 DNR Annual Report recreation opportunities. recreation clean water, wildlife and important habitat, Snoqualmie National Forest—protecting to Bend Mount Baker of North from the City extending create landscape an ample forested Together,into status. conservation they the transfer of land 9,001 trust of acres state 2011. Trust The Transfer Land Program funded was completed in Area (NRCA) Conservation Middle Fork Snoqualmie Natural Resources majoracquisition first The for the NRCA Snoqualmie Fork Middle

conserving our natural heritage by protecting critical habitats and the state’s biological DNR plays avital role in diversity for future generations.

2011 DNR Annual Report 1 9

/ DNR DNR / lint F ryan B Lake Roesiger Working Forest Board state the 2011, In June approved Resources Natural of of acres 2,845 of purchase the Roesiger Lake of west forestland Once County. Snohomish in a self-contained, as envisioned commercial and residential now will land the development, forest a working as be managed construction school provide to and water clean jobs, revenue, habitat.

1 mile itat itat r k y y NRCA Natural Resources Resources Natural Klic Rive lickitat dar dar on K

y w d l e an O boun N C boun Bay received funding from from funding received Bay and Wildlife Washington the the and Program Recreation Land Estaurine Coastal federal (CELP) Program Conservation also The project year. last among ranking top received projects 40 CELP than more for proposed nationwide, 1,190 About 2012. in funding and marsh shoreline, of acres surrounding the in forestland high- this of watershed estuary are marsh salt quality DNR the through protected Program. Areas Natural Klickitat Canyon sing grant funding from the Washington Washington the from funding grant sing Dabob Protection Bay the 2009, in enlarged and 1984, in Created habitat prime is Hood north Canal of area other and shellfish fish, orcas, birds, for areas the expand to project DNR’s species. Dabob at development from protected Klickitat Canyon NRCA U by awarded Program Recreation and Wildlife Office, Conservation and Recreation state the acres 917 additional an DNR purchased the for Conservation Area in Yakima County. County. Yakima in Area Conservation its unique for known is Canyon Klickitat features, ecological and scenic geologic, endangered state the for habitat including plants. rare several and crane sandhill

Snoqualmie/ Snoqualmie/ I-90 Corridor Area Canyon NRCACanyon Klickitat Middle Fork SnoqualmieNRCA

Lake Roesiger

Natural Resources Conservation Area (NRCA) Natural Area Preserve (NAP) Natural Areas

Dabob Bay NRCA & NAP They also will provide connectivity connectivity provide will also They previously- properties other three to I-90 the in grants through acquired corridor. The properties are within three miles miles three within are The properties north side the along other, each of dramatic the I-90of within and I-90 the of corridor landscape Easton. and Pass between Snoqualmie habitat enhance will The properties protection. and management In partnership with Forterra (formerly (formerly Forterra with Inpartnership DNR Land Conservancy), Cascade acquire to funds federal secured for County Kittitas in properties four acres total The 720 conservation. acquired were million worth $2.25 Cooperative federal the through Conservation Species Endangered Fund. Snoqualmie/I-90 Corridor Habitat

’Washington s 20 2011 DNR Annual Report ticket to Washington's great great toWashington's ticket Washington State-managed State-managed Washington recreation lands—including lands—including recreation discoverpass.wa.gov allows you to enjoy nearly youallows toenjoynearly wildlife and natural areas, natural areas, and wildlife state parks, water-access water-access parks, state access to state parks and and parks tostate access The Discover Pass—your Pass—your Discover The 1-866-320-9933 three million acres of acres million three points, heritage sites, sites, heritage points, pass where hunting hunting where pass One permit provides provides permit One and fishing licenses licenses fishing and trails and trailheads. and trails The Discover Pass Pass Discover The Telephone recreation lands. recreation Website Purchase the the Purchase are sold or: sold are outdoors.

Toni Droscher / DNR 2011 DNR Annual Report 2 1 imber imber Data T

Fiscal Fiscal Data opportunities provide a 2011 Stories recreation. sustainable sustainable variety of of variety for safe and and safe for State State lands

A) program A) program V Access Initiative V Access Yamaha OH Yamaha rant awarded to DNR helped DNR helped to awarded rant ehicle Activities (NO Activities ehicle A G used bridge a dilapidated replace in recreationists outdoor many by Forest. State Capital V Discover the from revenue and two DNR reopened popular Pass, —Camp Spilman campgrounds Kammenga—in Tahuya Camp and The 2011. December in Forest State since been closed had campgrounds cuts. budget to 2009 due Grant Awarded Campgrounds Reopened funding grant of help the With Off-road and Nonhighway the from ort 2011 p e eneral Funds to pay for recreation, recreation, for pay to Funds eneral

R nnual By the end of 2011, Discover Pass sales sales Pass Discover 2011, of end By the than more with $8.2 million, nearly raised 400,000 sold. passes state G state recreation with met agencies three the to others and legislators, groups, user for shortfalls funding to a solution find legislation Pass The Discover recreation. collaborative of a reflectsoutcomes the WDFW. DNR, and effort among Parks, When faced with the impending loss of of loss impending the with faced When The Discover Pass, which went into effect into went which Pass, The Discover than more to access provides 1, July boat parks, state of acres million three other and trails, campgrounds, launches, DNR, by Washington managed facilities Washington the and Parks, State (WDFW). Wildlife and Fish of Department In 2011, the Washington State Legislature Legislature State Washington the In 2011, a heralding Pass, Discover the created recreation funding to approach new user through lands state-managed on state keep help pass the Fees from fees. to accessible and open lands recreation the public. DNR diligently has worked improve the to safety, accessibility and enjoyment of recreation on state trust lands. Those efforts are paying off Discover Pass for the citizens of the state.

A Recreation 22 2011 DNR Annual Report managed managed improvements at the DNR- in Mount V ofMembers the Club Rotary ValleyWalker opportunities. DNR-managed state trust lands and recreation V like this and others, such as the Forest Watch an ADA-accessible campsite. V campground, including making upgrades to to make much-needed improvements to the members, and townspeople came out in force Campground. October, In the mayor, council city has taken on managing DNR’s Sheep Creek (population 290), in northeast Washington, For theyears, past two the town of Northport, S help keep public lands accessible and safe. and work on other recreation DNR that projects 35,000 hours to maintain trails, clean campsites, 2011,In volunteers contributed more than AtVolunteers Work last year. last Recreation Area olunteer Program, help protect and enhance heep C Walker ernon made reek C aquatics, communications, Volunteers Volunteers Contribute Contribute

V geology, state lands, lands, state geology, administration, etc. alley ampground ampground *Other includes includes *Other

Time

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7,098 hours 14.5% A 13.4% natural natural N H 6,511 hours O 35,278 hours 72.1% Recreation reas/ erita atural atural ther* g

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Photos (Clockwise from top): Sheep Creek Campground: Karen Baribault. Little Si: Kelly Heintz / DNR. Les Hilde: David Way / DNR. Gravel pack-in: Alan Pankau. Jones creek trailhead: Brian Poehlein / DNR with backhoe operator operator backhoe with barriers at the Sheep Sheep atthe barriers volunteer Gary work Gary volunteer boulders for parking parking for boulders Creek Campground Campground Creek and site protection protection site and Zach to maneuver tomaneuver Zach Northport Mayor Northport the Sheep Creek Creek Sheep the Mike Lamb and and Mike Lamb V Campground Campground olunteers at olunteers cleanup. cleanup.

2011 DNR Annual Report 2 3

ilde olunteers install V for equestrian use. a new logging road. Some volunteers 130 motorized trails ready Gravel Pack-in, gettingGravel non- a cedar fence rail at Les H trail andtrail from wandering onto Trailhead to keep riders onTrailhead the Forest on the 6th Annual Great cold, windy in Capitol day State and 29 pack animals spent a rainy,

ones Creek

olunteersconstruct a p the Burn' event p the event Burn' raised structure trail in a

National Public wet, muddy section of

Lands Day. the Little Si on trail

V showed up and

picked up enough garbage to fill a

Burn State Forest. the 9th annual 'Pick

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20-yard dumpster at About

75 volunteers75 Trailhead in Yacolt in Yacolt Trailhead 24 2011 DNR Annual Report Forestry Program through through Program Forestry plan and secured donated donated secured and plan partner, managed the site site the managed partner, acre Gog-le-hi-te wetland wetland Gog-le-hi-te acre and planting hundreds of hundreds planting and removing invasive weeds invasiveremoving weeds Peter Goldmark honored honored Goldmark Peter crew’s work was funded, funded, workwas crew’s native plants at the nine- atthe native plants by the U by the H and young adults for for adults young and event, Commissioner U SoundCorps kick-off kick-off SoundCorps ealthy Bay, local the park in Tacoma. in park The rban & Community &Community rban DNR. Citizens for a for Citizens DNR. returning veterans veterans returning S Forest Service Service S Forest At the Puget At Puget the materials.

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Fiscal Fiscal Data efforts is leading 2011 Stories restoration restoration Program throughout throughout state. the The Aquatic

Removal of creosote-treated creosote-treated of Removal toxic at habitat of Restoration species. invasive of Removal fish for barriers removing Help forest of removal and Repair oundcorps crews’ oundcorps crews’

roads to keep streams streams keep to roads sediments. from free ◗ structures shoreline and wood pollute and habitat damage that the Sound. ◗ cleanup sites. ◗ ◗ stream documenting and S includes: work typical issues. pollution and habitat ◗

Puget SoundCorps

ort 2011 p

e oldmark joined with with joined oldmark oldmark, oldmark,

R nnual and Lands Like the WCC, SoundCorps assists DNR in SoundCorps WCC, the Like Puget of health the concerning role its vital has or manages The department Sound. for responsibility proprietary or regulatory submerged and uplands the of percent 41 basin—from Sound Puget the in lands the of crest to Cascades the of crest the Olympics. Commissioner G Commissioner on Tacoma in event an at officials other the launch formally to 2011, 10, November SoundCorps. Puget new Lands Peter G Peter Lands Puget SoundCorps legislation through 2011 in Created Public of Commissioner by requested As steward of 2.6 million acres of state-owned aquatic lands, DNR supports water-dependent uses while protecting and restoring waterways across the state. A

consolidates the administration of four four of administration the consolidates (WCC) Corps Conservation Washington by managed one programs—including by managed DNR—into program one SoundCorps Ecology. of Department the to opportunities employment provides up clean help to adults young and veterans basin. Sound Puget the in lands restore and Aquatic Resources Aquatic cleanup & public safety Derelict Vessel Restoration ▼ Crews from Janicki Industries and Removal Program and Creosote Cleanup Naval Air Station Improvements During 2011, DNR worked on Whidbey Island work a number of projects to remove to remove logs and In 2011, DNR’s nationally creosote-treated materials from Puget beach debris from a recognized Derelict Vessel Removal Sound. In addition to continuing derelict sailboat on Program cleared and disposed restoration work at Woodard Bay Whidbey Island. of 37 derelict vessels and helped NRCA, the department worked other agencies remove 17 more. with many partners on cleanup and Also in 2011, legislation requested restoration projects, including: by Commissioner Goldmark was ◗ Key Peninsula Parks enacted that will help DNR and ◗ Suquamish Tribe partner agencies deal more ◗ Department of Ecology effectively with derelict vessel ◗ South Sound Salmon Enhancement owners and facilitate more ◗ Squaxin Tribe removals by local agencies. → Read more → Read more eport al R u nn 2011 DNR A 2011 26 Aquatic Habitat Eelgrass As Ecosystem Indicator In early 2011, eelgrass was adopted as an ecosystem indicator—the first of several indicators of the progress of the cleanup and restoration of Puget Sound. DNR recommended and the Puget Sound Partnership adopted a target to increase the amount of eelgrass by 20 percent DNR is (or about 10,000 acres) by 2020 over today’s amount. managing → Read more state-owned aquatic lands for future generations. 2011 A DNR nn u R al eport / DNR ine z 7 2 cor

bbey A 28 2011 DNR Annual Report the state to protect important important toprotect state the preservation, restoration, and and restoration, preservation, enhancement of state-owned of state-owned enhancement special educational, scientific, scientific, educational, special aquatic reserves throughout throughout reserves aquatic or environmental interest. environmental or an effort to promote the the topromote effort an aquatic lands that are of are that lands aquatic native ecosystems. It is is It native ecosystems.

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TT DNR Aquatic Reserve Video A video DNR co-produced with 5th Life Productions focuses The rivers, on Washington State’s fifth designated aquatic reserve in lakes, estuaries Puget Sound—Smith and Minor Islands. The video was selected and coastline for screening at the Salish Sea Ecosystem Conference in of the State Vancouver, British Columbia. DNR is establishing aquatic reserves help define Nisqually Reach throughout the state to protect Aquatic Reserve important native ecosystems. what makes Proposed sites receive scientific Designated scrutiny and extensive public this place so In September 2011, Commissioner input, and a management plan of Public Lands Peter Goldmark is developed with input and special. designated the Nisqually Reach involvement of stakeholders, Aquatic Reserve. The 15,000 acres of citizens, and public agencies. state-owned tidelands and bedlands → VIEW VIDEO —proposed for a reserve by the Nisqually Reach Nature Center—is recognized for its unique aquatic landscapes, aquatic vegetation, and diversity of fish and wildlife. The Nisqually Reach Aquatic Reserve includes over 35 miles of coastline. The beaches, tidal flats, and marshes of the Nisqually Reach and delta are a food source for a plethora of creatures—invertebrates, fish, marine mammals, and numerous types of birds. → Read more

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2011 Fiscal Timber Stories Data Data

Overall Agency Operations 32 Total Revenue 33 Total Expenditures 34 DNR-Administered Funds 35 Funds Administered by Other Entities State Grant Lands 36 RMCA | Upland + Aquatic 37 State Grant Lands | Upland + Aquatic 38 RMCA Upland 39 General Distribution of Revenue from Upland State Grant Lands 40 Common School, Indemnity and Escheat Grants 41 University Grants Original and Transferred (UW) 42 CEP&RI Grant 43 Capitol Building Grant 44 Normal School Grant (EWU, CWU, WWU and TESC) 45 Scientific School Grant (WSU) 46 Agricultural College Trust Management Account (ACTMA) 47 Agricultural School Grant (WSU) 48 Aquatic Resources and RMCA – Aquatic 49 General Distribution of Revenue from State-Owned Aquatic Lands State Forest Lands 50 Forest Development Account (FDA) 51 General Distribution of Revenue from State Forest Lands 52 State Forest Lands Fiscal Notes 54 State Trust Lands Management Fund Accounting Report

About these pages ◗ Fiscal information is presented as a combination of tables, pie charts and notes. ◗ These pages account for the The notes provide context for the tables. revenues DNR generated, collected and ◗ Underlined bold numbers are expended during Fiscal Year 2011 totals or subtotals. (July 1, 2010 – June 30, 2011). ◗ Some pages show dollars in thousands. ◗ Most revenues DNR generated are from Totals may not add due to rounding. activities on upland state trust lands and aquatic lands. (See related stories, pages 6 ◗ There is no individual page for the to 30.) Distribution of revenue is governed Community College Forest Reserve Trust. by statute and varies according to trust and (See Fund Activity, page 35.) revenue source. ◗ These pages include data for federally ◗ DNR manages 2.1 million acres of granted trust lands and for legislatively forestlands that generate revenue for established trust lands, including State state trusts, mostly from timber sales. On Forest Lands (formerly known as Forest pages 44 to 47, DNR provides data on Board lands). Trusts are listed individually. timber management activities on forested ◗ Counties that contain State Forest Lands, state trust lands, as required by RCW but are not listed for an activity, did not 79.10.010(3). Management have that activity during Fiscal Year 2011. Fiscal Data 2011 DNR Annual Report 3 2 2011 Fiscal Timber Stories Data Data

Total Revenue | F Y 2011

Revenue by Source 1 FY 2011 FY 2010

Source Total Funds Total Funds Amounts are reported in Sales thousands of dollars. Timber Sale Removals $196,354 $203,390 ■ About This Page Timber Sales-Related Activities 1,085 3,820 DNR’s expenditures reflect the Forest Road Assessments 13,557 16,534 Department’s diverse work. Nursery Seedling Sales 7,596 2,766 Land Management activities, Miscellaneous 460 3,027 funded by trust land revenue, $219,051 $229,537 are investments in the long-term Leases benefits and productivity of the resources. Other activities, funded Agriculture $13,721 $12,266 by non-trust revenue sources, Aquatic 37,061 29,622 support regulatory, assistance and Commercial Real Estate 10,071 10,000 resource protection programs, as well as agency operations. Mineral and Hydrocarbon 1,156 2,078 Capital expenditures include land Communication Sites 4,012 4,051 acquisitions on behalf of state trusts Rights-of-Way 788 1,017 and Natural Areas. Miscellaneous 2,283 2,392 Revenues are shown for two $69,092 $61,426 years for comparison. Differences Other Revenue between the years reflect changes in market conditions, Interest Income $1,038 $1,342 legal requirements, availability of Fire Assessments and Cost Reimbursement 10,441 10,860 resources, and other factors. Grants and Contributions 16,724 22,695 Permits, Fees and Related Charges 2,574 2,835 Miscellaneous 804 1,670 $31,581 $39,401 Total Revenue from Operations $319,723 $330,364 Other Activity Land Transfers 3 $73,757 $7,412 Land Bank 4 4,235 15 $77,992 $7,427 Total Revenue Total $397,715 $337,791

See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. 2011 DNR Annual Report 3 3 2011 Fiscal Timber Stories Data Data

Total Expenditures | F Y 2011

Expenditures by program2 FY 2011 FY 2010

Amounts are reported in Operating thousands of dollars. Agricultural Resources $1,493 $1,528 ■ About This Page Asset Management & Protection 4,878 4,670 Expenditures are shown for Product Sales & Leasing 30,946 29,759 two years for comparison. Land Management 20,620 15,878 Differences between the Aquatic Resources 10,658 10,255 years reflect changes in the Law Enforcement Services 754 796 programs, legal requirements, salaries and benefits, Administration 4,347 4,374 inflation, and other factors. Interagency Payments 9,821 10,996 Agency Support 19,032 11,413 Geology & Earth Resources 2,125 2,266 Forest Practices 14,285 14,534 Engineering Services 14,068 14,463 Resource Protection 18,867 18,633 Fire Suppression 16,301 25,813 Total Operating Expenditures $168,194 $165,378 Capital Recreation $1,196 $472 Aquatic Resource Projects 3,520 141 Real Estate and Property Acquisition 8,290 23,322 Trust Land Transfers 70,622 5,465 Facilities 272 212 Small Timber Landowner Program 0 0 Miscellaneous 5,261 468 Total Capital Expenditures $89,161 $30,079 Total Expenditure Total 2 $257,355 $195,457

See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. 2011 DNR Annual Report 3 4 2011 Fiscal Timber Stories Data Data

DNR-Administered Funds | F Y 2011

Beginning Ending Fund Title Balance 7/1/10 Revenue Expenditure Balance 6/30/11 Amounts are reported in thousands of dollars. Trust Management Accounts * N/A = not applicable Forest Development (FDA) $19,572 $25,773 $(21,316) $24,028 ■ About This Page Resources Management (RMCA) ** 41,477 56,097 (42,960) 54,614 DNR’s fiscal activity includes RMCA Uplands Subtotal 8,264 34,011 (29,558) 12,717 generating revenue for a variety RMCA Land Bank Subtotal 20,795 4,404 0 25,199 of funds and accounts, some RMCA Aquatics Subtotal 12,417 17,683 (13,403) 16,697 of which benefit state trust beneficiaries and some of which Agricultural College (ACTMA) 1,047 328 (1,108) 267 fund state programs, including $62,095 $82,198 $(65,385) $78,910 DNR’s own. DNR’s fiscal activity Other DNR-Administered Funds also includes expenditures supporting its work. Some of the Access Road Revolving $8,996 $13,705 $(13,468) $9,233 accounts that receive revenue Aquatic Lands Dredged Material 732 138 (276) 594 from DNR or that fund DNR’s Aquatic Lands Enhancement 7 n / a 20,203 (5,149) n / a expenditures are managed by DNR; others are managed by Conservation Areas Stewardship 281 10 (183) 107 other agencies. Contract Harvesting Revolving 14,067 9,802 (14,413) 9,455 * These accounts fund DNR’s 8 Derelict Vessel Removal n / a 141 (567) n / a management of state trust lands. Forest and Fish Support 9 n / a 0 (3,121) n / a Revenue may be carried over Forest Fire Protection Assessment 7,925 10,129 (14,878) 3,176 from year to year. As a result, any given year’s expenditures do not Geothermal 0 0 0 0 necessarily correlate to that year’s Landowner Contingency Forest Fire 2,603 290 (99) 2,793 revenue. ORV and Nonhighway Vehicle 6 n / a 1 (2,198) n / a ** The RMCA trust balance Park Land Trust Revolving 48 15 (23) 40 includes $25,199,293 dedicated Real Property Replacement 3 27,031 11,377 (2,441) 35,968 by law (RCW 79.19) to land bank School Construction Revolving 13 40 (40) 0 0 purchases of lands that replace previously sold trust lands. Special Forest Products Outreach & Educ. 0 1 0 1 See pages 36, 38, 46, and 50 State Forest Nursery Revolving 1,011 7,604 (2,916) 5,699 for more detailed accounting. Surface Mining Reclamation 881 1,601 (1,391) 1,091 FDA and RMCA are funded Surveys and Maps 987 514 (619) 883 through revenue generated from See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. the lands whose management $64,601 $75,529 $(61,742) $69,040 they support. ACTMA is not funded through such revenue, Total DNR-Administered Funds 13 $126,696 $157,727 $(127,127) $147,950 but instead, through a legislative appropriation from the State General Fund. See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. 2011 DNR Annual Report 3 5 2011 Fiscal Timber Stories Data Data

Funds Administered by Other Entities | F Y 2011

Fund Title Revenue Expenditure Net Fiscal Activity

Trust Current Funds 12 Common School Construction $119,158 $0 $119,158 Amounts are reported in thousands of dollars. Community College Forest Reserve 16 (1) 0 (1) Totals may not add, due to WSU Bond Retirement 18 1,360 0 1,360 rounding. See fiscal notes, UW Bond Retirement 1,296 0 1,296 pages 54-58. CEP&RI 4,923 0 4,923 ■ About This Page EWU Capital Projects 21 0 21 All revenue for the CWU Capital Projects 21 0 21 Community College Reserve WWU Capital Projects 21 0 21 Trust was generated from TESC Capital Projects 21 0 21 leases. DNR expenditures from the fund were to Capitol Building Construction 8,682 0 8,682 purchase land for the trust. Forest Board Counties 70,510 0 70,510 $206,011 $0 $206,011 Trust Permanent Funds 12 Agricultural College (WSU) $2,882 $0 $2,882 Normal School (EWU, CWU, WWU, TESC) 3,030 0 3,030 Common School (K-12) 312 0 312 Scientific (WSU) 5,688 0 5,688 State University (UW) 18 279 0 279 $12,191 $0 $12,191 Other Funds General Fund $21,629 $(50,046) $(28,417) State Building Construction 0 (75,061) (75,061) Disaster Response 0 (3,439) (3,439) Motor Vehicle 4 0 4 Air Pollution Control 115 (67) 48 State Toxics Control 0 (94) (94) State Wildlife 60 0 60 Developmental Disabilities Community Trust 5 0 5 Cleanup Settlement Account 0 (1,030) (1,030) NOVA Program 0 (491) (491) Savings Incentive Account 16 (18) 0 (18) Industrial Insurance Premium Refund 16 (9) 0 (9) $21,786 $(130,228) $(108,442) Total Other Fiscal Activity $239,987 $(130,228) $109,759 Total All Funds and Activities 13 $397,715 $(257,355) 2011 DNR Annual Report 3 6 2011 Fiscal Timber Stories Data Data Resource Management Cost Account (RMCA) Upland + Aquatic | FY 2011

Expenditures Revenue

Source ■ Fund Balance (July 1, 2010) $41,476,674 About This Page The Resource Management Cost Account (RMCA) funds RMCA Revenue DNR’s Land Management Operating Revenue 56,097,249 activities on state grant lands. Total Revenue 56,097,249 DNR deposits a portion of the revenue it generates from these lands into the Less Expenditures 2 account, and the Legislature Agricultural Resources 1,463,800 appropriates funds from the account to DNR for Asset Management & Protection 1,051,412 expenditures. The RMCA Product Sales & Leasing 8,761,056 can be used only for Land Land Management 9,051,198 Management expenses (e.g., Law Enforcement 331,225 reforestation, preparing timber sales, or managing aquatic Correctional Camps 225,342 leases) that support federally Administration 865,105 granted state lands. Interagency Payments 4,343,991 ** RMCA fund balance Agency Support 5,228,663 includes $25,199,293 in upland Aquatic Resources 7,713,036 trust reserved for land bank sell first purchases. See page 38 Engineering Services 1,255,701 for details. Total Operating Expenditures 40,290,528 Total Capital Expenditures 2,669,852

Total Expenditures and Other Charges 42,960,380

RMCA Fund Balance (June 30, 2011) **$54,613,547

See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. 2011 DNR Annual Report 3 7 2011 Fiscal Timber Stories Data Data State Grant Lands Upland + Aquatic | FY 2011

Revenue Distribution

Trust Trust Resource Grand Total Current Permanent Management ■ About This Page Source All Funds Funds 12 Funds 12 Cost Account 14 State grant lands (upland Sales and aquatic) were Timber Sales 10, 14, 18 $88,358,139 $50,484,562 $12,745,516 $25,128,061 granted to Washington at statehood by the Timber Sales Related Activities 1 1,058,348 739,414 574 318,360 federal government. Each Trust Land Transfer Program 3 62,636,000 62,636,000 0 0 upland parcel is assigned Land Sales (Includes Land Bank) 4 4,235,000 0 0 4,235,000 to a specific state trust dedicated to financially $156,287,487 $113,859,976 $12,746,090 $29,681,421 supporting a specific beneficiary (e.g., the Leases Common School Trust Agriculture supports construction of K-12 schools). Dryland $5,001,199 $3,169,159 $376,216 $1,455,824 The aquatic lands are Irrigated 8,022,111 5,141,422 528,244 2,352,445 designated as a public Grazing and Other 657,662 445,924 23,351 188,388 trust to benefit the public Aquatic Lands 37,061,390 19,879,388 0 17,182,003 as a whole. Income from state grant lands is divided Special Use 1,763,749 1,153,834 94,588 515,327 among trust beneficiary Commercial Real Estate 10,064,210 7,026,324 78,300 2,959,586 accounts and the RMCA, Mineral And Hydrocarbon 955,651 547,246 81,257 327,149 which DNR uses to manage the lands. Rights-Of-Way 681,430 243,298 183,516 254,616 Communication Sites 2,778,046 1,395,766 574,045 808,234 Special Forest Products 185,926 114,109 17,738 54,079 $67,171,374 $39,116,468 $1,957,254 $26,097,651

Other Revenue Interest Income $620,149 $69,946 $37,068 $513,136 Non-Trust Revenue 15 34,712 695 0 34,017 Operating Transfer 1, 11 (313,662) 2,652,667 (2,652,667) (313,662) Permits, Fees and Miscellaneous 1 193,169 483 103,263 89,423 $534,368 $2,723,791 $(2,512,337) $322,913

Total Revenue $223,993,228 $155,700,235 $12,191,008 $56,101,985

See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. 2011 DNR Annual Report 3 8 2011 Fiscal Timber Stories Data Data Resource Management Cost Account (RMCA) Upland | F Y 2011

Granted Total Source Trusts Land Bank* Uplands About Next Page Generally, by law, each beneficiary of the Trust Balance (July 1, 2010) $8,264,340 $20,795,487 $29,059,827 granted land trusts receives 70 percent of the revenue earned from its lands, and Upland Revenue the remaining 30 percent goes to the Total Upland Revenue 34,010,688 4,403,807 38,414,495 RMCA to fund DNR’s management of the lands. This chart shows the combined distribution in Fiscal Year 2011, with each 2 Less: Expenditures trust beneficiary’s share proportional to Agricultural Resources 1,463,800 0 1,463,800 its share of the total revenue earned, and Asset Management & Protection 1,051,412 0 1,051,412 with the RMCA share divided among DNR’s expenditures from the account for Product Sales & Leasing 8,761,056 0 8,761,056 upland management activities. 9,051,198 0 9,051,198 Land Management Expenditures are appropriated by the Law Enforcement 331,225 0 331,225 legislature and are ongoing investments Correctional Camps 225,342 0 225,342 to keep the lands productive and to generate future income for the trusts. Administration 586,976 0 586,976 Effective March 10, 2008 per Board of Interagency Payments 2,821,927 0 2,821,927 Natural Resources resolution #1255, the Agency Support 3,443,035 0 3,443,035 distribution of revenues on state forest Engineering Services 1,255,701 0 1,255,701 transfer lands will be 75% to the county where the revenue activity occurred and 25% to the forest development account, Total Operating Expenditures 28,991,673 0 28,991,673 and affective April 6, 2011 this deduction Total Capital Expenditures 566,035 0 566,035 to FDA was reduced to 23% while the deduction to the counties increased to 77%. Total Expenditures 29,557,708 0 29,557,708 Per Board of Natural Resources resolution Trust Balance (June 30, 2011) $12,717,325 $25,199,294 $37,916,619 #1321, the deduction of revenues from granted lands will be 30% from July 1, 2009. Effective April 6, 2011 the deductions on state grant lands will be See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. 27%. * This chart is based on statewide About This Page averages. Detailed breakdown of DNR This portion of the RMCA supports the programs contains examples only, not management of upland state grant lands, a complete listing. This chart does not each of which supports a specific, designated include revenue from the Agricultural beneficiary. School trust lands, because 100 percent of revenue from those lands is distributed * Land bank revenue is dedicated by law to the trust. (RCW 79.19) to purchases of lands that replace previously sold trust lands. ** Per Board of Natural Resources Resolution No. 1321, the deduction of revenues from granted lands will be 30 percent from July 1, 2009, through June 30, 2011. 2011 DNR Annual Report 3 9 2011 Fiscal Timber Stories Data Data General Distribution of Revenue from Upland State Grant Lands* | F Y 2011

Learn more about 9.2% 1.1% General Distribution Land Management Asset Management of Revenue from ❙ Reforestation, and Protection Upstate Grant Lands 9% Pre-commercial ❙ Asset Planning on page 38. s 57. ol Thinning, ❙ Land Transactions o Fertilization, ❙ Public Use h c vegetation Mgmt. ❙ Recreation S eficia ❙ Genetic Improvement ❙ WCC en ri n B es of Seedlings t ❙ o s 7 Forest Nursery m 0 ❙ Scientific Support u % r ❙ Data Stewardship m T ❙ Landscape Planning o Distributed to trust ❙ Natural Areas C o

❙ T beneficiaries Natural Heritage

70%

%

Resource 0 8.9%

Management 3 Product Sales & Leasing Cost Account ❙ Presales Activities (RMCA) Upland d ❙ Oil, Gas, & Commercial Site Leasing 30%** n ❙ Rock & Gravel Sales Assessments

a ❙ Right-of-Way Granting & Acquisition l p ❙ Contract Administration U ❙ Leasing A MC 0.2% R Special Employment ❙ Correction Camps Program Institutions and Prisons 2.4% 1.3% Univ. of Washington 0.8% Engineering Services ❙ Resource Mapping 3.2% WA State University 3.5% 1.5% (Scientific Trust only) 0.6% Agency Support Agricultural Resources 0.6% Administration ❙ Finance ❙ Agricultural & Grazing Leases 1.5% Capital Investments ❙ Policy Analysis ❙ Personnel and Equipment ❙ Executive ❙ Weed Management Normal Schools ❙ Facilities ❙ Data Systems Management ❙ Permits (WWU, EWU, CWU ❙ Irrigation Systems Management ❙ Internal Audit and Support and TESC) ❙ Right-of-Way Acquisition ❙ Communications ❙ Geographic Information 2.9% ❙ Commercial Property ❙ Budget and Systems Interagency Payments 4.2% Improvements Economic Services ❙ Region Administration 0.3% Capitol Buildings ❙ Communication ❙ SEPA ❙ Facilities Law Enforcement Site Repair ❙ Environmental ❙ Investigative Services Compliance 2011 DNR Annual Report 4 0 2011 Fiscal Timber Stories Data Data Common School, Indemnity and Escheat Grants | F Y 2011

Revenue Distribution

Common Common Resource School School Management ■ About This Page Source Total Funds Construction Permanent Cost Account 14 Income from these state grant Sales lands and escheat lands (those Timber Sales 10, 14 $53,077,250 $37,546,626 $0 $15,530,624 with no known heirs) supports construction of state public Timber Sales-Related Activities 1 1,056,029 739,194 0 316,834 kindergarten through 12th Trust Land Transfer Program 3 62,636,000 62,636,000 0 0 grade schools. 4 Land Sales (Includes Land Bank) 4,235,000 0 0 4,235,000 The beneficiary’s share of $121,004,279 $100,921,820 $0 $20,082,459 income is distributed to the Common School Construction Account and the Common Leases School Permanent Account, Agriculture which generates perpetual Dryland $4,200,729 $2,941,252 $0 $1,259,477 interest for the support of school construction. This Irrigated 7,272,119 5,111,570 0 2,160,549 distribution varies by activity Grazing and Other 608,125 431,871 0 176,254 and is governed by law. Aquatic Lands 0 0 0 0 Special Use 1,589,521 1,124,960 0 464,561 Commercial Real Estate 9,943,051 7,017,634 0 2,925,417 Mineral And Hydrocarbon 277,730 123,022 72,519 82,189 Rights-Of-Way 226,535 23,608 135,819 67,108 Communication Sites 1,850,245 1,287,917 0 562,328 Special Forest Products 123,077 86,915 0 36,162 $26,091,132 $18,148,750 $208,338 $7,734,044

Other Revenue Interest Income $278,879 $83,062 $400 $195,417 Non-Trust Revenue 15 17,064 0 0 17,064 Operating Transfer 1 (7,650) 0 0 (7,650) Permits, Fees and Miscellaneous 1 152,053 0 103,263 48,790 $440,345 $83,062 $103,663 $253,620

Totals $147,535,756 $119,153,632 $312,001 $28,070,123

See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. 2011 DNR Annual Report 4 1 2011 Fiscal Timber Stories Data Data University Grants Original and Transferred (UW) | F Y 2011

Revenue Distribution

UW State (UW) Resource Retirement University Management ■ About This Page Source 18 Total Funds Bond Permanent Cost Account 14 Income from these state grant Sales lands supports construction Timber Sales $2,311,034 $0 $1,377,925 $933,109 of buildings for the University of Washington. Some of these Timber Sales-Related Activities 1 252 0 47 205 lands were acquired at the Land Sales (Includes Land Bank) 0 0 0 0 time of statehood, and some $2,311,286 $0 $1,377,972 $933,314 lands were transferred to this trust from the CEP&RI trust by the legislature in 1893. Leases The beneficiary’s share of Agriculture income is distributed to the Dryland $127,198 $0 $89,039 $38,160 University Permanent and UW Irrigated 0 0 0 0 Bond Retirement accounts. This distribution varies by Grazing and Other 19,088 0 13,485 5,602 activity and is governed by Aquatic Lands 0 0 0 0 law. Special Use 2,959 0 2,071 888 Commercial Real Estate 103,472 0 72,948 30,524 Mineral And Hydrocarbon 399 0 279 120 Rights-Of-Way 15,312 0 10,763 4,549 Communication Sites 0 0 0 0 Special Forest Products 11,642 0 8,178 3,464 $280,070 $0 $196,763 $83,307

Other Revenue Interest Income $10,373 $384 $85 $9,904 Non-Trust Revenue 15 443 0 0 443 Operating Transfer 1, 11 (293,766) 1,295,810 (1,295,810) (293,766) Permits, Fees and Miscellaneous 1 150 0 0 150 $(282,801) $1,296,194 $(1,295,725) $(283,270)

Totals $2,308,555 $1,296,194 $279,010 $733,351

See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. 2011 DNR Annual Report 4 2 2011 Fiscal Timber Stories Data Data Charitable, Educational, Penal and Reformatory Institutions Grant (CEP&RI) | F Y 2011

Revenue Distribution

Resource CEP & RI Management ■ About This Page Source Total Funds Account Cost Account 14 Income from these state grant Sales lands is used to establish and Timber Sales $6,170,840 $4,364,530 $1,806,310 maintain institutions managed by the Department of Timber Sales-Related Activities 1, 16 74 (7) 82 Corrections (such as prisons) Land Sales (Includes Land Bank) 0 0 0 and the Department of Social $6,170,915 $4,364,523 $1,806,392 and Health Services (such as Western State Hospital).

Leases The beneficiary’s share of income is distributed to the Agriculture CEP&RI Account. Dryland $224,740 $157,322 $67,418 Irrigated 3,248 2,274 974 Grazing and Other 10,073 7,134 2,939 Aquatic Lands 0 0 0 Special Use 3,584 2,509 1,075 Commercial Real Estate 11,150 7,861 3,289 Mineral And Hydrocarbon 379,907 267,872 112,035 Rights-Of-Way 14,437 10,174 4,263 Communication Sites 120,766 84,268 36,498 Special Forest Products 21,633 15,518 6,114 $789,538 $554,932 $234,606

Other Revenue Interest Income $32,368 $3,760 $28,608 Non-Trust Revenue 15 1,251 0 1,251 Operating Transfer 0 0 0 Permits, Fees and Miscellaneous 1 2,009 0 2,009 $35,628 $3,760 $31,868

Totals $6,996,081 $4,923,215 $2,072,866

See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. 2011 DNR Annual Report 4 3 2011 Fiscal Timber Stories Data Data

Capitol Building Grant | F Y 2011

Revenue Distribution

Capitol Resource Building Management ■ About This Page Source Total Funds Construction Cost Account 14 Income from these state grant Sales lands supports construction Timber Sales $12,060,932 $8,573,406 $3,487,526 of state government office buildings at the Capitol Timber Sales-Related Activities 1 876 227 650 Campus in Olympia. Land Sales (Includes Land Bank) 0 0 0 The beneficiary’s share of $12,061,808 $8,573,633 $3,488,175 income is distributed to the Capitol Building Construction Leases Account. Agriculture Dryland $46,486 $32,540 $13,946 Irrigated 0 0 0 Grazing and Other 3,904 2,755 1,149 Aquatic Lands 0 0 0 Special Use 23,187 16,368 6,819 Commercial Real Estate 1,185 829 355 Mineral And Hydrocarbon 8,225 5,757 2,468 Rights-Of-Way 19,171 13,452 5,719 Communication Sites 33,233 23,581 9,652 Special Forest Products 14,006 9,905 4,101 $149,396 $105,188 $44,208

Other Revenue Interest Income $52,045 $3,538 $48,506 Non-Trust Revenue 15 2,161 0 2,161 Operating Transfer 1 (2,917) 0 (2,917) Permits, Fees And Miscellaneous 1 197 0 197 $51,486 $3,538 $47,948

Totals $12,262,689 $8,682,358 $3,580,331

See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. 2011 DNR Annual Report 4 4 2011 Fiscal Timber Stories Data Data Normal School Grant (EWU, CWU, WWU and TESC) | F Y 2011

Revenue Distribution

EWU, CWU, Normal Resource WWU, TESC School Management ■ About This Page Source Total Funds Capital Projects Permanent Cost Account 14 Income from these state grant Sales lands supports construction at Timber Sales 10, 14 $4,161,381 $0 $3,024,590 $1,136,792 Eastern Washington University, Central Washington University Timber Sales-Related Activities 1 164 0 81 83 and Western Washington Land Sales (Includes Land Bank) 0 0 0 0 University (regional $4,161,546 $0 $3,024,671 $1,136,875 universities). These three universities were originally called ‘normal schools.’ The Leases Evergreen State College (TESC) Agriculture was added to this trust by the Dryland $54,349 $38,044 $0 $16,305 legislature to begin receiving revenue after July 1, 1995. Irrigated 39,344 27,578 0 11,766 The beneficiary’s share of Grazing and Other 5,887 4,163 0 1,724 income is distributed to the Aquatic Lands 0 0 0 0 Normal School Permanent Special Use 14,183 9,997 0 4,186 Account and capital project accounts for each Commercial Real Estate 0 0 0 0 university. This distribution Mineral And Hydrocarbon 3,000 0 2,145 855 varies by activity and is Rights-Of-Way 3,095 0 2,222 873 governed by law. Communication Sites 0 0 0 0 Special Forest Products 2,524 1,770 0 754 $122,382 $81,553 $4,367 $36,462

Other Revenue Interest Income $17,465 $849 $522 $16,095 Non-Trust Revenue 15 713 0 0 713 Operating Transfer 1 (9,329) 0 0 (9,329) Permits, Fees and Miscellaneous 1 281 0 0 281 $9,130 $849 $522 $7,759

Totals $4,293,057 $82,401 $3,029,560 $1,181,096

See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. 2011 DNR Annual Report 4 5 2011 Fiscal Timber Stories Data Data

Scientific School Grant (WSU) | F Y 2011

Revenue Distribution

Resource WSU Bond Scientific Management ■ About This Page Source Total Funds Retirement Permanent Cost Account 14 Income from these Sales state grant lands Timber Sales $7,692,757 $0 $5,459,056 $2,233,700 supports construction of buildings at Washington Timber Sales-Related Activities 1 842 0 335 506 State University. The Land Sales (Includes Land Bank) 0 0 0 0 beneficiary’s share of $7,693,598 $0 $5,459,392 $2,234,206 income is distributed to the Scientific School Permanent and the WSU Leases Bond Retirement accounts. Agriculture This distribution varies by Dryland $201,730 $0 $141,211 $60,519 activity and is governed by law. Irrigated 597,245 0 418,089 179,156 Grazing and Other 2,409 0 1,689 721 Aquatic Lands 0 0 0 0 Special Use 130,316 0 92,517 37,799 Commercial Real Estate 0 0 0 0 Mineral and Hydrocarbon 1,973 0 1,381 592 Rights-Of-Way 45,501 0 31,877 13,623 Communication Sites 671,201 0 471,444 199,757 Special Forest Products 11,962 0 8,478 3,484 $1,662,337 $0 $1,166,687 $495,650

Other Revenue Interest Income $84,892 $1,894 $35,405 $47,593 Non-Trust Revenue 15 1,678 0 0 1,678 Operating Transfer 11 0 973,006 (973,006) 0 Permits, Fees and Miscellaneous 1 2,336 0 0 2,336 $88,907 $974,900 $(937,601) $51,608

Totals $9,444,842 $974,900 $5,688,478 $2,781,464

See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. 2011 DNR Annual Report 4 6 2011 Fiscal Timber Stories Data Data Agricultural College Trust Management Account (ACTMA) | F Y 2011

Expenditures Revenue

Source ■ Trust Balance (July 1, 2010) $1,046,654 About This Page This account funds DNR’s management of the Revenue Agricultural College trust Operating Revenue * $1,207 lands. The ACTMA is funded Interfund Transfer from General Fund 327,000 through an appropriation from the state General Total Revenue 328,207 Fund. (As of July 1, 1999, Agricultural College trust Less Expenditures 2 lands do not contribute to the RMCA, which supports DNR’s Agricultural Resources 29,405 management of other state Asset Management & Protection 26,743 grant lands.) Product Sales & Leasing 335,364 *Includes treasurer’s interest. Land Management 472,028 See accompanying notes on Law Enforcement 12,988 pages 54-58. Correctional Camps 9,444 Administration 17,608 Interagency Payments 74,823 Agency Support 85,685 Engineering Services 43,865 Total Operating Expenditures 1,107,953 Total Capital Expenditures 0 Total Expenditures and Other Charges 1,107,953

ACTMA Fund Balance (June 30, 2011) $266,908

See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. 2011 DNR Annual Report 4 7 2011 Fiscal Timber Stories Data Data

Agricultural School Grant (WSU) | F Y 2011

Revenue Distribution

Agricultural WSU Bond College ■ About This Page Source Total Funds Retirement Permanent Income from these state Sales grant lands supports Timber Sales $2,883,946 $0 $2,883,946 construction of Washington State University’s buildings. Timber Sales-Related Activities 1 110 0 110 All revenue from these Asset Transfer/Loan Repayment 0 0 0 lands is income for the trust, Land Sales (Includes Land Bank) 0 0 0 and is divided between the Agricultural College $2,884,056 $0 $2,884,056 Permanent Account and the WSU Bond Retirement Leases Account. This distribution Agriculture varies by activity and is governed by law. Dryland $145,966 $0 $145,966 Irrigated 110,154 0 110,154 Grazing and Other 8,177 0 8,177 Aquatic Lands 0 0 0 Special Use 0 0 0 Commercial Real Estate 5,352 0 5,352 Mineral and Hydrocarbon 4,932 0 4,932 Rights-Of-Way 2,835 0 2,835 Communication Sites 102,601 0 102,601 Special Forest Products 1,082 0 1,082 $381,099 $0 $381,099

Other Revenue Interest Income $1,632 $976 $656 Non-Trust Revenue 0 0 0 Operating Transfer 11 0 383,852 (383,852) Permits, Fees and Miscellaneous 1 0 0 0 $1,632 $384,827 $(383,196)

Totals $3,266,786 $384,827 $2,881,959

See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. 2011 DNR Annual Report 4 8 2011 Fiscal Timber Stories Data Data

Aquatic Resources | F Y 2011

Revenue Distribution

Aquatic Resource Lands Management About Next Page Source Total Funds Enhancement Cost Account 14 By law, revenue from state-owned Aquatic Resources Activities Aquatic lands goes to the ALEA for Leases $37,061,390 $19,879,388 $17,182,003 aquatic resource enhancement and to Mineral and Hydrocarbon 279,485 150,594 128,890 the RMCA to fund DNR’s management of state aquatic lands. Distribution Rights-Of-Way 354,544 196,064 158,480 differs for different types of aquatic land Interest Income 1 142,495 (24,517) 167,012 — see the small pie charts. Non-Trust Revenue 15 11,403 695 10,708 The large pie chart shows the combined Miscellaneous 1 36,143 483 35,660 total distribution, with the ALEA share divided among state agency Total Revenue $37,885,460 $20,202,706 $17,682,754 expenditures from that account, and the RMCA share divided among DNR’s expenditures from the RMCA. RMCA | Aquatic Expenditures are appropriated by the Legislature and are ongoing investments Expenditures Revenue to keep the submerged lands productive.

Source * This chart is based on statewide averages. Detailed breakdown of DNR Trust Balance (July 1, 2010) $12,416,847 programs contains examples only, not a complete listing. Aquatic Revenue ** The ALEA portion of revenue from Total Revenue 17,682,753 harbor areas in fourth class towns is redistributed to those towns twice per 2 Less Expenditures year.See fiscal note #7, page 54. 7,713,036 Aquatic Resources Department of Health (DOH) and Administration 278,128 Recreation and Conservation Office Interagency Payments 1,522,063 (RCO) spent a very small amount of ALEA funds (see footnote 7, figure 2 on Agency Support 1,785,627 pages 55), which represents less than Total Operating Expenditures 11,298,855 0.5 percent of total ALEA expenditures. Total Capital Expenditures 2,103,817 Totals may not add, due to rounding. Total Expenditures and Other Charges 13,402,672 See fiscal notes, pages 54-58.

Trust Balance (June 30, 2011) $16,696,928

See Fiscal Notes, pages 54-58. Totals may not add, due to rounding.

■ About This Page State-owned aquatic lands (tidelands, shorelands and beds of navigable waters) are a “public trust”– managed to benefit the public as a whole. Revenue from these granted state lands is divided between two accounts: The RMCA-aquatic supports DNR’s management of state aquatic lands and resources, and the ALEA provides for the purchase, improvement and protection of aquatic lands, largely through grants to public entities. Distribution varies according to activity and land classification, and is governed by law. 2011 DNR Annual Report 4 9 2011 Fiscal Timber Stories Data Data General Distribution of Revenue from State-Owned Aquatic Lands* | F Y 2011

Beds of First Class Tidelands Second Class Tidelands Harbor Areas ** Learn more about Navigable waters & Shorelands & Shorelands Effective 2/6/06 General Distribution of Revenue from State State-Owned R RM R RM % M % C % M % C Aquatic Lands on 0 C 5 A 0 C 5 A 5 7 5 7 A 2 A 2 5 5 page 48. A A % A A % 5 5 E E E E

0 0

L L L L

% %

A A A A

22.4% 31.9% Department of Natural Aquatic Resources Resources (DNR) ❙ Nearshore Habitat ❙ Spartina Management ❙ Geoducks ❙ Aquatic Endangered ❙ Port Management Species Act Compliance ❙ Contaminated Sediments % RM ❙ Derelict Vessel Removal .3 C ❙ Operations, Administration ❙ Puget Sound Assessment 3 A and Policy Development 5 4 Monitoring Program A 6 E . 1.2% 7 L 1.3% Aquatic Lands % Administration State Parks A Enhancement ❙ Policy Analysis and Recreation Account (ALEA) 53.3% ❙ Executive Management Commission ❙ Resource Internal Audit ❙ Communications 7.1% Management Cost Account ❙ Budget & Economic Services Department of (RMCA) Aquatic Agriculture (WSDA) 46.7% 6.3% Interagency Payments 1.1% Puget Sound Partnership 7.4% Agency Support ❙ Finance 2.6% ❙ Personnel & Equipment Department of Health ❙ Data Systems 3.4% Recreation and ❙ Management & Support Conservation Funding Board ❙ Geographic Information Systems ❙ Facilities 15.4% Department of Fish ❙ Region Administration and Wildlife (WDFW) 2011 DNR Annual Report 5 0 2011 Fiscal Timber Stories Data Data Forest Development Account (FDA) | F Y 2011

Expenditures Revenue

Source Trust Balance (July 1, 2010) $19,571,600 About Next Page By law, revenue from State Forest Lands (formerly known as Forest Board Lands) Revenue goes to the county in which the land is Operating Revenue 25,772,642 located, the State General Fund for the Total Revenue 25,772,642 support of Common Schools, and to the FDA to fund DNR’s management of the lands. Distribution differs for Transfer 2 Less Expenditures lands and Purchase lands—see the small Agricultural Resources $0 pie charts. Asset Management & Protection 428,350 The large pie chart shows the combined Product Sales & Leasing 7,230,374 total distribution for Fiscal Year 2011, with the FDA share divided among Land Management 6,745,223 DNR’s expenditures from the account. Law Enforcement 305,400 Expenditures are appropriated by the Correctional Camps 173,608 legislature and are ongoing investments to keep the lands productive and to Administration 554,021 generate future revenue. Interagency Payments 1,917,724 * This chart is based on statewide Agency Support 2,734,855 averages. Detailed breakdown of DNR Engineering Services 1,133,661 programs contains examples only, not a Total Operating Expenditures 21,223,215 complete listing. Total Capital Expenditures 93,017 ** Effective March 10, 2008, per Board of Natural Resources Resolution Total Expenditures and Other Charges 21,316,232 No. 1255, the distribution of revenues on State Forest Transfer lands was established at 75 percent to the county and 25 percent to the FDA. FDA Fund Balance (June 30, 2011) $24,028,011 Totals may not add, due to rounding. See fiscal notes, pages 54-58. See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. Purchase lands, see definition on page 52. ■ About This Page Transfer lands, The FDA funds DNR’s land management activities on State Forest Lands (formerly known as Forest Board Lands) in see definition on page 53. 21 counties. DNR deposits a portion of the revenue it generates from these lands into the FDA, and the legislature appropriates funds from the account to DNR for expenditures. The FDA is used for trust land management expenses (e.g., reforestation, preparing timber sales) on State Forest Lands. 2011 DNR Annual Report 5 1 2011 Fiscal Timber Stories Data Data General Distribution of Revenue from State Forest Lands* | F Y 2011

Purchase Lands 0.4% Law Enforcement State 79,400 acres General ❙ Investigative Services Fund d FD 1.4% Engineering Services 23.5% un A F 5 ❙ Resource Mapping . 0 n % e G 0.7%

70.2%

Counties s Administration

s

e

e 26.5% i ❙ Policy Analysis

i

t

t

❙ Executive

n n

u

o u

C

Counties Management o 70.2% Forest ❙ Internal Audit

C

Development ❙ Communications

Account (FDA) ❙ Budget and 25.7% Economic Services Direct ❙ SEPA Transfer Lands ** Contribution

539,173 acres State General ❙ Environmental

% Fund 4.1% 7 Compliance . F 5 % DA 2 2.3% Interagency Payments 5 7 2 s 5 A % D e F 3.3% i t 0.2% Agency Support

n Special ❙ Finance

u

o Employment ❙ Personnel and

C

❙ Correction Equipment Camp Program ❙ Data Systems ❙ Management 0.1% and Support 8.1% Capital ❙ Geographic * A portion Land Management Investments Information goes to State 0.5% 8.7% ❙ Reforestation, ❙ Communication Systems General Fund Asset Product Sales & Pre-commercial Management Leasing Site Repair ❙ Facilities Thinning, Fertilization, and Protection ❙ Presales Activities ❙ Right-of-Way ❙ Region Administration Net effect to counties after their vegetation Mgmt. ❙ Asset Planning ❙ Oil, Gas, & Acquisition ❙ ❙ redistribution to the General Fund: Genetic Improvement ❙ Land Commercial Facilities Estimated 37% of Seedlings Transactions Site Leasing ❙ Forest Nursery ❙ Public Use ❙ Rock & Gravel Sales Counties also redistribute ❙ Scientific Support ❙ Recreation Assessments revenue to junior taxing districts, bond ❙ Data Stewardship ❙ WCC ❙ Right-of-Way retirement, road funds, and other ❙ Landscape Planning granting obligations. These vary by county. ❙ Natural Areas & Acquisition Learn more about General ❙ Natural Heritage ❙ Leasing Distribution of Revenue from State ❙ Contract Forest Lands on page 50. Administration 2011 DNR Annual Report 5 2 2011 Fiscal Timber Stories Data Data

State Forest Lands | F Y 2011

Revenue Contributing Lands

Transfer Purchase Source Total Funds Lands Lands ■ About This Page Sales and Next Page Timber Sales $98,509,768 $86,153,311 $12,356,457 Income from these lands is distributed to the counties in 1 Timber Sales-Related Activities 26,218 25,070 1,147 which the lands are located, $98,535,986 $86,178,382 $12,357,604 the state general fund for the support of common schools, and the Forest Development Leases Account (FDA) for DNR’s Land Agriculture/Minor Forest Products $254,973 $216,010 $38,963 Management expenses on Commercial/Special Use 80,931 60,960 19,971 these lands. There are two categories of State Forest Mineral and Hydrocarbon 115,988 115,988 0 Lands (formerly known as Rights-Of-Way 103,017 91,345 11,672 Forest Board Lands): Purchase Communication Sites 1,228,806 892,417 336,389 lands and Transfer lands. $1,783,716 $1,376,720 $406,995 Purchase lands were given to the state or purchased by the state at low cost. The Other Revenue FDA receives half the income Interest Income 1 $64,560 $56,002 $8,558 from these lands. The other Permits, Fees and Miscellaneous 1 250 250 0 half is divided between the respective county and the Treasurer’s Revenue 17 18,356 n/a n/a state general fund for the FDA Non-Trust Revenue 15 10,076 n/a n/a support of common schools. $93,243 $56,252 $8,558 N/A: Not applicable.

Totals $100,412,944 $87,611,354 $12,773,158

See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. 2011 DNR Annual Report 5 3 2011 Fiscal Timber Stories Data Data

State Forest Lands | F Y 2011 Continued

Revenue Distribution Contributing Lands

Recipient Total Funds Transfer Lands Purchase Lands County Transfer lands were forfeited to the counties in which they Clallam $6,656,971 $6,615,908 $41,063 were located when the private Clark 5,250,739 5,246,725 4,014 landowners failed to pay Cowlitz 2,128,264 2,126,716 1,548 property taxes, primarily in the 1920s and 1930s. The counties Grays Harbor 1,956,674 474,589 1,482,085 turned the lands over to the Jefferson 2,900,982 2,900,982 0 state. DNR now manages King 1,503,406 1,503,406 0 these lands and distributes at least 75 percent of the income Kitsap 129,461 102,548 26,913 to the counties and up to 25 Klickitat 482,356 482,356 0 percent of the income to the Lewis 8,897,626 8,867,027 30,598 Forest Development Account (FDA). Mason 2,549,381 2,548,596 785 Okanogan 48 48 0 Effective March 10, 2008, per Board of Natural Resources Pacific 1,679,411 1,345,735 333,676 Resolution No. 1256, the Pierce 1,137,814 1,120,711 17,103 distribution of revenue on Skagit 12,477,738 12,477,738 0 State Forest Transfer lands was established at 75 percent Skamania 790,831 789,342 1,489 to the county and 25 percent Snohomish 11,580,548 11,580,548 0 to the Forest Development Stevens 54,608 54,608 0 Account (FDA). Thurston 3,828,886 1,319,723 2,509,163 N/A: not applicable. Wahkiakum 2,255,878 2,255,878 0 Whatcom 4,229,541 4,216,042 13,499 Treasurer's Revenue 17 18,356 N/A N/A $70,509,518 $66,029,225 $4,461,937 Forest Development Account Trust Activity $25,744,105 $21,567,959 $4,176,146 Permits, Fees and Miscellaneous 1 18,461 14,170 4,291 Treasurer's Revenue 0 N/A N/A FDA Non-Trust Revenue 15 10,076 N/A N/A $25,772,642 $21,582,129 $4,180,437 General Fund - State $4,130,784 $0 $4,130,784

Totals $100,412,944 $87,611,354 $12,773,158

See Fiscal Notes, pages 54-58. Totals may not add, due to rounding. 2011 DNR Annual Report 5 4

1 | Revenue Sources 3 | Land transfers 6 | Off-Road Vehicle Timber sales include non-trust activity for Real Property Replacement: During fis- (ORV) & Nonhighway Vehicle Account Fiscal contract harvesting sales. cal year 2011 a total of $11,120,730 an Timber sale-related activities include amount equivalent to the property value, This fund provides for acquisition, plan- Notes contract extensions, slash disposal, tres- was received from (1) transfers to other ning, development, maintenance and passes, and default settlement payments. government entities, (2) resolution of management of ORV recreation facilities, These numbered notes provide Miscellaneous sales include publica- trespass violations, or (3) transfers in lieu non-highway roads and non-highway context and explanations for tions, GIS data, honor camp activities, of condemnation. This money is used to road recreation facilities; education and data in the tables on the fiscal and surveys and maps. acquire replacement trust lands. law enforcement programs related to pages that follow, where they non-highway vehicles; and construction are referred to by numerical Miscellaneous leases include special Trust Land Transfer: During fis- use and special forest products. cal year 2011 a total of $62,636,000 was and maintenance of campgrounds and superscript. A note may apply to trailheads. more than one page. Although Interest income includes interest on distributed to the Common School Con- DNR, the Department of Fish and similar to notes in prior reports, contracts, interest assessed for late pay- struction Account from the Trust Land Wildlife, and the Parks and Recreation these notes apply only to this ments, and interest earned from account Transfer program. Commission spend from the fund in sup- report (FY 2011). (treasurer’s interest). Permits, fees and related charges 4 | Land Bank port of these functions. The Department include surface mining permits, log patrol of Licensing collects revenue for the fund Acronyms DNR uses the Land Bank program (RCW from taxes, licenses, permits and fees. licenses, aquatic lands dredged material 79.19) to reposition trust land assets ACTMA Agricultural College disposal site fees, forest practices damage DNR administers the fund according to for better future income production. Legislative appropriations. Trust Management assessments and permits, survey records Through the Land Bank, state trust lands See Figure 1 for the account’s total Account recording fee, application/assignment are first auctioned to private buyers. Pro- fiscal activity for fiscal year 2011. AFRS Agency Financial fees, burning permit fees, and local gov- ceeds of land sales made under this “sell Reporting System ernment assessments. first” process are held in the Resource Miscellaneous other revenue includes 7 | Aquatic Lands ALEA Aquatic Lands Management Cost Account (RMCA) until prior period adjustments, recoveries of Enhancement Account Enhancement Account they can be used to purchase replace- This fund provides for the purchase, prior biennium expenditures, treasurer ment trust lands. This revenue from trust CEP&RI Charitable, Educational, improvement and protection of aquatic transfers, as well as revenue from the property sales should equal or exceed Penal and Reformatory lands for public purposes. DNR, the ORV & Nonhighway Vehicle and Natural the cost of trust property purchases. Institutions Trust Department of Fish and Wildlife, the Resources Conservation Areas Steward- However, during any one fiscal year the COLA Cost of Living Department of Agriculture, the Parks ship accounts. transactions may not balance. (e.g., a Adjustment and Recreation Commission, the Recre- Operating transfers include transfers property has been sold, but property to CWU Central Washington ation and Conservation Funding Board, attributed to prior period revenue. replace it has not yet been purchased.) university the Department of Health and the Puget Land bank transactions are accounted for EWU Eastern Washington Sound Partnership spend from the fund 2 | Expenditure categories by trust within each of DNR’s manage- for these purposes. DNR administers this university Administration includes Executive ment funds. fund and only the DNR fiscal activity is FDA Forest Development Management, Internal Audit, Communi- Revenue from fiscal year 2011 sales, reported on the Department Adminis- Account cations, and Budget & Economics. existing contracts and interest was tered Funds section of the annual report. FY11 Fiscal Year 2011 Interagency payments are payments $4,403,807 to the RMCA. A total of See Figure 2 for the account’s total July 1, 2010 – made to other state agencies (the Attor- $25,199,293 in the RMCA is reserved to fiscal activity for fiscal year 2011. June 30, 2011 ney General, State Auditor, General acquire property to replace trust property K-12 Kindergarten to Administration, Dept. of Personnel, Office previously sold through the “sell first” 8 | Derelict Vessel 12th grade schools of Financial Management, Dept. of Infor- process of the Land Bank program. Removal Account RMCA Resource Management mation Services, OMWBE, and Secretary Cost Account of State) for services they provide to the 5 | Agricultural College Trust This fund provides for costs and reim- bursements to authorized public entities TESC The Evergreen department. Management Account for the removal of derelict and aban- State College Agency support includes the following Per RCW 79.64.090 the revenue on Agri- doned vessels. DNR spends from the UW University of programs: Human Resources (personnel, cultural College trust lands is distributed fund for these purposes and the Depart- safety, training), Financial Management 100 percent to the agricultural college Washington ment of Licensing spends from the (accounting, risk management, purchas- permanent fund or WSU bond retirement WSU Washington State account for the purpose of administer- ing), Information Technology, Geographic account. The management of the agricul- university ing the collection of revenue for the Information Systems, Facilities, and tural college trust lands is funded from WWU Western Washington fund. DNR administers this fund and only Region Administration. the Agricultural College Trust Manage- university Total Expenditures for fiscal year ment Account. This account is dependent the DNR fiscal activity is reported on the 2011 do not include the interfund trans- on legislative appropriation for fund- Department Administered Funds section fer (sub-object MB) from General Fund ing. Currently the legislature appropriates of the annual report. to the Agricultural College Trust Manage- the money for this purpose from General See Figure 3 for the account’s total ment Account in the amount of $327,000 Fund under a proviso. For fiscal year 2011 fiscal activity for fiscal year 2011. (see footnote #5). the total interfund transfer from General Fund was $327,000. 2011 DNR Annual Report 5 5

Figure 1 Figure 4

Off-Road Vehicle Account Forest and Fish Support Account Beginning Balance $695,953 Beginning Balance $2,999,917 Revenue Revenue Licensing $2,379,463 Dept. of Revenue $4,212,057 Natural Resources 564 Treasurer's Deposit Income 165 4,212,222 Parks and Recreation 0 2,380,027 Expenditures Expenditures Natural Resources (3,121,436) Natural Resources $(2,197,689) Net Fiscal Activity (3,121,436) Fish and Wildlife (153,113) Ending Balance $4,090,703 Parks and Recreation (106,730) (2,457,532) Net Fiscal Activity (77,505) Figure 5 Ending Balance $618,447 FDA/RMCA Loan Repayment FY 2011 Total-To-Date Figure 2 C o m m o n S c h o o l C o n s t r u c t i o n A c c o u n t $1,165,427 $21,610,532 Aquatic Lands Enhancement Account C a p i t o l B u i l d i n g C o n s t r u c t i o n A c c o u n t 444,261 8,237,936 Beginning Balance $9,966,334 N o r m a l S c h o o l P e r m a n e n t A c c o u n t 1,422,119 26,470,391 Revenue S t a t e U n i v e r s i t y P e r m a n e n t A c c o u n t 220,325 12,754,488 Natural Resources $20,197,740 Total Trust Funds $3,252,132 $69,073,346 Treasurer's Deposit Income 4,966 Resource Management Cost Account Agriculture 636 Common School Trust $388,880 $7,200,849 Fish and Wildlife 49 Capitol Building Trust 148,356 2,747,555 Distribution to Fourth-Class Towns (68,135) Normal School Trust 473,366 8,765,025 Treasurer's Transfer* (12,550,000) 7,585,257 University School Trust 73,442 4,251,496 Expenditures Total RMCA $1,084,044 $22,964,924 Natural Resources $(5,148,510) Fish and Wildlife (3,548,542) 9 | Forest and Fish 10 | FDA/RMCA Loan Agriculture (1,637,299) Support Account Repayment Recreation & Conserv. Fund. Board (778,833) This account was created in 2007 to pro- The Board of Natural Resources reso- Health (602,027) vide for activities pursuant to the state’s lution #635 in 1990 and #756 in 1992 authorized settlement of the FDA debt Parks and Recreation (303,155) implementation of the forests and fish report as defined in chapter 76.09 RCW to the RMCA by transferring timber-cut- Puget Sound Partnership (251,231) (12,269,598) and related activities, including, but not ting rights on State Forest Purchase lands Net Fiscal Activity (4,684,341) limited to, adaptive management, moni- to the Common School, Capitol Building, Ending Balance $5,281,993 toring, and participation grants to tribes, Normal School, and University granted *Operating transfer out to the state general fund per SSB 6444. state and local agencies, and not-for- trusts. A one-third interest in assets (tim- profit public interest organizations. ber cutting rights) of the FDA on 35,655 Figure 3 DNR spends from the fund for these acres was transferred to these trusts. The purposes and the Department of Revenue value of these transfers eliminated the Derelict Vessel Removal Account spends from the account for the purpose debt between FDA and RMCA. of administering the collection of revenue A total of $4,336,176 was distributed Beginning Balance $461,892 for the fund. Sources of revenue for this to the trusts from timber harvested dur- Revenue account include surcharge on timber and ing fiscal year 2011. The RMCA received Licensing $739,739 wood product manufacturers, extractors, $1,084,044 from this activity. Since this is Natural Resources 140,721 and wholesalers per RCW 82.04.260 (12). repayment of a loan, the transactions are recorded as an operating transfer rather Treasurer's Deposit Income 2 880,462 DNR administers this fund and only the DNR fiscal activity is reported on the than current period revenue. Expenditures Department Administered Funds section The values from the harvest activity by Natural Resources (567,358) of the annual report. See Figure 4 for fund as well as RMCA trust for fiscal year Licensing (14,733) (582,091) the account’s total fiscal activity for fiscal 2011 and in total since the adoption of Net Fiscal Activity 298,371 year 2011. resolution 635 in 1990 are in Figure 5. Ending Balance $760,263 2011 DNR Annual Report 5 6

E. Direct charges and indirect charges 11 | Operating Transfers 14 | RMCA portion 19 | State Trust Lands are totaled by land category within the According to the Office of Financial of Trust Land Revenues Management Fund Accounting Report Cost Allocation System. Expenditures Management’s interpretation of gen- The Resource Management Cost paid from the RMCA and FDA accounts erally accepted accounting principles, Account received 30 percent on most Statutory Authority and are compared to these total charges for debt service funds (funds used to pay transactions and the trusts received 70 Requirements Grant Lands and State Forest Lands to Subject to legislative appropriation, off debts), such as the UW or WSU Bond percent of revenue from trust lands dur- determine how much of the charges the Department of Natural Resources Retirement accounts, cannot receive rev- ing fiscal year 2011. were paid from one account on behalf of is authorized by RCW’s 76.12.110 enue directly. Instead, revenue to these Also, some revenue transactions are the other. If RMCA funds were used to and 79.64.030 to use funds from the two funds are recorded to the respective subject to different distribution ratios. pay State Forest charges, a debt principal Resource Management Cost Account permanent funds, and then an operating These transactions include aquatic is incurred in that amount. If State Forest (RMCA) and Forest Development transfer is made to the appropriate debt resources, miscellaneous non-trust rev- funds were used to pay RMCA charges, Account (FDA) interchangeably in the service fund. enue, interest earnings, land sales the debt principal is reduced by that transactions and interfund loan repay- management of State Grant Lands and amount. Funding adjustments may be 12 | trust funds– ment, the latter of which affects the State Forest Lands. The law also states, made periodically during the fiscal year current and permanent Common School, University, Capitol however, that an annual accounting will to align expenditures by fund with total be kept of payments made by one fund Trust Current Funds are funds that indi- Building and Normal School trusts. charges for Grant Lands and State Forest on behalf of another. For example when vidual trust beneficiaries can draw from. Figure 6 reflects trust activity with Lands to prevent the accumulation of RMCA funds are used to pay for activ- Trust Permanent Funds are endowments, Forest Board Repayment activity. Refer any new debt in the year. ities on State Forest Land, it shall be which generate interest that can be to footnote #18 for trust activity related considered a debt against the FDA. RCW F. As required by law, interest is charged transferred to the Current Funds. to University Trust. 79.64.030 also requires that the results on the debt incurred. A full year’s of the accounting be reported to the interest is charged on cumulative debt 13 | Fiscal activity 15 | Non-trust revenue legislature at the next regular session. carried from the previous year. One for other type fund(s) Non-trust revenue cannot be attributed half year’s interest is calculated on the administered by DNR to a specific trust. Activities include for- Accounting Procedures change in the debt principal occurring Natural Resources Equipment est road assessments, miscellaneous Beginning with fiscal year 1996, the during the current year. Account: Total other fiscal activ- services, manuals & publications, prior following Cost Allocation System G. Cumulative debt from the preceding ity does not include funds classified period recoveries and adjustments, accounting procedures have been used year, plus new principal and interest as internal service funds. The Natu- application fees, and interest income. to calculate any debt or loan between charges are totaled to determine the ral Resources Equipment Account is the the management funds: new cumulative debt. See Figure 8. Department’s only internal service fund. 16 | Negative Revenue A. All operating program expenditures This fund is used to maintain, replace Any negative revenue reflects account- that can be determined to benefit a and provide equipment to the Depart- ing adjustments (such as bad-debt particular land category are directly ment’s programs on a rental basis. In write-offs, credit memos) from a prior charged to that land category. fiscal year 2011, this fund had reve- fiscal year. B. Expenditures for the majority of the nue of $20,203,528 and expenses of department’s operating programs for $19,189,182. 17 | Treasurer’s revenue which the benefiting land category In fiscal year 2010, the Legislature, per cannot be determined (indirect SSB 6572, abolished the School Construc- Due to the schedule for distributing rev- expenditures) are allocated to land tion Revolving Fund (744). The remaining enue, revenue from State Forest Lands balance of this account was transferred may earn interest before it is distributed categories based on staff month to the state General Fund effective July 1, to the appropriate county. Interest earn- percentages derived from personnel time charged directly to those land 2010. ings cannot be attributed specifically to Transfer Lands or Purchase Lands. This categories or by Western Washington revenue is accounted for as treasurer’s forested acres. revenue and is distributed to the appro- C. Capital outlay expenditures that priate county. benefit particular land categories are determined in advance then charged 18 | University Trust – by land category in the ratio set by Original, Transferred, appropriations. Repayment D. Agency Administration and Support The accounting for the University Trust costs are allocated to land category combines activity from original University based on Agency work plans for the trust lands, lands which have been trans- year as established during the budget ferred to the trust, and the University process. trust’s share of interfund loan repayment as described in footnote #10. See Figure 7 for the breakdown of the different elements contributing to the information for University Grants. 2011 DNR Annual Report 5 7

Figure 6b Figure 6c

Capitol Building Normal School

Total Cap. Bldg. Total Capital Normal Sch. Trust Activity Revenue Construction RMCA Trust Activity Revenue Projects Permanent RMCA Timber Sales $2,265,896 $0 $1,602,470 $663,426 Timber Sales $11,468,314 $8,129,145 $3,339,169 Timber Sales-Related 894 0 603 291 Timber Sales-Related 877 227 650 Leases 122,382 81,553 4,367 36,462 Leases 149,396 105,188 44,208 Late Interest 46 32 0 14 Late Interest 1,350 960 390 Fees/Service Charges 281 0 0 281 Fees/Service Charges 197 0 197 Operating Transfer-In 1,895,485 0 1,422,119 473,366 Subtotal $4,284,984 $81,585 $3,029,559 $1,173,840 Operating Transfer-In 592,617 444,261 148,356 Forest Board Repayment Subtotal $12,212,751 $8,679,781 $3,532,970 Sales $1,886,157 $0 $0 $1,886,157 Forest Board Repayment Operating Transfer-Out (1,895,486) 0 0 (1,895,486) Sales $589,700 $0 $589,700 Total Trust Activity $4,275,655 $81,585 $3,029,559 $1,164,511 Operating Transfer-Out (592,617) 0 (592,617) Non-Trust Activity STO Interest $16,690 $817 $0 $15,873 Total Trust Activity $12,209,834 $8,679,781 $3,530,053 Land Sales / Non-Trust Activity Trust Land Transfer 0 0 0 0 STO Interest $50,695 $2,578 $48,117 Other Revenue 713 0 0 713 Other Revenue 2,161 0 2,161 Total Non-Trust Activity 17,403 817 $0 16,586 Total Non-Trust Activity 52,856 2,578 50,278 GRAND TOTAL $4,293,058 $82,402 $3,029,559 $1,181,097 GRAND TOTAL $12,262,690 $8,682,359 $3,580,331

Figure 6a Figure 8

Common School / Escheat Trust RMCA/FDA Debt/Loan Accounting For Fiscal Year 2011

Com. Sch. Com. Sch. Beginning Balance Grant Lands State Forest Lands Trust Activity Total Revenue Construction Permanent RMCA 2011 Trust Charges $ 42,960,380 $ 21,316,232 Timber Sales $51,522,943 $36,381,199 $0 $15,141,744 Timber Sales-Related 1,056,028 739,194 0 316,834 RMCA Expenditures 42,960,380 0 Leases 26,091,132 18,148,750 208,338 7,734,044 FDA Expenditures 0 21,316,232 Misc Interest Income 89,921 62,913 400 26,608 Cumulative Fees/Service Charges 48,790 0 0 48,790 Debt/Loan $0 $0 Operating Transfer-In 1,554,307 1,165,427 0 388,880 Fiscal Year 2011 Management Fund Debt Status Subtotal $80,363,121 $56,497,483 $208,738 $23,656,900 As of June 30, 2011, no debt exists between the State Forest Forest Board Repayment Lands (Forest Development Account) and the Grant Lands Sales $1,546,656 $0 $0 $1,546,656 (Resource Management Cost Account). Operating Transfer-Out (1,554,306) 0 0 (1,554,306) Total Trust Activity $80,355,471 $56,497,483 $208,738 $23,649,250 Non-Trust Activity STO Interest $188,958 $20,149 $0 $168,809 Land Sales/ Trust Land Transfer 66,871,000 62,636,000 0 4,235,000 Other Revenue 120,327 0 103,263 17,064 Total Non-Trust Activity 67,180,285 62,656,149 103,263 4,420,873 GRAND TOTAL $147,535,756 $119,153,632 $312,001 $28,070,123 2011 DNR Annual Report 5 8

Figure 7

University Trust Bond University Trust Source/Activity Total Retirement Permanent RMCA University-Transferred Timber Sales $1,559,964 $0 $1,118,051 $441,913 Timber Sales-Related 0 0 0 0 Leases 162,864 0 114,194 48,670 Misc-Trespass 156 0 36 120 Late Interest 122 0 85 37 Sale of Property-Other 0 0 0 0 Fees/Service Charges 120 0 0 120 Operating Transfer-In 1,507,209 1,213,442 220,325 73,442 Operating Transfer-Out (1,213,442) 0 (1,213,442) 0 Total $2,016,993 $1,213,442 $239,249 $564,302 University-Original Timber Sales $56,498 $0 $39,549 $16,949 Leases 117,207 0 82,569 34,638 Fines & Forfeits 16 0 11 5 Late Interest 0 0 0 0 Fees/Service Charges 30 0 0 30 Operating Transfer-In 82,368 82,368 0 0 Operating Transfer-Out (82,368) 0 (82,368) 0 Total $173,751 $82,368 $39,761 $51,622 University-Repayment Timber Sales $400,805 $0 $0 $400,805 Timber Sales Related 80 $0 $0 80 Late Interest 11 0 0 11 Operating Transfer-Out (293,766) 0 0 (293,766) Total $107,130 $0 $0 $107,130 Non-Trust Allocation STO Interest $10,240 $384 $0 $9,856 Non-Trust Revenue Allocation 443 0 0 443 Total 10,683 384 $0 10,299 GRAND TOTAL $2,308,557 $1,296,194 $279,010 $733,353 Stories Management 2011 Data Fiscal

T Data imber

Timber Data 2011 DNR Annual Report 6 0 2011 Fiscal Timber Stories Data Data

Timber Volume | Sold and Harvested | F Y 2011

Timber Volume a Timber Volume b c b Trust / Beneficiaries Acres Sold (mbf) Harvested (mbf) ■ About This Page State Forest Transfer (formerly known as Forest Board Transfer lands) a Timber volume sold per acre depends Clallam 467 14,410 35,670 on site-specific conditions and harvest Clark 669 18,990 25,722 method. Cowlitz 213 8,500 10,309 b mbf: thousand board feet Grays Harbor 11 395 2,504 c Volume harvested is estimated for sales Jefferson 231 7,666 12,419 partially harvested. King 266 15,169 6,672 d Includes Forest Board Repayment. (See Kitsap 0 0 372 Fiscal Section, page 55, note 9.) Klickitat 14 159 2,216 e Includes University Repayment data. Lewis 1,075 27,745 40,056 Notes Mason 445 10,699 8,752 Timber is sold before it is harvested. Pacific 87 3,481 8,575 Timber sale contracts are typically two or more years in length, with most Pierce 43 1,468 4,800 timber harvest schedules determined by Skagit 1,258 54,546 45,733 individual purchasers. Sale and harvest of Skamania 18 471 4,369 timber may or may not occur in the same Snohomish 1,144 54,986 48,974 fiscal year. Revenues are generated when timber is harvested. Thurston 199 5,872 6,188 Wahkiakum 67 3,565 10,539 Market conditions can influence number of sales and volume sold. Whatcom 654 21,521 19,214 Subtotal Transfer 6,861 249,643 293,085 Sales which contain more than one trust and/or beneficiary report estimated State Forest Purchase (formerly known as Forest Board Purchase lands) acres and volumes for each specific trust. Clallam 0 0 747 Sales which benefit more than one trust Clark 0 0 53 distribute revenues proportionally by Grays Harbor d 428 20,655 21,037 value based on percentage of area.. Lewis 0 0 948 Numbers may not add due to rounding. Pacific e 167 8,748 4,656 Pierce 115 1,105 238 Source Skamania 64 1,697 0 DNR NaturE System database, Report TSC311; 11/2011 Thurston d 453 22,387 24,289 Whatcom 0 0 43 Subtotal Purchase 1227 54,592 52,010 Common School, Indem. & Esch. 8,631 177,193 203,190 Agricultural School 457 18,679 11,502 University Transferred & Orig. 271 4,296 6,644 CEP & RI 845 23,500 19,346 Capitol Building 1,043 31,435 42,342 Normal School 321 6,634 11,477 Scientific School 953 31,111 29,844 Statewide Total 20,609 597,083 669,442 2011 DNR Annual Report 6 1 2011 Fiscal Timber Stories Data Data

Silviculturea | F Y 2011

Acres Stems Pre-commercially b c d Trust / Beneficiaries Planted per Acre Thinned Acres ■ About This Page State Forest Transfer (formerly known as Forest Board Transfer lands) 2011 Annual report to Trust Clallam 1,107 355 175 Beneficiaries per RCW 79.10.010 Clark 442 352 0 a Silvicultural activities are Cowlitz 388 370 0 forest management practices; Jefferson 72 116 0 implementation of silvicultural practices varies according to site- King 341 221 0 specific conditions and availability of Kitsap 137 321 0 management funding. Lewis 356 400 0 b Acres planted include all planting Mason 274 291 0 processes and all tree species. Pacific 215 339 0 c Stems per acre planted depend Pierce 192 312 0 on site-specific conditions and Skagit 779 295 0 anticipated survival rates.

Skamania 4 41 0 d Pre-commercially thinned acres Snohomish 1,355 261 0 increase yield rate per acre by Thurston 77 307 0 selectively decreasing overcrowding of saplings. Whatcom 350 415 0 Subtotal Transfer 6,089 175 Numbers may not add due to rounding. State Forest Purchase (formerly known as Forest Board Purchase lands) Grays-Harbor 193 293 0 Source Lewis 88 120 0 Planning and Tracking Database 8/11/11 Pacific 55 366 34 Thurston 24 347 0 Whatcom 72 434 0 Subtotal Purchase 432 34 Agricultural School 564 318 118 Capitol Grant 1,031 295 22 CEP&RI 302 405 0 Common School and Indemnity 7,224 297 6,504 Community College Forest Reserve 30 135 0 Escheat 7 258 0 Normal School 269 305 0 Scientific School 423 316 0 University-Orig., Transf., and Repayment 230 294 20 Water Pollution Control Div. Trust Land 54 72 0 Total - All TRUSTS 16,655 6,873 2011 DNR Annual Report 6 2 2011 Fiscal Timber Stories Data Data

Timber Acres Harvested a | F Y 2011

Acres Commerc. Acres Partially Acres Clearcut/ Aver. Year Thinned Small Cut/Older Stand Regenerat. Total of Clearcut ■ About This Page Trust / Beneficiaries Wood b Thinning c Harvestb Acres d Stand a The Department tracks harvest State Forest Transfer method information in ten Clallam 167 0 1,112 1,279 1935 categories; for purposes of this Clark 21 126 792 939 1950 report, per RCW 79.10.010, the data are aggregated into three harvest Cowlitz 11 0 253 264 1944 methods. Grays Harbor 0 0 57 57 1939 b Commercial thinning/small wood Jefferson 0 15 383 398 1942 generates revenue, promotes growth King 0 0 129 129 1934 of the remaining trees, and creates Kitsap 0 0 21 21 1930 desired future forest conditions. Klickitat 53 0 50 103 1908 c Partial cuts/older stand thinnings Lewis 52 13 1,735 1,800 1944 generate revenue and help achieve desired future forest conditions. Mason 0 0 880 880 1934 d Pacific 0 313 317 630 1937 Total acres include total of all harvest activities. Pierce 98 8 79 185 1929 e Includes Forest Board repayment Skagit 14 2 975 991 1932 f Skamania 19 6 145 170 1942 Includes University repayment Snohomish 81 4 1,109 1,194 1923 ■ Notes Thurston 0 0 147 147 1932 Harvested acres shown are Fiscal Wahkiakum 0 0 204 204 1933 Year 2011 activities only; acres are reported again in the future if Whatcom 30 0 498 528 1937 additional harvest activities occur. Sub-Total Transfer 546 487 8,886 9,919 1936 Acres harvested are estimated for State Forest Purchase sales partially harvested. Timber Clallam 0 0 21 21 1958 volume harvested per acre depends on site-specific conditions and Clark 0 0 1 1 1910 harvest method. Grays Harbor e 0 0 683 683 1942 Sales which contain more than one Lewis 137 0 0 137 trust beneficiary report estimated Pacificf 0 0 78 78 1950 acres harvested for each specific Pierce 24 0 0 24 1945 trust. Sales which benefit more than one trust distribute revenues Thurston e 0 0 505 505 1936 proportionally by value based on Whatcom 0 0 1 1 1950 percentage of area. Sub-Total Purchase 161 0 1289 1450 1945 Numbers may not add due Comm. School, Indem. & Esch. 869 756 14,982 16,607 1935 to rounding. Agricultural School 71 1 428 500 1936 Source University Transf. & Orig. 66 20 211 297 1947 DNR NaturE System database, CEP & RI 310 47 534 891 1932 Report TSC348; 11/2011 Capitol Building 97 297 1,336 1,730 1944 Normal School 66 1 304 371 1945 Scientific School 193 50 813 1,056 1936 Statewide Total 2,379 1,659 28,783 32,821 2011 DNR Annual Report 6 3 2011 Fiscal Timber Stories Data Data

formerly known as Deferrals | F Y 2011 acres off-base for harvest

No Deferral Short-Term Long-Term No Deferral Short-Term Long-Term Trust / Beneficiaries Acres Def. Acres Def. Acres Trust / Beneficiaries Acres Def. Acres Def. Acres

State Forest Transfer State Forest Purchase Clallam 70,407 0 17,260 Clallam 181 0 49 Clark 20,181 0 4,984 Clark 2,365 0 1,315 Cowlitz 9,697 0 701 Cowlitz 245 0 20 Grays-Harbor 1,865 0 331 Grays-Harbor 24,376 0 3,013 Jefferson 12,190 0 346 Jefferson 77 0 0 King 16,764 579 4,213 Kitsap 40 0 0 Kitsap 6,775 0 681 Klickitat 2,858 0 47 Klickitat 16,237 0 2,493 Lewis 401 0 101 Lewis 35,859 0 1,586 Mason 5,543 166 2,127 Mason 23,456 387 2,723 Pacific 3,161 0 63 Okanogan 9 0 0 Pierce 3 0 0 Pacific 8,928 86 5,534 Skamania 3,066 0 1,219 Pierce 7,899 0 589 Snohomish 1,631 0 5 Skagit 62,250 0 17,156 Stevens 40 0 0 Skamania 25,202 0 11,458 Thurston 19,892 3 2,285 Snohomish 52,542 80 6,889 Whatcom 729 0 182 Stevens 124 0 7 Subtotal Purchase 64,608 166 10,426 Thurston 16,650 0 1,743 Wahkiakum 8,689 0 3,717 ■ About This Page murrelet habitat, are included in the Olympic Experimental State Forest deferral areas, or Whatcom 25,285 0 10,338 With the adoption of the 2004 Sustainable Harvest Level, DNR no longer classifies lands are the result of the Settlement Agreement Subtotal Transfer 421,011 1,132 92,749 as “off-base” or “on-base,” but instead reached in 2006, or the 2006 Policy for designates deferral status. Sustainable Forests Old-Growth Policy (all of Long-term deferral approximates “off-base.” these decisions were included in the 2007 sustainable harvest adjustment for Western 2011 Annual Report to Trust Beneficiaries per Washington State Trust forestlands). A site RCW 79.10.010. No Deferral Short-Term Long-Term can be deferred due to one or more factors. Trust / Beneficiaries Acres Def. Acres Def. Acres Deferral status is determined by whether the silviculture and land management activities, Deferral classifications are not permanent Comm. School, including harvest, are permitted or deferred designations. DNR may change the Indenmity & Esch. 861,237 1,342 134,450 for a period of time. Short-term deferrals classification as specific forest stands or Agricultural School 47,383 0 4,881 represent forestlands anticipated to be sites are re‑evaluated. Acreage updates deferred from harvest in the next 10 years. CEP&RI 35,351 68 4,127 and changes can occur over time due to Long-term deferrals represent forestlands technological refinements in data gathering University, Original anticipated to be deferred from harvest and analysis. & Transferred 44,466 1,402 10,230 beyond 10 years and forestlands managed Numbers may not add due to rounding or Capitol Building 76,226 379 21,180 for non-timber harvest revenue objectives. potential double counting. Normal School 42,692 95 9,431 Acres are designated as deferrals because * Includes Land Bank, Natural Resources Scientific School 53,429 150 9,832 they are inoperable, are low site, contain permanent research plots, are upland wildlife Conservation Areas, Natural Area Preserves, Community & management areas, are timber gene pool administrative sites, TIDE-2nd, UC-Private, Technical College 3,318 0 62 reserves, are on unstable slopes in riparian and Water Pollution Control trust data. Other Lands* 0 0 105,693 buffers, are located in a northern spotted Source: Deferral Status of State Forestlands, Total – All TRUSTS 1,649,719 4,734 403,060 owl nest patch, contain a northern spotted DNR Forest Resources and Conservation owl site center, are identified as marbled Division 2011 2011 Fiscal Timber Stories Data Data

Communications Board of Natural Resources (FY2011) & Outreach director Bryan Flint Peter Goldmark, Chair, Commissioner of Public Lands Bob Nichols, designee for Governor Christine Gregoire Editor Randy Dorn, Washington State Superintendent of Public Instruction Bob Redling Daniel J. Bernardo, Ph.D., Dean of the College of Agricultural, Graphic Design Human, & Natural Resource Sciences, Washington State University Luis Prado Thomas Hinckley, Interim Director, College of The Environment, Financial Data University of Washington Ana Cruz, Sue Kitchen, Jon C. Kaino, Pacific County Commissioner Jim Smego DNR Management (FY2011) Timber Data Angus Brodie, Karen Peter Goldmark, Commissioner of Public Lands Jennings, Denise Roush, Leonard Young, Department Supervisor Calvin Ohlson-Kiehn Bridget Moran, Deputy Supervisor for Aquatics and Environmental Protection

Cullen Stephenson, Deputy Supervisor for State Uplands Other Contributors Randy Acker, Deputy Supervisor for Resource Protection and Administration Mac McKay, Cullen Stephenson, Melissa Ferris, Forest Practices Board (FY2011) Dave Wilderman, Dorian Smith, Pat Ryan, Craig Bridget Moran, Chair, Designee of Commissioner of Public Lands Peter Goldmark Calhoon, Albert Kassel, Mark Calhoon, Department of Commerce, director’s designee Jane Chavey, Janet Pearce, Tom Laurie, Department of Ecology, director’s designee Nancy Charbonneau, Toni Droscher, Abbey Corzine, Tom Davis, Department of Agriculture, director’s designee Dave Norman, Cheri Jarrett, David Whipple, Department of Fish and Wildlife, director’s designee Dena Scroggie, Rachael Dave Somers, Snohomish County Commissioner Jamison, Rick Roeder, Aaron Bill Little, timber products union representative Everett, Julie Sandberg, Doug Stinson, general public member and small forest landowner Christine Redmond, Bob Sherry Fox, general public member and independent logging contractor Cannon Carolyn Dobbs, general public member David Herrera, general public member Norm Schaaf, general public member Paula Swedeen, general public member WA 98284-9384 WA 98284-9384 WA 98611-0280 (360) 374-2800 WAForks, 98331-9271 411 Tillicum Lane O (360) 577-2025 Box 280,PO Castle Rock, 601 Bond Rd. R Paci (360) 856-3500 Sedro-Woolley, 919 Township N. St. N (509) 684-7474 Colville, WA 99114 225 Silke S. Rd. N (360) 902-1000 Olympia, WA 98504-7000 MS 47000 1111 Washington St. SE H O eg ea orth R ortheast l ly y m m O ion d f gion Re lympic C ic quarters p p w ia ia R ic est asca

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