Oregon Hidta Program

OREGON HIDTA PROGRAM

PROGRAM YEAR 2015

THREAT ASSESSMENT AND COUNTER-DRUG STRATEGY

OREGON HIDTA OREGON DEPARTMENT OF JUSTICE

JUNE 2014

Oregon HIDTA Program - DRAFT

TABLE OF CONTENTS

THREAT ASSESSMENT

I. Executive Summary Page 1

II. Overview Page 3

III. Production Page 20

IV. Transportation Page 27

V. Distribution Page 37

VI. Illicit Finance Page 41

VII. Outlook Page 44

VIII. Methodology Page 45

COUNTER-DRUG STRATEGY

IX. Introduction Page 46

X. Mission and Vision Statements Page 47

XI. Concept of Strategy Page 48

XII. HIDTA Goal 1 Page 53 Dismantle and Disrupt Drug Trafficking Organizations

XIII. HIDTA Goal 2 Page 56 Increase the Efficiency of Law Enforcement Agencies Participating in HIDTAs

XIV. Appendices Page 61

(A) Abbreviations Page 61

(B) Oregon Medical Marijuana Program Statistics, April 1, 2014 Page 62

(D) Lab Seizures, Methamphetamine and Other Labs, HIDTA Counties and Statewide, 2005, 2009-2013 Page 63

XV. Endnotes Page 64

Oregon HIDTA Program - DRAFT

I. EXECUTIVE SUMMARY

Heroin use and trafficking has increased in Oregon and reflects the state’s greatest drug threat, followed by methamphetamine, marijuana, controlled prescription drugs, cocaine and designer drugs.

Production of heroin in Mexico has expanded in recent years leading to greater availability in the state. Most Oregon law enforcement officers surveyed in 2014 indicated that heroin is the principal threat in their area due to the substantial rise in the volume of heroin seized, number of new users and associated overdoses, and rising incidence of heroin-related violent crime and property offenses.

Methamphetamine continues to be widely used and trafficked throughout the HIDTA (High Intensity Drug Trafficking Area) region and statewide.a Reported seizures of methamphetamine labs in the state remain low primarily due to Oregon legislation eliminating the ability to obtain pseudoephedrine without a physician’s prescription and sustained law enforcement pressure. However, crystal methamphetamine, or “ice,” continues to be highly available as Mexican drug traffickers import methamphetamine powder, liquid, and finished product from laboratories outside the state and from Mexico.

Marijuana use, cultivation, and trafficking are pervasive in Oregon. Outdoor marijuana cultivation sites have been discovered on public and private lands in Oregon since 2006 -- primarily operated by Mexican National Drug Trafficking Organizations (MNDTOs). Additionally, federal authorities report that Asian crime groups are involved in marijuana trafficking and have established large coordinated indoor grow operations in Oregon, Washington and Northern California. Oregon’s Medical Marijuana Act,b which allows for quantities of marijuana to be grown and used for qualifying medical conditions, continues to be exploited by local producers who use it to facilitate illegal cultivation for commercial purposes.

The threat posed by non-prescribed use of prescription drugs has grown in recent years and mirrors national trends. The rise in misuse can be attributed to greater availability through increased and liberal prescribing of opioids by doctors, ease of access to the drugs through family or friends, and the perception that the medications are safe alternatives to illicit drugs. Law enforcement reporting indicates users of prescription opiates are increasingly switching to heroin because it is more available, less expensive, and provides a more intense high than diverted prescription opiates.

Cocaine powder and base (“crack”) are available to a moderate degree in the HIDTA region. Use of the powder form is more prevalent in Portland and the Southern Oregon region, whereas crack cocaine is mostly available and used in Portland. Consistent with national trends, cocaine availability and use continue to decline in the state.

Designer drugs such as MDMA (3,4-methylenedioxy-methamphetamine), and to a lesser extent, synthetic cannabinoids, bath salts, DMT (Dimethyltryptamine), buprenorphine, LSD (lysergic acid diethylamide), and 25I-NBOMe, are available and distributed in the HIDTA region. These drugs are most commonly abused by young adults at social venues in urban areas and on college campuses. Other drugs such as hash oil and psilocybin are also available and distributed in the Oregon HIDTA region, but to a smaller degree. a The HIDTA region includes Clackamas, Deschutes, Douglas, Lane, Jackson, Marion, Multnomah, Umatilla, and Washington counties and the Warm Springs Indian Reservation. b Oregon Revised Statutes 475.300 - 475.346.

Oregon HIDTA Program - DRAFT

Reflecting national trends, MNDTOs continue to dominate the illicit drug market in Oregon. MNDTOs control the transportation and distribution of heroin, methamphetamine, cocaine, Mexican- produced marijuana, and marijuana cultivated from outdoor grows in the state. Caucasian DTOs and independent groups control transportation and distribution of locally-produced indoor marijuana. Other criminal groups, such as criminal street gangs, Outlaw Motorcycle Gangs, and local independent dealers also transport and distribute drugs, but to a lesser extent.

During 2013, the Oregon HIDTA participating agencies identified 81 Drug Trafficking Organizations (DTOs) and three (3) Money Laundering Organizations with foreign and domestic connections that were actively operating in the HIDTA region and throughout Oregon. Nine new DTOs were identified between January and May 2014. All drug trafficking organizations in Oregon engage in money laundering, the legitimization of illegally obtained proceeds, based upon the size and scope of the organization. Bulk cash smuggling and money service businesses remain primary methods of transferring drug revenues into, through, and out of Oregon.

The Oregon HIDTA counter-drug enforcement strategy is intended to be responsive to the threat indicators and to complement legislative, treatment, and prevention strategies within the state and HIDTA regions. Community anti-drug coalitions active in Oregon have been an important catalyst for community action and prevention education.

Oregon HIDTA Program - DRAFT

II. OVERVIEW

Demographics

The Oregon HIDTA was established by the Office of National Drug Control Policy (ONDCP) in June of 1999. Currently, the Oregon HIDTA region consists of nine counties -- Clackamas, Deschutes, Douglas, Jackson, Lane, Marion, Multnomah, Umatilla and Washington – and the Warm Springs Indian Reservation.

According to U.S. Census Bureau 2013 estimates, Oregon ranks twenty-seventh in the country in population with more than 3.9 million residents.1 A large majority of Oregon’s population is Caucasian (88%), followed by Hispanic/Latino (12%)c, Asian (4%), African American (2%), Native American or Alaska Native (1.8%), Hawaiian or other Pacific Islander (.4%), with less than four percent reporting two or more races.2

Seventy percent of the state’s population lives in the Willamette Valley, primarily in the major urban centers of Portland, Salem, and Eugene. The other 30 percent reside in rural and small urban areas scattered throughout the state. The combined estimated total population of the Oregon HIDTA region in 2013 was 2,928,185 which represents approximately 75 percent of the state’s population. All but one Oregon HIDTA county (Umatilla) was included in the top ten most populous areas in the state, with Multnomah County (756,530) reflecting the highest number of residents.3

Oregon encompasses a land area of 98,380 square miles and is the ninth largest state in the nation. Oregon’s geography can be divided into six areas: the Oregon Coast, Willamette Valley, Cascade Mountain Range, Columbia River Basin, Eastern Oregon Basin and Range, and the Southern Oregon Basin and Range. Oregon HIDTA covers 23,906 square miles, a land mass nearly the size of West Virginia.

Geographically, the Oregon HIDTA region is diverse. Jackson County is located in southern Oregon and borders California to the south and is surrounded by the Cascade and Siskiyou Mountain Ranges. Douglas County is the largest of the HIDTA counties, extending from the Pacific Ocean to the Cascade Range and borders Jackson County in its southeastern section. Lane County is the second largest HIDTA county, extending from the Pacific Ocean to the Cascade Range and bordering Douglas County to the south and Lincoln, Benton, and Linn counties to the north. Deschutes County is located in Central Oregon between the Cascade Mountain Range to the west and the High Desert to the east. Marion County is located south of the Portland Metropolitan area and stretches from the Willamette River to the Cascade Mountains encompassing nearly 1,200 square miles. The tri-counties of Clackamas, Multnomah, and Washington (the Portland Metropolitan area) extend to the western slopes of Mt. Hood, through the Tualatin Valley with the rugged Columbia River Gorge to the east and the state of Washington to the north. Umatilla County is situated in the northeast corner of Oregon, separated from Washington by the Columbia River, and extending to the Blue Mountain Range. The Warm Springs Indian Reservation is located in the north/central area of Oregon approximately 100 miles southeast of Portland. Warm Springs tribal lands encompass over 1,000 square miles which are situated in the counties of Clackamas, Linn, Jefferson, Marion, and Wasco.

c Hispanics may be of any race and are included in all applicable race categories.

Oregon HIDTA Program - DRAFT

Scope of Drug Threats

The estimated economic cost of illicit drugs in the United States is immense, valued at close to $200 billion in 2007 in the areas of productivity, healthcare and criminal justice, the last available assessment.4 The amount of money spent by users on illicit drugs is also extremely high. According to a recent RAND Corporation estimate, drug users in the United States spend about $100 billion annually on heroin, methamphetamine, marijuana and cocaine – most due to a minority of heavy users who consume 21 or more days each month.5 The problem is compounded as drug users and distributors are often involved in illegal activities such as money laundering, identity theft, burglaries, property theft, fraud and other crimes to support drug addictions and to finance trafficking and distribution operations.

Illicit drug use in Oregon continues to exceed the national per capita average. The latest federal reporting shows that Oregon ranked fourth in the United States for reported rates of past month illicit drug use by people ages 12 or older in 2011 and 2012.6

Of the over 46,000 individuals in the Oregon corrections population as of January 2014 (includes offenders in prison or in county jails and those on probation or parole), the largest proportion is comprised of drug offenders (24%);d twice the number for assault (12%), and more than twice the number for theft (9%) and burglary (9%) offense categories.7 Of the nearly 15,000 offenders incarcerated in Oregon state prison as of May 2014, five percent (5%) were interned solely based on a drug conviction, with about 13 percent admitted due to a combination of drug and other offenses.8 Oregon Department of Corrections admissions for felony drug offenses in 2013 were primarily due to delivery convictions (89%), with a much smaller proportion of convictions related to possession (6.5%) and manufacturing (4.5%).9

Drug-related deaths recorded in 2013 (222) decreased by one statewide from 2012 (223).e Fatalities related to methamphetamine use reflected the highest number recorded since 2000, rising nearly a third from 2012 (93) to 2013 (123). The second highest number of deaths was related to heroin, which dropped from a high of 147 deaths in 2012 to 111 deaths in 2013. Cocaine-related deaths decreased 35 percent from 2012 (19) to 2013 (12), the fewest recorded since 2000. Multnomah County, the most populous county in Oregon, reported the highest number of drug-related deaths statewide (102).10

Mexico continues to be the chief foreign source of heroin, methamphetamine and marijuana imported into the United States, as well a transit country for cocaine. The same drug trafficking organizations that transport illicit drugs into the United States also control the southbound flow of drug- related bulk currency.11 Consistent with national trends, Mexican National DTOs (MNDTOs) represent the greatest drug trafficking threat to Oregon.12 These organizations control the transportation and distribution of heroin, methamphetamine, cocaine, Mexican-produced marijuana, and marijuana cultivated from outdoor grows in the state. Oregon HIDTA law enforcement initiatives investigated 81 drug trafficking organizations and three (3) money laundering organizations operating in Oregon during 2013 (Table 1, page 5), with nine DTOs newly identified as of May 7, 2014.13 These organizations are, or were, in some cases, manufacturing and/or distributing drugs within the state of Oregon as well as across state borders. d Based on offenders’ most serious active offense and includes categories of possession, manufacturing and delivery. e Total number of drug-related deaths reflects the number of actual people who died in a given year. Individual drug categories (i.e., methamphetamine, cocaine, heroin, combination) are based on their frequency of use in the total number of deaths reported. Fatalities may be a result of misuse of one or more drugs and can also be due to overdose.

Oregon HIDTA Program - DRAFT

Table 1. Known Drug Trafficking Organizations, CY 2013

Organization Type DTO Characteristics* Operational Scope Drug Trafficking 81 Mexican/Hispanic 46 Local = 36 Money Laundering 3 Caucasian 26 Dismantled = 8 Asian 4 Disrupted = 9 African-American 2 Multi-State = 40 Multi-Ethnic 4 Dismantled = 8 Eurasian 2 Disrupted = 9 Cuban 1 International = 8 Native American 3 Dismantled = 2 Unknown 2 Disrupted = 0

*Notes: DTO categories may have more than one ethnicity assigned.

Source: Oregon HIDTA Performance Management Program database.

Law enforcement analysis at the national level suggests more cities in the United States are reporting some level of cartel presence.14 Since 2006, MNDTOs have increased control over illicit drug trafficking in the Oregon15 with recent evidence indicating cartel presence in the state.16 Approximately 30 percent of the DTOs identified and targeted by Oregon HIDTA task forces during 2012 were connected to sources based in Mexico.17 A growing concern is apparent cartel involvement in homicides and violent crimes in Oregon, from suspected bombings to shootings, including a roadside execution near Salem, Oregon (see photo).

Felony drug fugitives pose a significant threat to the citizens of Oregon and, specifically, to the personal safety of Oregon law enforcement officers. The United States Marshal's Service (USMS) Portland office (a HIDTA fugitive task force) recently surveyed federal warrants in the District of Oregon and identified 44 people tied to active Organized Crime Drug Enforcement Task Force (OCDETF) cases, of which 15 individuals are tied to Regional Priority Organization Targets (RPOT) and three individuals are tied to Consolidated Priority Organization Targets (CPOT). In addition, there are 133 active Federal Felony Drug Warrants in Oregon at the time of this writing. In 2013, the Oregon USMS apprehended over 1,400 fugitives, with close to one third classified as drug-related.18 Furthermore, 80 percent of individuals arrested by the USMS Fugitive Task Force were classified as violent offenders in 2013.19

Source: “Drug cartels in Oregon: Violence in the northwest”, Oregonian, 6/21/13. 1. Heroin

Heroin use and availability has substantially increased in Oregon over the last several years fueling higher rates of addiction, overdose, and associated crime. Historically, methamphetamine has been rated as the state’s top drug threat. However, evaluation of recent indicators suggests that heroin availability and use in the state has reached a critical level and is currently Oregon’s leading drug threat.

Oregon HIDTA Program - DRAFT

Heroin, the most powerful of opiate drugs, is synthesized from morphine, a naturally occurring substance extracted from the seed pod of opium poppy plants. According to the National Institute on Drug Abuse, an estimated one quarter of people who use heroin become dependent on the drug.20 Heroin use is increasing nationally – a recent study revealed that the number of people ages 12 and older who reported heroin use in the past year increased nearly 80 percent between 2007 and 2012.21

Federal data indicates that Mexico continues to be the primary supplier of heroin to the United States. U.S. Government surveys estimate that heroin production in Mexico reached 26 metric tons in 2012, rising more than threefold from 2005 to 2012 with a corresponding rise in seizures along the Southwest Border.22 Increased production and supply from Mexico has contributed to lower prices and greater availability in a number of major market areas in the United States.23

In Oregon, the largest percentage of law enforcement officers surveyed in early 2014 reported heroin as their area’s greatest drug threat (42%)f due mainly to the increasing quantity of drugs seized, rising number of new users Figure 2. Number and Quantity of Heroin Seizures, Oregon and associated overdoses, HIDTA Task Forces, 2007-2013 and connection to violent 250 400 crime and property crime (Figure 1).24 Over 80 350 200 percent of officers 300 surveyed indicated that a 150 250 high level of heroin was 200 available in their area in 100 150 2013. Access to the drug

Quantity Quantity (in lbs) 100 50 has grown as evidenced by 50 Numberof Seizures the rise in the number of 0 0 heroin seizures and the 2007 2008 2009 2010 2011 2012 2013 quantity confiscated by Quantity in pounds Number of seizures Oregon HIDTA task forces since 2007 (Figure 2).g,25

f Officers who responded that heroin was the greatest drug threat represented agencies in Clackamas, Clatsop, Douglas, Lane, Linn, Hood River, Marion, Multnomah, and Washington counties.

Oregon HIDTA Program - DRAFT

Survey results from 2014 also support an increase in heroin availability in the state. Over half of surveyed officers indicated heroin availability increased in their area in the last year, primarily in counties bordering or near the I-5 corridor (Benton, Clackamas, Jackson, Josephine, Lane, Linn, Marion, Polk, Washington) and rural counties located in the eastern half of the state (Hood River, Jefferson, Malheur, Umatilla).26

Greater accessibility to heroin has likely fueled growth in the number of related arrests, treatment admissions and fatalities. For example, heroin- related arrests grew more than threefold statewide since 2009 (January 2009 - 2014), exceeding arrests for marijuana in 2013 (Figure 3).27 Similarly, the number of adults entering publicly-funded treatment for heroin use in the HIDTA region grew nearly 50 percent from 2007 (5,268) to 2013 (7,762), surpassing marijuana treatment admissions in 2013 (Figure 4).28

Historically, most drug-related deaths in Oregon have been related to heroin use. In 2012, the number of heroin deaths reached 147, the highest total reported since 200029 (Figure 5, page 8). The number of heroin related deaths reported in 2013 dropped to 111, with nearly 60 percent occurring in Multnomah County (65). Deaths related to heroin use are mostly caused by overdose. Heroin can differ tremendously in purity and dosage because sellers often mix or “cut” the drug to varying degrees with other g Heroin volume reached a high of 220 pounds in 2012 due to two unusually large seizures by HIDTA Interdiction Team (HIT) (55 lbs) and the Medford Area Drug and Gang Enforcement Team (MADGE) (47 lbs).

Oregon HIDTA Program - DRAFT

Figure 5. Deaths Related to Methamphetamine, Heroin, Cocaine, and Prescription Pain Relievers*, Oregon, 2001-2013 250

200

150

100

Number of Deaths of Number 50

0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Meth Heroin Cocaine Rx Pain Relievers

*The prescription pain reliever total is comprised of opiate-related fatalities (methadone, oxycodone, hydrocodone) reported by the Oregon State Medical Examiner Division since 2010. Source: Oregon State Medical Examiner. substances, such as sugar or MSM (dimethyl sulfone), to increase the amount available to sell. This unpredictability can easily lead to accidental overdose in users, especially those who are inexperienced or who have relapsed and have lower tolerance levels.

One possible explanation for fewer heroin-related deaths in 2013 is a change in Oregon law that allowed wider access to the anti-overdose drug, naloxone (Narcan). In July 2013, the law was changed to allow the drug to be possessed and administered by anyone who completes training -- including a user’s friends, family, or caseworker -- rather than solely by medical professionals. Recently, the Centers for Disease Control and Prevention reported that expanding the application of naloxone beyond medical personnel saved an estimated 10,000 lives in 15 states where laws had been changed.30 In Oregon, county officials report that heroin-related deaths fell by nearly half in Multnomah County since the law broadening access to naloxone went into effect.h,31

Prescription opioid abuse may serve as a gateway for heroin use. National survey data suggests that the number of new heroin users has grown while the age of users has fallen appreciably.32 Oregon law enforcement officials report that heroin use in their jurisdiction has expanded partly because users of prescription opiates, such as oxycodone, have switched to heroin because it is easier to obtain, cheaper, and provides a more intense high than diverted prescription opiates.33 Reporting also indicates that the heroin user demographic has changed somewhat -- more youth are becoming addicted and more people are developing heroin addiction because of an opiate dependency that resulted after being prescribed pain medication.34 According to the National Institute on Drug Abuse, roughly half of young people who inject heroin reported abusing prescription opioids before initiating heroin use.35 Not surprisingly, when compared per capita, HIDTA counties that reported large numbers of treatment admissions related to CPD use also reported large numbers of heroin admissions, with the highest averages reported in Multnomah, Jackson, and Lane counties (Figure 6, page 9).

h SB 384 was effective June 6, 2013

Oregon HIDTA Program - DRAFT

2. Methamphetamine

Methamphetamine in the form of crystal methamphetamine, or “ice,” continues to be readily available and widely used throughout the Oregon HIDTA region and represents a close second to heroin as the state’s most serious drug threat. Recent analysis suggests renewed level of availability and use of methamphetamine in Oregon from declines that were reported several years ago.

Methamphetamine is a highly addictive central nervous system stimulant that is abused for its euphoric and stimulant effects. Chronic meth abusers exhibit violent behavior, confusion, insomnia and psychotic characteristics such as hallucinations and paranoia.36 Methamphetamine-related crime, such as identity theft, abused and neglected children, and other serious person and property crimes, continues to occur at a palpable rate and is prevalent throughout the state.

Oregon law enforcement officers surveyed in 2014 indicated methamphetamine remains a significant threat due to its level of use and availability; nexus to other crimes such as violent activity and property crime; societal impact; and connection to drug trafficking organizations, primarily MNDTOs. Of law enforcement agencies surveyed, 37 percent reported methamphetamine as the greatest drug threat to their area,i with the majority indicating methamphetamine as the drug that contributes most to violent crime (85%) and property crime (62%) (Figure 1, page 6). Furthermore, nearly one half of officers ranked methamphetamine as the drug that serves as the primary funding source for major criminal activity.37

Methamphetamine continues to be highly available in Oregon, even with precursor chemical controls put in place in the statej and internationally.k The number of methamphetamine labs discovered

i Officers who responded that crystal meth was the greatest drug threat represented agencies in Benton, Deschutes, Jackson, Jefferson, Lane, Lincoln, Malheur, Marion, Multnomah, Polk, Umatilla, and Washington counties. j In 2005, the Oregon Legislature passed HB 2485 and SB 907, making Oregon the first U.S. state to require a physician's prescription to purchase cold and allergy medications containing pseudoephedrine, ephedrine, or phenylpropanolamine.

Oregon HIDTA Program - DRAFT and dismantled decreased by 98 percent between 2004 and 2013. Despite additional controls, methamphetamine continues to flow into the United States and Oregon in the form of crystal meth. Nearly 90 percent of law enforcement officers surveyed in 2014 indicated that crystal meth was highly available in their area during 2014, with 40 percent reporting increased availability.38 The number of seizures and volume confiscated by Oregon HIDTA task forces has grown dramatically since 2007, supportive of a rise in availability (Figure 7).

Figure 7. Number and Quantity of Methamphetamine Seizures, Oregon HIDTA Task Forces, 2007-2013 600 1000 900 500 800 400 700 600 300 500 400 200 300

200 Numberof Seizures Quantity Quantity (in lpounds) 100 100 0 0 2007 2008 2009 2010 2011 2012 2013 Quantity in pounds Number of seizures

Source: HIDTA Performance Management Process database.

Indicators of use also remain high. Arrests for methamphetamine-related offenses are the highest of any drug category.l After a steady decline between 2007 and 2009, methamphetamine-related arrests in Oregon nearly doubled from 2009 to 2014 (Figure 3, page 7).39

Furthermore, one-quarter (25%) of people admitted for treatment in the Oregon HIDTA region during 2013 reported using methamphetamine, slightly lower than those who reported using heroin (29%) and marijuana (28%).40 Treatment admissions for methamphetamine use declined steadily from 2005 to 2009, but rose ten percent between 2009 and 2013 (Figure 4, page 7).41 When compared per capita, admissions for methamphetamine use in 2013 in the Oregon HIDTA region were highest in Umatilla, Jackson and Multnomah counties (Figure 6, page 9).

According to the Oregon State Medical Examiner Division, the number of fatalities related to methamphetamine use in 2013 rose to an historic high of 123 deaths, over twice the number of fatalities reported in 2001 (50) (Figure 5, page 8).42 Deaths due to methamphetamine use are rarely a result of overdose; most occur from traumatic accidents where people have the drug in their systems or from physiological reactions such as seizures, strokes or heart attacks.43

k The Government of Mexico implemented progressively tighter restrictions on ephedrine and pseudoephedrine imports since 2005, banning use of the chemicals in 2009. l Includes arrests for possession, delivery, and manufacturing offenses.

Oregon HIDTA Program - DRAFT

3. Marijuana

Marijuana is highly available and widely used in the HIDTA region and statewide. Marijuana refers to the leaves and flowering buds of hemp plants, the most widespread variety being cannabis sativa. Cannabis sativa contains chemicals known as “cannabinoids”; THC (delta-9-tetrahydrocannabinol) is the cannabinoid largely responsible for the psychoactive effects of the plant.

Locally-produced marijuana, and to a lesser extent, Mexico and Canada-produced marijuana and BC Bud, are available in the Oregon HIDTA region. A high volume of marijuana is produced from indoor methods which typically produce better quality plants and multiple crops year-around. Nearly all of the Oregon law enforcement officers surveyed in 2014 (97%) reported a high level of marijuana available in their areas with more than one-third indicating availability increased in the last year.44

According to the National Institute on Drug Abuse, reported marijuana use by people 12 years and older has significantly expanded in the United States since 2007.45 Moreover, about two-thirds (66%) of people reporting use of drugs in the last year indicated their first illicit drug was marijuana.46 Use among Oregon residents remains high compared to most other states. The latest national survey results reveal that in 2011 and 2012, Oregon ranked fourth in the nation for marijuana usem by people ages 12 and older, with most users between the ages of 18-25 years.47 Despite a slight drop from 2012 (8,171) to 2013 (7,358), admissions for treatment of marijuana use in the HIDTA region reflect the second largest proportion (28%) of any major illicit drugn in 2013 (Figure 4, page 7).48

Past studies have linked marijuana use, especially if started at an early age, to disorders such as schizophrenia and to motivation, attention, learning, and memory impairments.49 For example, a 2013 study found that chronic use of marijuana was associated with abnormal changes in brain structure related to working memoryo with effects that may last years after cessation of use.50 Casual use may also be detrimental to brain development. According to a preliminary 2014 study published in the Journal of Neuroscience, young adults between the ages of 18 and 25 years who used marijuana just once or twice a week showed significant abnormalities in brain regions responsible for processing emotions, making decisions, and motivation.51

Statistics related to drug-impaired driving were recently evaluated. Data provided by the Oregon State Police Drug Evaluation Classification Program (DEC) revealed that in the last six years (2008- 2013), the single drug category most often detected through toxicology results was marijuana. Moreover, the frequency of marijuana detected in incidents increased 16 percent between 2010 and 2013 (Figure 8, page 12).

Cannabis potency has increased in the last decade. Analysis reveals that the average amount of THC in Drug Enforcement Administration (DEA) seized samples (includes cannabis, hashish, and hash oil specimens) has grown dramatically in the United States, reaching 15.1 percent in 2012p -- the highest level recorded since testing began in 1976.52 DEA samples for Oregon mirror this trend with the amount of THC found in indoor cannabis samples averaging 12.5 percent in 2011, the most recent data

m Based on participants’ self-report of marijuana use in past month. n Categorized as Meth/Amphetamines, Marijuana, Heroin, Cocaine and Controlled Prescription Drugs. o Working memory is the ability to remember and process information in the moment and transfer the information to long- term memory. p The average amount of THC in marijuana samples alone was 13.6 percent in 2013.

Oregon HIDTA Program - DRAFT available.53 Greater potency has been attributed to sophisticated growing techniques and may pose serious health risks to users such as acute toxicity and mental impairment.54

Figure 8. Drug-Impaired Driving, Oregon, 2008-2013 700

600

500 Cannabis

400 Stimulants Depressants 300 Narcotic Analgesics Other 200 Frequency of detection of Frequency

100

0 2008 2009 2010 2011 2012 2013 Source: DRE Year-End Summary Reports 2008-2012, Oregon Drug Evaluation Classification Program, Oregon State Police. Stimulants include drugs such as methamphetamine, cocaine, and Adderall; Depressants include drugs such as Valium, Prozac, and Xanax; Narcotic Analgesics include drugs such as heroin, oxycodone, and Vicodin; Other includes hallucinogens, PCP, and inhalants. Drug categories are not mutually-exclusive. Graph excludes alcohol-related cases and drivers impaired solely from health-related problems ("medical rule-outs").

The threat posed by this drug is heightened by exploitation of Oregon’s Medical Marijuana law.q The law conflicts with national safety regulations and requirements for medicines established by the Food and Drug Administration (FDA). Under the program, each patient is allowed to possess 1.5 pounds of dried marijuana and up to six mature marijuana plants and eighteen seedlings. The standard Drug Enforcement Administration (DEA) estimate assumes one plant typically produces one pound of processed marijuana,55 so the program, in effect, allows up to 7.5 pounds of marijuana per patient. To put this in perspective, a typical marijuana cigarette, or “joint,” contains a gram of marijuana, permitting patients to possess the equivalent of more than 3,000 joints at any one time. However, the standard measure of one pound produced per plant may vastly underestimate the amount of product legally cultivated under the Oregon Medical Marijuana Program (OMMP). Law enforcement officials, especially in Oregon’s southern region, report that marijuana plants are commonly grown as high as 15 feet. Recent documentation of average sized plants seized from out-of- compliance medical grows in Medford, Oregon shows that the quantity of useable product averaged 10 pounds – and ranged from 6 to 20 pounds -- per plant.56

Medical mar ijuana cultivation site , Jackson County, August 2012. q ORS 475.300-ORS 475.346.

Oregon HIDTA Program - DRAFT

Growers are individuals who are licensed to cultivate marijuana at one location for up to four patients at a time, allowing a single grower to possess up to six pounds of dried marijuana and up to 24 mature plants at one time. Furthermore, changes in the lawr have authorized people to register as caregivers to cultivate marijuana for registered OMMP cardholders. Caregivers can have an unlimited number of patients. With six mature plants and eighteen immature plants per patient, caregivers can legally possess plants numbering in the thousands. This provides a legal loophole for large quantity caregivers to exploit the program by claiming they are growing for legitimate OMMP patients. For example, between late October 2011 and May 2012, the DEA Medford task force, supported by federal and local law enforcement, executed a series of federal search warrants at registered OMMP grow sites under investigation. These grow sites included and were affiliated with Brian's Green Thumb Farm, a 17-acre marijuana farm with a guard tower and barns for marijuana processing. In May 2012, DEA Medford agents arrested six individuals and seized over 800 marijuana plants, more than 4,000 pounds of marijuana, and approximately $145,000 in related assets.

In another successful case in 2012, a month long investigation carried out by the Rogue Area Drug Enforcement Team (RADE) in Josephine County (not HIDTA designated) led to the seizure of thousands of pounds of plants and arrests of individuals associated with the OMMP. The RADE investigations led to the seizure of 930 pounds of marijuana bud; over 7,500 pounds of wet marijuana plant weight from 279 mature marijuana plants; 120 firearms; user amounts of methamphetamine, heroin and Percocet tablets; and hundreds of pounds of additional marijuana that were either drying or considered "shake.“ Additionally, 26 people were either arrested or have charges pending related to the investigations.

After dropping slightly in April 2013, the number of OMMP cardholders in Oregon rose to a total of nearly 90,000, over five times the number of cardholders in April 2006 (15,894) (Figure 9, page 14; Appendix B). Approximately 70 percent of medical marijuana patient cardholders in Oregon are reported in the HIDTA region, with the largest proportion (per capita) residing in rural counties such as Jackson, Douglas, Deschutes and Lane (Figure 10, page 15).57 The large number of cardholders, coupled with the high volume of plants cultivated, the difficulties associated with investigating compliance, and the attraction of selling surplus amounts on the black market for substantial profit and little risk has resulted in incidents of non-compliance in the HIDTA region and statewide.58

A further complication is that officers are prevented from enforcing laws which help protect children from drug exposure. Under current Oregon law, a person using, possessing, manufacturing or transferring marijuana under the OMMP is exempt from prosecution for Endangering the Welfare of a Minor (ORS 163.575) and Child Neglect in the First Degree (ORS 163.547). Additionally, there is no program oversight or inspection of homes outfitted by cardholders to grow marijuana under the Medical marijuana growing room on property located in Grants Pass, OR. Grower was one of three people who gave medical marijuana to a woman OMMP. Multiple electronic ballasts used arrested in Portland, OR for trying to ship product to Boston for sale. (AP to generate sufficient heat and light for Photo/U.S. Attorney's Office, Medford, OR, 5/17/11). growing plants indoors have been the cause

r 573 Or Laws 2007 (SB 161 (2007)).

Oregon HIDTA Program - DRAFT

of structure fires throughout the state. Irrigation of a large number of plants indoors often produces a toxic environment where black mold proliferates and creates a serious health hazard for inhabitants and responding officers. Accidental exposure is an ongoing concern. For example, an analysis of U.S. poison center data revealed that the rate of calls for unintentional marijuana exposure in children ages nine and younger more than tripled from 2005 to 2011 for states that passed marijuana decriminalization legislation prior to 2005s. Exposure incidents in these states reached a greater level of severity with moderate to major clinical effects and critical care admissions.59

In addition, as medical marijuana cultivation has become more prevalent in the state, grow sites have become lucrative targets for theft and violence due to excess cash on hand.t Caregivers are increasingly arming themselves to defend medical marijuana grow sites from theft and home invasion robberies. In January 2012, a 38-year old man was shot and killed during a home invasion robbery at the victim’s residence in Cottage Grove, Oregon. Investigation revealed that the perpetrators targeted his home because of his connection to a marijuana grow operation. In another instance, Douglas County Interagency Narcotics Team (DINT) detectives served a search warrant in late 2010 at a residence which bordered private timber land in Douglas County. DINT detectives found booby-traps on the suspect’s property and on trails leading to the property -- likely set to protect a large medical marijuana grow site found at the residence. The devices consisted of shotgun shells rigged to explode at chest level if a trip line was triggered.

s Defined as for medical and/or recreational purposes. t The Bank Secrecy Act prohibits banks from taking cash from operations that violate federal law.

Oregon HIDTA Program - DRAFT

Since 2010, the number of establishments set up to dispense medical marijuana -- commonly referred to as cannabis clubs, centers, and cafes -- has grown in Oregon, particularly in Multnomah and Washington counties.60 The establishments are for the most part storefront businesses that charge membership fees to customers and claim to dispense marijuana only to individuals with active OMMP cards. In 2013, the Oregon Legislature passed House Bill 3460 which authorized the legal registration of medical marijuana dispensaries in Oregon beginning March 1, 2014. As of May 16, 2014, 90 dispensaries have received approved applications.61 Senate Bill 1531 went into effect March 1, 2014 authorizing a city or county to adopt ordinances that impose restrictions on the operation of medical marijuana facilities. As of May 1, 2014, 157 cities and counties have initiated moratoriums on medical marijuana dispensaries that will remain in effect until May 1, 2015.62

4. Controlled Prescription Drug Use

The threat posed by misuse of controlled prescription drugs (CPDs)u has risen dramatically in the last decade and is the fastest growing drug problem in the United States.63 Drug poisoning, mostly in the form of overdoses, is currently the leading cause of injury death in the United States.64 According to a 2012 national study, more than one quarter (26%) of people ages 12 and older who first started using drugs in the past year began with nonmedical use of prescription drugs, mainly pain relievers.65

In Oregon, use of CPDs has continued to expand. The most recent national survey data revealed that Oregon ranked second in the United States during 2011 and 2012 for reported rates of past year use of non-medical pain relievers by people ages 12 or older.66 Additionally, the number of unintentional hospitalizations related to prescription medications has grown dramatically in Oregon over the last decade. Opiate-based medications showed the most dramatic increase with prescription opioids (excluding methadone) rising fivefold, and methadone rising sevenfold between 2000 and 2011, the latest data available (Figure 11, page 16).67 u Controlled prescription drugs are regulated under the Federal Controlled Substances Act (CSA) which classifies drugs under five schedules according to their potential for abuse, their use in accepted medical treatment in the United States, and their potential for physical or psychological dependence.

Oregon HIDTA Program - DRAFT

Figure 11. Unintentional Prescription Drug-Related Hospitalizations, Oregon by Drug Type, 2000-2011 (per 100,000 residents) 14 Prescription opioids 12

10 Methadone

8 Benzodiazepines 6 Antidepressants, 4 psychotropic drugs NEC

Rate Rate per 100,000 Residents 2 Psychostimulants with abuse potential 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: Unintentional Prescription Drug Overdose in Oregon, Winter 2013, Oregon Health Authority.

The number of treatment admissions and related fatalities also remain at a high level in the state. Despite a slight drop between 2012 and 2013, treatment admissions for CPDs increased nearly threefold in Oregon in the last ten years, largely due to narcotic-based medications (CY 04-CY13, Figure 12).68 Analysis of admission data for the HIDTA region follows statewide trends with a more than threefold rise in related admissions between 2004 and 2013.69

Furthermore, despite a decline of 22 percent from 2011 (193) to 2013 (150), prescription overdose deathsv in Oregon were higher than deaths related to use of illicit drugs such as methamphetamine (123) and heroin (111). Of the 150 confirmed fatalities related to the use of

Figure 12. Substance Abuse Treatment Admissions, by Prescription Drug Type, Oregon 2004 - 2013 4,500 4,000 3,500 Other Opiates & Synthetics 3,000 Other Sedatives & Hypnotics 2,500 Non-Prescription Methadone 2,000 Over-the-Counter 1,500 Tranquilizers 1,000 500 Numberof Treatment Admissions 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: Graph derived from client admissions data obtained from the Addictions and Mental Health Divison, Oregon Department of Human Services, March 2014. Other Opiates and Synthetics includes Codeine, Darcon, Demerol, Dilaudid, Fentanyl, Morphine, Opium and other narcotic analgesics. Other Sedatives and Hypnotics includes Barbiturates, Chloral Hydrate, Doriden, Methaqualone, and Placidyl. Over-the-Counter includes any legally obtained non-prescription medication including antihistamines, congestants, diet ad sleeping aids. Tranquilizers include anti-anxiety drugs such as Benzod, Librium, Valium, and Xanax. v The number of fatalities related to prescription drugs is not included in calculation of total drug-related deaths based on cocaine, heroin, methamphetamine, and drug combination categories.

Oregon HIDTA Program - DRAFT prescription drugs, oxycodone was highest (60), followed by methadone (58), and hydrocodone (32) (Figure 5, page 8).70 According to state epidemiologists, poisoning mortality in the state is largely driven by deaths connected with prescription opioids -- drugs intended for pain management but that are frequently misused or diverted.71 An analysis of deaths related to unintentional prescription opioid overdose (excluding methadone) showed a 400 percent increase in the state from 2000 to 2011.72

The rise in misuse of CPDs is due in large part to greater availability through increased and liberal prescribing of opioids by doctors and ease of access to the drugs through friends or family. Of the roughly seven million prescriptions for controlled prescription drugs dispensed at Oregon retail pharmacies in 2012, half were for opioidsw; the second most prescribed class of medications was for benzodiazepines.x,73 (Table 2). Table 2. Top 12 Prescriptions, January - December 2013 Furthermore, less than ten percent Drug Number of Rx % of all Rx (8.1%) of providers in Oregon are Hydrocodone 1,879,116 26.7% Oxycodone 1,151,492 16.4% responsible for prescribing nearly 80 Zolpidem 509,564 7.2% percent of all Schedule II to IV y,74 Lorazepam 430,173 6.1% drugs. Alprazolam 379,750 5.4% Clonazepam 337,727 4.8% Non-medical use of prescription Amphet (ASP/AMPHET/D-AMPHET) 261,436 3.7% drugs is often perceived by people as a Methylphenidate 257,603 3.7% safe alternative to illicit drugs75 with Morphine 244,030 3.5% diversion occurring most often through Pseudoephedrine 186,121 2.6% 76 Diazepam 184,679 2.6% family or friends. Nearly 70 percent Methadone 120,092 1.7% of Oregon law enforcement officers surveyed in early 2014 indicated a high Source: Prescription Drug Monitoring Year-To-Date Report, Oregon Health Authority, January 2013 - December 2013, Issue 15, Year 3. level of illicit prescription drugs available in their area, with one agency representative in Tillamook County reporting CPDs as the area’s greatest drug threat (Figure 1, page 6). Over 40 percent of officers surveyed (42%) indicated a high level of narcotics, such as oxycodone (e.g., Oxycontin) and hydrocodone (e.g., Vicodin), were diverted in their region, with a smaller percentage reporting high levels of steroids (21%), stimulants (10%), and depressants (5%).77 According to a recent federal analysis, Oregon was fourth highest in the nation for pain reliever quantity of kilograms sold (per 10,000 residents) in 2010.78

Attempts have been made to discourage abuse of the more popular and highly abused forms of prescription opioids such as OxyContin. In 2010, the U.S. Food and Drug Administration introduced a new, controlled-release formula for OxyContin designed to deter misuse of the medication. However, users can defeat the formula by taking larger quantities than recommended.79 An unintended consequence is that stricter controls may drive abusers to seek other illicit alternatives. Evidence suggests that non-medical use of prescription drugs may lead to use of illicit drugs, particularly heroin.80 A study published in 2011 reported that four out of five injection drug users misused an opioid drug before they began to inject heroin.81 More recently, a 2013 study revealed that the heroin incidence rate was 19 times higher among individuals who reported prior nonmedical use of prescription drugs compared with those who did not.82

w Derived from opium poppies and used for pain relief; includes hydrocodone, oxycodone, morphine, methadone, fentanyl. x Central nervous system depressants used as sedatives; includes zolpidem, lorazepam, alprazolam, clonazepam, diazepam. y Drugs, substances, and certain chemicals are classified by the DEA into five distinct categories depending on the drug’s acceptable medical use and dependency potential, ranging from drugs with no currently accepted medical use/high potential for abuse (Schedule I) to drugs with the lowest potential for abuse (Schedule V).

Oregon HIDTA Program - DRAFT

A new potential threat is the FDA approval in October 2013 of the new pain reliever “Zohydro,” a long acting hydrocodone-based narcotic designed to treat chronic pain. Zohydro entered the market in March 2014 as a Schedule II substance and has a high potential for abuse -- the drug is reported to be at least five times more potent than OxyContin and comes in a capsule that can be easily crushed, chewed or mixed with alcohol and retain full potency.83

5. Cocaine

Cocaine is an addictive stimulant derived from coca leaves that is typically distributed as a crystalline powder or a cocaine base (“crack”). Both varieties are abused in the state; however, cocaine powder is more highly prevalent than crack. Approximately one-third of Oregon law enforcement officers surveyed in 2014 reported powder cocaine was available to a moderate degree in their area in 2013, primarily in the state’s Portland Metro and Southern Regions. In contrast, over 80 percent reported that a low level of crack cocaine was available – only agencies in Portland reported moderate availability.84

According to federal analysis, availability of cocaine in most U.S. markets has dropped since 2006. The decline is largely attributed to reduced production in Colombia, disruptions in supply related to conflicts between DTOs in Mexico over favorable smuggling routes, and increased law enforcement efforts targeting DTOs.85 Despite decreased availability, reporting suggests cocaine use is still relatively high in areas such as the Portland Metro region, as well as in Lane and Jackson counties.86 However, addiction levels remain low in other areas of the state. Related arrests for cocaine in Oregon declined nearly 60 percent between January 2007 and January 2014 (Figure 3, page 7).87 Furthermore, treatment admissions for the drug have decreased overall in the state since 199988 with the downward trend continuing in 2013. In the HIDTA region, the number of individuals admitted to treatment facilities for cocaine in 2013 (739) dropped nearly 40 percent from admissions reported in 2008 (1,307) (Figure 4, page 7).89 Cocaine-related deaths fell 37 percent from 2012 (19) to 2013 (12), the lowest recorded total since before 2001 (Figure 5, page 8).90

6. Other Drugs

A number of other drugs, including designer drugs and plant-based hallucinogens, are available in the HIDTA region.

"Designer drugs” belong to a group of clandestinely produced drugs which are deliberately created, or “designed,” to mimic other drugs of abuse, but with a slightly In February 2014, two Oregon teenagers were rescued by an off- modified chemical structure. Designer duty police officer after he witnessed one of the teens having a drugs such as MDMA (3,4- seizure on the side of the road in Sherwood, Oregon. After a call for methylenedioxy-methamphetamine), assistance, the second teen fell into a seizure. The teenagers had ingested the drug 25I-NBOMe, a Schedule I synthetic hallucinogen and to a lesser extent, synthetic similar to LSD but with more dangerous side effects. NBOMe cannabinoids, bath salts, DMT compounds first arrived on the streets in 2011 and are connected to (Dimethyltryptamine), buprenorphine, at least 19 overdose deaths in the United States. Data suggest that LSD (lysergic acid diethylamide), and extremely small amounts of the drug can cause seizures, cardiac arrest, and death. 25I-NBOMe, are available in the HIDTA region. Psilocybin, or Sherwood teens OD on synthetic drug ‘25i’, KGW.com, 2/2/14; Three hallucinogenic mushrooms, is also more synthetic drugs become illegal for at least two years, DEA, 11/15/13.

Oregon HIDTA Program - DRAFT available. These drugs are generally used by teenagers and young adults at social venues in urban areas and on college campuses.

MDMA is a Schedule I drug under the Controlled Substance Act and is generally distributed in powder form or pressed into pills and sold as “Ecstasy.” The drug is popular among teenagers and young adults who frequent social settings such as raves, bars, nightclubs, and private parties. “Molly,” a street name commonly used to refer to the powder or crystal form of MDMA, appears to be gaining popularity in the HIDTA region.91 The growing appeal of Molly may be due to the perception by users that MDMA in powder form is purer than Ecstasy, which has the reputation for being adulterated with other substances such as methamphetamine and caffeine. Additionally, greater use of the drug may be due to higher availability of MDMA powder because it is easier to smuggle than Ecstasy pills.

The rise in availability and use of synthetic cannabinoids and synthetic stimulants is a growing problem in the United States and appears to be gaining popularity in Oregon.92 Chemical compositions of synthetics are frequently modified by manufacturers as a way to circumvent government bansz on key ingredients. The continually changing mix of chemicals used in manufacturing processes, along with a lack of quality controls and consistent dosage, leads to physical and psychological effects that are highly unpredictable and dangerous.

Synthetic cannabinoids, commonly referred to as “Spice,” are a large family of compounds that mimic THC, the psychoactive ingredient in marijuana. Synthetic chemicals are applied to inert plant material (dried herbs), labeled “not for human consumption,” and marketed to adolescents and youth under various labels (e.g., K2, Aroma) on the internet and in convenience stores, gas stations and “head shops.”aa Users have been reported to experience paranoid delusions, psychosis, and loss of consciousness.93 In 2012, synthetic marijuana was linked to six cases of sudden kidney failure in Oregon and Southwest Washington.94 Even a single dose can be extremely hazardous due to the unrefined way in which producers spray chemicals on the plant material – material that is sprayed unevenly will create hot spots where the chemical concentration is dangerously high.95 To date, Oregon HIDTA task forces have seized nearly 800 pounds of synthetic cannabinoids, mostly in the Portland Metro area and to a lesser extent in Douglas, Jackson and Lane counties.96

Synthetic cathinones,bb such as bath salts, are stimulants that have recently emerged as designer drugs in the United States. The drugs are packaged as legitimate beauty and household products (labeled “not for human consumption”) such as bath salts, plant food/fertilizer, and vacuum fresheners and are available at head shops, independently owned gas stations and convenience stores, and on the internet. Users typically ingest, inject, snort, or smoke synthetic cathinones to produce effects which mimic amphetamine use but that are not detectable on routine drug tests. Use of bath salts is reportedly highly dangerous with associated effects of extreme agitation and paranoia, delusions, and suicidal thoughts.97 Over 500,000 dosage units of synthetic stimulants in the form of bath salts were reported by Oregon HIDTA task forces from 2011 through 2013, mainly in the Portland Metro area.98

The hallucinogen, N,N-Dimethyltryptamine (DMT), is also available and is mainly used by young adults in the HIDTA region. DMT is found in certain plants and can be extracted or synthetically produced in clandestine labs from substances easily purchased on the internet. Effects of the drug are z On January 4, 2013, the Synthetic Drug Abuse Prevention Act of 2012 went into effect permanently placing 26 types of synthetic cannabinoids and cathinones into Schedule I of the Controlled Substances Act. aa A store specializing in paraphernalia used for consumption of recreational drugs. bb MDPV (3,4-methylenedioxypyrovalerone), mephedrone, methcathinone.

Oregon HIDTA Program - DRAFT similar to other hallucinogens but are short-lived, lasting about 35-45 minutes. Reporting from Washington, Douglas and Lane counties indicates that DMT use has risen since 2011, primarily by young adults.99 Between 2010 and 2013, Oregon HIDTA task forces seized more than 50,000 dosage units of DMT, largely from the Portland Metro area.100

Buprenorphine is a highly potent generic synthetic drug used in opioid dependence and pain management. Suboxone is the most commonly abused form of buprenorphine and includes naloxone, which is added to discourage misuse through crushing pills in order to snort or inject the drug. Law enforcement reporting indicates a rise in the amount of buprenorphine seized in the United States.101 Approximately 40 seizures totaling over 3,000 dosage units related to buprenorphine and Suboxone have been reported by Oregon HIDTA task forces since 2009.102

Psilocybin, the psychoactive ingredient found in certain mushrooms, is another drug that is available and used in the HIDTA region. Psilocybin mushrooms grow wild in Oregon and are produced indoors for illicit use. Psilocybin mushrooms are often covered with chocolate to mask their bitter flavor and to disguise the mushrooms as candy. The psilocybin produced in the HIDTA region is shipped to destinations throughout the state and across state borders. High school and college students are the most common users of the drug, with use normally occurring at raves. Over 90 pounds of psilocybin have been seized by Oregon HIDTA task forces since 2009, largely in Southern Oregon (Lane, Douglas, and Jackson counties), Deschutes County and the Portland Metro area.103

III. PRODUCTION

The production of illicit drugs, including methamphetamine, marijuana, designer drugs, and psilocybin, occur in the Oregon HIDTA region. The primary drugs produced, distributed, and exported to other states are high-quality marijuana and to a lesser degree, methamphetamine, designer drugs, and psilocybin. The HIDTA region contains many remote areas, including dense forests and mountainous regions, which allow criminal groups to conduct their activities with little fear of detection.

Marijuana

The majority of marijuana available in Oregon is produced locally -- grown and transported from indoor or outdoor cultivation operations in the state. Product transported from other states, Mexico, and Canada, is available, but to a smaller degree (Figure 13, page 21).

Analysis of eradication statistics submitted through the Domestic Cannabis Eradication/ Suppression Program (DCE/SP) shows that Oregon continues to be a top producing state for cannabis.cc,104 In 2013, marijuana seizures reflected nearly 90 percent of the drugs seized by HIDTA task forces.105 The state’s temperate climate, excellent soil, and extensive remote rural and forested areas are valuable natural resources which are exploited for growing marijuana outdoors. Due to weather patterns, cannabis is grown outdoors primarily during the spring and summer months. Cultivations in Oregon range from simple dirt grows to large-scale irrigated grows.

cc DCE/SP is a United States Department of Justice grant program that is administered by the Drug Enforcement Administration (DEA) which provides funding to local law enforcement agencies in support of marijuana eradication activities.

Oregon HIDTA Program - DRAFT

Figure 13. 2013 Marijuana Eradication Statistics

Hood River 0/3/8 Umatilla Washington Multnomah 260/128/21 Wallowa 2,089 /25/28 3,233/28/85 Morrow 114/27/0 Clackamas Yamhill 25 /15/0 Union 928/403/315 0/41/0 39/23/0 Wasco Polk Marion 0/0/19 65/0/68 248/0/307 Baker Jefferson 0/0/5 Lincoln Linn 27/0/2 12/0/9 279/214/16 Crook 5/12/2 Lane Deschutes 570/4,266/100 58/0/75

Harney 0/0/86 Malheur 0/0/42 Coos Douglas Lake 34/16/1 363/3,635/30 0/0/109

Curry Jackson Klamath Plant Counts 76/73/3 450/4,424/164 134/27/337 Josephine Indoor/Outdoor/Bulk Seizure* 106/5,560/621 9,115/18,920/2,450

Outdoor cannabis grow sites on public lands have been discovered in Oregon for many years. Since 2000, sophisticated, large-scale outdoor marijuana grows operated by MNDTOs have been found to a greater extent. These grows are typically established in remote areas of the state and produce thousands of plants per year. Harvested plants are distributed both within the state and transported nationally. Since 2004, outdoor marijuana cultivation operations on public, private timber, and tribal lands with a documented connection to MNDTOs have been discovered in most Oregon counties and remain the state’s main production threat.106 In 2012, Operation Mountain Sweep resulted in the eradication of more than 700,000 marijuana plants as part of a multi-agency, multistate investigation targeting large-scale illegal cultivation sites on public lands in seven states, including Oregon.dd The value of the plants removed was estimated at $1.5 billion.107

Mexican National DTOs commonly move grow sites to different locations each year depending on factors such as law enforcement presence, weather, growing conditions, and frequency of area logging or recreational activities. The DTOs generally recruit workers, often illegal aliens, to establish and maintain cannabis grows. As law enforcement pressure and eradication have intensified, evidence of weapons and counter-surveillance at grow sites has become more prevalent.

An associated cost documented by law enforcement is the severe damage to the environment and natural resources caused by large-scale marijuana grows. Grows are typically constructed with intricate watering systems that block and redirect water from a local stream or creek through irrigation tubing to dd States included Arizona, California, Idaho, Nevada, Oregon, Utah, and Washington.

Oregon HIDTA Program - DRAFT supply water to thousands of marijuana plants. An average-sized marijuana grow of 1,000 plants may require up to 5,000 gallons of diverted water on a daily basis. In addition, workers who maintain the grows pollute waterways with detergents, damage trees, and kill local wildlife to protect plants. Workers typically use commercial-grade fertilizers and pesticides – many of which are banned in the United States because of their toxic ingredients – to sustain the plants. When discarded in the forest by growers, these chemicals can leech into the ground, resulting in toxic levels of pollutants in the soil and streams.

Indoor marijuana cultivation operations have been discovered in all 36 counties in Oregon over the last decade. The HIDTA region, in particular, harbors a significant number of indoor grows. These operations, some of which utilize hydroponic methods and strict environmental controls, are capable of producing high-quality marijuana that is in demand and distributed locally, nationally, and internationally.

Most indoor cultivation of marijuana in Oregon is independently operated by local Caucasian producers or criminal groups, and Asian organized crime to a lesser degree. Nationally, Oregon continues to be one of the top ten states for indoor marijuana seizures, ranking fourth in the nation in 2012.108 Exploitation of the medical marijuana program by independent producers is also evident. In 2013, one half of the total indoor plants seized were connected to out-of-compliance OMMP cultivation sites.109

An emerging trend is the production and distribution of liquid THC, a highly potent distillation of marijuana that produces concentrates such as hash oil, honey oil, and marijuana wax which can contain up to 90 percent THC. Liquid THC is odorless and is commonly sold in marijuana food items such as candy or baked goods. Liquid THC production is expected to rise due in part to higher profits that result from a process that involves little waste (stems, leaves and bud are used), concealment advantages of moving a smaller bulk commodity, and a growing market for marijuana edibles and product that has strong psychoactive effects.110

Indoor marijuana cultivation operations pose a significant health risk to law enforcement investigators and civilians who come into contact with electrical power diversion, chemicals and fertilizers, and black mold at residences used as grow sites. Public safety hazards also exist when marijuana is converted into liquid THC. Highly volatile solvents such as isopropyl alcohol and butane are often used in distillation, a dangerous process that releases harmful vapors and an explosive fuel-air mixture that can be initiated by an open flame, spark or static discharge.111 Since 2011, nine major explosions related to the production of butane hash oil have occurred in Oregon.112 For example, on July 23, 2012, Roseburg Fire Department and Roseburg Police Two-alarm fire in Forest Grove caused by Department responded to an explosion at the suspected manufacture of hash oil, Forest Grove, Douglas Inn in Roseburg, Oregon. The Douglas OR. Interagency Narcotics Team’s (DINT)

Oregon HIDTA Program - DRAFT investigation found the explosion was caused by three suspects who used a process employing PVC pipe and butane to extract THC from marijuana leaves. The butane exploded, blowing the large window and window frame out of the motel room and a hole through the bathroom ceiling, burning the three subjects. In November 2012, a man was hospitalized after an explosion occurred at his condominium in Washington County. Investigation revealed that the man was an OMMP cardholder and was preparing butane hash oil.

During 2013, the Westside Interagency Narcotics (WIN) team responded to three separate explosions caused by people manufacturing butane hash/honey oil in residences in Washington County. In each case, the primary suspects were either critically injured or killed and the homes and apartment involved were completely destroyed from the force of the explosions and ensuing fire.

Law enforcement reporting indicates that Asian criminal groups have increasingly moved cannabis operations to the United States to minimize smuggling risks and costs. Marijuana seizures at the U.S.-Canada border have decreased over the last several years, supportive of a decline in cross- border trafficking.113 Some Asian DTOs operating in western states, such as Oregon and Washington, have been linked to groups in other states, suggesting a high level of coordination among some groups in marijuana production operations.114 Reports from drug task forces in Multnomah and Clackamas counties indicate Asian organized crime involvement in several large marijuana cultivation operations throughout the Portland Metropolitan area. In April 2011, the Clackamas County Interagency Task Force (CCITF) investigated a large indoor marijuana cultivation case controlled by a DTO involving Chinese Nationals. Members of the organization installed professional quality wiring systems in houses in order to divert electricity to hydroponic grow sites. The operations involved extensive damage to residences used as grow sites and reflected a $55,000 loss to Portland General Electric. In September 2013, the Westside Interagency Narcotics (WIN) team concluded a long-term investigation into an Asian DTO that converted over a dozen residential homes in Washington County to grow marijuana, shipping high potency product to the east coast and Midwest. In cooperation with multiple law enforcement agencies, WIN conducted search warrants at 16 locations in the county which resulted in seizures of six vehicles, $200,000 in cash, 2,800 marijuana plants, and nearly 60 pounds of dried marijuana that was ready for shipment. Eleven of the primary DTO leaders were indicted on 87 criminal counts including racketeering, money laundering, and manufacture and delivery of a controlled substance. The Office of National Drug Control Policy awarded the WIN team with the National HIDTA Award for Outstanding Marijuana Investigative Effort for this case.

The number of marijuana plants confiscated from indoor and outdoor grow sites in Oregon in 2013 (28,035) dropped 16 percent from seizures reported in 2012 (33,273) (Figure 14, page 24; Appendix C). Of the total plants seized in 2013, 75 percent (21,108) of the plants were seized in the HIDTA region. HIDTA region seizures during 2013 consisted of 8,199 indoor plants and 12,909 outdoor plants. The highest number of indoor plants was seized from Multnomah County (3,233), followed by Washington (2,089), Clackamas (928), Lane (570), Jackson (450), Douglas (363), Umatilla (260), Marion (248), and Deschutes (58). The Warm Springs Indian Reservation did not report indoor plant seizures in 2013. The highest number of outdoor plants was seized from Jackson County (4,424), followed by Lane (4,266), Douglas (3,635), Clackamas (403), Umatilla (128), Multnomah (28), and Washington (25).115 Deschutes and Marion counties and the Warm Springs Indian Reservation did not report outdoor plant seizures in 2013 (Appendix C).

The overall rise in seizures between 2005 and 2009 can be attributed to the emergence of large grows operated by Mexican National DTOs, specialized training for law enforcement, and regional cooperation between law enforcement agencies in the state which facilitated more effective

Oregon HIDTA Program - DRAFT

investigations. The considerable drop in outdoor seizures in 2008 was likely the result of several contributing factors, including poor weather conditions which caused a late growing season, limitations on state and local law enforcement resources, successful prosecution efforts, and alteration of DTO grow operations by MNDTOs which made grow sites more difficult to detect.

After a brief rise to more than 210,000 outdoor seizures in 2009, eradication totals steadily declined, falling to less than 19,000 plants in 2013, the lowest reported total since 2003. There are several possible reasons for the decline. Successful federal prosecutions may have removed key organizations responsible for grow sites in long-established areas of operation or served to motivate DTOs to shift operations to areas with minimal law enforcement presence. Analysis of flight hours provided to law enforcement to identify grow sites suggests a decline in large-scale cultivation activity. In 2013, helicopter flight time increased due to supplementary funding through DEA’s DCE/SP program. The few sites located in 2013 turned out to be small-scale operations, similar to the last several years where flight time was restricted due to budget cuts. Another possibility may be that greater involvement by agencies in larger, more time-consuming investigations along with budget shortfalls -- including turnover or reassignment of experienced staff -- has curtailed opportunities to identify many grows.

Despite the significant drop in the number of outdoor plants seized in 2012 and 2013, outdoor marijuana cultivation controlled by MNDTOs continues to remain Oregon’s primary production and trafficking threat. MNDTO cultivation activity accounted for nearly 90 percent of the outdoor seizures in 2013, similar to previous years.116 The consistently high percentage of plant seizures connected to Mexican National DTO grows over the last five years supports sustained MNDTO control over outdoor marijuana cultivation in the state.

Seizures from illegal indoor grow operations rose 20 percent in Oregon between 2005 (7,590) and 2013 (9,115). The overall rise in indoor plant seizures between 2005 and 2009 is likely due to greater involvement by law enforcement in targeting members of Asian organized crime groups that set up large, sophisticated indoor operations in the state, a resource shift by drug task forces in investigating

Oregon HIDTA Program - DRAFT indoor grow operations, and highway seizures leading to the discovery of illegal grows operating under the guise of the medical marijuana program.

On the other hand, increasingly limited resources, shifting priorities, and difficulties inherent in investigating and prosecuting illicit medical marijuana grow sites may partially explain the drop in indoor plant counts in recent years. For example, declines in indoor plants seized since 2009 may be connected to law enforcement resource limitations. Location of indoor grows is often difficult and time- consuming. Another possible explanation for decreased counts is the rising popularity of medical marijuana which has contributed to a larger number of related grow sites in Oregon. The number of indoor marijuana plants reported seized from out-of-compliance OMMP grows in Oregon in 2013 (4,766) was more than twice the number seized in 2007 (1,918). Analysis reveals that the total number of out-of-compliance plants confiscated reflected approximately one half of indoor plants eradicated in 2013; greater than the proportion reported for 2007 (12%), 2008 (7%), 2010 (26%) and 2012 (30%). Counties with the highest number of indoor marijuana cases involving suspects with OMMP cards were Lane, Clackamas and Multnomah.117

The attraction of growing marijuana for profit is evident when production costs and potential earnings are compared. According to a 2010 study by the RAND Drug Policy Research Center, production costs ranged from $150 a pound for marijuana grown outdoors to $300 a pound for indoor plants – a substantial return when compared to street prices which are about a factor of ten higher than estimated production costs per pound.118

Methamphetamine

Precursor chemical controls at the state and federal level along with sustained law enforcement pressure have contributed to a dramatic decline in reported methamphetamine lab seizures in Oregon. Oregon legislation restricting the availability of pseudoephedrine, in particular, appears to have dramatically reduced the number of methamphetamine labs reported to be operating in the state.ee Law enforcement authorities seized ten methamphetamine laboratories in the state in 2013 – a 95 percent drop from 2005 levels (192) (Figure 15, page 26).119

While calendar year 2013 data indicates low levels of domestic production statewide, law enforcement agencies report that a high level of crystal meth continues to be available, most of which is imported as finished product from outside the state and from Mexico in the form of crystal meth or “ice.”120 For example, in November 2011, officers from the Westside Interagency Narcotics Team (WIN), in cooperation with multiple local and federal agencies, executed 14 search warrants related to a multi-state drug trafficking organization operating in Washington County. The investigation resulted in the seizure of more than 25 pounds of methamphetamine, heroin, more than 20 firearms, and large sums of cash. Eleven members of the DTO were eventually indicted on federal charges. In addition, in January 2013, members of the Central Oregon Drug Enforcement (CODE) team conducted a traffic stop of a Frontera Del Norte bus on U.S. Highway 97 in Deschutes County. A search of luggage on the bus belonging to a suspect from California resulted in the seizure of more than 15 pounds of methamphetamine and 8 pounds of heroin -- a combined street value of approximately $1.1 million dollars.

ee HB 2485 and SB 907 were effective July 1, 2006.

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Figure 15. Methamphetamine Labs Seized, HIDTA Counties and Oregon, CY 2005 - CY 2013 200

180

160

140 Oregon

120 HIDTA Counties

100

Number of labs seized oflabs Number 60

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Oregon Department of Justice.

Federal reporting indicates that Mexican cartels continue to circumvent ephedrine and pseudoephedrine import restrictions implemented by the government of Mexicoff by establishing new smuggling routes for restricted chemicals, importing nonrestricted chemical derivatives in place of precursor chemicals, and expanding nonephedrine-based production, such as the phenyl-2-propanone method.121 Reporting indicates trafficking from Mexico has increased in the last several years with methamphetamine seizures at California points of entry more than three times higher in 2013 than in 2009.122

Additionally, some production operations have been transferred into the United States, notably to California’s Central Valley.123 Recent data suggests methamphetamine in powder or liquid form is increasingly smuggled into the United States to be converted into crystal meth at labs in states such as California, Georgia, and Texas.124 Moving the refining process across U.S. borders is likely a new approach by Mexican criminal groups to facilitate trafficking of crystal meth; the raw product is easier to conceal and the conversion process creates few toxic by-products.125 Two conversion labs have been reported in Oregon, one in Washington County in 2013 and one in Marion County in 2014.126

Although local production has dropped dramatically in recent years, small quantities of methamphetamine are still produced in Oregon. Most methamphetamine produced in the state is consumed locally. Locally-produced methamphetamine is manufactured in small-scale laboratories. Over half (55%) of the methamphetamine laboratories seized in Oregon in 2013 were found in the HIDTA region with the largest number of labs seized in Multnomah (2) and Washington (2) counties, followed by Lane (1) and Umatilla (1) counties. Clackamas, Deschutes, Douglas, Jackson, and Marion counties and the Warm Springs Indian Reservation reported no seizures in 2013 (Appendix D).127

ff The Government of Mexico implemented progressively tighter restrictions on ephedrine and pseudoephedrine imports since 2005, banning use of the chemicals in 2009.

Oregon HIDTA Program - DRAFT

Designer Drugs

Designer drugs, including LSD, MDMA, and DMT are obtained from a variety of sources, including local production and via cross border trafficking of finished product. LSD labs have been discovered in Oregon in the past; however, the drug is largely transported as finished product from California. Law enforcement reporting indicates that MDMA is rarely manufactured in Oregon but is generally imported from Canada and Europe.128 Clandestine MDMA laboratories have been found in other states such as California and may indicate a trend toward producing the drug locally. Two MDMA labs were recently discovered in Oregon, one in Deschutes County in 2013 and one in Lincoln County in February 2014 (Appendix D).129 HIDTA task force initiative reporting suggests that the level of DMT production has increased in the last year.130 DMT is found in a variety of plants, in some amphibians, and can be produced synthetically in clandestine labs. The root bark, Mimosa tenuiflora Suspected DMT lab, Medford Police, Ashland Oregon, September 2013. (hostilis), is a major source of DMT and is widely available on the internet. A total of eight DMT labs were discovered and reported between 2012 and 2013 in Oregon in the following counties, Columbia (1), Douglas (1), Jackson (1), Josephine (1), Klamath (1), Lane (2), and Washington (1) (Appendix D).131

Psilocybin

Psilocybin is also available and used in Oregon. Psilocybin grows wild in cow pastures in the state and is also cultivated indoors. These indoor psilocybin grow sites are typically located in Oregon HIDTA’s southern region, primarily in Lane and Jackson Counties. The psilocybin cultivated in the state is consumed locally and is also shipped to other parts of the state and worldwide.

IV. TRANSPORTATION

Primary Corridors

Marijuana, methamphetamine, heroin, cocaine, controlled prescription drugs, and designer drugs, as well as illicit drug proceeds, are transported through each of eight main corridors in the United States to varying degrees (Figure 16, page 28). Drugs generally flow north from the Southwest Border and the southeastern United States, while illicit drug currency flows in the reverse direction.

Most smuggling occurs overland through and between points-of-entry (POEs). Maritime and air smuggling occurs but reporting suggests these approaches are far less common than overland methods. Law enforcement reporting indicates that Mexican DTOs control the shipment of illicit drugs across the Southwest Border. Drug traffickers use commercial trucks and private and rental vehicles to smuggle methamphetamine, heroin, marijuana and cocaine through points-of-entry (POEs) along the border as well as through remote expanses between POEs. In addition, a substantial volume of high-potency marijuana and designer drugs such as MDMA is transported into the United States across the Northern Border by Asian organized crime groups, outlaw motorcycle gangs, and Indo-Canadian drug traffickers.

Oregon HIDTA Program - DRAFT

Common modes of transport include commercial trucks, private and rental vehicles. All-terrain vehicles, small aircraft, maritime vessels, and couriers on foot are used to a lesser extent to traffic drugs through vast areas between POEs.

Corridor D

A West Coast corridor in which Interstate 5 (I-5) is the primary route, Corridor D (Figure 16) extends from the California-Mexico border to the Washington-Canada border. Similar to I-95, drugs are transported in both directions on I-5, but primarily south to north. Interstate 5 intersects with I-8, I-10, and I-80. Significant quantities of drugs are transported north on I-5 from Mexico and California to market areas in the Northwest and in Canada, while marijuana and, to a lesser extent, MDMA are transported south on I-5 from Canada and Seattle.

Oregon’s geographical position offers a direct route between Canada and Mexico via I-5, which traverses the majority of the Oregon HIDTA region. Most of Oregon’s major cities are located along the I-5 corridor and provide a market incentive and abundant opportunities for smuggling illegal drugs into, through, and out of the state. Transportation methods are often varied to counteract highway enforcement efforts by changing routes, renting different vehicles, and hiring a variety of people to serve as couriers.

Mexican poly-drug trafficking organizations, often with ties to the Mexican state of Michoacán, typically use family connections and childhood associates along Interstate 5 and Highway 99 corridors in California, Oregon, and Washington to smuggle narcotics.

Law enforcement reporting indicates Oregon serves as a transshipment point for controlled substances smuggled from Mexico and Canada and is emerging as a transshipment point to various

Oregon HIDTA Program - DRAFT eastern states.132 To illustrate, data collected on reported highway seizures in the United States revealed a number of drug seizures connected to Oregon. Most notable is the quantity of marijuana seized in states such as Texas, Arizona, Nebraska, South Dakota, and Kansas (Table 3).

Table 3. Incidents and Selected Drug Quantities in States with Connections to Oregon 1 Domestic Highway Enforcement Program, CY 2008 – CY 2013 Powder Crystal Total Marijuana Cocaine Meth Heroin CPDs MDMA U.S. Currency State Incidents # lbs # lbs # lbs # lbs # DU # DU # Dollars California 197 33 4,947 33 560 35 227 16 196 11 204,870 3 6,278 66 5,112,977 Nebraska 107 72 2,063 4 95 3 6 9 155 19 1,057,048 Washington 126 43 696 7 0.2 4 14 7 10 16 1,467 5 234,571 44 303,480 Kansas 84 50 1,499 2 62 4 18 1 11 1 12 26 1,223,567 Kentucky 31 29 275 1 11,340 1 45,661 Idaho 80 45 833 3 0.4 3 35 29 350,848 South Dakota 72 39 1,595 9 51 1 36 23 1,102,322 Texas 52 32 9,575 6 307 4 51 10 764,117 Utah 54 32 581 1 0.1 3 3 1 500 3 1,709 14 562,003 Iowa 57 36 1,352 1 3 1 10 1 7 18 568,543 Wyoming 40 27 408 1 0.2 3 111 2 260 7 97,727 Illinois 49 30 1,317 1 0.01 18 897,467 Missouri 46 24 630 2 21 2 3 18 1,727,340 Arizona 32 21 7,051 2 3 2 80 7 123,255 Arkansas 24 12 1,092 1 0.1 1 29 10 294,574 Minnesota 26 13 237 1 21 12 2,254,117 North Dakota 18 14 466 4 11,284 Montana 15 9 41 2 2 2 20,687 2 199,960 Nevada 17 7 167 1 0.01 1 3 2 1,518 6 136,335 Wisconsin 13 10 52 1 1,547 2 9,800 Oklahoma 10 4 178 6 1,282,898 Maryland 9 8 12 1 19,373 Ohio 9 4 49 1 326 4 563,890 New Mexico 7 2 71 1 25 2 6 2 150,875 Other3 44 19 1,600 3 224 3 27 3 13 2 3,227 1 2,329 13 1,098,978 Total 1,219 615 36,785 63 1,619 67 363 31 302 61 243,981 20 246,799 362 19,958,439 1 Meeting the following conditions: "Oregon" or "OR" entered in drivers license and/or vehicle plate fields; "Oregon", "OR" in the address field, or "97" in the zip code field; "Oregon" entered as an origin or destination field. 2 Controlled Prescription Drugs. 3 The "Other" category includes states with five or fewer incidents during the selected time period which met the conditions of tag, driver's license, address, origin, or destination. States in the "Other" category include: Alabama (2), Colorado (5), Florida (1), Georgia (5), Hawaii (2), Indiana (3), Louisiana (2), Michigan (4), Mississippi (4), New Jersey (2), New York (1), North Carolina (1), Pennsylvania (3), Rhode Island (1), Tennessee (4), and Virginia (4). Source: EPIC, special data request received March 2014.

Highways 97 and 395, which are located in the eastern section of the state, also provide alternative north/south routes. A series of east/west roadways, such as Interstate 84 and Highways 26 and 20, connect these major north/south routes providing additional opportunities for drug transportation into and through the state. Oregon’s commercial airports, including the Portland International Airport, numerous private airfields and seaports, including the Port of Portland, are also easily exploitable by drug traffickers.

Oregon HIDTA Program - DRAFT

1. Land/Highways

The smuggling of illicit drugs by land is the preferred trafficking method in Oregon. The Oregon HIDTA region contains a network of interstates, highways, secondary roads, and railroads which are exploited by traffickers to transport illicit drugs. These routes provide easy access to major population centers, medium-size cities, and smaller communities in the state. Drug traffickers use the well- developed highway infrastructure in the HIDTA region to transport drugs by private and commercial vehicle, including personal vehicles, commercial trucks, buses, and trains, into and through Oregon, from and to other drug markets. MNDTOs are the primary drug traffickers who utilize the state’s highway system to transport and distribute large wholesale quantities of illicit drugs. These groups generally use Interstate 5 as their main trafficking route; however, other highways, such as Highway 97 and U.S. coastal highway 101, are used as alternative north-south drug trafficking routes.

 Interstate 5 traverses seven of the nine HIDTA counties (Clackamas, Douglas, Jackson, Lane, Marion, Multnomah and Washington). This is the major transportation route for traffickers in Oregon as the I-5 highway corridor extends from Vancouver, British Columbia, through Washington, Oregon and California and continues south to Tijuana, Mexico. Interstate 5 is one of eight major narcotics trafficking corridors in the United States.133 Most of Oregon’s major cities are located along the I-5 corridor and provide a market incentive and a wealth of opportunities for smuggling illegal drugs into and out of the state.

 Highway 97 runs north and south through Deschutes County, and is considered by law enforcement to be a widely used route for trafficking organizations. This route provides direct access to California, Central Washington and the Yakima Valley area, and Canada through Washington State.

 U.S. Coastal Highway 101 runs north and south through Lane and Douglas counties and is considered an alternative route for smuggling drugs through the state. Highway 20 extends from the Oregon Coast through Central Oregon and into Idaho. From I-5, this highway cuts east through Deschutes County and is an alternative route to the more commonly patrolled Interstate 84 for traffickers bound for Idaho and eastern Washington.

Analysis of highway seizures reported through the Domestic Highway Enforcement (DHE) programgg for Oregon from 2008 to 2013 revealed a number of trafficking patterns. In general, marijuana, methamphetamine, cocaine, heroin and controlled prescription drugs move north to and through Oregon. A smaller proportion of marijuana flows east and south. Illicit bulk currency moves primarily north and south (Figure 17, page 31). The leading drug recovered from Oregon highways from 2008 through 2013 was marijuana, reflecting the highest number of reported seizures as well as the largest total quantity confiscated. Seizures ranged from less than one gram to 566 pounds and represented nearly 90 percent of the total quantity of drugs seized by weight through reported interdictions on Oregon highways.hh Interstate 5 remained the most commonly used route by traffickers

gg The Domestic Highway Enforcement (DHE) Strategy promotes collaborative, intelligence-led policing in coordinated multi-jurisdictional law enforcement efforts on U.S. highways. The DHE strategy is intended to improve the investigative efforts of the HIDTA in attacking drug trafficking organizations and impact traffic safety, homeland security and other crimes. hh Percent total excludes reported drug seizures measured in dosage units.

Oregon HIDTA Program - DRAFT

in Oregon reflecting nearly one-half (47%) of seizures reported between 2008 and 2013. A smaller proportion of seizures occurred on U.S. Routes 97 (20%) and 395 (8%).

From 2008 to 2010, the quantity of marijuana reported seized through the DHE program tripled along with a corresponding increase in the number of reported interdictions; however, between 2010 and 2013, the quantity of marijuana seized dropped by nearly half. In contrast, the number of medical marijuana seizures tied to the OMMP rose more than 50 percent between 2010 and 2013.134

The amount of reported heroin and methamphetamine seized on Oregon highways increased in the last several years. The amount of heroin seized in 2013 (41 lbs) was nearly seven times the quantity reported in 2009 (6 lbs) with historic quantities confiscated in 2012 and 2013. For example, large seizures were reported outside of Ashland, Oregon in 2012 (55 lbs) and 2013 (31 lbs) both headed northbound on Interstate-5.135

In addition, the quantity of methamphetamine reported seized through the DHE program rose nearly 90 percent while the number of CPD seizures rose more than twofold between 2008 and 2013.136 The reported quantity of cocaine seized on Oregon highways has generally declined since 2008, dropping more than 80 percent between 2011 and 2013.137

Drugs and cash are also transported into and through Oregon by rail. The state has 18 freight railroads which operate on nearly 2,400 miles of rail. In 2011, the latest data available, an estimated 56 million tons of freight was moved on Oregon rail.138 In addition to rail freight, passenger trains also travel through Oregon on a daily basis with individuals traveling as far north as Canada, as far south as Los Angeles, and as far east as Chicago and New York. On April 24, 2012, members of HIT (HIDTA Interdiction Team) contacted an individual who had arrived in Portland on a train from Chicago. A search warrant led to the discovery of more than $175,000 in the suspect’s luggage. Further investigation at the suspect’s home in Eugene, Oregon revealed multiple financial documents supporting money laundering charges. In 2010, HIT members seized 12 pounds of marijuana from a suspicious traveler at the Portland Amtrak station. The suspect confessed that he was transporting marijuana from Humboldt County, California to Portland, Oregon for later distribution to Minneapolis-St. Paul, Minnesota.

Oregon HIDTA Program - DRAFT

2. Airways

Air smuggling of illicit drugs is a threat to the Oregon HIDTA region and may be an even greater threat than law enforcement is aware. Very little enforcement efforts take place due to limited law enforcement resources. With more than 400 known airfields, including airports, heliports, and other landing areas in Oregon, over half (55%) of which are privately used, the air threat to the HIDTA region is considerable.139 The Portland International Airport (PDX), located in Multnomah County, is the largest commercial airport in Oregon and, in 2013, served 15 million passengers and more than 212,000 tons of goods.140 PDX is a hub for passenger transportation but is also a transshipment point for narcotics smuggling, both domestically and internationally. For example, in 2010, nearly six pounds of heroin were discovered in the false bottom of a bag processed through a CTX-4 machine at PDX during an investigation by members of HIT and Port of Portland Police Department detectives. More recently, in 2013, members of the HIDTA Interdiction Team (HIT) contacted two female suspects at the Portland International Airport who were traveling to Alaska. The suspects admitted to body packing 4.5 ounces of heroin.

The second largest airport in Oregon is the Eugene Airport located in the City of Eugene. The airport is situated along the I-5 corridor and offers over 40 passenger flights a day to and from cities such as Denver, Portland, Salt Lake City, San Francisco, and Seattle. In addition, the airport also serves private, military and commercial cargo flights. Other major airports in Oregon include the Rogue Valley International-Medford airport located in Medford in Southern Oregon and Roberts Field – Redmond Municipal Airport located in Redmond in Central Oregon.

3. Sea/Ports of Entry

Illicit drugs may also be smuggled into Oregon using maritime conveyances. There has not been any current, credible intelligence regarding the use of maritime vessels to transport drugs into Oregon, so the threat posed by maritime smuggling is unknown. However, the smuggling and transport of illicit drugs via commercial and private maritime conveyances remains a significant vulnerability to Oregon due not only to the high volume of cargo transiting the state's seaports, but the countless opportunities for illicit transport that exist along Oregon's abundant waterways.

The Oregon Coast covers 296 miles of the United States border running between the states of California and Washington. In addition to the Oregon Coast, the state is also composed of 2,383 square miles of rivers, lakes, and estuaries. The Columbia River, a major shipping lane, has 23 ports and flows for approximately 260 miles along the border between Oregon and Washington. The port ranks twenty- seventh in the United States in total tonnage, with 11.9 million short tons of cargo processed through the port’s marine terminals in 2013.141 Intelligence regarding the use of maritime vessels to transport drugs into Oregon is limited, however, and the threat posed by maritime smuggling is undoubtedly larger than law enforcement is aware.

4. Other

Package delivery services provide an additional method for drug traffickers to smuggle illicit drugs into Oregon. Criminal groups have transported illicit drugs, including marijuana, cocaine, methamphetamine, controlled prescription drugs, MDMA, and psilocybin into the Oregon HIDTA region using these services. For example, in February 2012, HIDTA Interdiction Team (HIT)

Oregon HIDTA Program - DRAFT

Investigators seized 26 suspicious U.S. Postal Service parcels which were alerted to by a narcotics K-9 at the primary FedEx package processing facility. When those packages were opened, a total of 137 pounds of marijuana was seized. Additionally, in August 2011, HIT forwarded a suspicious outbound United States Postal Service (USPS) parcel to Greensboro, North Carolina after a positive alert by a narcotics detection dog. An interdiction taskforce in Greensboro along with a Postal Inspector delivered the parcel the next morning and executed a search warrant at the location. The search warrant resulted in the seizure of nearly ten pounds of marijuana from the original parcel, an additional three pounds of marijuana, and $67,000 in cash which was packaged and ready to be shipped back to Oregon.

Marijuana, methamphetamine, heroin, cocaine, controlled prescription drugs, and designer drugs are transported into and through the state by a variety of methods. Nearly all DTOs in the state are considered polydrug organizations, using well-established routes to traffic a variety of drugs to meet current demand.

Marijuana

Locally-produced marijuana is transported throughout the state via the state’s highway system in private and commercial vehicles and through methods such as parcel post. Marijuana reflects the largest proportion of illicit drugs seized by Oregon law enforcement agencies.142 The quantity of marijuana reported seized on state highways increased from approximately 700 pounds in 2008 to over 2,000 pounds in 2011, but fell to about 1,300 pounds in 2013. The quantity of marijuana seized by Oregon HIDTA task forces has declined as well. For example, Oregon HIDTA task forces seized more than 19,000 pounds of bulk Figure 18. Number and Quantity of Bulk Marijuana marijuana in 2011, but Seizures, Oregon HIDTA Task Forces, 2007-2013 reported fewer than 5,000 25,000 1200 pounds in 2013 (Figure 18).143 20,000 1000

800 15,000 Marijuana grown 600 locally, including medical 10,000 marijuana, is shipped for 400 distribution within the Quantity (in Quantity lbs) 5,000

200 Numberof Seizures state or is transported across state borders to - 0 adjacent states 2007 2008 2009 2010 2011 2012 2013 (California, Idaho, Quantity in pounds Number of seizures Washington) and eastward to regions primarily in the Midwest, East Coast, and Southwest. For example, a recent interdiction in Arkansas was connected to a registered OMMP grower and patient cardholder in Jackson County and involved the seizure of 58 pounds of marijuana, two firearms, and more than $4,000 in cash.

In addition, marijuana is shipped by parcel post. In 2013, law enforcement agencies in four counties (Deschutes, Douglas, Lane, and Multnomah) reported over 140 parcel seizures totaling over 400 pounds.144 Additionally, reporting indicates medical marijuana has been shipped via parcel post from Oregon to states along the east coast as well as Indiana, Illinois, Minnesota, Michigan, Tennessee,

Oregon HIDTA Program - DRAFT and Washington.145 On November 7, 2011, the Douglas County Interagency Narcotics Team (DINT) K- 9 unit alerted on a parcel during a random package check at a FedEx office in Roseburg, Oregon. The package was found to contain approximately five pounds of marijuana which was destined for South Bend, Indiana. Sender information was discovered to be false, but further investigation revealed the package was connected to a Douglas County resident who operated a medical marijuana grow site. The suspect admitted he sold marijuana out-of-state for over $3,000 a pound.

Traffickers also use a variety of routes and methods to transport marijuana into Oregon. BC Bud normally originates in British Columbia and is smuggled across the U.S.-Canada border via Canada Route 99–U.S. Interstate 5 in private vehicles, commercial trucks, buses, boats, aircraft, or on foot - often hidden in backpacks or duffel bags. Mexican marijuana is transported from southwestern states and southern California to Oregon primarily via Interstate 5 or U.S. Coastal Highway 101 largely in private and commercial vehicles.

Methamphetamine

Methamphetamine not manufactured locally is typically shipped from Mexico via California or produced in California and the Southwest states. Transportation of the drug into the Oregon HIDTA region occurs via private and commercial vehicle, bus, train, or package delivery services. Methamphetamine is also smuggled from other areas, but to a lesser extent. According to law enforcement in Deschutes County, DTOs based in central Washington and southwest Idaho supply methamphetamine in their jurisdictions utilizing U.S. Routes 97 and 20. For example, on September 21, 2011, detectives assigned to the Central Oregon Drug Enforcement Team (CODE) seized 35 pounds of methamphetamine found hidden in a suitcase on a commercial bus traveling north on Highway 97. At the time, the interdiction represented one of the single largest seizures of methamphetamine in Oregon’s history with an estimated street value of $1 million.

The volume of methamphetamine trafficked in Oregon appears to have increased in Oregon in the last several years. Seizures of methamphetamine from Oregon’s highways nearly doubled from 2008 to 2013.146 In addition, Oregon HIDTA task forces reported 540 pounds of crystal methamphetamine seized in 2013, more than three times the quantity seized in 2010 (157 lbs).147

Law enforcement officials report Mexican producers have begun to manufacture and transport methamphetamine in liquid form north into the United States and Canada. The methamphetamine is shipped in containers such as liquor bottles and coolers and then crystalized for distribution.148 For example, in April 2012, the DEA-Eugene Task Force seized 80 pounds of liquid methamphetamine hidden in tequila bottles after a random traffic stop in Cottage Grove, Oregon. In November 2012, California Highway Patrol officers seized 15 Mexican-brand tequila bottles filled with 56 pounds of liquid methamphetamine bound for Oregon.149

Heroin

Mexican National DTOs dominate the trafficking of Mexican black tar heroin and Mexican brown-powdered heroin into and through Oregon. Mexican local independent dealers also transport Mexican black tar heroin and Mexican brown-powdered heroin into the state, but to a lesser extent. These groups and independent dealers transport the drug to the state from Mexico, California, and

Oregon HIDTA Program - DRAFT southwestern states primarily via private and commercial vehicles, typically using Interstate 5, U.S. Highways 101 or 97.

Additionally, Mexican National DTOs and independent dealers traffic Mexican black tar heroin to Oregon by private and commercial vehicles, buses, mail services, trains, and commercial aircraft. These groups and independent dealers often obtain heroin from relatives in California and Mexico who are part of their criminal group. Some MNDTOs and independent dealers transport heroin into Oregon via Interstate 82 from the Tri-Cities area (Kennewick, Pasco, and Richland) of Washington, but this route is used to a lesser extent than other drug transportation routes. Mexican National DTOs also transport heroin from California through Oregon to Washington and Idaho.

Law enforcement authorities in some regions have reported a substantial increase in the amount of heroin trafficked, with multi-pound quantities routinely seized.150 The amount of heroin seized by law enforcement on Oregon highways in 2012 (72 lbs) and 2013 (41 lbs) was dramatically higher than the quantity seized in 2009 (6 lbs).151 Furthermore, Oregon HIDTA task forces confiscated 137 pounds in 2013, over five times higher than the amount seized in 2008 (25 lbs) (Figure 2, page 6).152

Cocaine

Mexican National DTOs dominate the transportation of powdered cocaine into and throughout the Oregon HIDTA region. These groups transport the drug from Mexico, California, and southwestern states to Oregon. Most cocaine available in the HIDTA region is transported overland from Mexico, California, and southwestern states by private and commercial vehicles via Interstates 5 and 84 and U.S. Highways 20, 97, and 101. DTOs also transport cocaine to the HIDTA region using couriers on commercial airlines and trains, maritime shipments, and commercial package delivery services. African- American DTOs, Mexican National DTOs, and street gangs transport crack cocaine into and through the HIDTA region. Crack cocaine which is not converted from Figure 19. Number and Quantity of Cocaine Seizures, powdered cocaine at or near Oregon HIDTA Task Forces, 2007-2013 distribution points in Oregon 350 200 is often transported from 180 300 California. 160 250 140 The amount of cocaine 200 120 100 seized by HIDTA task forces 150 declined nearly 60 percent 80 60 between 2008 (297 lbs) and 100 Quantity Quantity (in pounds)

40 Numberof Seizures 153 50 2013 (123 lbs) (Figure 19). 20 Highway seizure amounts for 0 0 cocaine also fell, dropping 2007 2008 2009 2010 2011 2012 2013 nearly 90 percent from 2008 to 2013.154 Quantity in pounds Number of seizures Source: HIDTA Performance Management Process database.

Controlled Prescription Drugs

National studies on use suggest that CPDs are largely diverted through family or acquaintances. Among people ages 12 and older who reported using pain relievers nonmedically in 2011-2012, over

Oregon HIDTA Program - DRAFT half acquired the drug from a friend or relative for free (54%) and about 15 percent obtained pain relievers through purchase or taking the drug from a friend or relative without asking. Only four percent obtained pain relievers from a drug dealer or stranger, and less than one percent bought drugs on the Internet. Other methods included acquisition through a prescription from one doctor (20%), through multiple doctors (2%), or other methods including fake prescriptions and theft from pharmacy’s or medical offices (5%).155

Similarly in Oregon, HIDTA task forces report that CPD diversion occurs in their area largely through illicit acquisition from friends or relatives, theft, forged prescriptions, doctor shopping, traditional drug dealing, and internet purchases.156 Fewer than one-quarter of law enforcement officers surveyed in Oregon indicated that organized trafficking of CPDs occurs in their area, noting smuggling via package delivery services, trafficking of CPDs across state borders, and involvement by criminal gangs and DTOs.157 In June 2010, the HIDTA Interdiction Team (HIT) received information that a DTO was involved in a large-scale OxyContin/oxycodone smuggling and distribution organization based in Portland, Oregon with ties to Florida, Nevada, Utah and Colorado. By March 2011, members of a joint federal taskforce in Oregon executed 13 search warrants in five states, seizing numerous bank accounts and high-end vehicles. The investigation resulted in 15 federal indictments, and the following seizures: $164,522 in U.S. currency/bank notes; 6 handguns, 13 vehicles valued at $613,425, $80,000 in jewelry, and over 10,000 OxyContin pills with a street value estimated at more than $300,000.

Law enforcement reporting suggests an increase in CPD diversion in some areas in 2013. The number of reported seizures by Oregon HIDTA task forces in 2013 (171) was nearly three times the number seized in 2008 (60) and included mainly narcotic analgesics, followed by sedatives, stimulants, and anti-depressants (Figure 20).158

Figure 20. CPDs Seized in the Oregon HIDTA, 2013 1% 2% 0.2%

Prescription opioids (excluding methadone) 17% Methadone

3% Benzodiazepines

Anti-depressants, Sedative-Hypnotics 77% Psychostimulants

Muscle Relaxants

Prescription Opioids: Hydrocodone , Oxycodone/Oxycontin, Suboxone, Codeine, Vicodin. Benzodiazepines: Alprazolam/Xanax, Diazepam/Valium, Clonazepam/Klonopin, Bromazepam, Lorazepam. Anti-Depressants/Sedative-Hypnotics: Ambien, Trazodone. Psychostimulants: Adderall, Amphetamine, Methylphenidate, Vyvanse. Muscle Relaxants: Cyclobenzaprine, Carisprodol,Viagra, Methocarbamol. Source: Oregon HIDTA Performance Management Program data, March 2014. Figure excludes steroids.

Oregon HIDTA Program - DRAFT

Designer Drugs

Designer drugs are produced in Oregon or are transported from areas outside the state. DMT and LSD are produced in the state or are manufactured in other states and transported into the HIDTA region, while Ketamine is largely trafficked from Mexico. Drugs such as synthetic cannabinoids and synthetic cathinones are commonly available on the internet or at head shops or independently-owned convenience stores.

Although MDMA labs were discovered in Oregon recently, the vast majority of the drug originates in Canada. According to federal reporting, Canada remains the primary supplier of ecstasy to the United States with most production occurring in British Columbia.159 MDMA production in British Columbia and cross-border trafficking is largely controlled by Asian DTOs.160 The drugs are primarily transported into the United States through private vehicles and package delivery services, although commercial vehicles, private planes, and courier via commercial airlines are also used as smuggling methods.161 In October 2010, a sheriff’s office in North Carolina contacted the Medford Area Drug and Gang Enforcement (MADGE) team regarding interception of a FedEx package sent from Ashland, Oregon which contained MDMA and LSD. Follow-up investigation revealed connections to one indoor and two outdoor cultivation operations, one of which was a medical marijuana grow site. Seizures included 70 pounds of processed marijuana, 13 ounces of psilocybin, and 12 vials of LSD. Later analysis indicated the liquid LSD seized was capable of producing over 600,000 hits.

V. DISTRIBUTION

Drug distribution occurs in the Oregon HIDTA region through verbal exchange,ii at restaurants and nightclubs, and via online connections and social networking sites. Distribution also takes place at open-air drug markets in the Oregon HIDTA region, particularly in Portland. For example, open-air drug markets in Portland are located primarily in the vicinity of Old Town, Water Front Park, Pioneer Square and Lloyd Center, with the greatest concentration of drug sales occurring near the MAX light- rail line. Distribution of crack and powdered cocaine, marijuana, and heroin is generally area-specific; however, availability of methamphetamine has substantially increased and is distributed in all open-air market areas in Portland.162

Criminal street gangs are largely active in retail-level distribution of illicit drugs throughout Oregon and have an especially large presence in Portland.163 Most law enforcement officers surveyed in early 2014 indicated a moderate level of involvement of criminal street gangs in drug distribution, particularly heroin, methamphetamine and marijuana, in their jurisdictions. Furthermore, officers surveyed indicated some level of involvement by criminal street gangs in different levels of drug trafficking (regional supply, wholesale drug transport, manufacture/cultivation), although local dealing was most prevalent.164 For example, in January 2013, members of the Portland Area Metro Gang Task Force (PAMGTF) led a multi-agency investigation into two Portland area street gangs that were involved in an organized illegal drug sales network. The suspects were also involved in a high number of violent crimes, including assaults, shootings, robberies and intimidation. In January 2014, PAMGTF investigators, with the assistance of multiple surrounding agencies, conducted a series of state and federal search warrants on members of the organization. A total of 26 suspects were arrested and indicted by state and federal grand juries on multiple crimes and led to the seizure of eight (8) kilograms ii Verbal exchange is defined as drug dealing through face-to-face contact or phone communication.

Oregon HIDTA Program - DRAFT of cocaine, 15 firearms, and seizures valued at over $275,000. In an earlier case in March 2011, members of the PAMGTF initiated a narcotics investigation that led to the arrest and prosecution of five individuals, among them members of the criminal gangs "Mexican Mafia" and "18th Street." The suspects were connected to a West Coast based DTO which was estimated to profit over $14 million in gross annual drug sales -- largely methamphetamine, cocaine and marijuana. Officers from PAMGTF, in cooperation with multiple local and federal agencies, executed three search warrants in California in December 2011. The investigation resulted in the seizure of more than seven pounds of methamphetamine, two firearms, $25,000 in cash, and multiple frozen bank accounts.

1. Marijuana

Drug trafficking organizations, particularly Mexican National criminal groups, frequently use profits from marijuana sales as a means to finance smuggling of other drugs such as methamphetamine, heroin, and cocaine. About one-third of officers surveyed in 2014 ranked marijuana as the drug that serves as the primary funding source for major criminal activity.165

Marijuana is readily available in wholesale quantities in the state. Varieties sold in the HIDTA region are primarily locally-grown product and, more rarely, BC Bud and Mexico-produced marijuana. Users report locally-grown marijuana -- including bud produced within the state by MNDTOs -- and BC Bud are comparable in quality and potency and are preferred over marijuana grown in Mexico.

Marijuana prices vary throughout the HIDTA region depending on type and quantity sold. Marijuana with higher THC content and locally-grown product is considerably more expensive than Mexico-produced marijuana.

Caucasian local independent dealers are the primary distributors of wholesale amounts of indoor marijuana produced in Oregon while MNDTOs are the primary distributors of marijuana cultivated from outdoor grows in the state and of Mexico-produced marijuana. Asian and Caucasian DTOs are the primary wholesale distributors of marijuana produced in Canada. Nearly all criminal groups in Oregon sell marijuana at the retail level.

2. Methamphetamine

Methamphetamine is readily available in the HIDTA region, often in pound and multi-pound quantities. There are three types of methamphetamine available in the HIDTA region: (1) Mexican, or crystal methamphetamine, produced primarily by Mexican DTOs operating in Mexico, and to a lesser extent in California and the southwest states, and transported to Oregon; (2) locally-produced methamphetamine which is manufactured almost exclusively by Caucasian producers in the state; and (3) methamphetamine produced in Canada by Caucasian DTOs, Outlaw Motorcycle Gangs (OMGs), and Asian DTOs, and transported to Oregon. Mexican or crystal meth is the primary form of methamphetamine seized in the state. In 2012, the Lane County Interagency Narcotics Team (INET) and the Douglas Interagency Narcotics Team (DINT) seized 52 pounds of crystal meth, a stolen gun, and cash at five properties in Lane and Douglas counties. Four people were arrested in what may be the largest methamphetamine seizure in Oregon’s history.

Oregon HIDTA Program - DRAFT

Methamphetamine prices vary throughout the HIDTA region depending on type and quantity sold. Prices also depend largely on the ethnicity of the seller and buyer. Non-Hispanic buyers are often charged a higher price for crystal meth than Hispanic buyers.

Trafficking of the drug is dominated by Mexican National DTOs, the primary wholesale transporters and distributors of Mexican methamphetamine in the HIDTA region. Other DTOs also transport and distribute wholesale quantities of methamphetamine, but to a lesser degree. Hispanic and Caucasian independent dealers, OMGs, and criminal street gangs are the primary retail level distributors of methamphetamine in the HIDTA region. For example, in December 2013, a six-month, multi-agency investigation led by the Multnomah County Dangerous Drugs Team (DDT) into white supremacist gang activity in Multnomah County resulted in more than 40 indictments for violent crimes and drug manufacturing. Results included arrests of more than 20 gang affiliates, $50,000 in cash, 70 firearms, and eight pounds of methamphetamine.166

3. Heroin

Heroin, in the form of Mexican black tar and brown powder, is readily available in the state and has increased in the HIDTA region.

Mexican National DTOs are the primary wholesale distributors of Mexican black tar heroin and Mexican brown-powdered heroin in Oregon. It is common to encounter Mexican polydrug organizations with ties to Mexico. Hispanic and Caucasian independent dealers are the primary retail level distributors of Mexican black tar heroin and Mexican brown-powdered heroin in the state. Criminal street gangs also distribute Mexican black tar heroin at the retail level, but to a lesser extent.

In 2010, the Clackamas County Interagency Task Force concluded an 18-month, Title III investigation into a complex Mexican drug trafficking ring that sold an estimated seven pounds of heroin a week in the Portland Metropolitan area. The investigation led to over 15 arrests and the seizure of approximately 50 pounds of heroin, resulting in the complete dismantling of the DTO which had been operating in the Portland area for several years. In 2013, members of Multnomah County’s Dangerous Drugs Team investigated a Mexican DTO with ties to Nayarit, Mexico that was dealing large amounts of heroin in the Portland/Vancouver area. Search warrants were conducted on the DTO leader’s residence and vehicle resulting in the seizure of 2 pounds of heroin, $18,000 in currency, and two vehicles.

4. Cocaine

Cocaine, both powdered and crack, is available in the HIDTA region and in the state; however, powdered cocaine continues to be the dominant form. For example, in June 2011, two traffic stops conducted by Oregon State Police (OSP) led to the discovery of 65 pounds of powder cocaine (seized on Hwy 97 in Wasco County) and 55 pounds of powder cocaine (seized on I-5 in Jackson County). The total estimated value of the seizures was $1 million.167 In July 2012, another 55 pounds of the drug was reported seized in Jackson County on Interstate 5 with a reported destination of Multnomah County.168 Crack cocaine continues to be available in most areas of the HIDTA region, but is most prevalent in urban areas such as the Portland Metropolitan area and Eugene.

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Mexican National DTOs are the main wholesale distributors of powdered cocaine in Oregon. Primary distributors at the retail level include Mexican National DTOs, Caucasian DTOs, Hispanic and Caucasian local independent dealers, and criminal street gangs. Although crack cocaine is rarely sold at the wholesale level in Oregon, the drug is commonly distributed at the retail level by criminal street gangs and African-American, Hispanic and Caucasian dealers.

5. Diversion of Prescription Drugs

Oregon HIDTA region task forces report that CPD diversion occurs in their area through supply of pills obtained from legal prescriptions, doctor shopping, frequent trips to hospital emergency rooms, theft or pill-sharing among friends, family, or associates, residential or pharmacy burglaries, street purchases, mail orders, and smuggling from across state borders. Reporting also indicates CPDs have been seized from package delivery services in the HIDTA region.169

Prescription drugs are also diverted through internet purchases. Dishonest internet, or “rogue” pharmacies, profit from the sale of controlled prescription medications to buyers who have not seen a doctor or do not have a prescription from a legitimate doctor. According to a recent study conducted by the Government Accountability Office (GAO), an estimated 36,000 rogue sites were in operation in February 2014, most of which operate from foreign countries and illegally ship substandard or counterfeit drugs into the United States.170 In a review of over 10,000 web sites selling prescription medications, 97 percent were out-of-compliance with United States pharmacy laws and practice 171 standards (Figure 21).

Figure 21. Characteristics of Internet Drug Sites Selling Prescription Medications, 2014

12,000 10,758 10,000 9,164

8,000 6,185 6,000 5,102

4,000 2,426 Numberof Sites 2,000 1,254 256 0 Total Sites Potentially Do Not Issue Rx per Based Sell Foreign Sell Verified Legitimate Require Online Outside Drugs Controlled Sites Valid Rx Consult or U.S. Substances Survey

Source: Internet Drug Outlet Identification Program, Progress Report for State and Federal Regulators, April 2014, National Association of Boards of Pharmacy.

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6. Designer and Other Drugs

Designer drugs such as MDMA, synthetic cannabinoids and synthetic cathinones, DMT, and LSD are readily available in varying amounts in the HIDTA region. Distributors of designer drugs use established associations centered on social venues, such as raves, restaurants, nightclubs, or private parties to distribute drugs at the retail level as well as through connections made online and through social networking sites.

Psilocybin is cultivated in the state and is widely available. The popularity of Oregon-grown psilocybin and the high asking price it commands has encouraged commercial cultivation. Tightly-knit distribution groups and individual entrepreneurs distribute most of the psilocybin in the state. In addition, distributors in Oregon also have been known to sell psilocybin to out-of-state buyers.

VI. ILLICIT FINANCE

Legitimization of illegally obtained money, or “money laundering,” allows criminals to transform illicit gain into seemingly lawful funds or assets. All drug trafficking organizations in Oregon engage in money laundering based upon the size and scope of the organization. As in other states, investigators find that local DTOs launder money and utilize the proceeds to acquire goods and property.

According to the Office of National Drug Control Policy, an estimated $65 billion dollars is spent annually in the United States on illegal drugs while only about $1 billion is seized per year by all federal agencies combined.172 Federal authorities estimate that only about five cents of every $100 that is smuggled across the Southwest Border is intercepted.173 Since 2001, Mexican National DTOs, and to a lesser extent Canadian-based DTOs, have adapted to enhanced anti-money laundering policies and procedures at U.S. financial institutions by making bulk cash smuggling the primary method by which drug proceeds are moved.174 DTOs also use structured money transfers through money remitter services or banks to launder drug proceeds and transfer profits outside of the country. New financial products and technology, such as stored value cards and e-currency, also provide opportunities for DTOs to facilitate cross-border movement of illicit drug proceeds.

Oregon HIDTA initiatives have active investigations into money laundering activities. For example, in 2013, HIT officers conducted a controlled delivery to a Portland residence after the team’s narcotics K-9 alerted to the package at a commercial distribution center. HIT members were given consent to search the suspect’s parcel, residence and cell phone. Results from additional search warrants and follow-up investigations led to seizure of $187,950 in U.S. currency, 19 pounds of marijuana, four firearms, eight gold coins, a silver bar, and a 2011 Toyota Tundra. Additionally, in late 2011, HIT members were contacted by the U.S. Customs and Border Protection (CBP) regarding a suspicious individual who had arrived at the Portland International Airport on a direct flight from Amsterdam. During an inspection of the individual’s luggage, customs officials found over $300,000 in U.S. currency. The currency was not declared either verbally or on the customs declaration form provided. HIT officers confiscated the currency after a post seizure investigation determined the suspect was in violation of federal bulk cash smuggling statutes.

Results from the 2015 Drug Threat Assessment Survey indicated the most commonly identified money laundering methods reported by Oregon law enforcement officers were money services

Oregon HIDTA Program - DRAFT businesses (86%), followed by bulk cash movement (73%), bank structuring (64%), cash-intensive businesses or front companies (50%), prepaid cards (50%), real-estate (45%), casinos (41%), electronic commerce (36%) and informal value transfer systems (5%). Officers surveyed indicate involvement of Mexican, Caucasian and Asian DTOs in nearly all types of money laundering activities, particularly money service businesses, bulk cash movement, bank structuring, and cash intensive businesses.175

Banks and other depository institutions remain the primary gateway to the U.S. financial system where illegal proceeds can be moved instantly by wire or commingled with legitimate funds.176 According to FINCEN, Oregon ranked 34th in the nation in total Suspicious Activity Report (SAR)jj filings from January 1, 2002 to December 31, 2012. The number of SARs reported in Oregon rose over twofold in the last ten years (2002-2012).177 The most common filing of suspicious activity, by far, for Oregon in 2012 was the category of “Bank Secrecy Act/Structuring/Money Laundering” (58%) (Figure 22).178

Figure 22. Characterizations of Suspicious Activity for Oregon For the Period of January 1, 2003 through December 31, 2012

Check Kiting False Consumer Loan 1,008 Statement Fraud 1,435 1,792 Mortgage Loan Fraud 1,934 Additional Characterizations: Bribery/gratuity (6) Identity Theft Commercial loan fraud (224) 2,363 Computer intrusion (678) Counterfeit credit/debit card (83) Counterfeit instrument (196) Additional Credit card fraud (324) BSA/Structuring/ Characterizations Debit card fraud (581) Money Laundering 3,735 Defalcation/embezzlement (589) 18,956 Misuse of position/self dealing (262) Mysterious disappearance (305) Wire transfer fraud (466) Counterfeit Check Terrorist financing (21) 2,029

Other 3,544 Check Fraud 4,843 Source: FINCEN "The SAR Activity Review by the Numbers" Issue 18 (May 2013), Section 1, Exhibit 8, Characterization of Suspicious Activity by State and Territory by Year, January 1, 2003 - December 31, 2012, Oregon.

Smuggling bulk cash out of the United States is a well-established scheme by which traffickers bypass financial transparency reporting requirements.kk Cash is the preferred payment method by criminal groups with large amounts easily concealed in vehicles, commercial shipments, express packages, and on private aircraft or boats.179 Within the Oregon HIDTA, MNDTOs and criminal groups jj A Suspicious Activity Report (SAR) is filed by depository institutions on transactions or attempted transactions involving at least $5,000 that the financial institution knows, suspects, or has reason to suspect: involve money derived from illegal activities; are intended or conducted in order to hide or disguise funds or assets derived from illegal activity; are designed to evade Bank Secrecy Act requirements or other financial reporting requirements (structuring); or have no business or apparent lawful purpose. kk Bank Secrecy Act filing requirements state that individuals who physically transport, ship, mail, or receive currency or monetary instruments in excess of $10,000 across U.S. borders must file FINCEN form 105, Report of International Transportation of Currency or Monetary Instruments (CMIR).

Oregon HIDTA Program - DRAFT transport cash in bulk to southwestern states where funds are often aggregated and then smuggled to Mexico. Additionally, Asian DTOs and criminal groups use bulk cash smuggling to move illicit drug proceeds from the region through transport in private vehicles via ports of entry (POEs) along the U.S.- Canada border. The number of cash seizures made by Oregon HIDTA task forces more than tripled between 2007 (180) and 2013 (583), with more than $5.6 million in illicit proceeds confiscated in 2013 (Figure 23).

Figure 23. Number and Quantity of Cash Seizures, Oregon HIDTA Task Forces, 2007-2013 $8,000,000 700 $7,000,000 600 $6,000,000 500 $5,000,000 400 $4,000,000 300 Dollars $3,000,000 $2,000,000 200 Number ofSeizures Number $1,000,000 100 $- 0 2007 2008 2009 2010 2011 2012 2013 Dollars Number of seizures

Source: HIDTA Performance Management Process database.

Currency interdictions in Oregon collected through the DHE program were recently analyzed. DHE program statistics revealed over 350 seizures of bulk cash in Oregon between January 2008 and December 2013. Seizures during this time period totaled more than $5.8 million, the largest of which was a vehicle seized moving southbound on I-5 containing over $400,000 in 2009. In January 2012, more than $340,000 was seized from a vehicle in Marion County headed north on Interstate-5 to Portland. Notably, the number of currency-related interdictions reported moving northbound (132) and southbound (120) on Oregon highways from 2008 through 2013 was nearly the same (Figure 17, page 30). Although the number of incidents reported moving north were slightly higher than the number reported moving south, the total value of currency-related seizures headed south ($3.5 million) was more than twice the value of northbound seizures ($1.5 million). Most of the currency seized moving north was reported to originate from California (74) and destined for Washington (33) or Oregon (25). A majority of currency seized southbound on Oregon highways was reported to originate in Washington (48) or Oregon (43) and destined primarily for California (67).180

Drug trafficking is unquestionably centered on monetary gain. And, with every investigation, task force investigators evaluate the potential for the seizure of assets obtained as a result of the drug trafficking enterprise. Drug proceeds reported by Oregon HIDTA task forces for 2013 totaled $85.1 million, over eight times the amount of proceeds seized in 2004 ($11.2 million). In 2013, Oregon HIDTA task forces seized approximately $9.5 million in drug-related assets, with $5.7 million seized in cash/currency and $3.8 in other assets seized (e.g., vehicles, firearms).181

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VII. OUTLOOK

The abuse and trafficking of opiate drugs, namely heroin and prescription pain relievers, will continue to expand. Heroin trafficking and use will rise as production in Mexico continues to grow and as users of prescription opiates increasingly switch to heroin because it is less expensive, more available and provides a more intense high than diverted prescription opiates. The number of young users will likely grow as abuse of prescription opioids continues to serve as a gateway to heroin use.

Methamphetamine will remain a significant drug threat in the HIDTA region due to sustained availability and the societal impact of associated criminal activity. Local manufacturing of methamphetamine will remain at low levels while crystal meth will continue to be imported across U.S. borders from large-scale laboratories in Mexico. Expanded methamphetamine production in Mexico, despite strict Government of Mexico chemical control laws, will continue to sustain the flow of crystal meth into the United States, including Oregon. Methamphetamine-related crimes such as identity theft, property and violent crimes will continue to follow the trend of abuse.

Outdoor production of marijuana will continue to be controlled by Mexican National DTOs in the state. Law enforcement and prosecution efforts in HIDTA counties will likely drive DTO operations to areas with less law enforcement presence and minimal risk of detection. Furthermore, budgetary shortfalls will continue to impact the ability of law enforcement officers to effectively locate and eradicate outdoor grow sites due to prioritization of resources, displacement of staff, and diminished provision of flight time.

Exploitation of current Medical Marijuana laws will continue to encourage larger indoor marijuana grow operations, impede law enforcement efforts to investigate illegal marijuana operations, and contribute to the volume of marijuana trafficking through and out of the state. Home invasion robberies and theft will likely increase as the number of grow sites proliferate. Liquid THC production - - and incidence of butane hash oil lab explosions -- is expected to rise as the market expands for marijuana edibles and demand increases for product that has a strong psychoactive effect. Marijuana abuse will rise, particularly by young people, as the drug becomes more available and as it is increasingly perceived as legitimate and safe to use.

Prescription drug abuse and trafficking will continue to rise provided that these drugs remain widely available, easily accessible and are perceived as a safe, “legal” alternative to illicit drugs. In addition, as a greater number of opioid users switch between CPDs and heroin, more heroin and polydrug distributors will likely add diverted pharmaceuticals to their drug supplies to exploit an expanding customer market. The proliferation of rogue pharmacies that dispense CPDs without a prescription and do not comply with pharmacy laws and standards will continue to be a public health and safety concern.

Trafficking of cocaine in Oregon will continue to decrease as production levels continue to drop in source countries such as Colombia and as demand for the drug declines.

The demand for synthetic, or designer, drugs is expected to rise due to the wide availability of related chemicals, drugs and products. As synthetic drugs become more regulated, producers will alter the chemical composition to create new “licit” versions of the drugs. Moreover, users will likely use the internet with greater frequency to purchase raw chemicals and products containing unregulated ingredients.

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Prolonged drug cartel wars in Mexico may cause sporadic, spot disruptions in drug supplies from Mexico. Mexican National DTOs operating in the state will continue to control the transportation and distribution of heroin, methamphetamine, cocaine, Mexican-produced marijuana, and marijuana cultivated from outdoor grows in Oregon. Caucasian DTOs and independent groups will continue to control transportation and distribution of locally-produced indoor marijuana. Asian criminal groups will likely continue to expand cannabis operations and trafficking capabilities in Oregon – especially with regard to high-potency marijuana.

Bulk cash smuggling and money service businesses will remain the primary methods of transferring drug revenues into, through, and out of Oregon. Interdiction efforts by law enforcement officers will continue to impede the flow of drug proceeds through the state, impacting crime groups that rely on these funds to operate.

VIII. METHODOLOGY

The Oregon HIDTA threat assessment was developed through consideration of information from a variety of sources. Quantitative information was collected and reviewed from a variety of measures such as drug seizures and arrests, census, drug testing, drug-related deaths, substance abuse admissions to treatment facilities, and drug-impaired driving. National surveys, survey interviews with Oregon law enforcement officers, and Oregon drug task force reporting were also considered when evaluating trends in use, production and cultivation levels, and the presence and level of involvement of organized criminal groups in trafficking, distribution, and related criminal activity.

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COUNTER-DRUG STRATEGY

IX. INTRODUCTION

The Oregon High Intensity Drug Trafficking Area (HIDTA) Counter-Drug Strategy is the Executive Board’s plan to reduce the identified drug threat in the Oregon HIDTA areas. The Counter Drug Strategy is linked to the drug threat and initiatives through a clear delineation of the relationship between the problems posed by the threat, the actions to be taken by the participating agencies and the anticipated impact on the region. Oregon HIDTA funds will be expended in a manner to maximize the leveraging of Federal, state, local and tribal agency contributions that are committed to the HIDTA mission.

The Oregon HIDTA Counter-Drug Strategy describes how the Executive Board maintains oversight and direction of the HIDTA, the HIDTA intelligence subsystem, and the plan for area law enforcement agencies to coordinate and combine drug-control efforts. The strategy embodies the spirit of the HIDTA program, clearly demonstrating how Federal, state, local and tribal agencies have combined drug control efforts to reduce drug trafficking, eliminate unnecessary duplication of effort, maximize resources, and improve intelligence and information sharing. The Oregon HIDTA Counter Drug Strategy identifies its expected overall accomplishments in the region to support the design of the strategy and to provide the ability to measure the strategy’s success at the end of the year. The Oregon HIDTA Counter Drug Strategy also contains the anticipated developmental standards attainment and addresses the performance targets set by the Performance Measurement Program (PMP).

The collocated and commingled drug and gang task forces and initiatives are built to implement the Oregon HIDTA Counter-Drug Strategy and are comprised of full-time, multi-agency participants. If the HIDTA incorporates an existing task force, intelligence or support operation, or other program into the HIDTA’s Counter-Drug Strategy, then the value added by such a group to the HIDTA is evident. Additionally, if the existing group is an investigative support element then the amount of HIDTA funds allocated by the Executive Board must be determined based on specific measurable support provided to the HIDTA.

HIDTAs nationally have adopted two specific goals to be achieved in meeting the drug challenge. The Oregon HIDTA Counter Drug Strategy is developed to meet local drug threats according to designated area’s individual needs, in conjunction with the national goals:

GOAL 1: Disrupt the market for illegal drugs by dismantling or disrupting drug trafficking and/or money laundering organizations; and

GOAL 2: Improve the efficiency and effectiveness of HIDTA initiatives.

The Oregon HIDTA Counter-Drug Strategy contains the performance targets that should be realized after the strategy is implemented. The HIDTA goals represent clear targets for the Oregon HIDTA initiatives. They also provide the foundation upon which performance planning and outcome measurements are based. As the Oregon HIDTA initiatives develop budget submissions, each initiative must present programmatic and fiscal requests that are based on the Oregon HIDTA Threat Assessment; must articulate how the initiative’s funding request directly addresses the threat; set realistic performance measures, and each initiative must eventually provide specific information on how the

Oregon HIDTA Program - DRAFT funding has allowed the Oregon HIDTA to meet its desired outcomes. The Oregon HIDTA initiatives are developed within clear national guidelines governing all HIDTA activities and expenditures.

The Oregon HIDTA, which consists of nine designated counties and the Warm Springs Indian Reservation, is governed by an Executive Board comprised of 16 voting members and four ex-officio non-voting members who represent the participating agencies. The Oregon HIDTA Executive Board, through subcommittees as needed, oversees and coordinates the integration and synchronization of efforts to reduce drug trafficking, eliminates unnecessary duplication of equipment or effort, and systematically improves the sharing of drug intelligence and targeting information. The Executive Board reviews all initiative requests for approval and submission to the Office of National Drug Control Policy (ONDCP). The Oregon HIDTA Management and Coordination initiative and the Oregon HIDTA Director support the Executive Board and provide guidance to Oregon HIDTA initiatives.

During 2015 the Oregon HIDTA Management and Coordination initiative will conduct on-site fiscal and programmatic reviews of each initiative to evaluate their effectiveness and progress. These review findings will be reported, in written form, and discussed formally with the Executive Board during scheduled meetings throughout the year.

The Executive Board is involved in all aspects of the intelligence, enforcement, prosecution and support activities. The Executive Board provides a forum to share important trends in drug trafficking, gathers information on which drugs are being distributed throughout the region, and supports the identification, investigation and disruption and dismantlement of drug trafficking organizations (DTO) by Oregon HIDTA funded enforcement initiatives. The Executive Board also addresses important administrative issues in its oversight capacity. The Executive Board has established a Finance Subcommittee that supports the Oregon HIDTA initiatives and its participating agencies on a wide variety of program and budget issues, computer technology and other matters. The success of the Oregon HIDTA Program is measured by results, and each Oregon HIDTA initiative is fully accountable for its success or failure in meeting its objectives.

X. MISSION AND VISION STATEMENTS

The overall HIDTA Mission is embodied by the National HIDTA Mission Statement:

NATIONAL HIDTA MISSION

The mission of the HIDTA is to disrupt the market for illegal drugs in the United States by assisting Federal, state, local and tribal law enforcement entities participating in the HIDTA program to dismantle and disrupt drug trafficking organizations, with particular emphasis on drug trafficking regions that have harmful effects on other parts of the United States.

In conjunction with the national program mission and goals, the Oregon HIDTA Program operates in accordance with the following mission:

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OREGON HIDTA MISSION

The Oregon HIDTA mission is to facilitate, support and enhance collaborative drug control efforts among law enforcement agencies and community-based organizations, thus significantly reducing the impact of illegal trafficking and use of drugs throughout Oregon.

The Oregon HIDTA Executive Board developed the following vision statement that clearly reflects what outcomes the Oregon HIDTA strives to achieve:

OREGON HIDTA VISION

Collaborate with law enforcement and community-based organizations to provide a common voice and unified strategy to eliminate illicit drug trafficking and use in Oregon.

The Oregon HIDTA values represent the core priorities of the program and are incorporated in the decision making process and behavior of the Executive Board and the Oregon HIDTA participants.

OREGON HIDTA VALUES

Partnership Innovation Leadership Excellence

XI. CONCEPT OF STRATEGY

Oregon HIDTA funds will be allocated to those initiatives that demonstrate that they are truly full-time, multi-agency, Federal, state, local and tribal partnerships successfully investigating and disrupting drug trafficking organizations that impact the drug threat in their regions, the state, and other parts of the United States. This does not preclude initiatives from doing local drug enforcement; however, HIDTA funds will need to be primarily focused on this objective and the results of their efforts will be measured through the HIDTA Performance Management Program (PMP) database.

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The Executive Board recognizes that the missions of Federal, state, local and tribal law enforcement agencies and personnel are different, and yet, need and compliment one another. Their areas of responsibility are different, but the citizens they serve are the same. The Oregon HIDTA Executive Board will only approve focused initiatives that bring together Federal, state, local and tribal personnel in order to leverage their talents and expertise to effectively target and disrupt mid to upper level drug traffickers and DTOs in the state.

Key Components of the Oregon HIDTA Counter-drug Strategy

The key components of the Oregon HIDTA Counter-drug strategy which are being implemented in order to achieve the mission of the Oregon HIDTA as well as the goals of the National Drug Control Strategy are:

1. Promote and facilitate the creation of, and support established, collocated and commingled interagency - Federal, state, local and tribal - intelligence-driven drug enforcement task forces whose missions are to eliminate domestic production, trafficking and use of methamphetamine, heroin, cocaine, marijuana and other dangerous drugs to include the abuse of prescription drugs.

2. Identify and target the most serious and prolific drug trafficking and money laundering organizations (DTOs & MLOs) operating in the Oregon HIDTA region.

3. Conduct field operations and investigations, which disrupt and dismantle DTOs and MLOs through systematic and thorough investigations that lead to successful criminal prosecutions and forfeiture of illicit assets.

4. Foster, support, promote and facilitate the proactive sharing of criminal intelligence with law enforcement agencies along the I-5 corridor and nationwide, as appropriate, by providing an Investigative Support Center (ISC) Analytical Unit and Watch Center that:

a. Serves as a “one-stop research shop” and “coordination umbrella” that provides accurate, detailed and timely tactical and strategic drug intelligence to HIDTA initiatives, HIDTA participating agencies, and other law enforcement agencies as appropriate both locally and nationally.

b. Serves as a primary investigative resource for technical support and equipment, to include state-of-the-art Title III and Pen Register equipment, Global Positioning System (GPS) tracking equipment, crime analysis equipment, electronic surveillance equipment, undercover equipment, video enhancement services, and computer forensic services.

c. Operates an electronic officer safety warning system that serves to de-conflict and coordinate tactical operations and investigations occurring in close proximity to each other on a seven day per week, twenty-four hour basis.

5. Provide quality training to law enforcement personnel to enhance their investigative, management and officer safety skills in order to successfully eliminate drug trafficking and use at all levels.

6. Promote the creation, and support of existing, community based drug prevention and recovery initiatives whose missions are to significantly reduce the impacts of illegal drug use in the Oregon HIDTA region.

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Methodology

The methodology used to prepare this Oregon HIDTA Counter Drug Strategy Report of Program Year (PY) 2015 was to evaluate the Oregon HIDTA Threat Assessment Supplemental Report, the Oregon HIDTA Initiative’s PMP statistical reports, and other classified and open source information collected during the previous year.

Oregon HIDTA Organizational Composition

A. Oregon HIDTA Organizational Chart

►ONDCP

►Oregon HIDTA Executive Board

►Oregon HIDTA Director

►Oregon HIDTA Initiatives

B. Oregon HIDTA Executive Board Composition by Agency

The agency composition of the Oregon HIDTA Executive Board is as follows:

1 Federal - Steven Cagen, Assistant Special Agent in Charge Homeland Security Investigations (HSI) 2 Federal - Cam Strahm, Assistant Special Agent in Charge Drug Enforcement Administration (DEA) 3 Federal - Gregory Bretzing, Special Agent in Charge Federal Bureau of Investigations (FBI) 4 Federal - Kathleen Barcklow , Supervisory Special Agent Internal Revenue Service 5 Federal - Amanda Marshall, United States Attorney United States Attorney’s Office (USAO), District of Oregon 6 Federal - Russ Burger, U.S Marshal United States Marshal Service (USMS), District of Oregon 7 Federal - Loren Good, Special Agent in Charge United States Bureau of Land Management (BLM) 8 Federal - Colene Domenech , Resident Agent in Charge Bureau of Alcohol, Tobacco, Firearms and Explosives (BATF) 9 Local - Larry Blanton, Deschutes County Sheriff Deschutes County Sheriff's Office (DCSO) 10 Local - James Ferraris, Deputy Chief of Police Salem Police Department (SPD)

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11 Local - John Foote, District Attorney Clackamas County District Attorney's Office (CCDA) 12 Local - Stuart Roberts, Chief of Police Pendleton Police Department 13 Local - Craig Roberts, Clackamas County Sheriff Clackamas County Sheriff's Office (CCSO) 14 State - Darin Tweedt, Chief Counsel Oregon Department of Justice (ODOJ) 15 State - Mike Bieniewicz, Colonel, Counter Drug Support Program Oregon National Guard (ONG) 16 State - Patrick Ashmore, Captain, Criminal Division Oregon State Police (OSP) Ex-Officio Michael Loudermilk, Assistant Special Agent in Charge United States Forest Service (USFS) Dwight Holton, Chief Executive Officer Oregon Partnership, Lines for Life (LFL) Tim Hartnett, Executive Director Comprehensive Options for Drug Abusers (CODA) Erik Fisher, President Oregon Narcotics Enforcement Association (ONEA)

C. List of Participating Agencies

The number of full–time participants in the Oregon HIDTA Program:

Federal Law Enforcement: 54 State Law Enforcement: 38 Local Law Enforcement: 116 National Guard: 6 Tribal Law Enforcement 3 Total: 217

Agencies with full-time participants in HIDTA Initiatives are as follows:

Federal agencies: Bureau of Alcohol, Tobacco, Firearms and Explosives (BATF) Bureau of Land Management (BLM) Drug Enforcement Administration (DEA) Federal Bureau of Investigation (FBI) Homeland Security Investigations (HSI) Internal Revenue Service (IRS) United States Marshals Service (USMS)

State agencies: Oregon Department of Justice (ODOJ) Oregon National Guard (ONG) Oregon State Police (OSP)

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Local agencies: Ashland Police Department Beaverton Police Department Bend Police Department Boardman Police Department Canby Police Department Clackamas County District Attorney’s Office Clackamas County Sheriff’s Office Crook County Sheriff’s Office Deschutes County Sheriff’s Office Douglas County Sheriff’s Office Douglas Interagency Narcotics Team Eugene Police Department Hermiston Police Department Hillsboro Police Department Jackson County Parole & Probation Jackson County Sheriff’s Office Keizer Police Department Lane County District Attorney’s Office Lane County Parole and Probation Marion County Sheriff’s Office Medford Police Department Milton Freewater Police Department Milwaukie Police Department Morrow County Sheriff’s Office Multnomah County Sheriff’s Office Oregon City Police Department Pendleton Police Department Prineville Police Department Redmond Police Department Roseburg Police Department Salem Police Department Springfield Police Department Tigard Police Department Umatilla County Sheriff’s Office Washington County Sheriff’s Office

Part-time only Amtrak Police Department Jackson County District Attorney’s Office Jefferson County Sheriff’s Office Multnomah County Department of Community Justice Oregon Department of Public Safety, Standards and Training Port of Portland Police Social Security Administration Office of Inspector General United States Attorney’s Office United States Customs and Border Protection United States Forest Service United States Postal Service Law Enforcement

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XII. HIDTA GOAL 1: Dismantle and Disrupt Drug Trafficking Organizations

The enforcement components of the Oregon HIDTA will aggressively pursue criminal drug smuggling, manufacturing, distribution, and money laundering organizations in order to disrupt and reduce the supply of illegal drugs in the state, region and country. The Oregon HIDTA enforcement initiatives are responsible for achieving the following performance targets in 2013:

Goal 1 Performance Targets

A. Drug Trafficking Organizations and Money Laundering Organizations Disrupted/Dismantled:

The number of DTOs/MLOs expected to be disrupted/dismantled for 2015 is 37.

The actual number of DTOs/MLOs disrupted/dismantled for 2013 is 37.

B. HIDTA Cases Opened

The estimated number of HIDTA cases opened for 2015 is 3,202.

The actual number of HIDTA cases opened for 2013 is 4,009.

C. Return on Investment (ROI) for Drugs Removed from the Marketplace by Law Enforcement Initiatives:

The estimated Return on Investment for 2015 is $35.00.

The actual Return on Investment for 2013 is $27.70.

D. Return on Investment (ROI) for Assets Removed from the Marketplace by Law Enforcement Initiatives:

The estimated Return on Investment for 2015 is $2.00.

The actual Return on Investment for 2013 is $3.09.

E. Return on Investment (ROI) for Drugs and Assets Removed from the Marketplace by Law Enforcement Initiatives:

The estimated Return on Investment for 2015 is $37.00.

The actual Return on Investment for 2013 is $30.80.

G. HIDTA Clandestine Laboratory Activities:

The expected clandestine methamphetamine laboratory activities for 2015 is:

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CLANDESTINE LABORATORY CASES, 2015 OUTPUTS EXPECTED Methamphetamine Labs Dismantled 1 Lab Dump Sites Seized 7 Chemical/Glassware/Equipment Seized 3 Children Affected 11

The actual clandestine methamphetamine laboratory activities for 2013 is

CLANDESTINE METHAMPETIME LABORATORY ACTIVITIES, 2013 OUTPUTS ACTUAL Methamphetamine Labs Dismantled 3 Lab Dump Sites Seized 5 Chemical/Glassware/Equipment Seized 3 Children Affected 3

H. HIDTA Fugitive Apprehensions:

The estimated number of fugitive apprehensions for 2015 is 1,346.

The actual number of fugitive apprehensions for 2013 is 1,431.

Goal 1 Initiatives

A. Enforcement Subsystem

During PY 2015 The Oregon HIDTA Executive Board and ONDCP will support thirteen (13) multi- agency drug enforcement (investigative) initiatives in the Oregon HIDTAll: Clackamas County Clackamas County Interagency Task Force (CCITF) Deschutes County Central Oregon Drug Enforcement Task Force (CODE) Douglas County Douglas Interagency Narcotics Team (DINT) Jackson County DEA Medford Task Force (Oregon DEA Sub-Initiative) Medford Area Drug and Gang Enforcement Team (MADGE) Lane County DEA Eugene Task Force (Oregon DEA Sub-Initiative) ll The Oregon HIDTA DEA includes 4 sub-initiatives; DEA Portland, Salem, Eugene and Medford Task Forces.

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Lane County Interagency Narcotics Enforcement Team (INET) Marion County DEA Salem Task Force (Oregon DEA Sub-Initiative) Multnomah County HIDTA Interdiction Team (HIT) Multnomah County Dangerous Drug Team (DDT) Oregon HIDTA DEA DEA Portland Task Force (Oregon DEA Sub-Initiative) Oregon Financial Crimes Task Force Portland Area Metro Gang Task Force (PAMGTF) United States Marshal’s Service HIDTA Fugitive Task Force Umatilla County Blue Mountain Enforcement Narcotics Team (BENT) Warm Springs Indian Reservation Warm Springs Police Department (WSPD) Washington County Westside Interagency Narcotics Team (WIN)

All thirteen (13) of the Oregon HIDTA enforcement initiatives implement the strategy by concentrating the “value-added” HIDTA resources on enforcement and investigative enhancements which enable them to target the members of high-value drug trafficking and money laundering organizations (DTOs & MLOs) which results in better cases, targeted prosecutions, reduced drug trafficking, reduced drug use, reduced drug availability, improved community livability, and reduced drug-related crime and violence.

These enforcement and investigative enhancements are primarily targeted at identified drug trafficking organizations and their members by utilizing additional HIDTA funds to purchase evidence and information, analyze the meaning of that information, work additional overtime, employ new technology and obtain training to improve the effectiveness and efficiency of investigators. Every effort is made by HIDTA initiatives to leverage resources and information by enhancing collaboration between Federal, state, and local law enforcement agencies.

B. Prosecution Subsystem The Lane County Interagency Narcotics Enforcement Team (INET) utilizes Oregon HIDTA funds to pay for a full time collocated prosecutor. This prosecutor is cross-designated to bring cases in both Federal and state court. This enhanced prosecution component provides direct case consultation for major investigations and enables the prosecution of targeted and complex drug cases including additional prosecutions of appropriate cases in Federal court. This component increases the impact of enforcement and the investigative capabilities of the initiative.

Every other Oregon HIDTA enforcement initiative has created close working relationships with the Federal and state prosecutors that work within their jurisdictions. The non HIDTA funded Federal and state prosecutors in the Oregon HIDTA areas also provide ongoing case consultation for major investigations which enhance the prosecution of targeted and complex drug cases in Federal and state court. As is the case in Lane County, the relationships that have been built between the enforcement initiatives and prosecutors in the other HIDTA designated areas in Oregon increase the impact of enforcement and the investigative capabilities of each Oregon HIDTA initiative.

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XIII. HIDTA GOAL 2: Increase the Efficiency of Law Enforcement Agencies Participating in HIDTAs

The Oregon HIDTA Program has created and implemented four initiatives that are designed to assist, complement and enhance the enforcement components of the Oregon HIDTA. The four support initiatives, which are described in the Goal 2 Initiatives section that follows, are responsible for achieving the following targets in 2015:

Goal 2 Performance Targets

A. HIDTA Training Assistance:

The expected HIDTA training assistance to be provided for 2015 is:

TRAINING ASSISTANCE TO BE PROVIDED, 2015 COURSES TO BE OFFERED EXPECTED Number of Students for Analytical Courses 10 Number of Students for Enforcement Courses 350 Number of Students for Management/Administrative Courses 1 Number of Students for Demand Reduction Courses 0 Hours of Training Provided for Analytical Courses 100 Hours of Training Provided for Enforcement Courses 8,540 Hours of Training Provided for Management/Administrative Courses 16 Hours of Training Provided for Demand Reduction Courses 0

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The actual training assistance provided for 2013 is:

TRAINING ASSISTANCE PROVIDED, 2013 COURSES OFFERED ACTUAL Number of Students for Analytical Courses 6 Number of Students for Enforcement Courses 341 Number of Students for Management/Administrative Courses 1 Number of Students for Demand Reduction Courses 0 Hours of Training Provided for Analytical Courses 98 Hours of Training Provided for Enforcement Courses 8,893 Hours of Training Provided for Management/Administrative Courses 17 Hours of Training Provided for Demand Reduction Courses 0

B. Event and Case Deconflictions:

The expected HIDTA event and case deconflictions for 2015 is:

EVENT AND CASE DECONFLICTIONS SUBMITTED, 2015 OUTPUTS EXPECTED Event Deconflictions Submitted 2,830 Case Deconflictions Submitted 211,123

The actual HIDTA event and case deconflictions for 2013 is:

EVENT AND CASE DECONFLICTIONS SUBMITTED, 2013 OUTPUTS ACTUAL Event De-conflictions Submitted 2,654 Case De-conflictions Submitted 289,269

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C. Cases Provided Analytical Support:

The expected number of cases to be provided analytical support for 2015 is 213.

The actual number of cases provided analytical support for 2013 is 537.

D. Leads Referred to Other HIDTAs and Other Agencies:

The expected number of leads to be referred for 2013 is 175.

The actual number of leads referred for 2013 is 127.

Goal 2 Initiatives

A. Intelligence and Information Sharing Initiatives

Investigative Support Center

The Oregon HIDTA/Oregon Department of Justice (ODOJ) has one Intelligence and Investigative Support Center (ISC) located in Salem, Oregon. The key functional components and services of the ISC are:

1. A Watch Center staffed five days per week, 10 hours per day with 24-hour remote coverage for event deconfliction and officer safety.

2. Post seizure analysis services are available through assigned intelligence analysts on a case- by-case basis.

3. Long term analytical case support is available through assigned intelligence analysts on a case-by-case basis.

4. Electronic, secure, email connectivity is available for Federal, state, local and tribal law enforcement agencies, criminal databases, national intelligence centers, WSIN, El Paso Intelligence Center (EPIC), and other databases via RISSNET.

5. The ISC Strategic Analytical Unit develops and publishes an Annual Drug Threat Assessment, the HIDTA Annual Report, and other drug related informational and criminal intelligence bulletins.

6. All clan lab data is entered in the Regional Information Sharing Service Intelligence database (RISS Intel.) and forwarded to EPIC.

7. The ISC initiative supports and implements the strategy by providing a “one stop” law enforcement resource and service center accessible both by phone, and electronically via RISS, for authenticated law enforcement personnel anywhere in the nation to securely, and reliably:

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 Electronically share criminal intelligence with the appropriate Federal, state, or local agencies and/or databases.  Electronically query appropriate databases for investigative leads.  Electronically share criminal case and officer safety information.  Electronically deconflict cases or events.  Electronically communicate crime trends.  Electronically communicate training information.  Electronically share case photographs and reports.  Electronically communicate via secure e-mail.

B. Support Initiatives

Management and Administration (Marion County)

The Administrative Initiative handles the day-to-day business for the Oregon HIDTA and is the primary point of contact between each initiative, the Oregon HIDTA Executive Board, ONDCP, the National HIDTA Assistance Center (NHAC), and other private and government agencies. This initiative is staffed by one (1) full-time contract employee, the Oregon HIDTA Director, and two (2) full-time Oregon Department of Justice employees, the financial manager and the administrative assistant.

Duties of all administrative staff are to manage the day-to-day HIDTA functions on behalf of the Oregon HIDTA Executive Board. The first priority is programmatic support, information coordination, fiscal and technical service to the HIDTA participating agencies.

The duties include: the administration and/or developing of the four annually required documents of the HIDTA program: The annual Threat Assessment, the annual Counter-Drug Strategy, the annual Initiative Budget Proposal, and the Annual Report.

Additional duties include programmatic, administrative, and fiscal oversight in support of all HIDTA initiatives to ensure they are in compliance with the ONDCP/HIDTA program policy, and other program requirements; establish and maintain a central inventory tracking system for property purchased with HIDTA funds; assist HIDTA agencies/initiatives in establishing and recording measurable outcomes and outputs based upon the PMP; provide advice and counsel to the Executive Board concerning the status, direction, and success of the HIDTA initiatives, programs, and ONDCP requirements; establish an internal review process to evaluate the effectiveness and efficiency of each initiative in achieving its targeted outputs and outcomes.

Oregon HIDTA Training Initiative (Marion County)

The Oregon HIDTA Training Initiative is managed by the Oregon Department of Public Safety Standards and Training (DPSST) with part-time staff. The mission of the Oregon HIDTA Training Initiative is to provide the Oregon HIDTA, participating agencies, task forces and regional law enforcement officers with targeted, high priority training and an information sharing forum that directly enhances their effort to measurably disrupt and/or dismantle drug trafficking organizations, money laundering operations and related violent crime groups in accordance with ONDCP and HIDTA strategy.

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Oregon HIDTA initiatives and participating agencies are surveyed every year relating to their training needs necessary to assist them with their operations that support the Oregon HIDTA strategy. The surveys are used to identify, prioritize and schedule training. Efforts are made to ensure equitable training opportunities are available for all initiatives and participating agencies.

Cops Mentoring Youth (Multnomah County)

The Oregon Partnership Lines for Life led “Cops Mentoring Youth” demand reduction initiative is supported by the Oregon HIDTA with baseline and supplemental funding. The “Cops Mentoring Youth” initiative provides resources to law enforcement officers to educate youth on the ‘faces’ of addiction and the dangers of substance abuse, and the risks associated with use that can lead to youth violence and criminal street gangs. Through interviews with addicts, youth involved in the initiative will learn the real and long term impact of drug use and street gang involvement on families, neighborhoods, and the individuals’ life. The initiative fosters productive and active mentoring relationships between local law enforcement personnel and youth through planning and production of an effective youth-driven media campaign about the dangers of drugs.

Oregon Partnership Lines for Life’s – Cops Mentoring Youth – program focuses on reducing the demand for drugs and positively impacting community response to neighborhood drug activity while engaging youth with Portland Police Bureau officers as their mentors in a community-wide education and awareness campaign. Utilizing OP’s Youth Voices, Youth Choices curriculum, which guides middle and high school students to create film-based media messaging addressing illegal substance abuse issues in their neighborhoods, the project creates video elements to be shared with leaders and residents to educate them about the impact of drug use, trafficking and gang activity in their neighborhoods.

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XIV. APPENDICES – Oregon HIDTA 2014 Drug Threat Assessment Tables

Appendix A

Abbreviations

CBP U.S. Customs and Border Protection CCITF Clackamas County Interagency Task Force CODE Central Oregon Drug Enforcement Team CPDs Controlled Prescription Drugs CPOT Consolidated Priority Organization Targets DCE/SP DEA Domestic Cannabis Eradication/Suppression Program DDT Multnomah County Dangerous Drugs Team DEA Drug Enforcement Administration DEC Drug Evaluation Classification Program DHE Domestic Highway Enforcement DINT Douglas County Interagency Narcotics Team DMT Dimethyltryptamine DTO Drug Trafficking Organization FDA Food and Drug Administration HIDTA High Intensity Drug Trafficking Area HIT HIDTA Interdiction Team INET Lane County Interagency Narcotics Team LSD Lysergic acid diethylamide MADGE Medford Area Drug and Gang Enforcement MDMA 3,4-methylenedioxy-methamphetamine MNDTO Mexican National Drug Trafficking Organization OCDETF Organized Crime Drug Enforcement Task Force OMG Outlaw Motorcycle Gang OMMP Oregon Medical Marijuana Program ONDCP Office of National Drug Control Policy OSP Oregon State Police PAMGTF Portland Area Metro Gang Task Force PDX Portland International Airport RADE Rogue Area Drug Enforcement Team RPOT Regional Priority Organization Targets SAR Suspicious Activity Report THC Delta-9-tetrahydrocannabinol USMS United States Marshal’s Service USPS United States Postal Service WIN Westside Interagency Narcotics Team

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Appendix B

Oregon Medical Marijuana Program Statistics, April 1, 2014

Number of persons currently holding medical marijuana cards 60,516 Number of persons holding caregiver cards 30,638 Number of Oregon-licensed physicians with current OMMP patients (MDs and DOs only) 1,574 Number of applications denied/rejected between 1/1/13 and 12/31/13 1,654

Reported medical conditions include: Agitation related to Alzheimer’s disease 76 Cachexia 1,122 Cancer 2,827 Glaucoma 1,014 HIV+/AIDS 731 Nausea 9,101 PTSD <50 Severe pain 59,670 Seizures, including but not limited to epilepsy 1,490 Persistent muscle spasms, including but not limited to those 15,888 caused by Multiple Sclerosis

Source: Oregon Medical Marijuana Program, April 2014.

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Appendix C Marijuana Plants Seized in HIDTA Region and Statewide, 2008-2013 2008 2009 2010 2011 2012 2013 Total Plants Total Plants Total Plants Total Plants Total Plants Total Plants HIDTA Region (In/Outdoor) (In/Outdoor) (In/Outdoor) (In/Outdoor) (In/Outdoor) (In/Outdoor) 691 8,379 1,025 3,602 425 1,331 Clackamas (689/2) (773/7,606) (700/325) (3,486/116) (347/78) (928/403) 943 809 199 357 786 58 Deschutes (943/0) (624/185) (199/0) (357/0) (781/5) (58/0) 10,581 22,492 3,907 138 476 3,998 Douglas (696/9,885) (618/21,874) (164/3,743) (52/86) (254/222) (363/3,635) 520 26,880 28,504 3,255 9,340 4,874 Jackson (227/293) (8/26,872) (337/28,167) (383/2,872) (376/8,964) (450/4,424) 8,948 9,129 2,726 2,888 3,640 4,836 Lane (2,547/6,401) (8,349/780) (1,904/822) (2,640/248) (3,534/106) (570/4,266) 368 590 653 215 10 248 Marion (303/65) (113/477) (184/469) (99/116) (4/6) (248/0) 2,804 4,295 8,348 5,505 3,009 3,261 Multnomah (2,615/189) (4,167/128) (8,327/21) (5,494/11) (2,959/50) (3,233/28) 22 7,365 3,873 3,318 164 388 Umati l l a (21/1) (0/7,365) (62/3,811) (24/3,294) (164/0) (260/128) 12,828 1,630 0 3 0 0 Warm Springs (0/12,828) (0/1,630) (0/0) (3/0) (0/0) (0/0) 608 2,857 1,338 332 823 2,114 Washington (5/603) (107/2,750) (882/456) (319/13) (702/121) (2,089/25)

38,313 84,426 50,573 19,613 18,673 21,108 HIDTA Total (8,046/30,267) (14,759/69,667) (12,759/37,814) (12,857/6,756) (9,121/9,552) (8,199/12,909)

85,701 230,011 204,937 140,313 33,273 28,035 Statewide Total (8,805/76,896) (19,863/210,148) (16,511/188,426) (15,081/125,232) (13,197/20,076) (9,115/18,920) Source: Drug Enforcement Administration Domestic Cannabis/Suppression Program (DCE/SP).

Appendix D

Lab Seizures, Methamphetamine and Other Labs, HIDTA Counties and Statewide, 2005, 2009-2013 2005 2009 2010 2011 2012 2013 (Meth only) (Meth only) (Meth only) (Meth only) (Meth & Other labs) (Meth & Other labs) Statewide 192 13 13 10 7 10 HIDTA Area Clackamas 15 1 1 Deschutes 0 MDMA (1) Meth (2); DMT (1); Douglas 14 1 1 Hash oil (1) Jackson 6 1 Meth (1) DMT (1) Lane 12 DMT (1) Meth (1); DMT (1) Marion 11 Multnomah 33 2 7 3 Meth (2) Meth (2) Umatilla 39 5 1 1 Meth (1) Washington 12 1 Meth (1); DMT (1) Meth (2) Meth (6); DMT (3); Meth (6); DMT (2); HIDTA Counties 142 8 10 7 Hash Oil (1) MDMA (1) Note: Collection and reporting of other clan labs seized began in 2012. Source: Oregon Department of Justice.

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XV. ENDNOTES

1 Table 1. Annual Estimates of the Population for the United States, Regions, States, and Puerto Rico: April 1, 2010 to July 1, 2013 (NST-EST2013-01), U.S. Census Bureau, Population Division, December 2013. 2 State and County QuickFacts, Oregon, U.S. Census Bureau, 2013. 3 2013 Oregon Population Report, Population Research Center, Portland State University, extracted January 2014. 4 National Threat Assessment: The Economic Impact of Illicit Drug Use on American Society. National Drug Intelligence Center, Department of Justice, May 2011. 5 What America’s Users Spend on Illegal Drugs, 2000-2010, RAND Corporation, February 2014. 6 Table 1. Illicit Drug Use in Past Month, by Age Group and State: Annual Averages Based on 2011 and 2012 NSDUHs, Substance Abuse and Mental Health Services Administration, downloaded April 2014. 7 Population Demographics, Oregon Department of Corrections, January 1, 2014. 8 Inmate Population Profile for 05/01/2014, Oregon Department of Corrections. 9 DOC Admissions for Drug Possession /Manufacturing/Delivery, Theft, and ID Theft, Oregon Department of Corrections, March 2014. 10 Drug Related Deaths 2013, Oregon State Medical Examiner, Oregon State Police. 11 National Southwest Border Counternarcotics Strategy, Office of National Drug Control Policy, 2013. 12 Ibid. 13 HIDTA Performance Management Process database, May 2014. 14 Mexican drug cartels move deeper into United States to maximize profits, Associated Press, 4/1/13. 15 Oregon HIDTA Performance Management Process database, April 2014; Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2014. 16 Drug cartels in Oregon: Violence in the Northwest, Oregonian, 6/21/13. 17 HIDTA Performance Management Process database, April 2013. 18 HIDTA Performance Management Process database, April 2014. 19 United States Marshal's Service, District of Oregon, e-mail correspondence, March 2014. 20 DrugFacts Heroin, National Institute on Drug Abuse, Revised April 2013. 21 Results from the 2012 National Survey on Drug Use and Health: Summary of National Findings, Substance Abuse and Mental Health Services Administration, U.S. Department of Health and Human Services. 22 The International Heroin Market, Office of National Drug Control Policy, http://www.whitehouse.gov/ondcp/global- heroin-market; World Drug Report 2013, United Nations; National Drug Threat Assessment Summary 2013, Drug Enforcement Administration, U.S. Department of Justice. 23 National Drug Threat Assessment Summary 2013, Drug Enforcement Administration, U.S. Department of Justice. 24 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2014. 25 HIDTA Performance Management Process database, April 2014. 26 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2014. 27 Oregon Drug Arrest Graphs, Oregon Criminal Justice Commission, April 2014. 28 Addictions and Mental Health Division, Oregon Department of Human Services, April 2014. 29 Drug Related Deaths 2012, Oregon State Medical Examiner, Oregon State Police. 30 Community-Based Opioid Overdose Prevention Programs Providing Naloxone – United States, 20101, MMWR News Synopsis for February 16, 2012, Centers for Disease Control and Prevention. 31 Moving the Needle, Willamette Week, 4/16/14. 32 2013 National Drug Threat Assessment Summary, Drug Enforcement Administration, U.S. Department of Justice. 33 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey HIDTA, March 2014. 34 Ibid. 35 DrugFacts: Heroin, National Institute on Drug Abuse, Revised April 2013. 36 DEA Drug Fact Sheet: Methamphetamine, Drug Enforcement Administration, U.S. Department of Justice. 37 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2014. 38 Ibid. 39 Oregon Drug Arrest Graphs, Oregon Criminal Justice Commission, April 2014. 40 Addictions and Mental Health Division, Oregon Department of Human Services, April 2014. 41 Ibid. 42 Drug Related Deaths 2013, Oregon State Medical Examiner, Oregon State Police. 43 Drug Related Deaths 2013, Oregon State Medical Examiner, Oregon State Police; Oregon meth-related deaths jump 22 percent in 2010, most in a decade, OregonLive.com, May 13, 2010. 44 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2014. 45 Results from the 2012 National Survey on Drug Use and Health, Highlights, Office of Applied Studies, Substance Abuse and Mental Health Services Administration, 2013.

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46 Ibid. 47 Table 3. Marijuana Use in Past Month, by Age Group and State: Percentages, Annual Averages Based on 2011 and 2012 NSDUHs, Substance Abuse and Mental Health Services Administration, downloaded April 2014. 48 Addictions and Mental Health Division, Oregon Department of Human Services, March 2013. 49 Brain changes are associated with casual marijuana use in young adults, News Releases Archives, Society for Neuroscience, 4/15/14; Topics in brief: Marijuana, National Institute on Drug Abuse, Revised December 2011. 50 Marijuana users have abnormal brain structure and poor memory, Northwestern University, 12/16/13. 51 Casual marijuana use linked with brain abnormalities, study finds, FoxNews.com, 4/15/14. 52 Quarterly Report Number 120, Reporting Period 12/16/2012 – 03/15/2013, Potency Monitoring Program, University of Mississippi, National Institute on Drug Abuse. 53 Data received from the Potency Monitoring Project, University of Mississippi, April 2013. 54 High-Potency cannabis and the risk of psychosis, British Journal of Psychiatry, 2009; Non-Medical Marijuana III: Rite of Passage or Russian Roulette?, The National Center on Addiction and Substance Abuse at Columbia University, June 18, 2008. 55 Eradication Estimates, Domestic Cannabis Cultivation Assessment 2007, National Drug Intelligence Center, U.S. Department of Justice, February 2007. 56 Email communication, MADGE task force, March 30, 2012. 57 Oregon Medical Marijuana Program, Oregon Department of Human Services, April 1, 2014. 58 Cops: Crooks ‘Hide Behind’ Medical Marijuana Law, KVAL.com, May 20, 2011; Rampant Medical Marijuana Abuse Attracting Drug Trafficking to Southern Oregon, KPIC.com, March 15, 2010. 59 Rate of poison center calls for unintentional pediatric marijuana exposures more than tripled in states that decriminalized marijuana before 2005, CESAR FAX, Center for Substance Abuse Research, University of Maryland, College Park, 3/3/14. 60 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2013. 61 Dispensary Directory, Medical Marijuana Dispensary Program, Oregon Health Authority, updated 5/16/14. 62 City and County Moratorium s, Medical Marijuana Dispensary Program, Oregon Health Authority, updated 5/1/14. 63 CDC Grand Rounds: Prescription Drug Overdoses – a U.S. Epidemic, Morbidity and Mortality Weekly Report, Centers for Disease Control and Prevention, January 13, 2012; 2013 National Drug Threat Assessment, Drug Enforcement Administration, U.S. Department of Justice, November 2013. 64 Prescription drug deaths rise with opioid sales, www.Medscape.com, 11/12/13. 65 Results from the 2012 National Survey on Drug Use and Health: Detailed Tables, 2013. 66 Table 8. Nonmedical Use of Pain Relievers in the Past Year, by Age Group and State: Percentages, Annual Averages Based on 2011 and 2012 NSDUHs, Substance Abuse and Mental Health Services Administration. 67 Unintentional prescription drug overdose in Oregon, Oregon Injury and Violence Prevention Program, Public Health Division, Oregon Health Authority, Winter 2013. 68 Addictions and Mental Health Division, Oregon Department of Human Services, March 2014. 69 Ibid. 70 Oregon State Medical Examiner Releases 2013 Drug-Related Death Statistics, Oregon State Police. 71 Oregon State Medical Examiner Releases 2012 Drug-Related Death Statistics, Oregon State Police, June 4, 2013. 72 Unintentional Prescription Drug Overdose in Oregon, Oregon Injury and Violence Prevention Program, Public Health Division, Oregon Health Authority, Winter 2013. 73 2013 Annual Report to the PDMP Advisory Commission, Oregon Prescription Drug Monitoring Program, Oregon Health Authority, January 2014. 74 Prescription drug deaths rise with opioid sales, www.medscape.com, 11/12/13. 75 Responding to the Prescription Drug Epidemic: Strategies for Reducing Abuse, Misuse, Diversion, and Fraud, Testimony by Gil Kerlikowske, Director, White House Office of National Drug Control Policy, Washington, DC, Senate Judiciary Subcommittee on Crime and Terrorism Hearing, May 24, 2011. 76 High School Seniors Who Misuse Prescription Narcotics Most Likely to Obtain Drugs from a Friend/Relative or a Personal Prescription, CESAR FAX, Center for Substance Abuse Research, University of Maryland, College Park, April 23, 2012; PATS Key Findings: Released April 23, 2013, 2012 Partnership Attitude Tracking Study; Policy impact: Prescription Painkiller Overdoses, Centers for Disease Control and Prevention. 77 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2014. 78 Policy Impact: Prescription Drug Overdose State Rates, Centers for Disease Control and Prevention. 79 FDA Approves New Formulation for OxyContin, FDA News Release, U.S. Food and Drug Administration, April 5, 2010. 80 Prescription Pill Use Among Teens Leads to Heroin Addiction, NJ Experts Testify, JoinTogether, June 16, 2011; Painkiller Use Breeds New Face of Heroin Addiction, NBC News, June 19, 2012. 81 Initiation into Prescription Opioid Misuse Amongst Young Injection Drug Users, International Journal of Drug Policy, June 19, 2011.

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82 Associations of nonmedical pain reliever use and initiation of heroin use in the United States, Center for Behavioral Health Statistics and Quality, Substance Abuse and Mental Health Services Administration, August 2013. 83 New pain pill’s approval: ‘Genuinely frightening’, CNN, 2/26/14; Emerging Drug Trends, ROCIC Special Research Report, Regional Organized Crime Information Center, 2014. 84 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2014. 85 National Drug Threat Assessment, Drug Enforcement Administration, U.S. Department of Justice, November 2013; Survey Shows Significant Drop in Cocaine Production in Colombia, Office of National Drug Control Policy, The White House, July 30, 2012; World Drug Report 2013, United Nations. 86 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2014. 87 Oregon Drug Arrest Graphs, Oregon Criminal Justice Commission, April 2014. 88 Treatment Admissions by Primary Substance Abuse, The Substance Abuse and Mental Health Services Administration, April 2010; Data obtained from the Addictions and Mental Health Division, Oregon Department of Human Services, March 2011. 89 Addictions and Mental Health Division, Oregon Department of Human Services, March 2014. 90 Drug Related Deaths 2012, Oregon State Medical Examiner, Oregon State Police. 91 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2013. 92 2013 National Drug Threat Assessment, Drug Enforcement Administration, U.S. Department of Justice, November 2013. 93 Cannabis, Synthetic Cannabinoids, and Psychosis Risk: What The Evidence Says, Current Psychiatry, Vol 10, No. 9. September 2011. 94 Kidney Failure Cases Linked to Synthetic Marijuana, News Release, Oregon Health Authority, October 5, 2012. 95 The Drug Threat in Plain Sight, TIME, 4/21/14. 96 Oregon HIDTA Performance Management Process database, April 2014. 97 Situation Report: Synthetic Cathinones (Bath Salts): An Emerging Domestic Threat, National Drug Intelligence Center, U.S. Department of Justice, July 2011. 98 Oregon HIDTA Performance Management Process database, April 2014. 99 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Surveys, March 2013 and 2014. 100 Oregon HIDTA Performance Management Process database, April 2014. 101 Drug Alert Watch: Misuse of Buprenorphine-Related Products, National Drug Intelligence Center, U.S. Department of Justice, February 22, 2011; Buprenorphine Now More Likely Than Methadone to Be Found in U.S. Law Enforcement Drug Seizures, CESAR FAX, Center for Substance Abuse Research, University of Maryland, College Park, April 2, 2012. 102 HIDTA Performance Management Process database, April 2014. 103 Ibid. 104 Domestic Cannabis Eradication/Suppression Program, February 2014. 105 Oregon HIDTA Performance Management Process database, March 2014. 106 Data collected through DEA Domestic Cannabis Eradication/Suppression Program (DCE/SP) and National Marijuana Initiative (NMI). 107 National Drug Control Strategy 2013 Annual Report, Office of National Drug Control Policy. 108 DEA Domestic Cannabis Eradication/Suppression Program (DCE/SP), February 2014. 109 Ibid. 110 Liquid THC, Information Bulletin, Investigative Support Network, Gulf Coast HIDTA. 111 Honey Oil Extractors, Officer Safety, Oregon State Police Bulletin, 4/24/14. 112 Butane hash oil: A single spark can lead to an explosion during production, The Oregonian, 5/12/14. 113 Marijuana Situation Report, Washington State 2012, Northwest HIDTA. 114 National Drug Threat Assessment 2011, National Drug Intelligence Center, U.S. Department of Justice, September 2011. 115 DEA Domestic Cannabis Eradication/Suppression Program (DCE/SP), April 2013. 116 Data collected through the DEA Domestic Cannabis Eradication/Suppression Program (DCE/SP) and National Marijuana Initiative (NMI). 117 DEA Domestic Cannabis Eradication/Suppression Program (DCE/SP) data reported to the Oregon Department of Justice, 2014. 118 Estimated Cost of Production for Legalized Cannabis, Working Paper, RAND Drug Policy Research Center, July 2010. 119 Methamphetamine laboratory seizures reported to the Oregon Department of Justice, April 2014. 120 National Drug Threat Survey 2011, National Drug Intelligence Center, U.S. Department of Justice, March 2011. 121 World Drug Report 2013, United Nations; National Drug Threat Survey 2011, Gangs Beyond Borders, California and the Fight Against Transnational Organized Crime, California Department of Justice, March 2014. 122 Gangs Beyond Borders, California and the Fight Against Transnational Organized Crime, California Department of Justice, March 2014.

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123 Gangs Beyond Borders, California and the Fight Against Transnational Organized Crime, California Department of Justice, March 2014; World Drug Report 2012, United Nations. 124 Gangs Beyond Borders, California and the Fight Against Transnational Organized Crime, California Department of Justice, March 2014; Business Plan Remakes Meth Market, Wall Street Journal, September 13, 2012. 125 Business Plan Remakes Meth Market, Wall Street Journal, September 13, 2012. 126 Methamphetamine laboratory seizures reported to the Oregon Department of Justice, May 2014. 127 Ibid. 128 World Drug Report 2012, United Nations. 129 Methamphetamine laboratory seizures reported to the Oregon Department of Justice, April 2014. 130 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2013 and 2014. 131 Methamphetamine laboratory seizures reported to the Oregon Department of Justice, April 2014. 132 Oregon Department of Justice/Oregon HIDTA Threat Assessment Survey, March 2013 and 2014. 133 2010 National Drug Threat Assessment, National Drug Intelligence Center, U.S. Department of Justice. 134 Domestic Highway Enforcement Program statistics, January 2008 through December 2013. 135 Heroin on the Rise in Southern Oregon, KDRV.com, February 15, 2012; 55 Pounds of Heroin Found During Traffic Stop, KPTV.com, August 26, 2012; Domestic Highway Enforcement Program statistics, January 2008 through December 2013. 136 Domestic Highway Enforcement Program statistics, January 2008 through December 2013. 137 Ibid. 138 Oregon Snapshot, U.S. Freight Railroad Industry Snapshot, Association of American Railroads, 2011. 139 Oregon Titan Fusion Center analysis, April 2010. 140 December, 2013: Calendar Year Report, Monthly Traffic Report, Portland International Airport. 141 Port of Portland Marine Terminal Statistics, 1983 – 2013, Port of Portland. 142 Oregon Domestic Highway Enforcement program data, January 2008 through December 2013; Oregon HIDTA Performance Management Process database. 143 Oregon HIDTA Performance Management Process database, March 2014. 144 Ibid. 145 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2012 and 2013. 146 Oregon Domestic Highway Enforcement program data, January 2008 through December 2013. 147 HIDTA Performance Management Process database, April 2014. 148 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2013; Drug Bust Reveals Meth Now Being Disguised as Liquor, ABC news, November 20, 2012; Oregon Department of Justice/Oregon HIDTA Threat Assessment Survey, March 2013. 149 Drug Bust Reveals Meth Now Being Disguised as Liquor, ABC news, November 20, 2012. 150 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2013. 151 Oregon Domestic Highway Enforcement program data, January 2008 through December 2013. 152 Oregon HIDTA Performance Management Process database, March 2014. 153 Ibid. 154 Oregon Domestic Highway Enforcement program data, January 2008 through December 2013. 155 Results from the 2012 National Survey on Drug Use and Health: Summary of National Findings, Substance Abuse and Mental Health Services Administration, U.S. Department of Health and Human Services. 156 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2013 and March 2014. 157 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2014. 158 Oregon HIDTA Performance Management database, April 2014. 159 2013 International Narcotics Control Strategy Report, Bureau of International Narcotics and Law Enforcement Affairs, March 1, 2013. 160 Synthetic Drugs, Royal Canadian Mounted Police, February 2, 2011. 161 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2013 and March 2014. 162 Email communication, Strategic Services Division, Drugs and Vice Division, Portland Police Bureau, 4/22/14. 163 Oregon Department of Justice/Oregon HIDTA Drug Threat Assessment Survey, March 2014. 164 Ibid. 165 Ibid. 166 Police net 40 arrests, 8 pounds of meth in gang bust, The Columbian, 12/9/2013. 167 OSP Traffic Stop Uncovers Second Large Seizure of Suspected Cocaine, Oregon State Police News Release, February 27, 2009; I-5 traffic Stop Leads Police to 31 Pounds of Cocaine, The Oregonian, February 24, 2009. 168 Oregon Domestic Highway Enforcement program data, January 2008 through December 2012. 169 Oregon Department of Justice/Oregon HIDTA Threat Assessment Survey, March 2013 and March 2014. 170 Most Rogue Sites Operate from Abroad, and Many Sell Counterfeit Drugs, Government Accountability Office, 2/27/14.

Oregon HIDTA Program - DRAFT

171 Internet Drug Outlet Identification Program, Progress Report for State and Federal Regulators: April 2014, National Association of Boards of Pharmacy. 172 Money Laundering, DEA Programs. Drug Enforcement Administration, U.S. Department of Justice. 173 US Fed cash-flow data called underused weapon in war on drugs, Complinet Special Report, January 31, 2011. 174 National Drug Threat Assessment 2010, National Drug Intelligence Center, U.S. Department of Justice. 175 Oregon Department of Justice/Oregon HIDTA Drug Threat Survey, March 2014. 176 National Drug Threat Assessment 2010, National Drug Intelligence Center, U.S. Department of Justice. 177 The SAR Activity Review – By the Numbers, Issue 18 (May 2013), Section 1, Exhibit 2, Filings by States and Territories, January 1, 2003 through December 31, 2012, FINCEN, Oregon. 178 The SAR Activity Review – By the Numbers, Issue 18 (May 2013), Section 1, Exhibit 8, Characterization of Suspicious Activity by State and Territory By Year, January 1, 2003 through December 31, 2012, FINCEN, Oregon. 179 Money Laundering, DEA Programs, Drug Enforcement Administration, U.S. Department of Justice; Factsheets, U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security. 180 Oregon Domestic Highway Enforcement program data, January 2008 through December 2013. 181 HIDTA Performance Management Process database, April 2014.