10550 Williamson River Road , Chiloquin, OR 97624(Klamath County)

A Published Reserve Price of $1,225,000 has been established for the Sealed Bid Auction to purchase the Ranch in either its entirety, or with the option for bids to be submitted on two individual parcels. Parcel A 299 acres with 1.5 miles of riverfront and all Ranch improvements for $975,000 and Parcel B 158 acres with meadow, building site for a private residence and .4 mile of river frontage for $250,000. The sale of either Parcel A or B is subject to combined accepted bids, in the aggregate, to equal or exceed $1,225,000.

*The Rockn LB Ranch is a registered brand. The name is personal property and will not be conveyed as part of the sale.

Rockn LB Ranch is one of the rare private riverfront properties along the main stem of the Sprague River, known for rainbow and brown trout, having a spectacular setting with well-developed ranch complex in combination with established dated water rights, providing options for both cattle and horse operations. In addition, a riparian and riverfront habitat enhancement program has been completed in partnership with U.S. Fish & Wildlife Service, at a cost of over $250,000, adding significant long-term recreation value to the entire property.

The Ranch has a strategic location with year-round access to all four season recreation activities in the Upper Klamath Basin and Pacific Flyway, is within a 45-minute drive of the Klamath Falls Airport and 15-minute drive of the Chiloquin Airport, which can accommodate small aircraft.

RANCH AND IMPROVEMENTS

The 458 acre Rockn LB Ranch is located in the Upper Klamath Basin, 14 miles east of Upper Klamath Lake along a meandering main stem of the Sprague River, within a wideopen valley of primarily private ranches surrounded by Winema National Forest. The Sprague River is a tributary to the Williamson River and known as a meadow stream with brook, rainbow and brown trout, and bass. Near a spring on the Sprague River in the southeast corner of the Ranch is an outstanding fishing hole. The Ranch is at an elevation of 4,200 to 4,300 feet and has frontage along Williamson River Road, with paved yearround access to Chiloquin and Highway 97 north to Bend and south to Klamath Falls.

The riverfront extends along the entire southern boundary of the Ranch, with ownership of both riverbanks in the southeast section of the property, including small islands between the river and channel.

The property is primarily rolling to flat pastureland lined with timber, having an estimated 296 acres of irrigated pasture and 151 acres of nonirrigated pasture and timberland. Ranch headquarters are located on 10 acres along a ridge top overlooking the Sprague River, with gated paved entry drive to the caretaker residence, corrals, horse pen and main residence, shop and horse barn. The main residence was built in 1973, caretaker residence constructed in 2005 and horse barn and shop built during the last ten years. There is a stock pond below the main residence near the river and a second stock pond in the northwest corner of the western pasture.

Williamson River Road runs along the northern portion of the Ranch; the entire property is fenced, with opportunity for crossfencing to improve productivity of the pastureland.

The estimated carrying capacity of the Ranch is 250 head for five to six months for summer pasture, and has historically run 180 head on a yearround basis with winter feed.

The 296 acres of pasture are flood irrigated from a main line, with three pumping stations along the Sprague River.

There is a rock road system that provides access from the main entry road to the riverfront which extends from the area below the main residence by the stock pond and pumping station, and then goes east to the southeast corner and the third pumping station.

The Ranch is being offered in two parcels. Parcel A is 299 acres, all located in Section 24 (Tax Lots 2000 and 2100) and includes the Ranch complex with two homes, shop, horse barn and hay shed, and an estimated 235 acres of irrigated pasture with 1.5 miles of riverfront. Parcel B is 158 acres, all located in Section 19 with an estimated 60 acres of irrigated pasture and .4 mile of riverfront. The sale of these two parcels as separate parcels will require an allocation of water rights and some reconfiguration of the irrigation systems mainline. A new entry road for Parcel B will need to be developed from Williamson River Road.

Main Residence

The twolevel, 3,360 square foot, five bedroom, three bathroom home has a spectacular setting on a ridge, with views to both the west, and southwest, to the Sprague River. The main level has a living room with rock hearth fireplace, dining area and kitchen with access to a large wraparound deck. There is an office, full bathroom, bedroom and master suite with access to the wraparound deck plus outdoor hot tub.

The lower level is a daylight basement and has a large recreation room with bar and sunken rock fireplace. There is access to an outdoor patio with views of the Sprague River. The lower level has a pool room with pine paneling, full bathroom and two additional bedrooms.

The home has a metal roof and cedar siding. The prior owner had updated two of the bathrooms and remodeled all bedrooms and the pool room. The kitchen has not been fully updated. Heat is electric baseboard. The home has a carport.

None of the furnishings or personal property are part of the sale.

Caretaker Residence

The 2,263 square foot home with three bedrooms was built in 2005 and has an attached twocar garage. The one level home is located between the main residence and entry drive, with

views to the southeast of the Sprague River and Saddle Mountain. There is a living room with fireplace, kitchen, family room, and master suite, all with access to a rear deck. There are two and a half bathrooms, and a utility room. Heat is electric forced air. The home has a metal roof and bat and board siding. It is currently occupied by the caretaker and his family, who are interested in remaining as caretaker under the new owner.

Shop

The 3,479 square foot shop is located by the main residence and has a concrete floor with four overhead doors and two bays. There is 220 voltage power to the shop. There is a small workshop off one of the bays. There is covered outdoor storage for firewood and equipment. None of the equipment or personal property is part of the sale.

Horse Barn

The horse barn was built from a building kit and is located near the shop, and has a metal frame and concrete foundation. There are five horse stalls with dirt floor, each having water and an exterior door leading to the corral. The barn has a tack room and storage areas.

Hay Shed

The 5,760 square foot hay shed is located between the caretaker residence and Sprague River. It is a poleframe building, with metal roof and gravel floor.

WATER RIGHTS

(see Supplemental Information Package for Copy of Certificates)

Water rights are from a claim on the Sprague River with an 1864 priority right. Claim #75 is for 7.42 cfs, with priority date 10141864 for 296.6 acres. Certificate #36515 is for 4.92 cfs, with priority date 7051962 for 196.7 acres. Water rights from Certificate #36515 are covered in Claim #75.

IRRIGATION

Rockn LB Ranch has three pump stations along the Sprague River which pump irrigation water through a mainline to the fields, including the Bull Pen Field north of the Williamson River Highway. A new pump and intake screen were installed in the southeast corner of the Ranch as part of the Riverfront Habitat Conservation Program with U.S. Fish & Wildlife. There is flood irrigation on the larger western pastureland, with a 640 foot wheeline with five foot wheels and four foot pipe with approximately 2,200 feet of 6 mainline currently located on the eastern pastureland, near the hay shed.

GRAZING LEASES

There are no grazing leases. Existing livestock will be removed prior to close

of escrow.

CONSERVATION PARTNERSHIP WITH U.S. FISH & WILDLIFE SERVICE

The Rockn LB Ranch has been a partner with U.S. Fish & Wildlife Service and Oregon Watershed Enhancement Board in a program along the 1.9 miles of Sprague River frontage to improve water quality and enhance habitat for the endangered Lost River and Shortnose Sucker fish, as well as the threatened Cutthroat trout. Over $250,000 in public funds has been invested in straightening and steepening the Sprague River Channel through placement of wedges in the three meander bends along the Ranch riverfront. Placement of wedges using rocks and logs, installation of diversion pipes, relocation and replacement of water pumps and plantings and revegetation of riparian banks has all been completed. Additionally, Rockn LB Ranch has installed fencing to keep livestock out of the river channel in order to assist in the water and riparian enhancement project, and has signed an agreement allowing U.S. Fish and & Wildlife to monitor the enhancement project until 2021. (See agreement in Supplemental Information Package.)

UTILITIES

There is both power and phone service to the Ranch, and onsite septic and wells serve the two residences.

TAXES

Total taxes for 20112012 are $4,147. The property is assessed as Farmland by Klamath County Assessors Office