Tuolumne River Preservation Trust DBA Yosemite Rivers Alliance

“The Tuolumne River Trust monitors its conservation easements at least annually in order to observe the condition of the property to determine whether it is in compliance with easement terms, create a record of easement stewardship and property condition over time, and maintain a working relationship with the landowner. It is TRTs policy to uphold its conservation easements as written and to identify, investigate, evaluate and respond to any potential violations as quickly as possible. In the case of a material violation, TRT will require cessation, repair, and/or mitigation of any damage to protected conservation values. TRT is prepared to take legal action to defend its rights as easement holder if necessary. TRTs policy clearly describes the process for enforcing the terms of the easement should any violation be identified to ensure corrective actions are taken to cure the violation.”

“Easements acquired by the Organization are conservation easements and include restrictions over the use of land which is not owned by the Organization. By accepting such conservation easements the Organization becomes responsible for certain costs related to monitoring and enforcing the easements. The Organization recognizes a contingent liability related to such easements. The footnote describing these obligations and easements in the Organizations financials is as follows:As of December 31, 2015 conservation easements managed by the Organization consisted of the following: Dos Rios Ranch: Approximately 1,603 acres near the Tuolumne River located in Stanislaus County, California.Hidden Valley Ranch: Approximately 497 acres near the Tuolumne River located in Stanislaus County, California. The Organization has a fiduciary responsibility to preserve the conservation easements, and this responsibility may result in future costs to the Organization. The amount of such future costs is uncertain and depends on factors such as the existence, if any, of violations of the conservation easements. The Organization expenses costs related to managing conservation easements in the period in which such costs are incurred.”

“The Organization has evaluated its current tax positions as of December 31, 2015 and is not aware of any significant uncertain tax positions for which a reserve would be necessary.”