OREGON HIDTA PROGRAM

Transcription

1 OREGON HIDTA PROGRAM PROGRAM YEAR 2015 THREAT ASSESSMENT AND COUNTER-DRUG STRATEGY OREGON HIDTA OREGON DEPARTMENT OF JUSTICE JUNE 2014

2 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 (C) Marijuana Plants Seized in HIDTA Region and Statewide, Page 63 (D) Lab Seizures, Methamphetamine and Other Labs, HIDTA Counties and Statewide, 2005, Page 63 XV. Endnotes Page 64

3 I. EXECUTIVE SUMMARY Oregon HIDTA Program - DRAFT 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 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

4 Reflecting national trends, MNDTOs continue to dominate the illicit drug market in Oregon. MNDTOs control the transportation and distribution of heroin, methamphetamine, cocaine, Mexicanproduced 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 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. 2

5 II. OVERVIEW Demographics The Oregon HIDTA was established by the Office of National Drug Control Policy (ONDCP) in June of 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. 3

6 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 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 Cocaine-related deaths decreased 35 percent from 2012 (19) to 2013 (12), the fewest recorded since 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 drugrelated 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, 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. 4

7 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 Oregon 15 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 Heroin Source: Drug cartels in Oregon: Violence in the northwest, Oregonian, 6/21/13. 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. 5

8 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 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 Quantity (in lbs) Figure 2. Number and Quantity of Heroin Seizures, Oregon HIDTA Task Forces, Quantity in pounds Number of seizures Number of Seizures and associated overdoses, and connection to violent crime and property crime (Figure 1). 24 Over 80 percent of officers surveyed indicated that a high level of heroin was available in their area in Access to the drug has grown as evidenced by the rise in the number of heroin seizures and the quantity confiscated by 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. 6

9 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, heroinrelated arrests grew more than threefold statewide since 2009 (January ), 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 (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). 7

10 250 Figure 5. Deaths Related to Methamphetamine, Heroin, Cocaine, and Prescription Pain Relievers*, Oregon, Number of Deaths 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 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,

11 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 state j 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. 9

12 and dismantled decreased by 98 percent between 2004 and 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). Quantity (in lpounds) Figure 7. Number and Quantity of Methamphetamine Seizures, Oregon HIDTA Task Forces, Quantity in pounds Number of seizures 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 l Includes arrests for possession, delivery, and manufacturing offenses. 10

13 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 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 use m by people ages 12 and older, with most users between the ages of 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 drug n 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 memory o 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 ( ), 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 2012 p -- the highest level recorded since testing began in 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 longterm memory. p The average amount of THC in marijuana samples alone was 13.6 percent in

14 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, Frequency of detection Cannabis Stimulants Depressants Narcotic Analgesics Other Source: DRE Year-End Summary Reports , 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-ofcompliance 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 q Medical marijuana cultivation site, Jackson County, August ORS ORS

15 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 law r 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 Medical marijuana growing room on property located in Grants Pass, OR. Grower was one of three people who gave medical marijuana to a woman arrested in Portland, OR for trying to ship product to Boston for sale. (AP Photo/U.S. Attorney's Office, Medford, OR, 5/17/11). 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 ) and Child Neglect in the First Degree (ORS ). Additionally, there is no program oversight or inspection of homes outfitted by cardholders to grow marijuana under the OMMP. Multiple electronic ballasts used to generate sufficient heat and light for growing plants indoors have been the cause r 573 Or Laws 2007 (SB 161 (2007)). 13

16 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 2005 s. 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. 14

17 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, 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, 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. 15

18 Rate per 100,000 Residents Figure 11. Unintentional Prescription Drug-Related Hospitalizations, Oregon by Drug Type, (per 100,000 residents) Prescription opioids Methadone Benzodiazepines Antidepressants, psychotropic drugs NEC Psychostimulants with abuse potential 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 Furthermore, despite a decline of 22 percent from 2011 (193) to 2013 (150), prescription overdose deaths v 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 Number of Treatment Admissions 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Figure 12. Substance Abuse Treatment Admissions, by Prescription Drug Type, Oregon Other Opiates & Synthetics Other Sedatives & Hypnotics Non-Prescription Methadone Over-the-Counter Tranquilizers Source: Graph derived from client admissions data obtained from the Addictions and Mental Health Divison, Oregon Department of Human Services, March 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. 16

19 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 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 opioids w ; the second most prescribed class of medications was for Table 2. Top 12 Prescriptions, January - December 2013 Drug Number of Rx % of all Rx Hydrocodone 1,879, % Oxycodone 1,151, % Zolpidem 509, % Lorazepam 430, % Alprazolam 379, % Clonazepam 337, % Amphet (ASP/AMPHET/D-AMPHET) 261, % Methylphenidate 257, % Morphine 244, % Pseudoephedrine 186, % Diazepam 184, % Methadone 120, % Source: Prescription Drug Monitoring Year-To-Date Report, Oregon Health Authority, January December 2013, Issue 15, Year 3. benzodiazepines. x, 73 (Table 2). Furthermore, less than ten percent (8.1%) of providers in Oregon are responsible for prescribing nearly 80 percent of all Schedule II to IV drugs. y,74 Non-medical use of prescription drugs is often perceived by people as a safe alternative to illicit drugs 75 with diversion occurring most often through family or friends. 76 Nearly 70 percent of Oregon law enforcement officers surveyed in early 2014 indicated a high 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 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). 17

20 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 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 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 with the downward trend continuing in 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) 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 modified chemical structure. 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 in the HIDTA region. Psilocybin, or hallucinogenic mushrooms, is also In February 2014, two Oregon teenagers were rescued by an offduty police officer after he witnessed one of the teens having a seizure on the side of the road in Sherwood, Oregon. After a call for assistance, the second teen fell into a seizure. The teenagers had ingested the drug 25I-NBOMe, a Schedule I synthetic hallucinogen similar to LSD but with more dangerous side effects. NBOMe compounds first arrived on the streets in 2011 and are connected to at least 19 overdose deaths in the United States. Data suggest that extremely small amounts of the drug can cause seizures, cardiac arrest, and death. Sherwood teens OD on synthetic drug 25i, KGW.com, 2/2/14; Three more synthetic drugs become illegal for at least two years, DEA, 11/15/13. 18

21 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 bans z 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. 19

22 similar to other hallucinogens but are short-lived, lasting about 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 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. 20

23 Figure Marijuana Eradication Statistics Hood River Washington Multnomah 2,089 /25/28 3,233/28/85 Yamhill 0/41/0 Polk 65/0/68 Clackamas 928/403/315 Marion 248/0/307 Lincoln Linn 0/3/8 Wasco 0/0/19 Jefferson 27/0/2 Morrow 25 /15/0 Umatilla 260/128/21 Union 39/23/0 Baker 0/0/5 Wallowa 114/27/0 12/0/9 279/214/16 Crook Lane Deschutes 5/12/2 570/4,266/100 58/0/75 Coos 34/16/1 Douglas 363/3,635/30 Lake 0/0/109 Harney 0/0/86 Malheur 0/0/42 Curry 76/73/3 Josephine Jackson 450/4,424/164 Klamath 134/27/337 Plant Counts 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. 21

24 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 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 Two-alarm fire in Forest Grove caused by suspected manufacture of hash oil, Forest Grove, OR. 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 Department responded to an explosion at the Douglas Inn in Roseburg, Oregon. The Douglas Interagency Narcotics Team s (DINT) 22

25 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 crossborder 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 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 23

26 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 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 24

27 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 timeconsuming. 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,

28 200 Figure 15. Methamphetamine Labs Seized, HIDTA Counties and Oregon, CY CY 2013 Number of labs seized Oregon HIDTA Counties Source: Oregon Department of Justice. Federal reporting indicates that Mexican cartels continue to circumvent ephedrine and pseudoephedrine import restrictions implemented by the government of Mexico ff 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 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 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

29 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 (hostilis), is a major source of DMT and is widely available on the Suspected DMT lab, Medford Police, Ashland Oregon, September 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. 27

30 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 28

31 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 , , , ,112,977 Nebraska , ,057,048 Washington , , ,480 Kansas , ,223,567 Kentucky , ,661 Idaho ,848 South Dakota , ,102,322 Texas , ,117 Utah , ,003 Iowa , ,543 Wyoming ,727 Illinois , ,467 Missouri ,727,340 Arizona , ,255 Arkansas , ,574 Minnesota ,254,117 North Dakota ,284 Montana , ,960 Nevada , ,335 Wisconsin , ,800 Oklahoma ,282,898 Maryland ,373 Ohio ,890 New Mexico ,875 Other , , , ,098,978 Total 1, , , , , ,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 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. 29

32 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 welldeveloped 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) program gg 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. 30

33 in Oregon reflecting nearly one-half (47%) of seizures reported between 2008 and 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 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 For example, large seizures were reported outside of Ashland, Oregon in 2012 (55 lbs) and 2013 (31 lbs) both headed northbound on Interstate 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 The reported quantity of cocaine seized on Oregon highways has generally declined since 2008, dropping more than 80 percent between 2011 and 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. 31

34 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 twentyseventh in the United States in total tonnage, with 11.9 million short tons of cargo processed through the port s marine terminals in 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) 32

35 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 The quantity of marijuana seized by Oregon HIDTA task forces has declined as well. For example, Oregon HIDTA task forces seized more than Quantity (in lbs) 25,000 20,000 Figure 18. Number and Quantity of Bulk Marijuana Seizures, Oregon HIDTA Task Forces, ,000 pounds of bulk marijuana in 2011, but reported fewer than 5,000 pounds in 2013 (Figure 18) ,000 Marijuana grown 600 locally, including medical 10,000 marijuana, is shipped for 400 distribution within the 5, state or is transported across state borders to - 0 adjacent states (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, Number of Seizures 33

36 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 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 34

37 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 powdered cocaine at or near distribution points in Oregon is often transported from California. The amount of cocaine seized by HIDTA task forces declined nearly 60 percent between 2008 (297 lbs) and 2013 (123 lbs) (Figure 19). 153 Highway seizure amounts for cocaine also fell, dropping nearly 90 percent from 2008 to Controlled Prescription Drugs Quantity (in pounds) Figure 19. Number and Quantity of Cocaine Seizures, Oregon HIDTA Task Forces, Quantity in pounds Number of seizures Source: HIDTA Performance Management Process database. 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 , over Number of Seizures 35

38 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 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, % 2% 0.2% 17% Prescription opioids (excluding methadone) Methadone 3% Benzodiazepines 77% Anti-depressants, Sedative-Hypnotics 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 Figure excludes steroids. 36