This report fulfills the contract obligations based on the Statement of Work (SOW) for the project as contracted with Bonneville Power Administration (BPA). Nez Perce Tribal Hatchery (NPTH) Year-2001 annual report combines information from two contracts with a combined value of $2,336,491. They are identified by Bonneville Power Administration as follows: (1) Operations and Maintenance--Project No. 1983-350-00, Contract No. 4504, and (2) Planning and Design--Project No. 1983-350-00, Contract No. 4035. The Operations and Maintenance (O & M) budget of $2,166,110 was divided as follows: Facility Development and Fish Production Costs--$860,463; and Equipment Purchases as capital cost--$1,305,647 for equipment and subcontracts. The Planning and Design (P & D) budget of $170,381 was allocated to development of a Coho master planning document in conjunction with Nez Perce Tribal Hatchery. The O & M budget expenditures represent personnel and fish production expenses; e.g., administration, management, coordination, facility development, personnel training and fish production costs for spring Chinook and Coho salmon. Under Objective 1: Fish Culture Training and Education, tribal staff worked at Clearwater Anadromous Hatchery (CAFH) an Idaho Department of Fish and Game (IDFG) facility to produce spring Chinook smolt and parr for release that are intended to provide future broodstock for NPTH. As a training exercise, BPA allowed tribal staff to rear Coho salmon at Dworshak National Fish Hatchery, a U.S. Fish and Wildlife Service (USFWS) facility. This statement of work allows this type of training to prepare tribal staff to later rear salmon at Nez Perce Tribal Hatchery under Task 1.6. As a subset of the O & M budget, the equipment purchase budget of $1,305,647 less $82,080 for subcontracts provides operational and portable equipment necessary for NPTH facilities after construction. The equipment budget for the year was $1,223,567; this year's purchases amounted $287,364.48 (see Table 5). Purchases are itemized in Appendix D and E. FishPro, Inc. assisted tribal staff with equipment purchases. The unspent contract balances will be carried forward to the ensuing year to complete equipment purchases essential to hatchery operations. The NPTH activities focused on completion of the Northwest Power Planning Council Step-3 decision that authorized hatchery construction. Construction began in July 2000. It is anticipated to continue through October 2002. At the end of 2001, the hatchery facilities were approximately 70% completed and the budget approximately 90% expended. The following facilities are either completed or in final stages of construction: (1) NPTH Central Hatchery facility at Site 1705, and (2) North Lapwai Valley satellite, and (3) Sweetwater Springs satellite, and (4) Yoosa-Camp satellite, and (5) Newsome Creek satellite, and (6) Lukes Gulch satellite, and (7) Cedar Flats satellite.