Cause of $1.1 million warehouse-office fire off Highway 126 traced to improper disposal of oily rags

(Update: Cause of fire determined)

SISTERS, Ore. (KTVZ) – A fire traced to improper disposal of oily rags destroyed a large warehouse and office building off Highway 126 in the Dry Canyon between Redmond and Sisters Wednesday night, but 20 firefighters from three agencies kept it from reaching a nearby 500-gallon propane tank.

Cloverdale Rural Fire District crews were dispatched around 9:25 p.m. to a reported outdoor fire off milepost 101 of the highway, on the east grade of Dry Canyon, Fire Chief Thad Olsen said.

They arrived to find flames engulfing the 6,000-square-foot structure and its roof collapsing. Olsen said there were no injuries or damage to other structures.

Three engine crews and five water tenders to shuttle water to the scene were called out, including ones from the Redmond and Sisters-Camp Sherman fire departments.

Losses totaled $1.1 million, including $500,000 to the structure and $600,000 worth of contents.

Olsen said investigators determined the fire was caused by spontaneous combustion following improper disposal of oily rags

The property is outside of the Cloverdale Fire District, the fire chief said, but its owner contracts with the district for protection.

Highway 126 remained open during the firefighting effort but was monitored by ODOT crews and law enforcement, Oregon State Police troopers and Deschutes County sheriff’s deputies.

"The CRFPD extends its gratitude to all partner agencies for their swift assistance and to the community for their cooperation during this incident," the fire district said.