March 5, 2025 — Dry Canyon, Ore. Firefighters from multiple agencies responded to a fully engulfed 6,000-square-foot office-warehouse building off Highway 126 near Milepost 101, between Redmond and Sisters, protecting a 500-gallon propane tank from radiant heat while the structure burned to the ground in an estimated $1.1 million loss.
The fire was reported at 9:26 p.m. Crews from the Cloverdale Rural Fire Protection District, Redmond Fire & Rescue, and Sisters-Camp Sherman Fire District arrived to heavy flames consuming the recently completed building, which housed a construction business with heavy equipment and materials. A total of 20 firefighters deployed three engines and five water tenders to contain the blaze. No injuries were reported.
“We were getting radiant heat on that, so that was our first priority,” Cloverdale Fire Chief Thad Olsen said of efforts to shield the propane tank located just 12 feet from the building.
The Oregon State Fire Marshal’s office later determined the cause as spontaneous combustion from oily rags improperly disposed of inside the building. Damage was estimated at $500,000 to the structure and $600,000 to the contents.

Support agencies, including the Deschutes County Sheriff’s Office, Oregon State Police, and Oregon Department of Transportation, assisted, keeping Highway 126 open during the response. Cloverdale Chief Olsen thanked partners and the community for cooperation, noting the property had contracted fire protection services despite being outside the district.
The incident underscores the risks of spontaneous combustion from oil-soaked rags, common in construction settings.

