This report presents estimated daily and cumulative loads of suspended sediment and selected trace elements transported during water year 2008 at three streamflow-gaging stations that bracket the Milltown Reservoir project area in the upper Clark Fork basin of western Montana. Milltown Reservoir is a National Priorities List Superfund site where sediments enriched in trace elements from historical mining and ore processing have been deposited since the construction of Milltown Dam in 1907. Milltown Dam was breached on March 28, 2008, as part of Superfund remedial activities to remove the dam and contaminated sediment that had accumulated in Milltown Reservoir. The estimated loads transported through the project area during the periods before and after the breaching of Milltown Dam, and for the entire water year 2008, were used to quantify the net gain or loss (mass balance) of suspended sediment and trace elements within the project area during the transition from a reservoir environment to a free-flowing river. This study was done in cooperation with the U.S. Environmental Protection Agency. Streamflow during water year 2008 compared to long-term streamflow, as represented by the record for Clark Fork above Missoula (water years 1930-2008), generally was below normal (long-term median) from about October 2007 through April 2008. Sustained runoff started in mid-April, which increased flows to near normal by mid-May. After mid-May, flows sharply increased to above normal, reaching a maximum daily mean streamflow of 16,800 cubic feet per second (ft3/s) on May 21, which essentially equaled the long-term 10th-exceedance percentile for that date. Flows substantially above normal were sustained through June, then decreased through the summer and reached near-normal by August. Annual mean streamflow during water year 2008 (3,040 ft3/s) was 105 percent of the long-term mean annual streamflow (2,900 ft3/s). The annual peak flow (17,500 ft3/s) occurred on May 21 and was 112 percent of the long-term mean annual peak flow (15,600 ft3/s). About 81 percent of the annual flow volume was discharged during the post-breach period. Daily loads of suspended sediment were estimated directly by using high-frequency sampling of the daily sediment monitoring. Daily loads of unfiltered-recoverable arsenic, cadmium, copper, iron, lead, manganese, and zinc were estimated by using regression equations relating trace-element discharge to either streamflow or suspended-sediment discharge. Regression equations for estimating trace-element discharge in water year 2008 were developed from instantaneous streamflow and concentration data for periodic water-quality samples collected during all or part of water years 2004-08. The equations were applied to records of daily mean streamflow or daily suspended-sediment loads to produce estimated daily trace-element loads. Variations in daily suspended-sediment and trace-element loads generally coincided with variations in streamflow. Relatively small to moderately large daily net losses from the project area were common during the pre-breach period when low-flow conditions were prevalent. Outflow loads from the project area sharply increased immediately after the breaching of Milltown Dam and during the rising limb and peak flow of the annual hydrograph. Net losses of suspended sediment and trace elements from the project area decreased as streamflow decreased during the summer, eventually becoming small or reaching an approximate net balance between inflow and outflow. Estimated daily loads of suspended sediment and trace elements for all three stations were summed to determine cumulative inflow and outflow loads for the pre-breach and post-breach periods, as well as for the entire water year 2008. Overall, the mass balance between the combined inflow loads from two upstream source areas (upper Clark Fork and Blackfoot River basins) and the outflow loads at Clark Fork above Missoula indicates net losses