Appraisal Report for ALP Relinquishment Areas 1 & 2

pipelines through the area has had a significant impact on construction activity
since 1987.
Another major component of the region's economy is tourism and recreation.
The region contains several major tourist attractions including Mesa Verde National
Park, as well as Canyonlands and Arches National Parks to the west. Mesa Verde
had a record 742,000 visitors in 1992, but receives an average of 590,000 visitors
per year. There are also three major ski areas providing winter tourism: Telluride,
Purgatory and Wolf Creek. These ski areas have a combined draw in excess of
1/2 million skier days in a typical year. The area also features the attractions of the
Old West such as the Narrow Gauge Railroad which runs from Durango to
Silverton on the original tracks laid before the turn of the last century.
The region is also drawing an increasing number of residents due to its high
quality of life. With a desirable climate and relatively mild winters, the area has
attracted numerous retirees. It is also attracting an increasing number of people
with small businesses or professions which can operate without close access to
large markets. As information services become a larger sector of our national
economy, this trend should continue to bring growth to this region.
Overall, the region has experienced two decades of relatively rapid change
as the economy shifts from its traditional basis of agriculture and natural resource
extraction to a mix where oil and gas production remains important, but where
tourism, recreation and service industries are becoming increasingly dominant.
The combination of growth in tourism and service sectors of the economy
combined with a surge of growth in the oil and gas industry brought an economic
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