Appraisal Report for ALP Relinquishment Areas 1 & 2

Overall, the tourist sector is showing strength. The growth in this sector is
shown by the lodger's tax illustrated on the following graph. Lodger's tax is based
on a percentage of motel sales. The collections in 2002 declined because of
drought and fires which suppressed the tourist economy. After a record in 2008,
the declines starting in 2009 took the collections back to the 2006 level.
Collections since 2010 showed improvement and 2015 set a new record.
Lodgers Tax
City of Durango
$1 000 000 -
$800 000
$600 000
$400 000
$200000 III 11 I I II I II 1 I II II II
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The oil and gas sector of the economy has increased greatly over the last
few years due to coalbed methane production. Over 1,000 new wells have been
drilled since 1985. Drilling peaked in 1990 with 350 wells. The recent down
spacing allowed the construction of 636 more infill wells. In addition, Amoco
Production Company has built two new compression and treatment facilities in the
county with a capacity to handle 180,000,000 cubic feet of gas per day. The
production of natural gas and coalbed methane has a significant contribution to the
economic base of the community. For example, the oil and gas industry accounted
for 42% of the county's assessed value in 2014.
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