WSP02978

• File Number: 8447
• Description: South Platte River Project
• State: CO
• Basin: South Platte
• Date: 8/1/1969
• Author: Chase & Wampler
• Title: Basic Data Report of South Platte River Project for CWCB
• Water Supply Pro - Doc Type: Report/Study

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acre for gravel. (Sale G9B made in 1967 at the rate of
$4,000 per acre not only is somewhat misleading in value, as
explained in the sale summary sheet, but was definitely made
after Chatfield and with the idea of selling gravel for dam
construction.) In this sales grouping, the largest parcel
was 180 acres, and the other parcels range from just under
40 to just under 80 acres. Sale dates, excluding G9B, range
from 1958 to 1965, and the higher values with one exception,
Sale No. G7, tend to lie to the north and in the vicinity of
Plum Creek Road. It is interesting to note that lands lying
farther south, in the vicinity of the Martin plant, were tem-
porarily near a market in the mid-1950's when the Martin
plant was partially under construction and when Spur Highway
75 was being paved. However, after this market ceased, the
area was again far to fairly far from steady markets. This
is reflected particularly by Sale G9A, which took place in
1965 on the basis of $833 per acre allocated to gravel. This
may have been something of a distress sale; however, part of
the distress may have been caused by time-distance to market.

CONCLUSIONS

Analysis of the gravel sales develops a pattern which
shows that lands nearest market are worth from three to four
times the value of lands farthest from the market, or in a
distance of about ten miles. This value spread might even
be a little bit greater when it is considered that two of the
three sales showing the highest unit values were cash sales;
whereas, nearly all of the other sales were on terms--sometimes
liberal terms. This conclusion can be emphasized using another
illustration: At a ton-mile cost minimum of $0.06, the cost
of the product mined from the farthest removed properties would
be approximately $0.60 per ton higher than the cost of the
product of the nearest properties. At an average approximate
basic cost of $1.24 per ton, therefore, a property ten miles
farther removed would have to sell its product for $1.84 per
ton, which would probably be prohibitive in a competitive
.bid situation.

The Value Trend Table at page 39Galso sets forth royalty
rates and yearly minimum payments on sale properties which

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