WSP07139

• File Number: 8200.750
• Description: San Juan River General
• State: CO
• Basin: San Juan/Dolores
• Water Division: 7
• Date: 6/1/1987
• Author: Western Research Cor
• Title: Economic Analysis of Potentially Irrigable Parcels in the San Juan Watershed - June 1987
• Water Supply Pro - Doc Type: Report/Study

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OD1~21

Estimated

Table 3-1
Canopy and Brush Removal
by land Category

Costs

land
Category

Current Cost/Acre
(1985 Dollars)

Annualized
Cost/Acre

I
II
III

$35.00
57.00
95.00

$3.00
4.85
8.10

The second column of Table 3-1 is the estimated current cost per

acre for each clearing operation. The third column gives annualized

cost estimates over 50 years with an 8 3/8 percent discount rate. The

latter figures were used in adjusting preliminary repayment capacities

since they are also annualized.

It should be noted that the costs given in Table 3-1 do not

include costs for unskilled labor. This adjustment was made because

land clearing and preparation costs were assumed to be a construction

activity. The U.S. Water Resources Council (WRC) Principles and
Guidelines (1983) allow for the use of a zero opportunity cost for

unskilled labor in construction activities on water projects if the
project area is one of high unemployment. For purposes of this
analysis, it was assumed that the high unemployment assumption holds.
It should be noted that land leveling costs are not explicitly
addressed in either the level A or level B economic analyses. The
costs necessary to adapt an appropriate irrigation technology to the

contours of a parcel were incorporated in the agricultural engineering
analysis conducted by Boyle Engineering.

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