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<br />34. As to the Wolf Creek seam, which Petitioner contends <br />caused the reporting discrepancy, there were only two references to <br />this seam in his papers, but these indicated the estimated reserves <br />in this seam to be 10,634,000 tone. <br />35. Respondent's witness, Landy Stinett, a certified general <br />appraiser with Pincock, Allen and Holt, specializing in the <br />appraisal of mining properties, testified concerning an appraisal <br />he did to help the County Assessor establish the 1993 value of the <br />subject property. <br />36. Mr. Stinett testified that his appraisal utilized special <br />geologic maps and studies to estimate the "in place" coal of the <br />Wedge seam which is being actively mined. His estimate of the <br />total resource is 160 million tons. The total recoverable was <br />104,835,400 tons of which 13,953,700 tons were on a greater than <br />15~ grade. At the end of 1992, mining activities had reduced the <br />recoverable reserves to between 88 and 89 million tone. Deducting <br />the 3.3 million tons of production reported for 1993 yields a <br />figure very close to the reserves reported on the 1994 declaration. <br />37. When asked if these tonnages were all within the life of <br />mine boundary, he replied that the figures included coal which was <br />proven and probable in contiguous blocks of the Wedge seam that <br />were within the ownership or control of Cyprus. He did not know if <br />all was within the permitted boundary. He made no quality <br />considerations for the coal which was required to be left in the <br />ceiling and floor of the shafts, but did not include any reserves <br />under the alluvial valley floor because of the current <br />restrictions. <br />CONCLUSIONS: <br />1. Respondent presented sufficient probative evidence and <br />testimony to prove that the subject property was correctly valued <br />for tax year 1994. <br />2. The Board determined that the applicable state statutes <br />were used in valuing the subject property for tax year 1994. <br />3. In the matter of determination of the economic life of <br />the mine, the Board carefully reviewed all evidence and testimony <br />presented and the procedures and guidelines published by the <br />Division of Property Taxation. These procedures give four <br />conditions which the assessor is to evaluate to determine if the <br />economic life of the reserves is less than the physical life: <br />future demand for the coal; market conditions; expense factors; and <br />actual and potential environmental impact. <br />UA/A27512 <br />7 <br />