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Let "T" = tonnaye rate at which lony conveyor costs are equal to truck haulage costs. It is also assumed that maintenance truck haulage costs are a linear function of coal truck traffic. EXAMPLE Conveyor Present Worth Costs Subtract - Truck Haulaye Operating Costs Truck Haulaye Maintenance Costs Solve for "T" 56,272,563 - 3,73CIT - ,2282T = U T = 1,545,659 tons EXAMPLE COMPARISON _ $6,272,563 ,50 (7.606) T 30,000 (7.606) T 1.0 X 106 n 1,545,659 tons/year would need to be mined for the overland conveyor to be economically feasible compared to truck haulage, Committed contracts totaling at least 1,545,659 per year for 15 years would he necessary. FINANCIAL ANALYSIS DESCRIPTION OF ALTERNATIVES • This analysis considers only the tanyible "hard" economic costs of each alternative. It does not consider the "soft" costs associated with impacts or environmental consequences (noise, air quality, etc.). For those impacts, refer to the text portion of the Environmental Assessment. No Action The "no action" alternative represents the current coal transportation system. - Existing Trucking Cost. = 50.824 Based on existing contract ton - Annual Production = 1,300,000 tons - Uncertain contract term will be evaluated for 10, 15, 20, and 25 years. - Prime interest lendiny rate is 13~ Alternative #1 - Pneumatic Capsule Pipeline The pneumatic capsule pipeline is presently an unproven mode of transporta- tion utilizing capsules within a pipe contained airstream. C41I has worked with TUBEXPRESS, the developer of the system and the Orchard Valley Mine is being considered for the first commercial prototype unit. Negotiations continue with TUBEXPRESS for either the prototype or potential construction at a later tune. TUBEXPRESS is currently workiny with consultants and fabricators in constructing a full-scale test facility. The actual results are unknown at this time, 7