2008-02-22_APPLICATION CORRESPONDENCE - C2008086 (39)

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CHAPTERFOUR Environmental Consequences and Mitigation effects. Consequently, development would not unduly affect minority or low-income individuals in the study area. Temporary and Permanent Impacts Socioeconomic impacts of the proposed action and the action alternatives would be generated by the construction and operation of the coal mine and the railroad spur built to transport the coal out of the region. The project would produce a valuable energy source, creating new jobs and new local business expenditures. In turn, secondary economic impacts would be generated in the form of additional jobs and income and increased local, state, and federal government revenue. The Red Cliff Mine in its proposed format would bring substantial social changes to the affected community in the vicinity of Mack, along with some likely, positive, socio-economic benefits to the larger region. At a fundamental level, the degree of the social consequences or impacts of the Red Cliff Mine hinge upon the capacities of the community members to adapt to the character and depth of a significant industrial development within a low density, rural-residential area. Most community members who live within a 2 to 3 mile radius of the rail spur believe that it will definitely impact the surrounding rural atmosphere and their underlying rural community values. As the residents contemplate future impacts of the project, a considerable level of uncertainty about associated social and economic changes also exists, but the latter are less focused than the impacts they anticipate from the rail spur in particular. Any mitigation activities, including new rail spur route alternatives, that would assist the affected community's capacity to adapt to these social consequences could be of benefit. An eventual increase in 486 jobs would result in an estimated 335 new households, representing a population increase of 814. This amounts to 0.6 percent of the county's estimated 2005 population. The new jobs would likely result in increased local population and that population growth could potentially impact community infrastructure-housing, schools, domestic water systems, etc.-and social well-being. In the context of the broader regional and national energy economy, the development of the Red Cliff Mine would increase the domestic fossil fuel supply, improving the reliability of our national energy. Most of the socioeconomic impacts would be felt in the Grand Valley of Mesa County. This area has a large population, a number of sizeable established communities, and awell-developed infrastructure located within a 15 to 45 minute commute from the proposed coal mine. Construction workers who do not already reside in the area would find temporary residence in local motels or other rental housing facilities. The majority of permanent mine employees would reside in the Grand Valley. Similarly, local project expenditures for fuel, housing, equipment, services, and supplies needed for construction, development, and operation of the mine would take place in the Grand Valley. Jurisdictions within Mesa County would receive much of the sales tax associated with the proponent's local expenditures and the ad valorem tax on the railroad spur. However, because the mine and most of the coal resource would be located in Garfield County, the ad valorem taxes associated with the mining operation itself would be received by jurisdictions within Garfield County. The United States and the State of Colorado would share the federal royalties generated by the mine and Colorado would receive additional revenues based on the state severance tax. 4-21 DBMS 576