2008-02-04_GENERAL DOCUMENTS - M1989056

Home Browse Search

IV. ECONOD/IIC ANALYSIS We considered multiple criteria to create the final conceptual layout presented in Section 3 of.this report. The spatial locations and extents of the land uses were arrived at through the means already discussed in Sections 2 and 3. The basic assumption for the spatial layout was that the minimum COE requirements must be met while insuring that the maximum amount of feasible water storage is created. In this section of the report we will present the figures we have researched regarding the value of water storage and augmentation water as marketable resources. Based upon these figures, we will explain the benefit-cost analyses that were used to weigh alternatives to the final layout we have presented. The primary post-mining resource and source of economic benefit for the Timnath Pit is water storage. Two assets that are brought into marketability by the form and function of the proposed layout are the sale of water storage volume and the sale or lease of augmentation water owned by Kehn. Table 4.1 lists our opinion of the current sale and lease values for water storage and augmentation water. The values in Table 4.1 are based upon research into- other similar mitigation and re~~lamation projects that have been recently proposed and/or constructed in the Fort Collins area. 7Cable 4.1 Water Storage and Augmentation Water Values. Activity Value ($/A~ Sale of Water Storage $2,500.00 Sale of August Water $6,500.00 Lease of August Water (per year) $200.00 The benefit-cost analysis performed to assist in the selection of the layout focused on a comparison of thf; potential benefits from the development of a water storage and distribution system versus the costs of developing that system. Appendix F contains tables and calculations generated during the benefit-cost analysis. Table F.1 shows the 50-year present value analysis for the proposed layout. Within this analysis there are two sources of potential benefit considered. The first source of benefit is the sale of water storage volume. The second source of benefit is the lease of augmentation water on a yearly basis. We should note that we have analyzed layout alternatives considering only the lease of augmentation water rather than the sale. It is our understanding that Kehn will wish to maintain control of their Boxelder shares for their own purposes, particularly, augmentation of future gravel mining operations. We also have considered that based upon this report, Kehn may decide to sell some or all of the augmentation water. Table F.7 in Appendix F compares the potential benefits associated with the sale or lease T:IOPEMCodhcOllcodkc0l finnlreporr.doc 14 ANdER50N CONSULTING ENGINEERS, ANC.