Laserfiche WebLink
V. RECOMMENDATIONS <br />5.1 Economic Analysis <br />Our economic analyses have identified a real and significant economic benefit from the <br />development of the proposed final layout presented in this report. Estimated present values for <br />the water resources developed by the plan are $200/AF/year for augmentation water rental, <br />$2,500/AF for the sale of water storage, and $6,500/AF for the sale of augmentation water. By <br />developing and marketing the storage ponds Kehn stands to realize capital benefits upwards of <br />$1.17 million over the cost of developing the 1,010 AF of storage and constructing the <br />infrastructure included in the final layout (see Table F.1 in Appendix F). Additional income will <br />come from the sale or lease of augmentation water. The yearly lease of 194 AF of augmentation <br />water from Kehn's Boxelder shares would net an additional $614,705 over the 50-year life of the <br />proposed layout. The lease figure presented is based upon the current lease value of $200/AF. <br />Given the ever increasing constrictions on water resources on the front range, we. expect this <br />value to outpace inflation as it increases. Should Kenn choose to sell the augmentation water it <br />would net $1.26 million at present value. The expected cost of constructing wetlands, taken <br />from the June 19, 2003 Habitat Report included in Appendix B, ranges from $1,500 to $5,000 <br />per acre. The 78.4 acres of required compensatory. wetlands may cost upwards of $392,000. <br />This cost, which will have to be paid in any case, could easily be recovered through the sale of <br />water storage or augmentation water, or could be amortized in under 10 years through the lease <br />of augmentation water. In short, significant economic 'gains can be made by development of <br />. _ theses resources, and we highly recommend that Kehn proceed with the development of the <br />proposed fmal layout. . <br />5.2 Proposed Final Layout <br />Outlined in Section 3 of this report is the final layout option that we are proposing for the <br />Timnath Pit. Based upon the constraints discussed in Section 2, - it is our opinion that the <br />proposed final layout is the best option for the development of the water resources associated <br />with the Timnath Pit. Outlined below are the basic attributes of the plan and our <br />recommendation for how to proceed toward the final layout, based upon Figure 3.1 and the <br />original mining phase map shown in Figure 2.1. <br />1. Reclaim Phase 1 A, including lining Pond 4, creating the stream channel and the <br />construction of compensatory wetlands shown in Figure 3.1. <br />T.•IOPEMCodkcOllcodkc0lftnnlreport.doc ZO ANdERSON CONSULTING ENGINEERS, ANC. <br />