2011-09-29_PERMIT FILE - M2009056

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The analytical technique used by the BLM to estimate employment and income impacts is "input- output" analysis using the IMPLAN Pro software system. Input- output analysis (Miernyk, 1965) is a means of examining relationships within an economy both between businesses and between businesses and final consumers. It captures all monetary market transactions for consumption in a given time period. The resulting mathematical representation allows one to examine the effect of a change in one or several economic activities on an entire economy, all else constant. This examination is called economic impact analysis. IMPLAN translates changes in final demand for goods and services into economic effects, such as labor income and employment of the affected area's economy. The IMPLAN modeling system requires one to build regional economic models of one or more counties for a particular year. The regional model for this analysis uses 2008 IMPLAN data for Park County. The economic impacts to the local economy affected by the treatments proposed are measured by estimating the employment (full- and part -time jobs) and labor income generated by the removal of sand, gravel and gold from the project area. The direct employment and labor income benefit employees and their families and therefore directly affect the local economy. Additional indirect and induced multiplier effects (ripple effects) are generated by the direct activities. Together the direct and multiplier effects comprise the total economic impacts to the local economy (Table 3). The multiplier effects tied to the material removal were estimated using IMPLAN. Potential limitations of these estimates are the time lag in IMPLAN data and the data intensive nature of the input- output model. No Action Direct and Indirect Effects There would be no direct effects on the socioeconomic environment if no action were to take place. Any change in conditions would occur as a natural progression of economic and social activity, thus there is no means of estimating the indirect effects of taking no action. Cumulative Effects Fairplay — Destiny Placer Mine EA - Socioeconomic and Environmental Justice Report Given that there are no measurable direct and indirect effects that would occur under the no action alternative, there would also be no measurable cumulative effects. Proposed Action For the purposes of this specialist report, only one action alternative is analyzed in detail. This alternative would include mining for gold as well as sand and gravel. Restricting the mine to only a gold operation, noted as Alternative 1 in the EA document, is feasible; however, impacts to visual quality would be greater. Materials from the sand and gravel operation would be used to mitigate visual impacts. Therefore, gold mining along with a sand gravel operation is the most reasonable alternative for analytical purposes. 10