2011-09-29_PERMIT FILE - M2009056

• Permit No: M2009056
• IBM Index Class Name: PERMIT FILE
• Doc Date: 9/29/2011
• Doc Name: Draft Environmental Assessment
• From: BLM Royal Gorge Field Office
• To: DRMS
• Email Name: DB2
• Media Type: D
• Archive: No

Direct and Indirect Effects
Fairplay — Destiny Placer Mine EA - Socioeconomic and Environmental Justice Report
The proposed mining operation would have multiple effects on social and economic
conditions. The primary economic variables affected would be jobs, income, and
property values. The impact to jobs and income was modeled using 2008 IMPLAN data
and the level of proposed mining activities. It is assumed that mining would produce 200
ounces of gold and 20,000 cubic yards of sand and gravel per month. The inputs required
to operate the mine include labor and capital. Therefore the mine would generate
economic activity in form of jobs and the purchase of local goods as inputs to production.
IMPLAN tracks the inter - industry purchasing patterns associated with mining and allows
for an estimate of the total impact to jobs and labor income in the study area. As reported
in Table 3, a total of 4.5 jobs and $394,342 of labor income would be generated from the
mining operation. The majority of jobs and income would exist in the mining sector.
Three jobs in that sector would be those directly operating the mine However, the local
purchase of inputs to production would generate additional activity in other sectors,
which results in the remaining employment and income.
Table 3: Im to Jobs and Income in Park Count
Source: IMPLAN 2008
In addition to changes in jobs and income, it is also likely that the proposed mining
activities would impact residential property values near the site. There is no method
available for estimating the true impact to property values; however, evidence suggests
that mining operations tend to have a negative effect on home prices in adjacent
neighborhoods. Boxall et al. (2004) researched the effect of oil and natural gas mining on
rural residential property values. Although the mining operation proposed under this
alternative is different, the effects on visual quality and amenity values, as well as
restrictions in access, would be similar. The findings suggest that property values are
negatively correlated with mining activity. It is unlikely that mining activity would have
no effect on, or improve, residential property values; therefore it is assumed that a
negative correlation exists with Destiny Mine and the value of nearby homes during its
active life. Boxall (2004) only indicate a direction of change in property values, where as
Kiel and McClain (1993) suggest that there is a time component that affects the degree of
change in home prices resulting from an undesirable land use. Their research suggests
11
Employment
Labor Income
Agriculture, Forestry, Fishing & Hunting
0.005
44
Mining
r 3.059
337,559
Utilities
0.028
3,434
Construction
0.031
1,218
Manufacturing
0.857
36,002
Wholesale Trade
0.004
213
Transportation & Warehousing
0.107
2,591
Retail Trade
0.049
744
Information
0.226
3,941
Finance & Insurance
0.114
1,717
Real Estate & Rental
0.113
6,879
Professional Scientific & Technical Services
0.000
0
Total
4.591
394,342
Direct and Indirect Effects
Fairplay — Destiny Placer Mine EA - Socioeconomic and Environmental Justice Report
The proposed mining operation would have multiple effects on social and economic
conditions. The primary economic variables affected would be jobs, income, and
property values. The impact to jobs and income was modeled using 2008 IMPLAN data
and the level of proposed mining activities. It is assumed that mining would produce 200
ounces of gold and 20,000 cubic yards of sand and gravel per month. The inputs required
to operate the mine include labor and capital. Therefore the mine would generate
economic activity in form of jobs and the purchase of local goods as inputs to production.
IMPLAN tracks the inter - industry purchasing patterns associated with mining and allows
for an estimate of the total impact to jobs and labor income in the study area. As reported
in Table 3, a total of 4.5 jobs and $394,342 of labor income would be generated from the
mining operation. The majority of jobs and income would exist in the mining sector.
Three jobs in that sector would be those directly operating the mine However, the local
purchase of inputs to production would generate additional activity in other sectors,
which results in the remaining employment and income.
Table 3: Im to Jobs and Income in Park Count
Source: IMPLAN 2008
In addition to changes in jobs and income, it is also likely that the proposed mining
activities would impact residential property values near the site. There is no method
available for estimating the true impact to property values; however, evidence suggests
that mining operations tend to have a negative effect on home prices in adjacent
neighborhoods. Boxall et al. (2004) researched the effect of oil and natural gas mining on
rural residential property values. Although the mining operation proposed under this
alternative is different, the effects on visual quality and amenity values, as well as
restrictions in access, would be similar. The findings suggest that property values are
negatively correlated with mining activity. It is unlikely that mining activity would have
no effect on, or improve, residential property values; therefore it is assumed that a
negative correlation exists with Destiny Mine and the value of nearby homes during its
active life. Boxall (2004) only indicate a direction of change in property values, where as
Kiel and McClain (1993) suggest that there is a time component that affects the degree of
change in home prices resulting from an undesirable land use. Their research suggests
11