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Show Mitigavion cikes sting oui otf growih fuvure growth i 0 ilor'i v., fct seriej ' lhe Rr9' of 8 ,WO" :J(V . 0n mitigation of impact "h ensy companies. 'K' by U' ' ( Sl"en VValli, news editor i'l i grwh'l6 energy comPanies f-Vv i. Prosperity to a com-t com-t . - fineir initial impact on a com-vf: com-vf: t-T-'of Jrces them to deal with pro- 'vi ,v,owth with a shortfall of tax lteir coffers. t t'i'-ethpC!!alionof impact mitigation ty 0 '''"'all and?86 ff the initial revenue lhave companies pay for fltir .retc aCOmmunily- 'ratiVeenerat'on and Transmission ?;r'toihM?S the first company to rr.o J "uh Basin that paid im-Tney im-Tney are currently con structing a multi-billion dollar power plant near Bonanza. Deseret set the stage for other companies proposing large projects in the area When the Bonanza Power Plant is complete, nearly S6.8 million in mitigation mitiga-tion money plus help with roads and prepaid tax assistance to Uintah School district will be spent. "Although housing costs are above what we had projected," said Clann Ashby, administrative services manager, DG&T, "we anticipate ending the project within this budgeted amount. Most of the controversy in Uintah County is that Rio Blanco County in Colorado, Col-orado, location of the Deserado Mine, source of the coal for the power plant, was promised more impact funds than Uintah County. But as things are turning out, Uintah County is receiving the largest sum in impact money. In total expenditures for mitigation purposes, $11,639,938 has been expended to date in Uintah County including housing hous-ing costs, payments to various entities, road construction and prepaid taxes for school construction. It is anticipated that an additional $3,167,444 will be expended expend-ed during the balance of the projects, bringing the total to $14,897,382. In Rio Blanco County, $8,265,598 has been expended to date on mitigation measures including utilities, roads, housing hous-ing and payments to various entities. If all provisions in the mitigation contract con-tract between Western Fuels and Rio Blanco County entities are implemented, total mitigation costs could run as high as $18 million. i "However, the impact on Rio Blanco County entities is less than half (in the number of workers) that was projected in the agreement," Ashby said. "For that reason, many of the funds will not be expended." But total expenditures in the two areas cannot be equitably compared, according accor-ding to Ashby. Uintah County has a strong tax levy structure that will provide pro-vide nearly $5 million in tax revenue beginning this year. Rio Blanco County has a low tax levy that will generate less than one-half million dollars this year, and grow to less than $1 million as an annual an-nual payment. Uintah County will reap $180 million in tax revenues during the operation life of the Bonanza Power Plant. Lump that sum w ith impact mitigation during construction construc-tion and it totals $194,807,000. In Rio Blanco County tax revenues generated during the operation life of the power plant will total $32 million. Combined Com-bined with the total $18 million in impact mitigation during construction (should they get that much), the Colorado county coun-ty ends up with $50 million. Deseret bases their impact mitigation on data and demographic studies made by the University of Utah, but monitoring monitor-ing of actual worker residence locations within the Uintah Basin has indicated some inaccuracies. The Ashley Valley and Maeser water and sewer districts were projected high, with actual impact far below expectations. Vernal City was near projected levels, and Jensen was projected low. Because of these findings, additional funding of $200,000 for water facilities was offered to the Jensen Water District. In Rio Blanco County, 25 percent of the current work force for the Deserado Mine and Railroad are local. Of the balance, about half are living in Dinosaur and half in Rangely. "It is evident that the numbers of workers coming into Rio Blanco County is far below projections," Ashby said. According to Neal Domgaard, Uintah County Commissioner, and chairman of the Community Impact Council. Deseret's impact mitigation were "pretty "pret-ty fair." "Being the first company to offer impact im-pact mitigation, neither side knows what is best," Domgaard said. One of the reasons why Uintah County Coun-ty wasn't as tough in mitigating impacts with Deseret was because "we were Continue on Page 2 Mitigation... Continued from Page 1 walking a thin line of getting the power plant in our county." The only regret which Domgaard said had with negotiating with Deseret was when they required that all laborers are Union which rules out most local workers. Other leaders in the community support sup-port Domgaard's opinion, except those of Naples City and the Ashley Valley Water and Sewer Improvement District. Since Naples City wasn't formed at the time of the mitigation, negotiations with Deseret, they didn't directly receive any of the up-front money. Naples is pursuing pursu-ing action to get some of that money. Entities which received impact payments are Maeser Water District $489,600; Uintah County School District' $206,749 and $753,876 forthcoming; Uintah Uin-tah County Recreation, $83,000, $18,000 forthcoming; Uintah County Law Enforcement, En-forcement, $52,700, $23,595 forthcoming; Vernal City Recreation, $82,000, $38,000 forthcoming; Vernal City Water and Sewer, $543,200 forthcoming ; Vernal City Ci-ty Law Enforcement, $52,700 and $59,550 forthcoming; Jensen Water, $250,000; Jensen Fire Department, $5,000; Social Services, $44,247, $43,223 forthcoming and Nursing Scholarship, $25,000 forthcoming. Since negotiations with Deseret for impact im-pact money, the county has formed a County Impact Council with two representatives from every entity. The council coordinates impact mitigation. Currently the council is negotiating with the White River Shale Corporation for impact fees. The results of the negotiation negotia-tion will be known April 4 during a meeting with a committee formed by White River to determine the project's impact on the county. White River has proposed an oil shale project south of Bonanza. |