TECHNICAL SUPPORT DOCUMENT
                 FOR
INDEPENDENCE STEAM ELECTRIC STATION
     Independence County, Arkansas
                 -
                VOL. II

     ENVIRONMENTAL PROTECTION AGENCY
               REGION VI
             DALLAS, TEXAS

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    TECHNICAL SUPPORT DOCUMENT
                 FOR
INDEPENDENCE STEAM ELECTRIC STATIOP
     Independence County, Arkansas
                 VOL. II

     ENVIRONMENTAL PROTECTION AGENCY
               REGION VI
             DALLAS, TEXAS

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             PART 6
TERRESTRIAL ECOLOGY

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TECHNICAL SUPPORT DOCUMENT



          PART 6



    TERRESTRIAL ECOLOGY

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                               CONTENTS

                                                              Page

6.1  BASELINE	6.1-1

     6.1.1  Vegetation	6.1-1

            6.1.1.1   Methods	6.1-1
            6.1.1.2   Survey Results   	 6.1-2

     6.1.2  Amphibians and Reptiles	6.1-6

            6.1.2.1   Methods  	 6.1-6
            6.1.2.2   Survey Results 	 6.1-6

     6.1.3  Birds   	6.1-8

            6.1.3.1   Methods  	 6.1-8
            6.1.3.2   Survey Results 	 6.1-9

     6.1.4  Mammals  	 6.1-11

            6.1.4.1   Methods  	 6.1-12
            6.1.4.2   Survey Results 	 6.1-12

6.2  IMPACT OF S02 ON THE SITE VICINITY	6.2-1

     6.2.1  Effect of S0? on Soil   	6.2-1
     6.2.2  Effect of SO^ on Vegetation	6.2-1

6.3  REFERENCES   	6.3-1

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                                TABLES

                                                                   Page

6.1-1  Independence Site - Upland Forest Understory -
       July 1977 Survey (Diameter 2.5-10 cm)  	  6.1-14

6.1-2  Independence Site - Upland Forest Overstory -
       July 1977 Survey (Diameter 2.5-10 cm)  	  6.1-15

6.1-3  Independence Site - Upland Forest Shrub Layer -
       July 1977 Survey	6.1-16

6.1-4  Independence Site - Upland Forest Ground Layer  -
       July 1977 Survey	6.1-17

6.1-5  Independence Site Total Trees and Shrubs Survey  -
       July 1977   	6.1-19

6.1-6  Reptiles and Amphibians Which May Occur in the
       Vicinity of the Independence Site 	  6.1-23

6.1-7  Birds Which May Occur in the Vicinity  of the
       Independence Site   	  6.1-27

6.1-8  Mammals Which May Occur in the Vicinity of the
       Independence Site   	  6.1-39

6.2-1  Soil Sample Analysis Jackson and Independence
       Counties Summer, 1977   	6.2-6

6.2-2  Effect of S02 on Selected Vegetation	6.2-7
                                FIGURES

6.1-1  Site area habitat map showing survey routes
       and locations 	  6.1-43/44

6.1-2  Independence site - representative cross  section
       of surveyed young hedgerow community	6.1-45

6.1-3  Independence site - representative cross  section
       of surveyed mature hedgerow community 	  6.1-46

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                                PART 6
                          TERRESTRIAL ECOLOGY
6.1  BASELINE
6.1.1  Vegetation
     Mature forest of a sufficient size to support an  ecosystem  free
from outside competitive influences is a fast disappearing  aspect of
vegetational coverage within Arkansas.  This  is  also true of  the site
and surrounding area.  Replacement communities for these mature  forest
areas take a great length of time to develop.  These conditions  must be
the primary consideration in the evaluation of the value of the  site
habitats presented in the following sections.  The field survey  program
for terrestrial ecology was conducted by Dames & Moore in July 1977.
6.1.1.1  Methods
     Vegetation was quantitatively sampled in the largest area of mature
forest near the site (Study Area C, Figure 6.1-1).  Forest  overstory and
understory as well as shrub layer and ground  cover were surveyed along a
transect established in this area.  The quarter method (Cottam and  Curtis,
1956) was used to assess understory and overstory woody vegetation.
This method of forest inventory was accomplished by following a  compass
heading which ran through the habitat to be sampled and establishing
sample points at 30-meter intervals.  Once a  sampling  point was  reached,
the area around the point was divided into four quarters.   The tree
nearest the established point in each quarter was located,  and the
species, diameter at breast height (d.b.h. =  diameter  1.5 meters above
ground level), and point-to-tree distance were determined and recorded
for each tree.  This was done for both understory and  overstory  trees.
Understory vegetation when present was considered to be trees of from
2.5 cm to 10.0 cm d.b.h (Table 6.1-1).  Overstory vegetation  (Table
6.1-2) was considered to consist of trees with diameters above 10.0 cm.
Diameters were computed from circumference measurements.
     The shrub layer (Table 6.1-3) was studied by taking inventory  of
all plant species over one meter in height but less than 2.5  cm  in
                                  6.1-1

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diameter occurring within a circle having a radius of 10 meters  and
centered around the point located by the quarter method.   Likewise a  one
meter square quadrat was centered around each point and all  ground layer
vegetation (less than one meter) was recorded (Table 6.1-4).
     The hedgerows and field edges were surveyed by randomly placing  a
transect across one heavily wooded hedgerow (Study Area B, Figure 6.1-1)
and one less mature field edge (Study Area A, Figure 6.1-1).   Plant
species were identified along the transect and measurements  were made as
to distance from adjacent field borders and changes in elevation.   In
this way, cross sectional diagrams were prepared to give a qualitative
view of two typical and common habitats on site (Figures 6.1-2 and 6.1-3),
     The entire site and immediate surrounding area were then surveyed
and all species observed were recorded and placed in appropriate hab-
itats in order to compile a site species list (Table 6.1-5).
6.1.1.2  Survey Results
Swamp Forest
     This forest represented the least disturbed and oldest ecosystem
surveyed during site investigations.  A drainage ditch allowed the
formation of a pond on the margin of this woodland.  This, together with
nearby beaver dams increased flooding and dampness within the forest.
Some of the more common trees of this woodland (Table 6.1-5) were box
elder (Acer negundo), silver maple (Acer saccharinum), hackberry (Celtis
occidental is), green ash (Fraxinus pennsylvanica), honey locust
(Gleditsia triacanthos), water elm (Planera aquatica), and overcup oak
(Quercus lyrata).   Because of a closed canopy, shrub, understory, and
ground cover were generally sparse.  Species present in the understory
and shrub layer included buttonbush (Cephalanthus occidentalis). swamp
privet (Forestiera acuminata), and possum haw (Ilex decidua). Vines
were common to the swamp forest and included pepper vine (Ampelopsis
arborea), buckwheat vine (Brunnichia cirrhosa), trumpet creeper  (Campsis
radicans), Virginia creeper (Parthenocissus quinquefolia), and catbrier
(Smilax bona-nox).  Ground cover was present in scattered localities
throughout the forest.  Some of the more common herbaceous plants
                                  6.1-2

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included false nettle (Boehmeria cylindrica),  wood nettle (Laportea
canadensis). and day flower (Commelina virginica).
     Portions of this forest adjacent to the pond contained  species  such
as water elm and swamp privet that are characteristic  of a river  swamp
community.  The majority of this woodlot, however, was at a  slightly
greater elevation and possessed a species composition  that indicated a
successional change to a less hydric situation.  The present  forest
compositon most closely resembled that of a river border community.   As
succession continues within this forest type,  a  mixed  bottomland  forest
dominated by sweet gum-red maple-swamp oak, may  eventually form (Braun,
1950).
Upland Forest
     An isolated woodlot (Study Area C) located  between the  site  and the
river contained less hydric species more characteristic of the Oak-
Hickory Forest Region (Tables 6.1-1 through 6.1-4). This area is con-
sidered upland forest and offered an insight  into what forest types
occur on more well drained sites.  This forest was younger in age than
the river border community previously described, and the more open
canopy within the forest allowed a greater development of understory,
shrub layer, and ground cover.
     Importance values for the overstory, understory,  shrub  layer, and
ground cover were computed to characterize the species composition of
this forest community (Tables 6.1-1 through 6.1-4). The importance
values are the sum of the relative density, relative dominance, and
relative frequency, also given in the tables.  The forest understory
(Table 6.1-1) was dominated by bitternut hickory and slippery elm.   The
overstory (Table 6.1-2) was dominated by red oak (Quercus rubra). Other
important constituents of the overstory were bitternut hickory (Carya
cordiformis), slippery elm (Ulmus rubra), ash  (Fraxinus sp.) and  sweet
gum (Liguidambar styraciflua).  The shrub layer  (Table 6.1-3) was
dominated by red buckeye (Aesculus pavia) and  slippery elm,  while less
important species included bitternut hickory,  possum haw, and hawthorn
(Crataegus sp.).  The ground cover (Table 6.1-4) was dominated by
                                  6.1-3

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Japanese honeysuckle (Lonicera japonica).  This plant, however,  was
present in scattered local concentrations  as is indicated by its  ex-
tremely low relative frequency.
     Many of the species of this forest such as false buckthorn (Bumelia
lanuginosa), eastern redbud (Cereis canadensis), red  buckeye, and post
oak (Quercus stellata) suggest a close association to the Oak-Hickory
Forest Region which occurs west of the site.
Moody Hedgerows and Forested Edge
                                               /
     The woody hedgerows and forested edge form the most widely scat-
tered vegetation type in the site vicinity (Table 6.1-5).  Most hedge-
rows are located between agricultural fields along drainage creeks.  The
creeks are generally seasonal streams carrying water  only during  periods
of heavy precipitation.  Examples of the structure of hedgerow  communi-
ties in the area are presented in Figures  6.1-2 and 6.1-3.
     The center of the hedgerow is lowest  in elevation and forms  the bed
of the seasonal stream.  Species of this low area generally are adapted
to a moist habitat which is comparable to  portions of the previously
discussed poorly drained forest and swamp.  Commonly  encountered  woody
species included silver maple, ash, and buttonbush.  Ground cover tended
to be sparse in the center of most hedgerows. Species present included
rose mallow (Hibiscus lasiocarpos), broadleaf uniola  (Um'ola latifolia),
and poison ivy (Rhus radicans).
     The elevated outer margins of the hedgerow comprise a better drained
wooded habitat.  Trees of common occurrence included  honey locust, osage
orange (Madura pomifera), red mulberry (Morus rubra), and sycamore
(Plantanus occidental is).  If the land presently in agriculture was
allowed to proceed through the stages of natural succession, species
composition would be expected to be similar.  This forest type  has been
defined as a river border community (Braun, 1950).
     Vines were of particular abundance in all portions of hedgerows and
forested edge.  Some of the more common species included raccoon  grape
(Ampelopsis cordata), buckwheat vine, trumpet creeper, Japanese honey-
suckle, and Virginia creeper.  Because hedgerows are  very narrow  in
                                  6.1-4

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width and often possess a rather open canopy, they are commonly invaded
by early successional species that require an abundance of sunlight.
Common invading species include common ragweed (Ambrosia artemisiifolia),
giant ragweed (A_. trifida), horseweed (Erigeron canadensis), pokeweed
(Phytolacca americana). and horse nettle (Solanum carolinense).
     Species composition of hedgerows was generally uniform over much of
the study area.  Forested edge and hedgerows bordering the White River
were similar to those located a greater distance from the river.  This
tends to support the assumption that the site would develop into a
rather uniform forest with species comparable to those present along
hedgerows if allowed to proceed through the stages of natural  succession.
Herbaceous Hedgerows and Field Margins
     This habitat was found along the margins of cultivated fields.
Clearing in the recent past has prevented succession from proceeding  to
the stage in which woody species become established.  Species  compo-
sition (Table 6.1-5) was similar throughout the site area.  Species of
particular abundance and widespread occurrence included common ragweed,
daisy fleabane (Erigeron annuus). horseweed, Johnson grass (Sorghum
halepense), pepper grass (Lepidium virginicum), nodding spurge (Euphorbia
maculata). and prickly lettuce (Lactuca scariola).
Ditch and Pond Bank
     Vegetation bordering the drainage ditches and ponds in the site
vicinity includes plants adapted to a moist or semi-aquatic habitat
(Table 6.1-5).  Clearing in the recent past has created an early suc-
cessional community comprised of species such as tooth-cup (Ammannia
coccinea), knotweed (Polygonum densiflorum), marsh yellow cress  (Rorippa
islandica), grass-leaved arrowhead (Sagittaria graminea), and  blue
vervain (Verbena hastata).   Black willow (Salix m'gra) constituted the
initial woody invader of this habitat.
Summary
     In summary, the forested section discussed under swamp forest has
reached the highest degree of successional  development onsite.   This
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forested tract as well as the upland forest block is relatively small
when viewed in a regional perspective and can be expected to receive a
higher degree of disturbances from surrounding cultivated land than
larger wooded areas.  Although woody hedgerows and forested edge may
possess mature tree species, the relative narrow width enables sur-
rounding early successional growth to heavily influence the species
composition of understory, shrub layer, and ground cover.  The remaining
site area habitats should be considered of low ecological value since
they are capable of developing through succession in a relatively short
period of time..
     No rare or endangered species or plant communities of ecological
uniqueness were observed during site investigations.
6.1.2  Amphibians and Reptiles
     Diverse habitats, both natural and man influenced, which are useful
to many species of terrestrial and aquatic herpetiles (reptiles and
amphibians) may be expected in the site vicinity.  Of the 93 species of
herpetiles which can be found in Arkansas (Conant, 1975), approximately
70 include the Independence site in their range (Table 6.1-6).  Local
population numbers and available habitat dictate which species occur on
the site.
6.1.2.1  Methods
     Amphibians and reptiles were recorded whenever they were encoun-
tered in all areas surveyed for vegetation, birds, and mammals.   Ad-
ditional observations were made during night-lighting efforts which
covered 5.4 miles of State Highway 69 from its junction with State  Highway
122 near the western boundary of the site to the eastern boundary of  the
site.  Drainage canals near the survey route were also searched  during
the night-lighting effort.  Identification and nomenclature follow
Conant (1975).
6.1.2.2  Survey Results
     The habitats near the site which are useful to herpetiles are
generally limited to those which are undisturbed by man.  The fence rows
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and small woodlots found in the site area are typical  havens  for  upland
species such as the northern fence lizard (Sceloporus^ undulatus hyacinr
thinus), ground skink (Leiolopisma laterale), ornate box turtle
(Terrapene ornata ornata), and the southern black racer (Coluber
constrictor priapus).  Cover is abundant in these areas, as  is food  in
the form of insects for skinks and lizards, fruits and vegetation for
the box turtle, and rodents for snakes.  Population densities are
probably quite low, particularly in the fence rows, as the amount of
cover is limited by the width of the fence row.   Hawks and owls probably
prey heavily on any snake or lizard that ventures out into the sur-
rounding fields.
     The drainage canals near the site present habitat that  is useful to
many amphibians and several aquatic reptiles.  Frogs and toads were
abundant in these areas, and the marbled salamander (Ambystoma opacum)
and spotted salamander (A_. maculatum) could occur here.  Turtles  such as
the snapping turtle (Chelydra serpentina). mud turtle (Kinosternon sp.),
map turtle (Graptemys geographica), and softshell (Trionyx sp.) are
expected here.  Several species of water snakes  as well as garter
(Thamnophis sirtalis sirtalis) and ribbon snakes (T. sauritus sauritus)
can find suitable habitat and food sources (frogs, toads) in  these
canals.
     The White River is an important habitat for aquatic herpetiles.
All the turtles mentioned previously as well as  the red-eared slider
(Chrysemys scripta elegans), Missouri slider (Chrysemys floridama hoyi),
and stinkpot (Sternotherus odoratus) are expected to occur in the White
River.  Much of the shoreline near the site has  been swept clean  of
debris so there is little habitat available to snakes or lizards  except
in cases where undisturbed vegetation is found near the river.
     The species which were actually observed in the vicinity and are
reasonably expected to occur on the site are presented in EIS Table  5.5-4.
The green treefrog (Hyla cinerea), southern leopard frog (Rana utricularia),
Fowler's toad (Bufo woodhousei fowleri), and dwarf American  toad  (Bufo
americanus charlesmith) were observed on the road during the  night
                                  6.1-7

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survey.  Upland chorus frogs (Pseudacris triseriata feriarum) were heard
calling from drainage canals at night.  The ornate box turtle was found
along a fence row near the site and the red-eared slider was observed
along the bank of the White River.
     The only endangered or threatened herpetile that may occur on this
site is the ornate box turtle.  This herpetile is considered endangered
in Arkansas and although it may occur on the site, is found primarily in
prairie-grassland habitats in the interior highlands (northwestern)
portion of the State.  Habitats that are havens for this species occur
off the site in the area and should provide ample food and cover for the
migration of ornate box turtles that exist on this site.
6.1.3  Birds
     Although a majority of the Independence site has been totally
changed by man, this area is of considerable importance to several
species of birds.  Grain crops are a valuable food source to seed-eating
and granivorous species while insects associated with agricultural lands
are very attractive to insectivorous species.  Fence rows in various
stages of growth and scattered woodlots afford habitats to edge and
woodland species, while the river and other water bodies attract aquatic
birds and waterfowl.
     Over 250 species of birds include the site within their natural
ranges (Table 6.1-7).  Twenty-five of these species were observed near
the site.  An additional eighteen species were seen during waterfowl
surveys in the site vicinity.
6.1.3.1  Methods
     Two methods of censusing avian populations were used on this site.
These methods were an auto survey and a modified strip census.  The auto
survey covered 5.4 miles of paved and dirt roads in the site vicinity
and was performed by driving slowly along the survey route and observing
all birds seen or heard within 30 meters of each side of the road.  This
survey was run three mornings.  The strip census was performed in two
field edge habitats, one of recent vegetative growth (Study Area A) and
the second of more mature species (Study Area B, Figure 6.1-1).  In this
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survey the observer walked a specified length of the edge habitat  and
noted all birds seen or heard within the habitat.
     Additional observations were made at various  points  in the  site
area which did not lend themselves to quantitative sampling.
     Waterfowl surveys were conducted in the site  vicinity during  the
fall of 1976 (December) and the spring of 1977 (March).   The  fall  survey
was conducted with the use of a fixed-winged aircraft for one day's
survey and a helicopter for the second day.   The helicopter was  used for
both days during the spring.  Areas covered  included the  White River
from Batesville to Newport and then to Des Arc, the Black River  from
Newport to Elgin, and across the site itself from Oil Trough  to  Newark.
The surveys were timed to coincide with fall and spring migrations in
order to observe waterfowl uses of the area.  Other waterbirds and
shorebirds as well as hawks and eagles were  noted  wherever they  occurred
along the survey routes.
6.1.3.2  Survey Results
     Mourning dove (Zenidura macroura), kill deer (Charadrius  vociferas),
and brown-headed cowbirds (Molothrus ater) were the most  common  birds
near the site.  This is to be expected as these birds utilize fields and
croplands as feeding and gathering areas. The dove is migratory,  although
some individuals may be expected to live in  the area.  Kill deer  are very
common in fields and pastures, as are cowbirds.  Cowbirds commonly feed
in flocks containing red-winged blackbirds (Agelaius phoeniceus) and
common grackles (Quiscalus quiscula) both of which occurred on the site.
Other open field species observed here include the eastern meadowlark
(Sturnella magna), common crow (Corvus brachyrhynchos), lark  sparrow
(Chondestes grammacus), horned lark (Eremophila alpestris), and  scissor-
tailed flycatcher (Muscivora forficata).
     Study Area A, a field edge vegetated primarily with  common  ragweed,
affords usable habitat to bird species associated  with open fields and
early successional plant species.  Mourning  doves  occurred here  in
abundance.  Red-winged blackbirds and common grackles were also  common.
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All of these species use the edge primarily for roosting, and feed in
the nearby fields.  Species observed here that utilize the edge for
cover or nesting include the bobwhite (Colinus virginianus),  red-bellied
woodpecker (Centrurus carolinus), cardinal (Richmondena cardinal is),
and yellow-breasted chat (Icteria virens).  The woodpecker and chat are
probably more dependent on nearby deciduous trees than on this habitat,
but they were observed feeding here.
     The second strip census area (Study Area B) was a field  edge with
mature vegetation offering a more varied habitat for birds.  The  dom-
inant species here was the indigo bunting (Passerina cyanea)  which
utilizes hedgerows and wood margins as prefered habitats.  Other  species
found here were the cardinal, common flicker (Colaptes auratus),  white-
eyed vireo (Vireo griseus) and wood thrush (Hylocichla mustelina). A
pair of red-bellied woodpeckers had a nest in a mature elm within the
field edge.
     Miscellaneous observations around the site included five immature
little blue herons (Florida caerulea) and one spotted sandpiper (Actitis
macularia) seen on the shore of Round Lake, along with six killdeer.
     The two waterfowl surveys provided interesting data.  Waterfowl
were not very abundant in Arkansas during the fall of 1976 as water
levels were lower than normal and waterfowl which had flown south at  the
time of the survey continued on to Louisiana where water was  more plentiful.
The first survey was accomplished in a single-engine airplane.  No
waterfowl were seen near the site, but several belted kingfishers (Megaceryle
aIcyon) were observed along the White River between Batesville and
Newport.  A helicopter was used the second day of the survey.  Twenty-
eight mallards (Anas platyrhynchos), fifteen great blue herons (Ardea
herodias), several killdeer, one marsh hawk (Circus cyaneus), and an
adult bald eagle (Haliaeetus leucocephalus) were seen on the  White River
between Newport and Batesville.  The eagle was observed perched in a
tree on the south side of the White River approximately 10 miles  west of
the Independence site.  This species is listed as a rare and  endangered
species (Federal Register, 1977) and is included on the Black List in
Arkansas as a species which nested in the State at one time but is no
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longer recorded as a nesting species (Arkansas Department of Planning,
1974).  The site, therefore, is not important to the eagle as a  nesting
area but could be utilized occasionally as a feeding and resting area
during migration.
     The spring waterfowl survey proved very fruitful.   At the time  of
the survey, the Black River had reached flood stage due to heavy rains
in Missouri.  This caused much of the area on both sides of the  Black
River to be flooded, and likewise the White River was out of its banks
south of Newport (confluence of Black and White Rivers).  This condition
afforded an abundance of water useful to waterfowl returning north.  A
helicopter was used on both survey days.  During the first day,  approxi-
mately 5000 ducks were seen in flooded fields along the Black River  one
mile north of Newport.  The majority of these ducks were mallards, but
several hundred widgeon (Anas americana) and a few shovelers (A_. clypeata)
were also seen.  Several smaller flocks of mallards (20 to 30 ducks  per
flock) were seen on the White River from Newport to Batesville.   The
second survey proceeded south of Newport on the White River where 5000
to 6000 mallards were seen in at least ten different groups.  As was
noted on the Black River the previous day, these ducks  were found in
fields flooded by the river.  Thirteen small groups of mallards  were
seen in the vicinity of the site along the White River.  The only wood
ducks (Aix sponsa) seen on this survey were observed on the White River
near the site.  Wood ducks are usually residents, whereas the other
ducks seen are migrants.
     No rare or endangered species are expected to occur on the  site.
The great blue heron and little blue heron could be expected on  nearby
water bodies like Round Lake and the White River.  These species are on
the Red List in Arkansas, meaning they are considered threatened as
breeding populations.  Whether these species actually breed near the
site is unknown.
6.1.4  Mammals
     The fact that the Independence site is located very near the  transi-
tion zone between the mountain and delta regions as well as  on a major
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river makes this an interesting site ecologically.   Mammals  whose  natural
range includes the site area are given in Table 6.1-8.   The  site is  so
heavily utilized for agricultural purposes, however, that little of  the
area is in a natural state.  The primary habitats existing on or near
the site are presently cropland, fence rows and field edges, and small
woodlots.
6.1.4.1  Methods
     Fence rows and field edges were the most common undisturbed  habitats
near the site, therefore, trap lines for rodents were established in  two
of these-areas.  These traplines consisted of 34 snaptraps  placed in
pairs at trap sites located along transects in each type of field edge.
These traps were set for three nights yielding results from 102 trap-
nights per trapline.
     The first trapline (Study Area A, Figure 6.1-1) was established  in
a field margin near the White River.  The area was'vegetated primarily
with common ragweed indicating it had been plowed recently  and was
becoming revegetated with early successional  plants.  The second  trap-
line (Study Area B) was located within a more mature hedgerow near the
eastern loop of Hulsey Bend.
     Medium and large mammals were surveyed,  at night with  the aid of
spotlights, along State Highway 69 and farm roads in the study area.  In
addition, tracks and droppings were identified wherever encountered on-
site.
6.1.4.2  Survey Results
     Seven white-footed mice (Peromyscus leucopus)  and three house mice
(Mus musculus) were captured in Study Area A.   The  white-footed mouse is
a common rodent in this area.  It prefers brushy habitats but is  fre-
quently found in open areas.  The house mouse is common wherever  man  is
found and usually occurs around barns and out-buildings but does  infest
fields and field edges.  This habitat offers  very adequate  cover  in the
form of dense, tall stands of ragweed which protect the rodents from
both avian and terrestrial predators.  Food is found in abundance when
crops are present in adjacent fields, and natural grasses provide food
when crops are unavailable.
                                  6./M2

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     Two white-footed mice were collected in Study Area  B.   The  vege-
tation here is quite diverse.  Mature trees of several species provide
aerial cover, while a ground cover of poison ivy, rose mallow, and  other
species occurs nearer the forest floor.   Food in the form of seeds,
berries, nuts, insects, and crops (soybeans and milo) in the adjacent
fields may be found in abundance here.  Burrows of an eastern mole
(Scalopus aquaticus) were observed along this hedgerow.   This subter-
ranean insectivore prefers the moist soil found within this  habitat.
     A single eastern gray squirrel (Sciurus carolinensis) was seen in
the wooded fence row (Study Area B).  It can find adequate food, cover,
and nesting sites in the mature sycamore, cottonwood, elm, and oak  trees
found in this habitat.  An eastern cottontail (Sylvilagus floridanus)
was also seen here.  It can be expected to feed heavily  in the croplands
and depend on the field edges for cover and nesting requirements and as
a standby food source.
     Raccoon (Procyon lotpr) tracks were found around every  area where
water occurred.  Raccons are opportunistic feeders and eat anything from
crayfish and salamanders to fruits and berries.  Opossums (Didelphis
marsupial is) are scavengers and opportunistic feeders which  would also
be found here.
     A beaver (Castor canadensis) was seen swimming in one of the drain-
age canals adjacent to State Highway 69 during a night survey.   Beaver
dams were found on several of the canals and natural drainages near the
site.
     The whitetail deer (Odocoileus virginianus) is the  only large
mammal which regularly occurs in this area.  The proliferation of crop-
land and lack of cover have made the entire Delta region somewhat non-
productive for the deer.  The northeast corner of Arkansas is practically
all cropland and yielded the lowest harvest of deer in the State during
the 1975-76 season (Arkansas Game and Fish Commission, 1976). Deer do
feed heavily on crops when cover is nearby, but in instances where  there
is little cover as on the Independence site, deer are not expected  to
occur.
                                  6.1-13

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                                                      Table 6.1-1

                          Independence  Site - Upland Forest  Understory  - July 1977 Survey
                                                 (Diameter 2.5-10 cm)
Scientific Name
Carya cordiformis
Ulmus rubra
Bumelia lanuginosa
Gleditsia triacanthos
Liquidambar styraciflua
Fraxinus sp.
Celtis occidentalis
Quercus rubra
-J.uniper.us virginiana
Quercus stellata
Diospyros virginiana
Quercus velutina
Morus rubra
Cercis canadensis

Common Names
Bitternut hickory
Slippery elm
Fake buckthorn
Honey locust
Sweetgum
Ash
Hackberry
Red oak
Redcedar
Post oak
Persimmon
Black oak
Red mulberry
Eastern redbud
No.
Trees
22
16
4
3
2
2
2
1
1
1
1
1
1
1
Rel.
Freq.
(X)
28.9
24.4
8.9
4.4
4.4
4.4
4.4
2.2
2.2
2.2
2.2
2.2
2.2
2.2
Rel.
Den.
(*)
36.7
26.7
6.7
5.0
3.3
3.3
3.3
1.7
1.7
1.7
1.7
1.7
1.7
1.7
Rel .
Dom.
(X)
38.0
34.0
2.2
5.5
2.8
2.1
1.8
3.8
2.3
1.8
1.8
1.2
1.2
1.2
Imp.
Val.
103.6
85.1
17.8
14.9
10.5
9.8
9.5
7.7
6.1
5.7
5.7
5.1
5.1
5.1
Density
Trees/Acre
204.1
148.4
37.1
27.8
18.6
18.6
18.6
9.3
9.3
9.3
9.3
9.3
9.3
9.3
Mean
Basal Area
sq in/tree
7.1
8.7
2.2
7.6
5.8
4.3
3.8
15.6
9.6
7.2
7.2
5.1
5.1
2.0
Total
Basal Area
sq in/acre
1445.7
1296.1
82.3
211.1
107.0
79.9
69.6
144.7
89.3
66.6
66.6
47.2
47.4
18.6
       TOTALS

Rel.  Freq. = Relative Frequency
Rel.  Dens. = Relative Density
60
99.6    100.2
99.9
299.6    556.9
Rel.  Dom. = Relative Dominance
Imp.  Val. = Importance Value
3809.4
Source:  Cottam and Curtis, 1956

-------
                                                Table 6.1-2

                    Independence  Site - Upland Forest  Overstory  -  July 1977  Survey
                                           (Diameter 2.5-10 cm)
Scientific Name
Quercus rubra
Carya cordiformis
Ulmus rubra
Fraxinus sp.
Liquidambar styraciflua
Quercus veluntina
Cercis canadensis
Gleditsia triacanthos
Quercus stellata
Quercus nuttallii
Bumelia lanuginosa
Celtis occidental is

Common Names
Red oak
Bitternut hickory
Slippery elm
Ash
Sweetgum
Black oak
Eastern redbud
Honey locust
Post oak
Nuttall's oak
False buckthorn
Hackberry
No.
Trees
11
14
12
8
4
2
3
2
1
1
1
1
Rel.
Freq.
(%)
16.9
19.0
14.2
19.0
7.1
4.7
4.7
4.7
2.3
2.3
2.3
2.3
Rel.
Den.
(%)
18.3
23.3
20.0
13.3
6.7
3.3
5.0
3.3
1.7
1.7
1.7
1.7
Rel.
Dom.
(%)
47.2
6.9
67.1
6.8
14.8
5.3
1.4
1.0
1.6
1.3
1.1
0.6
Imp.
Val.
82.4
49.2
46.3
39.1
28.6
13.3
11.1
9.0
5.6
5.3
5.1
4.6
Density
Trees/Acre
25.7
32.7
28.0
18.7
9.3
4.7
7.0
4.7
2.3
2.3
2.3
2.3
Mean
Basal Area
sq in/tree
212.8
24.3
49.9
41.9
183.5
131.2
23.7
24.5
81.5
62.4
55.9
30.3
Total
Basal Area
sq in/acre
5468.2
794.6
1397.9
782.7
1715.0
613.2
166.0
114.7
190.4
145.7
130.5
70.7
TOTALS
                                         60
99.5
100.0   100.0
299.6   140.0
11,589.6
Rel.  Freq. = Relative Frequency
Rel.  Dens. = Relative Density

Source:  Cottam and Curtis, 1956
                                  Rel.  Dom.  = Relative Dominance
                                  Imp.  Val.  = Importance Value

-------
                                                  Table 6.1-3

                        Independence  Site  -  Upland Forest Shrub Layer  - July 1977 Survey
Scientific Name
Aesculus pavia
Ulmus- rubra
Fraxinus sp.
Carna cordiformis
Ilex decidua
Crataegus sp.
Quercus rubra
Cercis canadensis
Quercus velutina
Morus rubra
Nyssa sylvatica
Prunus serotina
Bumelia lanuginosa

Common Name
Red buckeye
Slippery elm
Ash
Butternut hickory
Possum haw
Hawthorn
Red oak
Eastern redbud
Black oak
Red mulberry
Blackgum
Black cherry
False buckthorn
Rel.
Freq.
(%)'
15.9
20.3
10.1
11.6
5.8
7.2
4.3
5.8
2.9
2.9
2.9
1.4
1.4
Rel.
Den.
(%)
30.2
28.0
8.4
8.9
5.8
3.1
4.0
2.7
2.2
0.9
0.9
0.4
0.4
Rel.
Dom.
CO
36.3
24.5
9.6
6.1
6.4
4.8
2.7
2.5
1.9
1.0
0.6
0.6
0.3
Imp.
Val.-
82.4
72.8
28.1
26.6
18.0
15.1
11.0
11.0
7.0
4.8
4.4
2.4
2.1
Density/ Acre
433
404
125
125
87
48
58
39
29
10
10
10
10
        TOTALS

Rel. Freq. = Relative Frequency
Rel. Dens. = Relative Density
99.5
99.9
99.8
299.4
Rel. Dom. = Relative Dominance
Imp. Val. = Importance Value
1388

-------
cr>
i
                                                    Table 6.1-4
                            Independence Site - Upland Forest Ground Layer - July 1977 Survey
                                                                                                      Page  1 of  2
Scientific Name
Lom'cera japonica
Campsis radicans
Graminae
Silene stellata
Amsonia tabernaemontana
Geum canadense
Fraxinus sp.
Berchemia scandens
Carex sp.
Parthenocissus
quinquefolia
Celtis occidental is
Ulmus rubra
Rhus radicans
Common Name
Japanese
honeysuckle
Trumpet creeper
Grass
Starry campion
Blue-star
White avens
Ash
Supple-jack
Sedge
Virginia creeper
Hackberry
Slippery elm
Poison ivy
Rel.
Freq.
(%)
4.4
8.9
11.1
8.9
2.2
4.4
11.1
6.7
2.2
6.7
6.7
6.7
4.4
Rel.
Den.
(%)
35.0
5.6
10.0
6.9
6.9
5.6
3.1
5.0
5.0
5.0
2.5
1.9
2.5
Rel.
Dom.
(%)
25.0
13.4
5.8
8.5
12.2
8.5
1.8
3.4
7.6
2.7
0.9
1.5
2.5
Imp.
Val.
64.4
27.9
26.9
24.3
21.3
18.5
16.0
15.1
14.8
14.4
10.1
10.1
9.3
Density/Ai
17,908
2,904
5,324
3,872
3,388
2,904
1,452
2,420
2,420
2,420
1,452
968
1,452

-------
00
                                               Table 6.1-4  (Continued)
        TOTALS

Rel. Freq. = Relative Frequency
Rel. Dens. - Relative Density
Rel. Dom. =.Relative Dominance
Imp. Val. - Importance Value
                                                 99.8
100.0
99.7
299.5
                                                                                           Page 2 of 2
Scientific Name
Cercis canadensis
Rubus sp.
Labitae
Menispermum canadense
Smilax bona-nox
Quercus rubra

Common Name
Eastern redbud
Bramble
Mint
Moonseed
Catbrier
Red oak
Rel.
Freq.
(%)
4.4
2.2
2.2
2.2
2.2
2.2
Rel.
Den.
(%)
1.3
0.6
1.3
0.6
0.6
0.6
Rel.
Dom.
(%)
1.8
3.0
0.3
0.3
0.3
0.3
Imp.
Val.
7.5
5.8
3.8
3.1
3.1
3.1
Density /Acre
484
484
484
484
484
484
51,788
    Source:   Cottam and Curtis,  1956

-------
                                                            Table 6.1-5
     SCIENTIFIC NAME
Independence Site Total  Trees and Shrubs Survey - July 1977

    COMMON NAME
                                                                                                         Page 1  of 4
                           HABITAT
                                             Ditch
Swamp     Upland    Woody     Herbaceous     and Pond
Forest    Forest    Hedgerow  Hedgerow	Bank
i
vo
     Acer negundo
     A.  saccharinum
     Aesculus pavia
     Arundinaria gigantea
     Bumelia lanuginosa
     Garya cordiformis
T1    C.  illinoensis
     Celtis occidental is
     Cephalanthus  occidental is
     Cercis canadensis
     Cornus drummondii
     Corylus americana
     Crataegus  sp.
     Diospyros  virgim'ana
     Forestiera acuminata
     Fraxinus americana
          var americana
     F_.  pennsylvanica
          var subintegerruna
     F.  tomentosa
                                                           TREES AND SHRUBS
    Box elder
    Silver maple
    Red buckeye
    Cane
    False buckthorn
    Bitternut hickory
    Pecan
    Hackberry
    Buttonbush
    Eastern redbud
    Rough-leaved dogwood
    Hazel nut
    Hawthorn
    Persimmon
    Swamp privet
    White ash

    Green ash

    Pumpkin ash
                                                                   X
                                                                   X
  X
  X
X
X

X

X
            X
            X
                       X
                       X
X
X
X

X
X

X

X

-------
                                                      Table 6.1-5 (Continued)
ov
ro
o
     SCIENTIFIC NAME
                                                                                                         Page 2 of 4
COMMON NAME
HABITAT

Gleditsia triacanthos
Ilex decidua
Maclura pomifera
Morus rubra
Nyssa sylvatica
Planera aquatica
Platanus occidentalis
Populus deltoides
Prunus serotina
Quercus lyrata
Q. nuttallii
Q. rubra
Q. stellata
Q. velutina
Rhus glabra
R. radicans
Rubus sp.
Salix nigra
Sambucus canadensis
Sassafras albidum
Ulmus rubra
Juniperus virginiana
Liquidambaj^ styraciflua

Honey locust
Possum haw
Osage orange
Red mulberry
Black gum
Water elm
Sycamore
Cottonwood
Black cherry
Overcup oak
Nuttalls oak
Red oak
Post oak
Black oak
Smooth sumac
Poison ivy
Bramble
Black willow
Common elderberry
Sassafras
Slippery elm
Redcedar
Sweetgum
Swamp Upland
Forest Forest
X X
X X
X
X
X
X
X
X
X
X
X
X X
X
X X
X
X
Ditch
Woody Herbaceous and Pond
Hedgerow Hedgerow Bank
X
X
X
X
X
X
X
X
X
X
X
X

-------
                                                       Table 6.1-5 (Continued)
i
ro
      SCIENTIFIC NAME
                                                                                                     Page  3  of 4
COMMON NAME
HABITAT

Ampelopsis arborea
A. cordata
Berchemia scandens
Brunnichia cirrhosa
Camps is radicans
Ipomoea pandurata
Lonicera japonica
Menispermum canadense
Parthenocissus quinquefolia
Passiflora incarnata
Smilax bona-nox
Vitus rotundi folia
Amaranthus hybridus
Ambrosia artemisiifolia
A. trifida
Ammannia cocci nea
Amsonia tabernaemontana
Boehmeria cylindrica
Carex sp.
Commelina virginica

Pepper vine
Raccoon grape
Supple-jack
Buckwheat vine
Trumpet creeper
Wild potato vine
Japanese honeysuckle
Moonseed
Virginia creeper
Maypops
Catbrier
Muscadine
Green amaranth
Common ragweed
Giant ragweed
Tooth-cup
Blue-star
False-nettle
Sedge
Day flower
Swamp
Forest
VINES
X
X
X
X
X
HERBS
X
X
Upland
Forest
X
X
X
X
X
X
X
X
X
Ditch
Woody Herbaceous and Pond
Hedgerow Hedgerow Bank
X
X
X X
X
X
X
X
X X
X
X X
X X
X X
X

-------
                                                       Table  6.1-5 (Continued)
-ro
ro
     SCIENTIFIC NAME
                                                                                                          Page 4 of 4
COMMON NAME
HABITAT
Ditch
Swamp Upland Woody Herbaceous and Pond
Forest Forest • Hedgerow Hedgerow Bank
Erigeron annuus
E. canadensis
Euphorbia maculata
Geum canadense
Graminae
Hibiscus lasiocarpos
Labitae
Lactuca scariola
Laportea canadensis
Lepidium virginicum
Lespedezia cuneata
Phytolacca americana
Polygonum densiflorum
Rorippa islandica
Sagittaria graminea
Silene stellata
Solanum carolinense
Sorghum halepense
Uniola latifolia
Verbena hastata
Viola sp.
Xanthium strumarium
Daisy fleabane
Horseweed
Nodding spurge
White avens
Grass
Rose mallow
Mint
Prickley lettuce
Wood nettle
Pepper grass
Sericea lespedezia
Pokeweed
Knotweed
March yellow cress
Grass-leaved arrowhead
Starry campion
Horse nettle
Johnson grass
Broadleaf uniola
Blue vervain
Violet
Cocklebur
X
X X
X
X
X
X X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
XX X

-------
                                                          Table 6.1-6
                                            Reptiles and Amphibians Which May
                                     Occur in the Vicinity of the Independence Site
                                                                                               Page 1  of 4
     Scientific Name
                                        Common Name
                           Cropland
                           & Fields
  Habitat
Hedgerows
& Field Edges
         Rivers
Forests  & Lakes
cr>
i
rv>
CO
   REPTILES
Chelydra serpentina
Macroclemys temmincki
Sternotherus odoratus
Kinosternon subrubrum hippocrepis
Terrapene Carolina triunguis
J_. ornata ornata
Graptemys geographica
G_. kohni^
G_. pseudogeographica ouachitensis
Chrysemys scripta elegans
C_. concinna hieroglyphica
C_. floridama hoyi
C_. pi eta dorsalis
Deirochelys reticularia mi aria
Trionyx muticus muticus
J_. spiniferus hartwegi
Anolis carolinensis
Sceloporus undulatus hyacinthinus
Cnemidophorus sexlineatus
Snapping turtle
Alligator snapping turtle
Stinkpot
Mississippi mud turtle
Three-toed box turtle
Ornate box turtle
Map turtle
Mississippi map turtle
Ouachita map turtle
Red-eared turtle
SIider
Missouri slider
Southern painted turtle
Western chicken turtle
Midland smooth softshell
Western spiny softshell
Green anole
Northern fence lizard
Six-lined racerunner
     X
     X
                                                                                          X
                                                                                          X
                                                                                          X
  X
  X
                  X
                  X
                  X
                                                                                                                X
                                                                                                                X
                                                                                                                X
                                                                                                                X
                                                                                                                X
                                                                                                                X
                                                                                                                X
                                                                                                                X
                                                                                                                X
                                                                                                                X
                                                                                                                X
                                                                                                                X
                                                                                                                X
                                                                                                                X

-------
                                                   Table 6.1-6  (Continued)
I
ro
                                                                                          Habitat
                                                                                                 Page 2 of 4
Scientific Name
Leiolopisma lateral e
Eumes fasciatus
E. laticeps
Ophisaurus attenuatus attenuatus
Common Name
Ground skink
Five-lined skink
Broad-headed skink
Western slender glass
Cropland
& Fields
lizard
Hedgerows
& Field Edges
X
X
X
X
Forests
X
X
X
X
Rivers
& Lakes

 Natrix  cyclopion
 N_.  rhomb if era
 N_.  erythrogaster neglecta
 II-  sipedon pleuralis
 N^.  fasciata confluens
•N_.  grahami
 Storeria  dekayi  wrightorum
 S^.  occrpitomaculata
 Thamnophis sirtalis  sirta1is
 T_.  proximus
 Virginia  valeriae elegans
 Heterodon platyrhinos
 Diadophis punctatus  stictogenys
 Carphophis amoenus vermis
 Farancia  abacura reinwardti
 Coluber constrictor  priapus
 Masticophis flagellum  flagellum
 Opheodrys aestivus
    Green water snake
    Diamondback water snake
    Northern copper belly
    Midland water snake
    Broad-banded water snake
(S)  Graham's water snake
    Midland brown snake
    Northern red-bellied snake
    Eastern garter snake
    Western ribbon snake
    Western earth snake
    Eastern hognose snake
    Mississippi ringneck snake
    Western worm snake
    Western mud snake
    Southern black racer
    Eastern coachwhip
    Rough green snake
                                                                                            X
                                                                                            X
                                                                                            X

                                                                                            X
                                                                                            X
                                                                                            X
                                                                                            X
                                                                                            X
X
X
X
X
X
X

X
X
X
         X
         X
         X
         X
         X
         X
X
X

-------
                                                  Table 6.1-6 (Continued)
                                                                                                     Page 3 of 4
      Scientific Name
                                        Common Name
                           Cropland
                           & Fields
   Habitat
Hedgerows
& Field Edges
Forests
Rivers
& Lakes
r\>
en
Elaphe obsoleta obsoleta
Lampropeltis getulus holbrooki
L^. triangulum syspila
L_. calligaster calligaster
Cemophora coccinea                  (S)
Tantilla gracilis hallowelli
Agkistrodon contortrix contortrix
A_. piscivorus leucostoma
Sistrurus miliarius streckeri
Crotalus horridus atricaudatus
      AMPHIBIANS
Necturus maculosus louisianensis
Amphiuma tridactylum
Siren intermedia nettingi
Ambystoma opacum
A_. texanum
A_. maculatum
A_. tigriniim
Notophthalmus viridescens louisianensis
Bufo americanus charlesmithi
B. woodhousei fowleri
Black rat snake
Speckled kingsnake
Red milk snake
Prairie kingsnake
Scarlet snake
Northern flat-headed snake
Southern copperhead
Western cottonmouth
Western pygmy rattlesnake
Canebrake rattlesnake
                                              Louisiana waterdog
                                              Tree-toed amphiuma
                                              Western lesser siren
                                              Marbled salamander
                                              Small-mouthed salamander
                                              Spotted salamander
                                              Eastern tiger salamander
                                              Central newt
                                              Dwarf american toad
                                              Fowler's toad
                                                                                           X
                                                                                           X
                                                                                           X
                                                                                           X
                                                                                           X
                                                                                           X
                                                                                           X
                                             X
                                             X
                  X
                  X
                  X
                  X
                  X
                  X
                  X
                  X
                  X
                  X
                  X
                  X
                                                                   X
                                                                   X
                                                                   X
                                                                   X
                                                                   X
                                                                   X
                                                                   X
                                                                   X

-------
                                                  Table  6.1-6  (Continued)
      Scientific  Name
                                                                                                Page 4 of 4
                                                                                        Habitat
                                        Common Name
                           Cropland
                           & Fields
Hedgerows
& Field Edges
Forests
Rivers
& Lakes
CTl
ro
en
      Acris  crepitans  blanchardi
      Hyla crucifer  crucifer
      Mi. cinerea
      iL_ chrysoscelis
      Pseudacris  triseriata feriarum
      Gastrophryne carolinensis
      Rana catesbeiana
      R.  clamitans clami tans
R.  utricularia
R.  palustris
Blanchard's cricket frog
Northern spring peeper
Green treefrog
Gray treefrog
Upland chorus frog
Eastern narrow-mouthed toad
Bullfrog
Bronze frog
Southern leopard frog
Pickerel frog
                           X
                           X
                           X
                           X
                           X

                           X
                           X
                           X
                           X
      Note:   (S)  =  Species  of special  concern  due to  lack  of  distributional  data.

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                                                             Table  6.1-7
                                                      Birds  Which May Occur in
                                                the Vicinity of the Independence  Site
                                                                                               Page 1  of 12
      Scientific Name
                                        Common Name
                                  Cropland
                                  & Fields
       Habitat
Fence Rows
& Field Edges
Forests
Rivers
& Lakes
ro
Gavia immer
Podiceps auritus
Pj_ nigricollis
Aechmophorus occidental is
Podilymbus podiceps
Pelecanus erythrorhynchos
Phalacrocorax auritus
Ardea herodias
      Butorides virescens
      Florida caerulea
      Bubulcus ibis
      Casmerodius  albus
      Nycticorax nycticorax
      Nyctanassa violacea
      Botaurus  lentiginosus
      Branta canadensis
      Anser albifrons
      Chen caerulescens
    Common loon
    Horned grebe
    Eared grebe
    Western grebe
    Pied-billed grebe
    White pelican
(B) Double-crested cormorant
(R) Great blue heron
    Green heron
(R) Little blue heron
    Cattle egret
(R) Great egret
(R) Black-crowned night heron
(R) Yellow-crowned night heron
    American bittern
    Canada Goose
    White-fronted goose
    Snow goose
                           X
                           X
                           X
                           X
                           X
                           X
                           X
                           X
                           X
                           X
                           X
                           X
                           X
                           X
                           X
                           X
                           X
                           X

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                                                        Table 6.1-7 (Continued)
                                                                                           Page 2 of 12
       Scientific Name
                                         Common  Name
                                  Cropland
                                  & Fields
       Habitat
Fence Rows
& Field Edges
Forests
Rivers
& Lakes
ro
00
       Anas  platyrhynchos
       A_._ rubripes
       A_._ strepera
       A_._ acuta
       A_._ crecca
       A.  discors
A_._ americana
A._ clypeata
Aix sponsa
Aythya americana
A_._ collaris
A_._ valisineria
A. marila
       A.  affinis
       Bucephala clangula
       B^_ albeola
       Clangula hyema1is
       Melanitta nigra
       Oxyura jamaicensis
       Lophodytes cucullatus
       Mergus merganser
       M.  serrator
    Mallard
    Black duck
    Gadwall
    Pintail
    Green-winged teal
    Blue-winged teal
    American wigeon
    Northern shoveler
    Wood duck
    Redhead
    Ring-necked duck
    Canvasback
    Greater scaup
    Lesser scaup
    Common goldeneye
    Bufflehead
    Oldsquaw
    Black scoter
(R) Ruddy duck
(R) Hooded merganser
    Common merganser
    Red-breasted merganser
                            X
                            X
                            X
                            X
                            X
                            X
                            X
                            X
                            X
                            X
                            X
                            X
                            X
                            X
                            X
                            X
                            X
                            X
                            X
                            X
                            X
                            X

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                                                       Table 6.1-7 (Continued)
Page 3 of 12
                                                                                              Habitat
I
PO
us
Scientific Name
Cathartes aura
Coragyps atratus
Accipiter striatus
A. cooper ii
Buteo jamaicensis
B. lineatus
B. platypterus
Aquila chrysaetos
Haliaeetus leucocephalus
Circus cyaneus
Pandion haliaetus
Falco sparverius
Colinus virginianus
Meleagris gallopavo
Rallus elegans
R. limicola
Porzana Carolina
Porphyrula martini ca
Gallinula chloropus
Fulica americana
Charadrius vociferus
Common Name
Turkey vulture
Black vulture
(B) Sharp-shinned hawk
Cooper's hawk
Red- tailed hawk
(R) Red-shouldered hawk
Broad-winged hawk
(E,B) Golden eagle
(E,B) Southern bald eagle
(B) Marsh hawk
(B) Osprey
American kestrel
Bobwhite
Turkey
(R) King rail
Virginia rail
Sora
(R) Purple gallinule
Common gallinule
American coot
Kill deer
Cropland
& Fields
X
X
X
X
X
X
X
X
X
X
X
X
Fence Rows
& Field Edges
X
X
X
X
X
X
X
X
X
X
Forests
X
X
X
X
X
X
X
X
X
X
Rivers
& Lakes
X
X
X
X
X
X
X
X

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                                                  Table 6.1-7 (Continued)
                                                                                           Page  4  of 12
      Scientific Name
                                        Common Name
                              Cropland
                              & Fields
       Habitat
Fence Rows
& Field Edges
Forests
Rivers
& Lakes
CT>
GO
O
Philohela minor
Capella gallinago
Bartramia longicauda
Actitis macularia
Tringa solitaria
J_._ melanoleuca
J_._ flavipes
Catotrophorus semipalmatus
Calidris melanotos
C. minutilla
      C. pusilla
      C. alba
      Limnodromus griseus
      L^ scolopaceus
      Micropalama himantopus
      Recurvirostra americana
      Larus argentatus
      L_._ delawarensis
      L. atricilla
      L_._ pipixcan
      L. Philadelphia
American woodcock
Common snipe
Upland sandpiper
Spotted sandpiper
Solitary sandpiper
Greater yellowlegs
Lesser yellowlegs
Willet
Pectoral sandpiper
Least sandpiper
Semipalmated sandpiper
Sanderling
Short-billed dowitcher
Long-billed dowitcher
Stilt sandpiper
American avocet
Herring gull
Ring-billed gull
Laughing gull
Franklin's gull
Bonaparte's gull
                                                                               X
                                                                               X
                  X
                  X
            X
            X
            X
            X
            X
            X
            X
            X
            X
            X
            X
            X
            X
            X
            X
            X
            X
            X
            X
            X
            X

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                                                  Table 6.1-7 (Continued)
Page 5 of 12
                                                                                              Habitat
CO
Scientific Name
Sterna forsteri
S. hirundo
S. albifrons
Hydroprpgne_ caspia
Chlidonias niger
Columba livia
Zenaida macroura
Coccyzus americanus
C. erythropthalmus
Tyto alba
Otus asio
0. flammeolus
Strix varia
Asio flammeus
Caprimulgus carolinensis
C. vociferus
Chordeiles minor
Chaetura pelagica
Archilochus colubris
Megaceryle alcyon
Common Name
Forster's tern
Common tern
Least tern
Caspian tern
Black tern
Rockdove
Mourning dove
Yellow-billed cuckoo
Black-billed cuckoo
Barn owl
Screech owl
Great horned owl
Barred owl
Short-eared owl
Chuck-will 's-widow
Whip-poor-will
Common nighthawk
Chimney swift
Ruby-throated hummingbird
Belted kingfisher
Cropland
& Fields
X
X
X
X
X
X
X
X
Fence Rows
& Field Edges
X
X
X
X
X
X
X
X
Forests
X
X
X
X
X
X
X
X
X
X
X
X
Rivers
& Lakes
X
X
X
X
X
X

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                                                 Table 6.1-7  (Continued)
Page 6 of 12
                                                                                              Habitat
i
oo
ro
Scientific Name
Colaptes auratus
Dryocopus pileatus
Centurus carol inus
Melanerpes erythrocephalus
Sphyrapicus varius
Dendrocopos villosus
D. pubescens
Tyrannus tyrannus
Muscivora forficata
Myiarchus crinitus
Sayornis phoebe
Empidonax flaviventris
E. virescens
E. traillii
E. minimus
E. difficilis
Contopus virens
Eremophila alpestris
Iridoprocne bicolor
Riparia riparia
Stelgidopteryx ruficollis
Common Name
Common flicker
Pi lea ted woodpecker
Red-bellied woodpecker
Red-headed woodpecker
Yellow-bellied sapsucker
Hairy woodpecker
Downy woodpecker
Eastern kingbird
Scissor-tailed flycatcher
Great crested flycatcher
Eastern phoebe
Yellow-bellied flycatcher
Acadian flycatcher
(R) Willow flycatcher
Least flycatcher
Western flycatcher
Eastern wood pewee
Horned lark
Tree swallow
Bank swallow
Rough-winged swallow
Cropland Fence Rows Rivers
& Fields & Field Edges Forests & Lakes
X
X
X
X
X
X
X
X X
X X
X
X
X
X
X
X X
X
X
X X
XX X
X X
X X

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                                                  Table 6.1-7 (Continued)
Page 7 of 12
                                                                                              Habitat
CO
CO
Scientific Name
Hirundo rustica
Petrochelidon pyrrhonota
Progne subis
Cyanocitta cristata
Corvus brachyrhynchos
C. ossifragus
Parus carol inensis
P. bicolor
Sitta carol inensis
S. canadensis
Certhia familiar is
Troglodytes aedon
T. troglodytes
Thryomanes bewickii
Thryothorus ludovicianus
Telmatodytes palustris
Cistothorus platensis
Mimus polygl ottos
Dumetella carolinensis
Toxostoma rufum
Turdus migratorius
Hylocichla mustelina
Common Name
Barn swallow
Cliff swallow
Purple martin
Blue jay
Common crow
Fish crow
Carolina chickadee
Tufted titmouse
White-breasted nuthatch
Red-breasted nuthatch
Brown creeper
House wren
Winter wren
(R) Bewick's wren
Carolina wren
Long-billed marsh wren
(R) Short-billed marsh wren
Mockingbird
Gray catbird
Brown thrasher
American robin
Wood thrush
Cropland Fence Rows
& Fields & Field Edges
X X
X X
X X
X
X X
X X
X
X - -
X X
X
X
X
X
X X
X
Forests
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Rivers
& Lakes
X
X

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                                                 Table 6.1-7 (Continued)
Page 8 of 12
                                                                                             Habitat
GO
Scientific Name
Catharus guttatus
C. ustulatus
C. minimus
C. fuscescens
Si alia si all's
Polioptila caerulea
Regulus satrapa
R. calendula
Anthus spinoletta
A. spragueii
Bombycilla cedrorum
Lanius ludovicianus
Sturnus vulgaris
Vireo griseus
V. bellii
V. flavifrons
V. solitarius
V. olivaceus
V. philadelphicus
V. gilvus
Common Name
Hermit thrush
Swainson's thrush
Gray-cheeked thrush
Veery
Eastern bluebird
Blue-gray gnatcatcher
Golden-crowned kinglet
Ruby-crowned kinglet
Water pipit
Sprague's pipit
Cedar waxwing
Loggerhead shrike
Starling
White-eyed vireo
Bell 's vireo
Yellow-throated vireo
Solitary vireo
Red-eyed vireo
Philadelphia vireo
Warbling vireo
Cropland Fence Rows
& Fields & Field Edges
X
X
X
X
X
X
X
X
X X
X X
X
X
X X
Forests
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Rivers
& Lakes
X
X

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                                                  Table  6.1-7  (Continued)
Page 9 of 12
                                                                                              Habitat
GO
en
Scientific Name
Mniotilta varia
Protonotaria citrea
Limnothlypis swainsonii
Helmitheros vermivorus
Vermivora chrysoptera
\L_ pinus
V. ruficapilla
Parula americana
Dendroica petechia
D. magnolia
D. coronata
D. cerulea
D. fusca
D. dominica
D. pensylvanica
D. castanea
D. striata
D_._ pinus
D. discolor
Common Name
Black-and-white warbler
Prothonotary warbler
Swainson's warbler
Worm-eating warbler
Golden-winged warbler
Blue-winged warbler
Nashville warbler
Northern parula
Yellow warbler
Magnol ia warbler
Yel low-rumped warbler
Cerulean warbler
Blackburnian warbler
Yellow-throated warbler
Chestnut-sided warbler
Bay-breasted warbler
Blackpoll warbler
Pine warbler
Prairie warbler
Cropland Fence Rows Rivers
& Fields & Field Edges Forests & Lakes
X
X
X
X
X X
X
X X
X
X
X X
X
X
- - X
X
X X
X
X
X
X X

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                                                  Table 6.1-7 (Continued)
Page 10 of 12
                                                                                              Habi tat
I
CO
Scientific Name
Seiurus aurocapillus
S. noveboracensis
S. motacilla
Oporornis formosus
0. Philadelphia
Geothlypis trichas
Icteria virens
Wilsonia citrina
W. pusilla
W. canadensis
Setophaga ruticilla
Passer domesticus
Doliehonyx oryzivorus
Sturnella magna
S. neglecta
Agelaius phoeniceus
Icterus spurius
I. galbula
Euphagus carol inus
E. cyanocephalus
Quiscalus quiscula
Molothrus ater
Common Name
Ovenbird
Northern waterthrush
Louisiana waterthrush
Kentucky warbler
Mourning warbler
Common yellowthroat
Yellow-breasted chat
Hooded warbler
Wilson's warbler
Canada warbler
American redstart
House sparrow
Bobolink
Eastern meadowlark
Western meadowlark
Red-winged blackbird
Orchard oriole
Northern oriole
Rusty blackbird
Brewer's blackbird
Common grackle
Brown-headed cowbird
Cropland
& Fields
X
X
X
X
X
X
X
X
X
Fence Rows
& Field Edges
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Forests
X
X
X
X
X
X
X
X
X
Rivers
& Lakes
X
X

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                                                  Table 6.1-7 (Continued)
Page 11  of 12
                                                                                              Habitat
I
00
Scientific Name
Piranga olivacea
P. rubra
Cardinalis cardinalas
Pheucticus ludovicianus
Guiraca caerulea
Passer ina cyanea
P. ciris
Spiza americana
Hesperiphona vespertina
Carpodacus purpureus
Acanthi s flammea
Spinus pinus
S. tristis
Loxia curvi rostra
Pipilo erythrophthalmus
Passerculus sandwichensis
Ammodramus savannarum
A. henslowii
Ammospiza leconteii
Pooecetes gramineus
Chondestes grammacus
Aimophila aestivalis
Common Name
Scarlet tanager
Summer tanager
Cardinal
Rose-breasted grosbeak
Blue grosbeak
Indigo bunting
Painted bunting
Dickcissel
Evening grosbeak
Purple finch
Common redpoll
Pine siskin
American goldfinch
Red crossbill
Rufous-sided towhee
Savannah sparrow
(R) Grasshopper sparrow
Henslow's sparrow
Le Conte's sparrow
Vesper sparrow
Lark sparrow
(R) Bachman's sparrow
Cropland
& Fields
X
X
X
X
X
X
X
X
X
X
X
Fence Rows
& Field Edges
X
X
X
X
X
X
X
X
X
X
X
X
Rivers
Forests & Lakes
X
X
X
X
X
X
X
X
X
X

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                                                  Table 6.1-7 (Continued)
Page 12 of 12
                                                                                              Habitat
I
CO
00
Scientific Name
Junco hyemalis
Spizella passerina
S. pusilla
Zonotrichia querula
Z. leucophrys
Z. albicollis
Passerella iliaca
Melospiza lincolnii
M. georgiana
M. melodia
Calcarius lapponicus
C. pictus
C. ornatus
Plectrophenax nival is

Common Name
Dark-eyed junco
Chipping sparrow
Field sparrow
Harris 's sparrow
White-crowned sparrow
White-throated sparrow
Fox sparrow
Lincoln's sparrow
Swamp sparrow
Song sparrow
Lapland longspur
Smith's longspur
Chestnut-collared longspur
Snow bunting
Cropland
& Fields
X
X
X
X
X
X
X
Fence Rows
& Field Edges
X
X
X
X
X
X
X
X
X
Rivers
Forests & Lakes
X
X
X
X
X
X
      Note:  (E) = Federally protected endangered species
             (B) = Species that nested in Arkansas at one time but have no recent nesting records
             (R) = Breeding populations are threatened or endangered in Arkansas .

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CTV
I
CO
                                                        Table 6.1-8

                             Mammals Which May Occur in the Vicinity of the Independence Site

                                                                                        Habitat
Page 1  of 3
Scientific Name
Didelphis marsupial is
Sorex longirostris
Cryptotis parva
Blarina brevicanda
Seal opus aquaticus
Myotis lucifugus
M. austroriparius
M. grisescens
M_._ keeni
M. sodalis
M. subulatus
Pipistrellus subflavus
Eptesicus fuscus
Lasiurus boreal is
L. cinereus
Nycticeius humeral is
Plecotus rafinesquei
Ursus americanus
Procyon lotor
Mustela frenata
M. vison
Cropland Fence Rows
Common Name & Fields & Field Edges
Opossum X
Southeastern shrew X X
Least shrew X X
Shorttail shrew X X
Eastern mole X X
Little brown myotis
Mississippi myotis X
Gray myotis X
Keen myotis
Indiana myotis
Small -footed myotis X
Eastern pipistrel
Big brown bat
Red bat
Hoary bat
Evening bat
Eastern big-eared bat
Black bear
Raccoon X X
Longtail weasel
Mink
Rivers
Forests & Lakes
X
X
X
X
X X
X
X
X X
X X
X
X X
X
X
X
X
X
X
X
X
X X

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                                                  Table 6.1-8 (Continued)
Page 2 of 3
                                                                                        Habitat
CTi
Scientific Name
Lutra canadensis
Spilogale putorius
Mephitis mephitis
Cam's latrans
Vulpes fulva
Urocyon cinereoargenteus
Felis concolor
Marmota monax
Tamlas striatus
Sciurus carol inensis
Sciurus niger
Glaucomys volans
Geomys bursar i us
Castor canadensis
Reithrodontomys humulis
Reithrodontomys megalotis
Reithrodontomys fulvescens
Peromyscus maniculatus
Peromyscus lencopus
Peromyscus gossypinis
Peromyscus nuttalli
Neotoma floridana
Cropland
Common Name & Fields
River otter
Spotted skunk
Striped skunk X
Coyote X
Red fox X
Gray fox X
Mountain lion
Woodchuck X
Eastern chipmunk
Eastern gray squirrel
Eastern fox squirrel
Southern flying squirrel
Plains pocket gopher X
Beaver
Eastern harvest mouse X
Western harvest mouse X
Fulvous harvest mouse X
Deer mouse X
White-footed mouse
Cotton mouse
Golden mouse
Eastern woodrat
Fence Rows
& Field Edges
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Rivers
Forests & Lakes
X X
X
X
X
X
X
X
X
X
X
X
X X
X
X
X
X
X

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                                            Table 6.1-8 (Continued)
                                                                 Page 3 of 3
                                                                                  Habitat
Scientific Name
Common Name
Cropland
& Fields
Fence Rows
& Field Edges
Forests
Rivers
& Lakes
Oryzomys palustris
Sigmodon hispidus
Synaptomys cooperi
Pitymys pinetorum
Ondatra zibethicus
Rattus norvegicus
Mus musculus
Sylvilagus floridanus
S^ aquaticus
Odocoileus virginianus
Rice rat
Cotton rat
Southern bog lemming
Pine vole
Muskrat
Norway rat
House mouse
Eastern cottontail
Swamp rabbit
Whitetail deer
   X
   X
   X
   X
   X
   X
     X
     X
     X
     X
     X
   X
   X
   X

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Y////A  PASTURE
        CROPLAND



        SURVEY ROUTE
                hahitat- man chnwinn  cuv\ia\i

-------
i
•Ck
cn
                                       UJ


                                   1   i
                                   *
                                   o
                                       UJ
Q
o
o
i
2
O
    hi


I   5
-J   K
-J   «i


*   i


i   I
(D   0)
           UJ

           UJ
                                                               FEET
      Figure 6.1-2.  Independence site - representative  cross  section of surveyed young  hedgerow community.

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                                                                                                                 100
Figure 6.1-3.  Independence site - representative cross section of surveyed mature hedgerow community.

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6.2  IMPACT OF S02 ON THE SITE VICINITY
     National Secondary Ambient Air Standards have been established for
the protection of public welfare, which includes the effects on vegeta-
tion, materials and animals.  These standards were revised in 1973, and
the standard for S02 was made less restrictive.  The standards esta-
blished for S02 were 0.5 ppm for 3 hours, and 0.14 ppm for 24 hours.
These standards are sufficient to protect the public welfare from any
known or anticipated adverse effects associated with the presence of SOp
in the ambient air.  The proposed plant will not only meet the Federal
Secondary Ambient Air Standards, but will be below them.  The conclusions
presented here are based on this assurance.
6.2.1  Effect of SOo on Soil
     The soil in the Independence site vicinity is typified as belonging
to the Bottomland and Terrace soils of the Mississippi Alluvial Plain.
Generally, these soils are deep alluvial material with texture varying
from coarse to fine.  Soil samples were taken from a soybean field, a
pasture, and a forested area near the site in Independence County and
from a soybean field, cemetery, and forested area in Jackson County.
The resultant analysis of soils is presented in Table 6.2-1.  This anal-
ysis indicates that the parameters tested are in the range for optimum
growth of the plants present.
     In considering arable soil, it is generally accepted that S02 has
no detrimental effects because these soils are well limed and because
CaCOo in the soil converts the SOp to calcium sulfate which is a com-
ponent in many fertilizers.
6.2.2  Effect of SOp on Vegetation
     More work has been done on the response of vegetation to S02 than
any other air pollutant.  Barrett and Benedict (1970) have stated that
injury to vegetation by S02 is usually found only in areas adjacent to
or close to the source.  In the experience of Drs. Hendrix, Powell, and
Taylor (Dr. Hendrix, 1977 personal communication), if damage occurred it
was generally within 6 miles of power plants.  The determination of S00
                                  6.2-1

-------
levels in the atmosphere is relatively simple, and automatic methods of
monitoring in sub-ppm concentrations are available.  Because of this, it
has been possible to establish the ground level concentrations which
have a probability of producing injury to vegetation.
     Injury to vegetation by SO,, occurs most frequently on foliage.
Occasionally, flowers or fruit are injured.  Injury consists of killing
cells and is always accompanied by visible symptoms.  There has been a
theory that vegetation can be injured by S02 without visible symptoms.
According to Katz (1949), Thomas (1951), and many others, no basis has
been found which can be used to prove this theory.  In fact, no signifi-
cant yield reduction of crops has been found unless the area of visible
markings on the leaves was more than about 5 percent.  In summary, there
is no "hidden injury" to vegetation by S02 . and no economic damage is
observed until 5 percent of the leaf surface is affected.
     When exposures to S02 are intermittent, rather than continuous,
damage is less likely to occur.  Zahn (1970) states that the reason for
this is that the leaf tissue changes S02 to S03 to SO. during the period
when no S02 is in the air.  SO, is only 3 percent as toxic as S02 or
S03, and according to Thomas and others (1950), is used by the plant as
an essential element for growth.
     Sulfur dioxide in the atmosphere is injurious to vegetation only
when it occurs at high enough concentrations, for long enough periods of
time, and when vegetation is present in a sensitive state.  Under other
conditions, S02 would not injure vegetation.
     A number of studies have been done on the effect of S02 on rice.
Taniyama, Arikado, and Iwata (1971) exposed rice to 0.271 ppm up to
1.415 ppm for up to 30 days.  Typical symptoms failed to develop on
either the leaf blades or sheaths.  Plant height and leaf area were not
decreased, but the number of tillers was decreased as the concentration
of S02 increased.  The average number of tillers was decreased from 15.2
to 15.0 with exposure to  0.271 ppm for 30 days, and to 14.7 after expo-
sure to 0.719 ppm for 30 days.  Taniyama and Arkikado (1969) found that
exposure of rice plants to high levels of S02 decreased the food manufac-
turing capacity of rice leaves.  They exposed plants at levels of 6, 10,
                                 6.2-2

-------
20, 40, 60, and 70 ppm for 1 hour.  At concentrations up to 20 ppm, the
food producing capacity was normal 2 hours after fumigation ceased.
Thus, it is evident that exposure of rice to two times the National
Standard, but for 30 days, i.e., 30 times longer, has the effect of
reducing tillering 1.4 percent.  Exposure to 5 times the National Stan-
dard for 30 days reduced tillering only 3.4 percent.  No other effect
was noted.  Experience with small grains indicates that a reduction in
tillering does not usually lead to reduced yields, due to increased size
of the remaining heads of grain.  In terms of short-term exposures to
high levels, exposure of rice to 40 times the National Standard for 1
hour affected the food producing capacity of the leaf for less than 2
hours.
     According to Barrett and Benedict (1970), barley, rye, and wheat
are considered relatively sensitive to SOp.  However, Zimmerman (1952)
found that barley was not injured by 0.66 ppm SOp exposure for 5 hours.
When exposed to 1.35 ppm for one hour at 53 percent relative humidity,
17 percent of the leaf area was injured.  At the same SOp exposure, and
76 percent relative humidity, 18 percent of the leaf area was injured.
Bermuda grass was not injured by exposure to 1.8 ppm for 6 hours, accord-
ing to Brennan and Halisky (1970).  Grain sorghum was not injured by
exposure to 0.5 ppm SO,, for 8 hours.  Oats, exposed to 2.0 ppm for 30-
minute periods five times a day for 7 days were not injured, according
to Zimmerman (1952).  Rye, exposed to 0.77 ppm for 10 days (8 hours per
day) sustained no economic damage, according to Guderian and Stratmann
(1968).  Swain and Johnson (1936) found that wheat, another relatively
susceptible crop, exposed to 0.19 ppm for 24 days was not injured.  When
exposed to 1.35 ppm for 1 hour at 76 percent relative humidity, no injury
occurred to the wheat.  At 53 percent relative humidity, 4.2 percent of
the foliage was damaged at this exposure level.
     In one study Hendrix (1977, personal communication) found that
cotton, when exposed to 0.5 ppm for 8 hours, was not injured.  Soybeans,
exposed to 0.5 ppm to 6.0 ppm for 30 minutes, were injured to the extent
that yield decreased 0.66 percent.  This work was concerned with the
                                  6.2-3

-------
relationship between percent leaf necrosis and yield decrease, and did
not relate dosage to damage.  Assuming that the damage occurred at 6 ppm
for 30 minutes, this is an exposure factor of 3 (6 ppm x 0.5 hr.).  The
exposure factor allowed by the National Standard of 0.5 ppm for 3 hours
gives an exposure factor 1.5 (0.5 x 3).  This is less than the experi-
mental exposure factor by one-half, and 6 ppm for 38 minutes did not
cause economic damage to soybeans.  This is substantiated by Tingey and
others (1973), who found the threshold level  for damage to soybeans to
be 0.5 ppm S02 for 4 hours.  Hence, the National Standard will protect
soybeans (Hendrix, 1977 personal communication).
     Pecans have been found to be resistant to high-level, short-term
SOp exposure.  No damage was apparent when pecan trees were exposed to
1.0 ppm for 4 hours; however, damage occurred when plants were exposed
to 0.1 ppm for 96 hours.  Damage was also apparent when pecans were
exposed to 0.1 ppm for 48 hours and then exposed to 0.3 ppm for 4 addi-
tional hours (Hendrix, 1977 personal communication).
     Dreisinger (1967, 1970) found that maple, exposed to 0.5 ppm for 30
days had some disco!orations of the foliage.   When maples were exposed
to 0.75 ppm for 8 hours per day for 30 days,  there was some leaf dis-
coloration, but no leaf area was killed.  When they were exposed to
2.0 ppm for 8 hours, less than 10 percent of the leaf area was killed.
Oaks, exposed to 0.25 ppm for 30 days were not injured .  When they were
exposed to 0.75 ppm for 8 hours per day for 30 days, no injury occurred.
Sycamore, exposed to 2.0 ppm for 3 hours, generally had leaves killed,
and had leaf abscission according to Santamour (1969).  There are no
studies on sycamore at less severe concentrations.
     Yellow pines, in general, are resistant to S0~ injury.  For example,
exposure to 0.5 ppm for 1008 hours caused no injury, according to the
National Research Council of Canada.  From personal experience of Drs.
Hendrix and Taylor (Hendrix, 1977 personal communication), in assaying
damage in the Copper Hill, Tennessee, smelter area, these forest trees
are resistant.  When the Copper Hill smelter was first operated, no
                                  6.2-4

-------
attempt was made to control ambient air levels of SCL .  and all  vegeta-
tion was killed in the immediate vicinity of the smelter (5 to 10 mile
circle).  The first vegetation which one sees as he leaves the denuded
area are forest trees.  Currently, the smelter controls  ambient air
levels of S(L, and damage no longer occurs to vegetation in the area.
     Table 6.2-2 presents the effect, as compiled from Daines  (1968) on
other vegetation.  Generally, the National Secondary Ambient Air Standards
for S02 protect forest and fruit trees and crops.
                                  6.2-5

-------
                                                      Table 6.2-1

                                                 Soil  Sample Analysis
                                           Jackson and Independence Counties
                                                      Summer 1977
    Sample and Location
                                                                             Element  (in pounds/acre)
ro
i
(w/ reference to plant site)
2 mi. NE in
Independence Co.
2 mi. N in
Independence Co.
4 mi. N in
Independence Co.
about 10 mi. NE in
Jackson Co.
about 10 mi. NE in
Jackson Co.
about 8 mi . NE in
Jackson Co.
Crop

Soybeans

Pasture

Forest

Forest

Soybeans

Lawn
PH

6.6

5.0

4.9

6.9

6.6

6.5
P

24

17

7

24

18

20
K

55

290

205

325

140

245
Ca

1201

1004

625

1201

552

1080
Mg

72

240

132

268

39

168
ZN

5

8

5

10

3

26
Mn

120

120

120

120

84

120
B

0.2

0.2

0.3

0.8

0.1

0.1
S

10

28

23

10

10

10
      Legend

         P = Phosphorus
         K = Potassium
         Ca = Calcium
         Mg = Magnesium
Zn = Zinc
Mn = Mangenese
B = Boron
S = Sulfur

-------
at
ro
i
                                                        Table  6.2-2


                                            Effect of SO- on  Selected  Vegetation
Page 1 of 4
                                                              Exposure Intensity and  Duration  for  Given  Symptons
Plant Species
Castanea sp.
Mai us sp.
Pinus Virginia
Primus sp.
Quercus alba
Q. velutlna
Avena satlva
Begonia sp.
JL. sp.
L_ SP-
B_._ sp.
Beta vulgarls
Brasslca spp.
B. napobrasslca
B. oleracea
B. rapa
Clchorium endlva
£._ spp.
Coleus spp.
Cucurblta pepo
C. satlva
- Common
Name
Chinquapin
Apple
Virginia pine
Cherry
White oak
Black oak
Oat
Begonia
Begonia
Begonia
Begonia
Sugar beet
Mustard
. Turnip
Brussels sprout
Brussels sprout
Endive
Endive
Coleus
Pumpkin
Cucumber
No. Chronic
Symptoms Symptoms
ppra hrs. ppm

hrs.
1000.0 2
0.5 4-8
20.0 9
0.5 4-8
1000.0 3
20.0 29
0.85 4 0.6 3
1.0 6
1.0 6
1.0 2hr/day .98 1
40 days
.98 1
.2 117
1.0 2hr/day
40 days
.2 117
.2 117 1.05 2
1.08 1
3-4 1-4
3-4 1-4
Acute
Symptoms
ppm hrs .
1000.0 5.0
10.0 49.0
100.0 2.0
20.0 100.0
0.8 1.2
0.25 1.0
1.1 6.0
0.5 4-8
0.5 4-8
0.5 4-8

-------
                                                   Table  6.2-2  (Continued)                             Page 2 of 4
                                                         Exposure  Intensity and Duration for Given Symplons
ro
00
Common
Plant Species Name
Gardenia sp. Gardenia
Gladiolus sp. Gladiolus
Gossypium hirsutum Cotton
Hordeum vulgare Barley
Ipomoea batatas Sweet potato
Iris spp. Iris
Lactuca sativa Lettuce
Lycopersicon Tomato
esculentum
- .
No.
Symptoms
ppm hrs.
0.26 210
0.26 210
0.3 72.5
0.8 22
1.2 15.4
1.0 2hr/day
40 days
1.0 2hr/day
40 days
0.85 4
4.2 5
1
Chronic
Symptoms
ppm
8-10
0.5
0.3
0.5
0.6
0.9
1.2
1.2
0.66
0.8
0.5
1.05
0.66
3-4
0.5
hrs.
4
4-8
31.5
8
8
4
2.5
1.75
4
2
4-8
2
5
1-4
16
Acute
Symptoms
ppm
8-10
0.5
1.5
.5
1.0
5.0
8-10
0.5
0.5
0.5
3-4
100
100
hrs.
4
4-8
7hr/day
for 3 days
4-8(slight)
43
1
0.5
4-8
4-8
4-8
1-4
1.5 min.
22.0 min.

-------
       Plant Species
                    Common
                    Name
                                                       Table 6.2-2 (Continued)                       Page 3 of 4
                                                        Exposure Intensity and Duration for Given Symplons
                                                        No.
                                                     Symptoms
ppm
hrs.
                            Chronic
                           Symptoms
                 ppm
hrs.
                                              Acute
                                            Symptoms
                         ppm
                          hrs.
ro
to
      Medlcago  satlva
                    Alfalfa
Oxalls sp.          Mood sorrel
Pelargonlurn sp.
Phaseol us vulgan's  Kidney bean

Raphanus sativus    Radish
Rhododendron sp.    Azalea
Rosa sp.            Rose

Sal via splendens    Sage
      Secale cereale
      Sorghum sp.
      Triticum sp.
                    Rye
                    Milo
                    Wheat
      Tullpa sp.
      Zea mays
      Cynodon dactylon
                    Corn
                    Bermuda grass
0.1
0.85
0.5
0.2
0.2
0.3
0.18
0.28
1.35
0.5
0.75
1.8
504
                                             0.2      87.5
                                             1.25      0.5
                                              .85       4
   4
  4-8
   69
  576
   72
  672
  144
   2
  4-8
   6
   6
0.3
0.41
                          .66
                         1.25

                         3-4
                         3-4
                         0.5

                         0.98
                         8-10
                         3-4
0.82
3-4
0.6
0.8
3-4
 .77
66.5
  17
                            5
                            1

                           1-4
                           1-4
                            4

                            2
                            4
                           1-4
                                                                                       5
                                                                                      1-4
  1
 1-4
  24
                                                                                                      .8
                                                                                                      .4
                                                                                                     5.0
                                                                                                     3-4
                                                                                                     0.5
                                                                                                     1.52
                                                                                                     0.5
                                                                                                     0.5
                                                                                                     3-4
                0.8
                                                                                                     1.35
                                   1-2
                                    7
                                    1
                                   1-4
                                    4
                                    2
                                                            4-8
                                                            1-4
                                                  1.2

-------
ro
i
                                                      Table 6.2-2  (Continued)                        Page 4 of 4

                                                       Exposure  Intensity and Duration for  Given  Symptons
Plant Species
Poa pratensis
Festuca rubra
Zoysia japonica
Loli urn sp.
Tri folium
incarnatum
Alii urn cepa
Glycine max
Fragaria
grandi flora
Ulmus americana
U. parvi folia
Ginkgo biloba
Cory 1 us cornuta
Pyrus sp.
Platanus sp.

Common
Name
Blue grass
Fescue
Zoysia
Rye grass
Clover
Onion
Soybean
Strawberry
Elm
Elm
Ginko
Hazel-nut
Pear
Sycamore
No Chronic
Symptoms Symptoms
' ppm hrs. ppm hrs.
.75 6
0.75 6
.75 6
1.8 6
.85 6
1.0 2hr/day
40 days
2.0 8
.53 7
Acute
Symptoms
ppm
.85
.85
.75
.45
.9
1.0
6.0
2.0
2.0
.25-. 5
.75
.5
2.0
hrs.
6
6
6
8 hr/day
6 days
4-8hr/day
3-6 days
2hr/day
40 days
0.5
3
2-8
30 days
8hr/day
30 days
6
3
     Note:  Seeming contradictions in this table are due to different varieties, environmental
            conditions or plant ages.  Even so, there is only one case  (one species of Begonia)
            in which injury occurred at the level allowed by the National Standards.
     Source:  Dairies, 1968
              Altman and Dittmer, 1966

-------
6.3  REFERENCES

Altman, P. L., and Dittmer, D.,  1966,  Environmental  biology.  Federation
     of American Society for Experimental  Biology,  Bethesda, Maryland.

Arkansas Department of Planning, 1974, Arkansas  natural area plan.
     Arkansas Department of Planning,  Little  Rock,  Arkansas, 248 p.
                                                 j
Arkansas Game and Fish Commission,  1976,  1975-76 Annual deer harvest.
     mimeograph, 15 p.

Barrett, W., and Benedict, H.  M., 1970, Sulfur dioxide.  Section C,
     jh^ Recognition of air pollution injury to vegetation:  a pictorial
     atlas.

Braun, E. L., 1950, Deciduous forests  of  North America.  The Blakiston
     Division, McGraw-Hill Publishing  Company, New  York.

Brennan, Eileen, and Halisky, P.  M., 1970, Response of turfgrass cul-
     tivars to ozone and sulfur  dioxide in the atmosphere.  Phyto-
     athology, Vol. 60, p. 1544-1546.

Conant, R., 1975, A field guide  to  reptiles and  amphibians.  Houghton
     Miff1 in Company, Boston.

Cottam, G., and Curtis, J. T., 1956, The  use  of  distance measures in
     phytosociological sampling.   Ecology, Vol.  37, p. 451-460.

Daines, R. H.  , 1968, Sulfur dioxide and plant response, Journal of
     Occupational Medicine, Vol.  10, no.  9.

Dreisinger, B. R. , 1967, Sulfur  dioxide levels and  the effects of the
     gas on vegetation near Sudbury, Ontario. Ontario Department of
     Mines, Sudbury, Ontario.

	, 1970, Monitoring atmospheric  sulfur  dioxide and cor
     relating its effect on crops and  forests in the Sudbury area.  Im-
     pact of Air Pullution on Vegetation  Conference, Park  Plaza Hotel,
     Toronto, Ontario, April 7-9.

Federal Register, 1977, Endangered  and threatened wildlife and plants.
     U. S. Department of the Interior. Federal  Register, Vol. 42,
     no. 135, p.  36421-36431.

Guderian, R. , and Stratmann, H.,  1968, Field  experiments for determin-
     ing effects of sulfur dioxide  on  vegetation.   Part III:  Threshold
     values of harmful SO* immissions  for fruit  and forest trees and for
     agricultural and garaen plant  species.  Research Reports, State of
     North Rhine, Westphalia, no. 1920, West  German Press, Cologne and
     Opladen.
                                   6.3-1

-------
Hendn'x, F. F. , 1977, personal  communication.

Katz, Morris, 1949, Sulfur dioxide in  the  atmosphere and its relation
     to plant life.  Industrial  and Engineering Chemistry, Vol. 41, p.
     2450-2464.

Santamour, F. S.,  Jr., 1969,  Air pollution studies on Platanus and
     American elm  seedlings.   Plant Disease Reporter, Vol. 53, p. 482-
     485.

Swain, R. E., and  Johnson, A.  B., 1936,  Effect of sulfur dioxide on
     wheat development.   Industrial  and  Engineering Chemistry, Vol. 28,
     p. 42-47.

Taniyama, T., and  Arikado, H.,  1969, Studies on the mechanism of injur-
     ious effects  of toxic gases on crop plants:  V.  Effects of sulfur
     dioxide on photosynthesis  of rice plants.  Crop Science Society of
     Japan, Proceedings, Vol.  38, p. 598-602.

Taniyama, T., Arikado, H. , and  Iwata,  Y.,  1971, Studies on the mechanism
     of injurious  effects of  toxic gases on crop plants:  IX.  Effect of
     sulfur dioxide treatment for long periods on dry matter production
     in rice plants.  Crop Science Society Japan, Proceedings, Vol. 40,
     p. 455-461.

Thomas, P. D.,  1951, Gas damage  to plants.  Annual Review of Plant
     Physiology, Vol. 2, p. 293-322.

Thomas, M. D.,  Hendricks, R.  H., and Hill, G. R., 1950, Sulfur metabo-
     lism of plants.  Industrial  and Engineering Chemistry, Vol. 42, p.
     2231-2235.

Tingey, D. T. ,  Reinert,  R.  A.,  Wickliff, C., and Heck, W. W., 1973,
     Chronic ozone or sulfur  dioxide exposures or both, affect the early
     vegetative growth of soybean.   Canadian Journal Plant Science, Vol.
     53, p. 875-879.

Zahn, R. , 1970,  Investigation  into the significance of continuous and
     intermittent  sulfur dioxide effects on plant reaction.  Staub
     230:343-352.

Zimmerman, P.  W. ,  1952,  Effects  on plants  of impurities associated with
     air pollution, jn^Air pollution.  U.  S. Technical Conference,
     Proceedings,  Chapter 13.
                                     6.3-2

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      PART?
ARCHEOLOGY

-------
       TECHNICAL SUPPORT DOCUMENT
                 PART 7
   PRELIMINARY ARCHEOLOGICAL SURVEY OF

INDEPENDENCE STEAM ELECTRIC STATION SITE
           Adapted from Report
                   by
            Phyllis A. Morse

      Arkansas Archeological Survey
               August 1977
                   for
     Arkansas Power & Light Company

-------
                                PART 7
                              ARCHEOLOGY
RECORDS CHECK
     Arkansas has been occupied for at least the last 11,500 years.
Paleo-Indians and Archaic hunters, fishers, and gatherers effectively
exploited the rich resources of both the uplands and river valleys.
Bands of hunters with stable territories established villages, extrac-
tion sites, and even cemeteries.  Woodland and Mississippian Indians,
with the advent of agriculture, amalgamated into larger tribal and
chiefdom societies.  Large towns with satellite villages and farmsteads,
temple mounds, and large cemeteries emerged.  Late occupation by French,
Spanish, and other Euro-Americans can also be detected archeologically.
     Since the creation of the Arkansas Archeological Survey in 1967, a
program of mapping reported sites, doing problem-oriented site surveys
and excavations, and publishing results of this data gathering and
interpretation led to the recording of 170 sites in Independence County.
Three publications deal with Independence County sites:  Watershed
Summary of Archeological and Historic Resources in the White River
Basins by Carol Spears, Nancy Myer and Hester Davis, Arkansas Archeo-
logical Survey, Research Report 5; Arkansas Eastman Archeological Pro-
ject by Charles M. Baker, Arkansas Archeological Survey, Research Report
6; and an unpublished thesis, An Archeological Survey of a Portion of
the Central White River Basin:  Microenvironments and Their Exploita-
tion, by Kay Simpson Adams.
     The most common kind of site present in the area is a small scatter
of lithic debitage.  Diagnostic artifacts such as specific types of pro-
jectile points or sherds are not often present at these sites on the
surface.  These could be either Archaic or Woodland sites.  In other
parts of northeast Arkansas, a pattern of effective exploitation by late
Paleo-Indian and early Archaic hunters (11,500-9,000 B.C.) was followed
by a much smaller occupation during late Archaic.
     Woodland cultures are relatively unstudied in northeast Arkansas,
particularly the Baytown occupation.  The transition to horticulture and
                                      7.0-1

-------
the building of mounds, making of pottery and the expected increase in
                          X
population are expected to have occurred in the site area.  Cultural
influences from the west following the White River may be one factor in
creating tribal societies different from those in the eastern part of
northeast Arkansas.
     The establishment of Mississippian societies with intensive agri-
culture, large aggregates of population, chiefdom level  of political
organization, and varying sizes of settlement from dispersed farming
households to large walled towns is the main focus of research now
ongoing in northeast Arkansas archeology.  The "Adams phase" located
near Newport apparently represents the transition to intensive agri-
culture.  It differs from the kind of transition seen near Blytheville,
and it is important to understand why, there is a different response in
these two areas.
     Several major late Mississippian sites are recorded in Independence
County, two of which are less than 3 miles from the site.  Both the
Akron Cemetery sites and the Greenbriar site are probably major settle-
ments of the Magness phase.   Many other settlements relating to this
phase are probably present on the site.  It has been postulated that
major Mississippian ceremonial centers are usually located near several
differing ecological zones to better coordinate the extraction of re-
sources and distribute these to tribal members.  An engraved conch shell
showing art motifs related to the Southeastern Ceremonial Complex was
found at the Akron Cemetery site.  It will  be important to discover
related villages and other Mississippian sites in the research areas  to
see if other traces of this  religious complex are present.  Both early
and middle Mississippian sites are probably also present.
     An examination of the General Land Office Survey of 1838 showed  no
early Euro-American sites in the site area, although one such site was
located by field survey.  The value of the GLOs depends  often on the
reliability of the surveyor.  Other historic sites may be present.
                                    7.0-2

-------
SITE SURVEY
     Within the site vicinity, two sections were selected to be partially
field checked.  The perimeter of the whole area and interior roads were
previously surveyed by car and checked from the air.   A selective sam-
pling of two different parts of the White River bottoms floodplain was
made, based on differing topography, ease of acces£ from field roads,
and the enthusiastic cooperation of the landowners.
     A field road dividing Sections 10 and 9 was chosen, and a 1.5 mile
area was walked for sites.  Six sites were easily found within one-
quarter mile of the road.  Four of these (3IN173-3IN176) were on high
knolls of an old river natural levee system within one 60-acre area.
These were all in cultivated fields with sparse crops.  A lack of rain-
fall decreased visibility of specimens on the surface, but lithic debi-
tage, projectile points, and cobble tools were prevalent.  Almost every
high knoll with yellowish soil showed evidence of aboriginal occupation.
     The northeast quarter of Section 21 was selected as the next area
for survey.  This borders a present double bend meander of the White
River.  Ten sites were located by the survey team within a three hour
period (3IN177-3IN186).  These included small Archaic lithic scatters, a
Late Mississippian village site, and an early Euro-American occupation
dating about 1820.  Projectile points, scrapers, sherds, cobble tools,
and much lithic debitage was collected from these sites (Table 7-1).
The Euro-American occupation evidence included sherds of transfer
printed pearlware, earthworm mocha and banded ware, shell edge pearl-
ware, saltglazed stoneware, redware, and free blown bottle fragments.
No one is shown as living there on the 1838 General Land Office map, and
more research must be done on the historic records to interpret this
occupation.  A complex system of old stream terraces  is present in this
location, and at least one site is present on each terrace or knoll.
     A possible Euro-American industry site was discovered in the south-
east quarter of Section 12 (3IN187).  This was debris from a shell
button manufacturing site.  Piles of mussel shells with many round
perforations in them were present.  This could be a redeposition of
                                     7.0-3

-------
materials.  Field roads were checked in the rest of the site vicinity to
decide accessibility and difficulty of survey.   At the time of the
survey, fields planted in cotton, rice, and milo were too thickly grown
to check for artifacts easily; soybean growth was stiVl sparse.   A
comprehensive survey would be much more successful in the late fall,
winter, or early spring.
CONCLUSION
     The purpose of the field survey and records check was to indicate
what archeological resources may be present in the site area.
     The plant site has a high potential for prehistoric and historic
sites and an intensive investigation of the site must be undertaken
prior to any construction activities.
                                     7.0-4

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        Number
                                                      Table 7-1

                 Archeological Sites Located Near the Independence Steam Electric Generating Station

                                            Independence County, Arkansas                         Page 1 of 2
                    Topography
                              Artifacts
                              Remarks
o
I
en
3IN171


3IN172


3IN173



3IN174


3IN175


3IN176



3IN177


3IN178



3IN179
Small knoll


Small knoll


High knoll



High knoll


Slight knoll


Very high knoll



Slight knoll


Terrace



High old terrace
                                                          5 lithic debitage
                                                          2 lithic debitage
15 cobble tools, pro-
jectile points, 50
lithic debitage

2 side notched points,
40+ lithic debitage

2 lithic debitage
                                                          8 cobble tools, 20
                                                          lithic debitage,
                                                          iron axe

                                                          50+ ironstone, crockery
                                                          glass

                                                          1 stemmed and notched
                                                          projectile point, 30
                                                          lithic debitage

                                                          100+ pearlware, salt
                                                          glazed stoneware, Neeleys
                                                          Ferry Plain pottery, 100+
                                                          lithic debitage
Probably an Archaic camp
site.

Probably an Archaic camp
site.

Large Archaic or Woodland
site.
Archaic or Woodland camp
site.

Probably an Archaic camp
site.

Probably Archaic camp site
and Euro-American
                              Late 19th century farm-
                              stead.

                              Probably Archaic camp site.
                              1820's Euro-American oc-
                              cupation plus Mississippian
                              village site.  Should be
                              tested.

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                                          Table  7-1  (Continued)
                                                                      Page 2 of 2
Number
Topography
Artifacts
Remarks
3IN180


3IN181


3IN182



3IN183


3IN184
3IN-185


3IN186


3IN187
Slight terrace


High terrace


Moderate terrace



Moderate terrace


High terrace




Small knoll


Small knoll


Flat field
10 lithic debitage
3 lithic debitage
1 scraper, 1 novac-
ulite debitage, 20
lithic debitage

1 stemmed point, 20
lithic debitage

Neeleys Ferry Plain
sherds, Nodena points,
100+ lithic debitage,
daub

20 lithic debitage
6 lithic debitage
50+ perforated mussel
shells
Probably an Archaic camp
site.

Probably an Archaic
camp site.

Probably an Archaic
camp site.
Probably an Archaic
camp site.

Late Mississippi an
village.  Should be
tested.
Probably an Archaic
camp site.

Probably an Archaic
camp site.

Shell buttons reworked or
possible manufacture site.

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         PARTS
SOCIOECONOMICS

-------
POTENTIAL SOCIAL AND ECONOMIC IMPACTS OF THE.CONSTRUCTION
  AND OPERATION OF THE ARKANSAS POWER £. LIGHT COMPANY'S
           INDEPENDENCE STEAM ELECTRIC STATION
                      Prepared for

                      DAMES & MOORE
            Consultants in the Environmental
               and Applied Earth Sciences

                           and

            ARKANSAS POWER AND LIGHT COMPANY
                        Prepared by

                 DR. JOHN S. KAMINARIDES

                   College of Business
                Arkansas State University

                      August, 1977

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TABLE OF CONTENTS
SECTION
SUMMARY
PREFACE
1.0
1.1
1.1.1
1.1.2
1.1.3
1.2
1.2.1
1.2.2
1.2.3
1.2.4
1.2.5
1.2.6
1.3
1.3.1
1.3.2
1.3.3
1.3.4
1.4
1.4.1
1.4.2
TITLE


SOCIOECONOMIC CHARACTERISTICS AND TRENDS
Delineation of Study Area
Primary Impact Area
Rest of Arkansas
State of Arkansas
Population
Population Growth
Population, Area and Density
Urban versus Rural Population
Households
Population by Race
Population by Sex and Age Distribution
Employment and Economic Base
Industrial Distribution of Employment
Unemployment Trends
Manufacturers by SIC and Employment
Distribution of Employment by Occupation
Income and Spending
Average Levels of Personal Income
Consumption Behavior - Retail Sales
PAGE
xvi
XXX
1
1
1
5
8
8
8
10
10
10
10
16
16
16
28
28
28
43
44
48

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1.5
1.5.1
1.5.2
1.6
1.6.1
1.6.2
1.6.3
1.7
1.7.1
1.7.2
1.7.3
1.8
1.8.1
1.8.2
1.8.3
1.8.4
1.8.5
1.8.6
1.8.7
1.8.8
1.8.9
TABLE OF CONTENTS (Continued)
Housing
Composition
Tenancy and Vacancy
Public Service and Costs
Adequacy of Public Utilities and Roads in
Project Study Area
Adequacy of Public Safety Facilities
Adequacy of Public School Facilities
Community Cohesion
, Ability and Willingness of Communities to
Absorb New People
General Attitudes toward Industrial Develop-
ment
Sense of Community Identity
Projected Economic Development for the Study
Area without Project Conditions
Population Forecasts
Projected Population for the Study Area
Projected Population for Independence and
Jackson Counties
Labor Force Trends in the Study Area
Projecting Employment in Agricultural and
Non-Agricultural Industries
Analysis of Employment Changes in the Study
Area
Projections of Total Personal Income and
Per Capita Personal Income
Projected Total Personal Income
Projected Per Capita Personal Income

50
50
54
54
59
68
73
73
79
79
81
81
82
83
83
90
92
92
95
95
97
ii

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                 TABLE OF CONTENTS (Continued)
1.8.10           Projections of Total Earnings by Source
1.8.11
1.9
1.9.1
1.9.2
1.9.3
1.9.4
1.9.5
2.0
2.1
2.1.1
2.1.1.1
2.1.1.2
2.1.1.3
2.1.2
2.1.2.1
2.1.2.2
2.1.2.3
2.1.3
for the Study Area
Analysis of Total Earnings
Determination of Employment and Income
Multiplier
Index of Local Specialization (ILS)
Conversion of ILS into Basic and Nonbasic
Shares of Employment
Basic and Nonbasic Employment in the Study
Area
Basic-Nonbasic Ratios (Indirect Employment
Multiplier) and Regional Employment
Multiplier
Determination of Consumption Multiplier or
Regional Income Multiplier
ENVIRONMENTAL IMPACT ACTION
Construction Impacts
Employment and Population Changes
Impact on Employment
Impact on Unemployment
Impact on Population
Income and Spending Changes
Direct Income Changes
Induced Income and Spending (Multiplier
Effects)
Impact on Retail Sales
Housing Impacts
97
100
101
102
106
106
106
110
111
111
111
111
117
119
119
119
123
124
125
                                 iii

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                 TABLE OF CONTENTS (Continued)


2.1.3.1            Projected Pattern of Construction Worker
                     Relocation                                  125

2.1.3.2            Impact of New Housing                         128

2.1.4            Public Service Impacts                      -    129

2.1.4.1            Requirements for Additional Utility Services  129

2.1.4.2            Requirements for Road and Traffic Control
                     Improvements                                130

2.1.4.3            Requirements for Increased Public Safety
                     Service                                     131

2.1.4.4            Requirements for Increased Public School
                     Facilities                                  132

2.1.4.5            Impact on Financial Institutions              133

2.1.4.6            Impact on Minorities                          134

2.1.5            Fiscal Impacts                                  136

2.1.5.1            Assessed Valuation Changes                    136

2.1.5.2            Tax Revenue Changes                           139

2.1.5.3            Sales and Use Tax Impacts                     141

2.1.6            Community Cohesion Impacts                      141

2.1.6.1            Estimate of Potential Impacts on Local
                     Communities1 Quality of Life
                     Characteristics                             141

2.1.7            Summary of the Overall Income Impact of
                   the Construction Phase of AP&L Plant on
                   the Study Area                                143

2.2            Operation Impacts                                 145

2.2.1            Employment and Population Changes               145

2.2.1.1            Direct Employment                             145
                                  iv

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                 TABLE OF CONTENTS (Continued)


2.2.1.2            Induced Employment                            151

2.2.1.3            Projected Population Changes   ,               151

2.2.2            Income and Spending Changes                     151

2.2.2.1            Direct Income and Spending Changes            151

2.2.2.2            Indirect (Induced) Income and Spending
                     Changes                                     152

2.2.2.3            Impact on Retail Sales                        154

2.2.3            Housing Impacts                                 155

2.2.3.1            Estimated New Housing Investments             155

2.2.4            Public Service Impacts                          156

2.2.4.1            Utilities                                     156

2.2.4.2            Public Safety                                 157

2.2.4.3            Public Schools                                157

2.2.4.4            Financial Institutions                        157

2.2.5            Fiscal Impacts                                  159

2.2.5.1            Property Taxes                                159

2.2.5.2            Sales and Use Tax and Other Taxes             159

2.2.5.3            Income Taxes on Additional Power Sales        161

2.2.6            Community Cohesion Impacts                      162

               SUMMARY OF THE OVERALL INCOME IMPACT OF THE
                 OPERATION PHASE OF THE AP&L PLANT ON THE
                 STUDY AREA                                      164

               SUMMARY OF THE TOTAL INCOME IMPACT OF THE
                 CONSTRUCTION AND OPERATION PAHSES OF THE
                 AP&L PLANT ON THE STUDY AREA                    165

               APPENDIX A   DELINEATION OF THE STUDY AREA        166

               APPENDIX B   EMPLOYMENT                           169

               APPENDIX C   INCOME                               173
                                    v

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    TABLE OF CONTENTS (Continued)
APPENDIX D   RETAIL SALES




APPENDIX E   HOUSING




APPENDIX F   PUBLIC SERVICE AND COSTS




APPENDIX G   TAXES AND REVENUE




APPENDIX H   COMMUNITY COHESION




APPENDIX I   FOOTNOTES
175




177




180




187




209




221
                 vi

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                             LIST OF TABLES
Table                             Title                               Page

  1       Population of Study Area,  White River Planning  and
            Development District and the State of  Arkansas                9

  2       Population, Area and Density Per Square  Mile                   11

  3       Urban versus Rural Population Study Area,  White River
            Planning and Development District,  State of Arkansas         12

  4       Households by Type of Household Head, 1970                    13

  5       Population in Households,  Number of Households  and
            Persons per Household, 1970 and 1960                        14

  6       Population by Race for Study Area,  White River  Planning
            and Development District and State of  Arkansas               15

  7       Population for Selected Age Groups  by Sex, Median Age
            for Study Area - 1970                                       17

  8       Population for Selected Age Groups  by Sex, Median Age
            and Percent Distribution, White River  Planning and
            Development District                                        18

  9       Population for Selected Age Groups  by Sex, Median Age
            and Percent Distribution, Arkansas, 1970                    19

 10       Dependency Ratio for Study Area, WRPDD,  Arkansas and
            United States, 1970                                         20

 11       Employment by Industry for White River Planning and
            Development District, 1960,  1965,  1970,  1975                 21

 12       Employment by Type and Broad Industrial  Sources for
            Study Area (Independence and Jackson Counties),
            1970-1974                                                   24

 13       Employment by Type and Broad Industrial  Sources, Full
            and Part-time Wage and Salary Employment, Plus Number
            of Proprietors for Independence County                      25

 14       Employment by Type and Broad Industrial  Sources, Full
            and Part-time Wage and Salary Employment, Plus Number
            of Proprietors,  Jackson  County                              26

 15       Civilian Labor Force,  White River Planning and  Development
            District, 1970-1974                                          27
                                   vii

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Table                             Title                                Page

 16       Manufacturers - Independence County,  by Standard
            Industrial Classification, Name,  Location and
            Number of Employees,  1976                                   29

 17       Manufacturers - Jackson County,  by  Standard Industrial
            Classification,  Name, Location and  Number of Employees       31

 16       Estimated 1975 Employ-Dent by Occupation for Vhire xivcr
            Planning and Development District                           32

 19       Total Personal Income,  Arkansas and Study Area,  1970-1975     45

 20       Personal Income by Major Sources for Independence and
            Jackson Counties, 1974                                      46

 21       Per Capita Personal Income, Arkansas  and Study Area,
            1970-1975                                                   47

 22       Retail Sales, Batesville, Newport,  Independence  and
            Jackson Counties, Study Area and  White River Planning
            and Development District, 1963-1967-1972                    49

 23       Estimated Retail Sales  for the Study Area, 1970-1976           51

 24       Year Round Housing Units, by Type of  Structure,
            Independence, Jackson County,  Study Area, White River
            Planning and Development District and Arkansas, 1970        52

 25       Year Round Housing Structures by Number of Units,
            Batesville and Newport, 1970-1976                           53

 26       Total Occupied Housing  Units - Owner  Occupied Units and
            Renter Occupied Units - Independence County, Jackson
            County, Study Area, White River Planning and Development
            District and Arkansas, 1970                                 55

 27       Vacancy Characteristics of Year Round Housing Units for
            Batesville, Newport,  Independence and Jackson  Counties,
            the Study Area and White River Planning and Development
            District, 1970                                              56

 28       Transient Housing Facilities                                  57

 29       Community Services for  Impact Area                             58

 30       Source and Use of Water, 1970                                 60

 31       Road and Street Mileages, Independence and Jackson
            Counties and Arkansas Totals                                62
                                   viii

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Table                             Title                                Page

 32       Assets, Loans and Deposits of Financial Institutions
            in Independence and Jackson Counties, 1970-1977             69

 33       Patient Utilization by Hospital, 1976                         71

 34       Selected Health Manpower by Area, 1976                        72

 35       Selected Ranking Data for Independence and Jackson
            County School Districts                                     74

 36       Student/Teacher Ratios, Selected School Districts             75

 37       Various School District Statistics in Independence County     76

 38       Various School District Statistics in Jackson County and
            State                                                       78

 39       Opinions of Impact Area Respondents Concerning Attitudes
            of Community Residents                                      80

 40       Projected Population by Sex for Independence and Jackson
            Counties and the Study Area for 1975, 1980, 1985, 1990,
            1995, 2000, 2005, 2010                                      84

 41       Projected Population for Independence County by Age and
            Sex, 1975 to 2010                                           85

 42       Projected Population for Jackson County by Age and Sex,
            1975 to 2010                                                87

 43       Projected Urban-Rural Population for Independence County,
            Jackson County and Study Area, 1970, 1975, 1980, 1985,
            1990, 1995, 2000, 2005 and 2010                             89

 44       Total Employment and Labor Force Participation Rates for
            Study Area, 1960 and 1970, and Projected to 1975, 1980,
            1985, 1990, 1995, 2000, 2005 and 2010                       91

 45       Projected Employment by Industry for Study Area from
            1975 to 2010                                                93

 46       Projected Total Personal Income for Study Area, 1980-2010     96

 47       Projected Per Capita Personal Income for Study Area from
            1980 to 2010                                                98

 48       Projected Total Earnings by Source for the Study Area
            from 1970 to 2010                                           99
                                   ix

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Table                             Title

 49       Index of Local Specialization for White River Planning
            and Development District in 1960,  1965,  1970 and 1975       103

 50       Results of the Survey Mailed to Sample Firms  in Different
            Industries as to Their Productivity Relative to  the
            National and Their Exports                       ,          104

 51       Basic and Nonbasic Shares of Employment by Industrial
            Categories for White River Planning and  Development
            District                                                   107

 52       Employment by Industrial Categories  and by Basic and
            Nonbasic Employment for Study Area,  1970, 1972 and
            1974                                                       108

 53       Basic-Nonbasic Employment Ratios and Employment Multiplier
            for Study Area                                             109

 54       Estimated Quarterly Employment by Craft During Construction   112

 55       Estimated Quarterly Employment During Construction           113

 56       Estimated Employment Impact During Construction Phase         115

 57       Effects of Constructing the AP&L Plant on  the Employment
            and Unemployment of Study Area                             118

 58       Estimated Total Population Gains in  the Study Area During
            the Construction Phase                                     120

 59       Estimated Annual Payroll by AP&L During Construction          121

 60       Estimated Quarterly Wage and Payroll During Construction      122

 61       Estimated Retail Sales Gained Due to Increase in Income
            over Construction Phase                                    125

 62       An Estimate of Income Generated by Financial  Institutions
            During Construction Period                                 135

 63       Revenues from Selected Sources for Batesville,  Newport,
            Independence and Jackson Counties,  and the  Study Area
            for Years 1970 through 1976                                137

 64       Projected Gains from Selected Revenue  Sources for  Arkansas
            and the Study Area During the Construction  Phase           138

 65       Opinions of Impact Area Respondents  Concerning Effect  of
            Proposed Plant on Quality of Life  Characteristics          142

 66       Summary Table Showing the Total Income Impact of the
            Construction Phase of AP&L Plant on  the  Study Area          144

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Table                             Title                                Page

 67       Proposed Type of Employment by Independence Steam Electric
            Station During Its Operation Phase                          146

 68       Proposed Annual Payroll by AP&L to Its Employees During
            the Operation Phase, 1983 to 2012                           147

 69       Employment Projections by Occupation, White River
            Planning and Development District and AP&L Plant,
            1975-1980                                                   149

 70       Arkansas Eastman Employee Vehicle Registration by Place
            and Number, July, 1977                                      150

 71       Annual Payroll During the Operation Phase and Estimates
            of Multiplier Effect, 1983 to 2012                          153

 72       Estimated Retail Sales Gained Due to Incomes over
            Operation Phase                                             155

 73       An Estimate of Income Generated by Financial Institutions
            During Operation Period                                     158

 74       Projected Gains from Selected Revenue Sources for Arkansas
            and the Study Area During the Operation Phase               160

 75       Summary of the Total Income Impact of the Operation Phase
            of the AP&L Plant on the Study Area                         164

 76       Summary of the Total Income Impact of the Construction and
            Operation Phases of the AP&L Plant on the Study Area        165

A-l       Acreage of Developed Area by Land Use Category for
            Independence, Jackson and Study Area                        166

A-2       Population, by Town, Independence County

A-3       Population, by Town, Jackson County                           168

B-l       Estimated Quarterly Employment by Craft During
            Construction                                                169

B-2       Proposed Type of Employment by Independence Steam Electric
            Station During Its Operating Phase                          170

C-l       Personal Income by Major Sources for Independence County      173

C-2       Personal Income by Major Sources for Jackson County           174

D-l       Retail Sales for Counties and Major Towns within the
            White River Planning and Development District               175
                                    XI

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Table                             Title

D-2       Sales Tax Receipts - Independence County, Jackson County
            and Study Area - 1970-1976                                  176

E-l       Housing Characteristics for Independence and Jackson
            Counties, Principal Towns, Study Area, and White River
            Planning and Development District, 1970          ,           177

F-l       Road and Street Mileages, Independence County                 180

F-2       Road and Street Mileages, Jackson County                      181

F-3       Road and Street Mileages for State of Arkansas                182

F-4       Average Annual Traffic Volumes, Point Ferry                   183

G-l       Selected Arkansas Taxes Collected in Independence and
            Jackson Counties, and the Study Area for Years 1970
            through 1976                                                187

G-2       Property Tax Rates within the Study Area                      188
                                    xii

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                             LIST OF FIGURES



Figure                              Title

  1          Regional Location Map                                       3

  2          State Location Map, White River Planning and Development    4
             District

  3          Study Area, Independence and Jackson Counties               6

  4          Air, Rail and Water Transportation in WRPDD                 7

  5          Rural State Highway Federal Aid Systems Map                61

  6          1976 Traffic Count for the Study Area                      64

  7          Arkansas Transportation Official Map, 1975, Arkansas       65
             Railroads
                                   xiii

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                           LIST OF EXHIBITS
Exhibit

Appendix B
     I
Appendix E
     I
    II
Appendix F
     I

Appendix G
     I
    II


   III

    IV
                 Title
Page
Appendix H
     I
    II

   III

    IV

     V

    VI

   VII
Interview with Construction Supervisor of Arkansas
  Eastman Plant as to the Availability of Local
  Labor                                             171-172
Interview Concerning Rental Housing Availability
  in the Study Area                                   178

Interview Concerning Rental Housing Availability
  in Newport                                          179
Wastewater Treatment Facilities, 1974               184-186


General Acts of the Sixty-Ninth General Assembly    189-198
  of the State of Arkansas, Volume II, Book 2

Arkansas Power and Light Company Letter Dated
  August 3, 1977                                    199-201

Arkansas Personal Income Tax Withholding Schedule   202-203

Arkansas Power and Light Company Letter, Dated
  July 5, 1977                                      204-206

Arkansas Power and Light Company Letter, Dated
  August 18, 1977                                   207-20*


Arkansas State University Letter, Dated August
  16, 1977                                            209

Questionnaire - Sample                                210

Questionnaire - Newark                                211

Questionnaire - Batesville                            212

Questionnaire - Oil Trough                            213

Questionnaire - Newport                               214

The "Tri-County Journal", Volume 2, Number 19         215
                                    xiv

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                      LIST OF EXHIBITS (Continued)



Exhibit                           Title                                Page

  VIII        "Commercial Appeal" - Memphis,  TN,  August 24,  1977        216

    IX        "Commercial Appeal" - Memphis,  TN,  August 24,  1977        217

     X        "The Jonesboro Sun" - Jonesboro,  AR,  August 23,  1977      218

    XI        "The Wall Street Journal" - Southwest Edition, August     219
                23, 1977

   XII        "Commercial Appeal" - Memphis,  TN,  August 22,  1977        220
                                    xv

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                                  SUMMARY


 I.  THE OBJECTIVE OF THIS STUDY

          The main objective of this study was to determine the overall

     socioeconomic impact that the construction and operation of the

     Independence Steam Electric Station at Newark, Arkansas will have

     on the study area.  Most parts of the two-county study area (Inde-

     pendence and Jackson) are located within a twenty-five mile radius

     of the proposed plant site.  A more detailed objective of this study

     was to determine the direct and indirect effects that the construc-

     tion and operation phases of the AP&L plant at Newark, Arkansas will

     have on various demographic and eonomic sectors of the study area.

     These sectors include population, employment, unemployment, income,

     retail sales, housing, taxes, eduction, financial institutions,

     transportation, minorities and community services and facilities.


II.  THE SCOPE OF THE STUDY

     A.  Describe and analyze the present level of development and economic
         conditions prevailing in the study area.

     B.  Deal with projected economic development  of the study area to 2010
         without project conditions.

     C.  Determine the regional employment multiplier and regional income
         multiplier for the study area.

     D.  Estimate the economic impact of the construction and  operation of
         the AP&L plant at Newark on  the local economy and,  more specifically,
         on economic sectors such as:

         1.  Population              8.   Education
         2.  Employment              9.   Medical Services
         3.  Unemployment           10.   Financial Institutions
         4.  Income                 11.   Minorities
         5.  Retail Sales           12.   Community Services  and Facilities
         6.  Housing                13.   Community Cohesion
         7.  Taxes
                                     xvi

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      E.  Estimate the gains in basic and nonbasic income in the  impact  area
          and determine the overall impact of constructing and  operating the
          AP&L plant at Newark, Arkansas on the study area and  other  local
          areas.
III.  STUDY AREA DEFINED

          The study area is defined as that area subject to the direct and

      indirect economic influence of the AP&L plant at Newark.   This study

      considers Independence and Jackson Counties as the primary impact area

      where most of the impact will be felt.


 IV.  METHODOLOGY

           The methodological procedures of this report were as follows:

      A.   An inventory of data was accumulated to describe the  present level
          of development prevailing in the impact area for the  various economic
          sectors listed above.  Data were collected from various sources,
          including published data, internal records of the Arkansas Power  and
          Light Company, business, government agencies and educational insti-
          tutions.

      B.   The economic base type of analysis was used to distinguish between
          basic (primary, non-local) industry and nonbasic (local, service)
          industry in the impact area and determine the regional employment
          multiplier.  This study, in determining the basic and nonbasic
          employment in the study area, developed the Index of  Local Special-
          ization (ILS) for the study area.  By deriving the basic or nonbasic
          employment by industrial classification in the study  area, the study
          was able to estimate the local employment multiplier.

      C.   The local employment multiplier was applied to determine the indi-
          rect effect that the construction and operation of the AP&L plant
          will have on local employment.  In using the basic and nonbasic
          employment classification, the income by source was converted into
          basic and nonbasic income.  These types of income were applied in a
          formula to determine the Local Consumption or Local Income Multi-
          plier.   The formula used for the income multiplier was the one
          developed by Charles Tiebout.  It reads:
                          K =
                               1 - Nonbasic  Income
                                   Total Income
      D.   Several  accepted methodologies were  used to  determine  the  effect  of
          the AP&L plant at Newark on the  other  sectors  of  the local economy.
                                      xvii

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     E.  The study estimated the Impact that the AP&L plant would have on
         the basic activities and the effect that those basic activities
         would have on nonbasic (local) activities.

     F.  The overall impact of the AP&L plant was estimated by multiplying
         the gains in income from basic activities by the local income multi-
         plier (1.66) and adding to it the income gained from nonbasic activi-
         ties.
V.   INFORMATION OBTAINED


     Economic and Demographic Characteristics

     1.  Population.  The population in the study area declined from 49,400

         in 1950 to 43,175 in 1970.  But the population of the study area

         increased in 1975 to 45,300.  The land area of the study area is

         estimated to be 1,381 square miles and the 1975 population density

         was 32.8 persons per square mile.  The population of the study area

         is basically rural.  Only 34.6 percent of the population lives in

         urban areas.  A very small number of non-whites live in the study

         area.  About 8.3 percent of the area's population is non-white.  It

         was estimated that the number of persons per household was 2.97.

         The dependency ratio of youth and old age persons on working age

         persons for the study area was estimated to be .987.

     2.  Employment.  Total employment in the study area increased from 18,898 in

         1970 to 20,728 in 1974, with manufacturing increasing its share from

         3,181 workers in 1970 to 5,384 in 1974.  Farm employment declined

         from 2,247 in 1970 to 1,753 in 1974.  There are about 64 manufac-

         turing firms in the study area.  About 22 of them employ less than

         10 workers.  Only one firm employs more than 500 workers.  Arkansas

         Eastman Company is projected to reach this size in 1978.  It is

         estimated that most of the labor during the construction phase will
                                    xviii

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    come from local areas of about a 50-mile radius from the site.




    Local workers proved themselves in the case of the Arkansas Eastman




    plant to be adaptable to new working conditions and experiences.




    About 60 percent of the hardest-to-obtain craftsmen (pipe fitters,




    electricians) will be imported from other parts of the state or




    county.




3.  Income.  The total personal income of the study area increased from




    $119.6 million in 1970 to $219.0 million in 1975, an increase of




    about 83.2 percent.  The State during the same period experienced




    an income growth of about 75.7 percent.  Jackson County depends more




    heavily on agriculture as a source of income (25.5 percent) than




    does Independence County (10.6 percent).  The per capita income of




    the study area increased from $2,761 in 1970 to $4,834 in 1975.  The




    1975 per capita income is above that of the State, $4,617.  The two-




    county area experienced a growth in per capita income of 75.1 per-




    cent from 1970 to 1975, while the White River Planning and Develop-




    ment District grew by 69.4 percent and the State of Arkansas by only




    60.4 percent.




4.  Retail Sales.  It was estimated that the retail sales in the study




    area increased from about $64.9 million in 1970 to about $145.4




    million in 1976.  Batesville and Newport are the two major trade




    centers in the study area.




5.  Housing.  Most of the housing units available in the study area are




    single-family units.  About 425 new housing units were built in




    Batesville during the 1970-1976 period (a 13.6 percent change net




    of 35 removals).  Of these, 42 percent were multi-unit structures.




    During the same period there were 563 structures built in Newport




    (16.4 percent net increase), about 37.7 percent of which were multi-




    unit structures.  About 66.1 percent of the total occupied units are





                                xix

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    owner occupied.  The vacancy rate for the study area was estimated
    to be 7 percent.  This figure, however, must be tempered by the
    fact that 22 percent of the housing in the study area lacks some or
    all plumbing and is therefore sub-standard.  The availability of
    rentals in either single units or multi-units is practically non-
    existent.

6.  Public Utilities and Roads.  There has been an ample supply of
    power within the study area for both residences and industry.
    Natural gas is in short supply and all industrial users are treated
    as interruptible customers.  Nearly 90 percent of the area's popu-
    lation is supplied by ground water.  The larger towns in the study
    area utilize centralized waste treatment facilities.
         The highway system is the most important transportation link
    in the area.  There are 454 miles of state highways and 1,527 miles
    of local roads in the study area.  Bus service is available to sev-
    eral towns in the study area.  A privately owned port facility exists
    on the White River at Newport. The area is served by the Missouri
    Pacific Railroad.  Amtrak provides passenger service daily from
    Newport to Chicago and Laredo, Texas.  There is no commercial air
    service, but the Batesville airport is designed for commercial
    service.
         Four newspapers (two daily and two weekly) are published in the
    area.
         There are ten financial institutions in the study area.  These
    institutions have done an adequate job of providing for the finan-
    cial needs of the area.  Their rate of growth has been remarkable.
    Total deposits of all institutions in the area grew by $142.8 million
    from 1970 to June,  1977, a 152 percent increase.

                               xx

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              Ten cities have police facilities.   Batesville and Newport




         have paid fire fighters,  whereas most of the remaining towns use




         volunteer forces.




              In the study area there are four hospitals with 379 beds and




         5 nursing homes with a total of 417 beds.  There is about 1 physi-




         cian per 1,542 people in the area.




              There are 15 separate school districts in the impact area.




         These districts vary in size from 163 students in Sulphur Rock to




         2,530 in Newport.






VI.  PROJECTED ECONOMIC DEVELOPMENT WITHOUT PROJECT CONDITIONS




     1.  Population.  It was projected that the population of the study area




         will increase from 43,175 in 1975 to about 47,500 in 1980.  By 2010




         the population of the study area is expected to increase to 64,500.




     2.  Labor Force.  Total wage and salary employment projected for the




         study area will increase from 14,166 workers in 1970 to about




         25,200 workers in 2010.  The employment in the goods-producing




         industries (mining, construction and manufacturing) was projected




         to increase from 4,841 in 1970 to 11,700 workers in 2010, or by




         141.9 percent.  Employment in the service-producing industries




         (transportation, trade, finance, services and government) will grow




         from 7,330 workers in 1970 to 12,500 in 2010, or by 70.0 percent.




     3.  Income.  The projected total personal income for the study area will




         increase to $320.0 million in 1980; to $492.0 million in 1990; to




         $762.0 million in 2000; and to $1,171.0 million in 2010.




     4.  Total Earnings.  Manufacturing, government, trade and services will




         be the leading earnings-producing sectors.
                                    xxi

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 VII.  DETERMINATION OF EMPLOYMENT MULTIPLIER

         The following procedures were used in determining the employment

       multiplier for the study area.

       1.   The Index of Local Specialization (ILS) for the White River
            Planning and Development District was developed for 1960, 1965,
            1970 and 1975 by industrial classification.

       2.   The ILS was converted to show what share of employment in each
            industrial classification was basic or nonbasic.

       3.   These shares of basic or nonbasic employment by industrial class-
            ification were applied to the employment in the study area to
            estimate the basic and nonbasic employment by industrial classi-
            fication for the study area.

       4.   The local employment multiplier was estimated to be for:

                           1970            1.16
                           1972            1.10
                           1974            1.10
                3-year average             1.12

            The local multiplier 1.12 indicates that for each basic employ-
            ment created in the study area, another 1.12 nonbasic employ-
            ment (such as in service and trade industries) will be gained
            in the study area.


VIII.  TEMPORARY EFFECTS DURING CONSTRUCTION PHASE

       1.   Impact on Employment.  It was estimated that on the average AP&L

            will employ annually about 535 workers during the construction phase.

            The construction phase will start with an average annual employment

            of about 185 workers, but during the third year of the project an

            average of 854 workers will be employed at the plant.  Peak employ-

            ment of over 950 persons occurs during the summers of 1981 and 1982.

            During the last year of construction (1984) about 315 workers will

            be employed.  In addition to the direct effect, the construction

            of the plant will have an indirect effect on local employment.

            The indirect effect on employment is derived by applying the

            local employment multiplier of 1.12 to the new employment cre-

            ated by the construction of the plant.  During the first three


                                    xxii

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    years of construction, about 957 new supporting jobs will be




    generated.  About 700 of the new supporting jobs generated in the




    area will be phased out when the construction nears completion and




    the number of construction related workers employed is reduced.




         About 210 workers (mostly pipe fitters and electricians) will




    need to be imported into the area.  It was estimated that the unem-




    ployment rate in the study area will drop to about 2.0 percent




    during the construction period.




2.  Impact on Population.  It was estimated that about 534 people will




    be likely to move into the study area during the construction phase.




3.  Impact on Income.  The direct income to be earned in the study area




    due to increased payrolls was estimated to be about $64.5 million.




    The induced income, however, over the construction phase was esti-




    mated to be about 127.3 million.  This amount was derived by




    applying the local income multiplier (1.66) to the increase in basic




    income.  The total income impact was estimated to be $127.3 million




    over the construction phase of the plant (basic income X multi-




    plier) .




4.  Impact on Retail Sales.  As a result of consumption expenditures by




    project construction personnel and recipients of income generated by




    construction activities, retail sales in the study area will be




    expanded over baseline levels by an estimated $80.4 million during




    the construction years.




5.  Impact on Public Services.  The new housing to be built, the more




    people to move in, the more employment opportunities to be created




    as a result of the construction of the AP&L plant will not put undue




    pressures on water, electricity, gas, and waste treatment systems.




         Road maintenance requirements during this time may increase




    due to commuting workers and heavy construction traffic.  Highways





                                 xxiii

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    69 and 122 in the Newark area will be most severely affected.   The




    intersection of Highways 67 and 14 near Newport is dangerous because of




    the angle of approach and slope,  calling for improvement.




         Batesville and Newport could handle the expected increase in




    population with no increase in the size of their police forces.




    Newark would possibly need at least one additional marshall.




        Newark is the largest town in the area with only a volunteer




    fire department.  Tuckerman, with twice the population as  Newark, has




    one paid fire fighter.  Newark will thus need to add a paid fireman.




        The hospital occupancy rate in the area is low, averaging 53.7




    percent in 1976.  No new hospitals will be needed.  Health manpower




    in the area is generally adequate because there is one practicing




    physician per 1,542 persons, which is below the critical 1:4000 ratio.




        If the new students were evenly distributed throughout the various




    school districts, the impact on schools would be negligible.  The three




    school districts (Batesville, Newport and Newark) will likely get most




    of the new students.  But these three school districts have a student/




    teacher ratio below that of the State.  Newark School District, more-




    over, would derive a great benefit from its 45 mill property tax.




6.  Impact on Financial Institutions.  It was estimated that the finan-




    cial institutions over the construction phase will earn about $668,772




    of additional income from the new savings generated in the area.




7.  Fiscal Impacts.  The study area is expected to gain about  $27.2




    million in tax revenues over the construction phase of the plant.




    About $26.9 million will be derived from property taxes paid by




    AP&L to the Newark School District and Independence County.




8.  Minorities. About 50 non-white persons will move into the  area, and




    about 30 non-white workers will be employed.  The amount of income




    to be earned by employed non-white workers over the six-year period




    was estimated to be $2.2 million.




                                  xxiv

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IX.  SUMMARY OF THE OVERALL INCOME IMPACT-CONSTRUCTION PHASE

       The following table summarizes the total income impact of the AP&L

    plant over the construction phase.
                 SUMMARY TABLE  SHOWING THE TOTAL  INCOME
                  IMPACT OF THE CONSTRUCTION PHASE OF
                     AP&L PLANT ON THE  STUDY AREA
Basic Income Gains
    Payroll spent in study area                                  $ 48,400,000
    Locally purchased  supplies                                      1,000,000
    Increase in  local  tax revenues                                 27.263,588
                                                                 $ 76,663,588
                                                                     x   1.66
Total Income Impact                                              $127,261,556
 Source:  Computations by  the author;  see  text
X.  OPERATIONS IMPACT

    1. Impact on Employment.  The direct impact on employment will be at

       an annual constant number of 207.  The induced employment was esti-

       mated to be about 232 workers.

    2. Impact on Population.  The operation phase of the plant will possibly

       add 300 people.  Considering, however, the fact that upon completion

       of the construction most of the 534 persons who had moved temporarily

       into the area will move out seeking other employment opportunities, the

       impact of operation on population will be negligible, if not negative.
                                    xxv

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3. Impact on Income.  The direct income was estimated to be about




   $472.2 million and indirect (induced) income to be $311.9 million.




   The total income impact was estimated to be about $784.1 million




   over the life of the plant (basic income X multiplier).




   income X multiplier + nonbasic income).




4. Impact on Retail Sales.  It was estimated that retail sales over the




   life of the plant will increase by about $495.6 million.




5. Impact on Housing. The estimated investment in housing will be




   approximately $3.8 million, i.e., 75 houses @ $50,000 each.




6. Impact on Public Services. Over the operation phase of the plant,




   the impact on public services will be approximately the same as it




   would be during the construction phase.




7. Impact on Financial Institutions.  The income of financial insti-




   tutions in the study area will increase  by about $5.2 million over




   the operation of the plant due to the increase in their deposits




   generated from AP&L's spending in the local economy.




8. Fiscal Impacts.  It was estimated that over the life of the plant




   the study area will receive in additional tax revenues about $229.0




   million.  About $226.9 million will go to the Newark School District




   and Independence County.
                                xxv i

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  XI.    SUMMARY  OF THE OVERALL  INCOME  IMPACT OF THE OPERATION PHASE

       The  following  table  shows  the overall income impact that the opera-

  tion  phase  of  the plant will  have on the study area.



                 SUMMARY OF THE TOTAL INCOME IMPACT OF THE

            OPERATION PHASE OF THE AP&L PLANT ON THE STUDY AREA
                                                                     Amount
Basic Income Gains:
  Payroll                                                      $238,633,707
  Increase in Local Tax Revenues                                229,048,361
  Locally Purchased Supplies
  ($150,000 per year for 30 years)                                4,500,000
                                                               $472,182,068
  Local Income Multiplier                                      __x	1.66

Total Income Impact                                            $783,822,233
Source:  Computations by the author.
                                      xxvii

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XII. SUMMARY OF THE TOTAL INCOME IMPACT OF THE CONSTRUCTION AND OPERATION
     PHASE OF THE AP&L PLANT ON THE STUDY AREA.

         The following summary table shows the combined income impact of

     the construction and operation phases of the AP&L plant on the study

     area.
                 SUMMARY OF THE TOTAL INCOME IMPACT OF THE
                 CONSTRUCTION AND OPERATION PHASES OF THE
                       AP&L PLANT ON THE STUDY AREA
Basic Income Gains:
  Payroll                                                      $287,033,707
  Increase in Local Tax Revenues                                256,311,949
  Locally Purchased Supplies                                      5,500,000
        Total                                                  $548,845,656
  Local Income Multiplier                                      _x	1.66

Total Income Impact                                            $911,083,789
Source:   Computations by the author.
          The figure on the following page depicts in  flow chart fashion

     the origins and distribution of income flows within the two-county study

     area arising from the project.
                                     xxviii

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                    FLOW CHART SHOWING THE IMPACT OF CONSTRUCTION AND
                      OPERATION PHASES OF AP&L PLANT ON STUDY AREA
                               (Dollar Amounts in Millions)

                                      INITIAL IMPACT
           534
                       Construction*
                        $48.4
                Basic Economic
                   Activity	
                1. Payroll
                       $28.8
                         1.0
                       $27.3
                         Operation*
                          $238.6
         2. Other Local Expenses:
            Local Procurements
            Tax Revenues
                            $233.7
                               4.5
                            $229.0
                                            I
                           CIRCULAR AND CUMULATIVE CAUSATION
                 Population
       300-400
                            $76.6
                         535
                                     Employment
               Direct Income
                    or
                Basic Income
               207
                        $472.2
                              NONBASIC (LOCAL) ACTIVITY
                 Minorities
                $0.7
$2.9
Housing
$3.8
 Financial
 Institutions
        $5.2
               $76.6
Basic
Income
$472.2
                                            X
                              $127.3
$80.4
Retail
Sales
$495.6
Local Income
 Multiplier  1.66
                 Local Income
                     Gained
                        $783.8
*Left Side of Box
 Refers to Construction
 Phase
                                              *Right Side of Box
                                               Refers to Operation
                                               Phase
                                             xxix

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                                  PREFACE






      The main purpose  of  this  study  is  to determine  the  overall  socio-




 economic impact  that the  construction and operation  of the  Independence




 Steam Electric Station by the  Arkansas  Power  and Light Company at Newark,




 Arkansas will have  in  a two-county study area (Independence and  Jackson) and




 other local areas.  It is the  objective of  this study to determine  the direct




 and  indirect effects of the construction and  operation of the AP&L  plant, at




 Newark, on various  demographic and economic sectors  of the  impact area. These




 sectors include  population, employment, income, retail sales, housing, minor-




 ities, eduction, financial institutions, medical services,  tax base and tax




 revenue, community  cohesion and  community services and facilities.




      The accepted techniques of regional analyses are used in determining




 the initial impact of  the AP&L plant on major sectors of the economy,




 including population,  income and employment.  The results of these findings,




 together with additional  information, are employed in determining the  impact




 on other economic sectors included in the analyses.  The techniques used in




 the study will assist in showing both the direct and indirect effects  on the




 economy.




     In this report an inventory of data was accumulated to  describe the




present level of development and economic conditions prevailing in the




study area.   Data were collected from various sources including published




data, internal records of the Arkansas Power arid Light Company,  businesses,




 government agencies and educational institutions.   Surveys were undertaken




 in order to obtain certain items of information.
                                    xxx

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     This report also deals with the projected economic development of the




study area without project conditions.  A number of methodologies and tech-




niques were used in projecting to 2010 the population, income, employment




and earnings of the study area without the impact of the AP&L plant.  Fur-




ther, this report emphasizes in a rather detailed and methodological manner




the direct and indirect effects of the AP&L plant on the study area over its




construction and operation periods.




     This final draft includes a very detailed presentation of techniques




of analyses, as well as the findings of the investigation in determining




and evaluating the effects of the AP&L plant on the study area.




     In completing this report, the author was assisted by Dr. L. E. Talbert,




Arkansas State University, Dr. Roland Mullins, Arkansas State University,




Dr. Charles Ford, Arkansas State University, and Mr. W. R. Tarver.  The




typing was done by Jacquelyn Fowler.
                                    xxxi

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1.0  SOCIOECONOMIC CHARACTERISTICS AND TRENDS




     The maze of interdependencies of different variables which contributes




to economic changes occurring in a region is in reality very formidable.




The chore of identifying and evaluating these variables and their interde-




pendencies is a very awesome and, at times, impossible task.  This study




focuses on population, income, employment, education, retail sales, taxes,




housing, financial institutions and local services in an effort to establish




and evaluate the overall economy of the study area.






1.1  Delineation of Study Area






1.1.1  Primary Impact Area.  The study area consists of Independence and




Jackson Counties in Arkansas.  Most of the social and economic impact




resulting from the construction and operation of the proposed Independ-




ence Steam Electric Station, at Newark, Arkansas will occur within twenty-




five miles of the proposed site.  Almost every part of the two counties




included in the study area is located within a 25-mile radius of the




proposed site.  It is recognized that most of the direct and indirect socio-




economic impact of the proposed AP&L plant will be on these two counties




because most of the labor will be drawn from within the two-county study




area,  and thus most of the payroll will end up in the hands of residents of




the study area.  Likewise, housing and public facilities of the study area




are expected to be affected the most.   The Arkansas Eastman Plant experience.




indicates that about 75 percent of the labor will be drawn from these two




counties.

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     The two-county study area is located in North Central Arkansas and is

a part of the White River Planning and Development District (see Figures 1

and 2).  The District is composed of ten counties, most of which are a part

of the Ozark Plateaus, and a portion, such as Jackson County, is within the

Mississippi Delta.  The district is divided into five areas.  Each area and

the counties comprising the district are:


              WHITE RIVER PLANNING AND DEVELOPMENT DISTRICT

                           Areas and Counties

                          1.  Hill
                                Fulton
                                Sharp
                                Izard
                                Stone

                          2.  Lake
                                Van Buren
                                Cleburne

                          3.  Independence

                          4.  White

                          5.  Delta
                                Woodruff
                                Jackson

     The rationale for grouping counties stems from common characteristics

exhibited by the counties within each area.  Some of these characteristics

are:   economic activities, homogenous geographic characteristics, general

population distribution and racial composition.

     Independence County lies in the transition between the "bottoms" of

the Mississippi Delta and the Ozark Mountains.  Except for the bottom lands

along the White River, the area is moderately rolling with enough slope to

permit adequate drainage.

     Jackson County lies in the flat alluvial plain of the Mississippi River.

The White River runs diagonally from northwest to southeast through Izard,

Stone, Independence, Jackson, White and Woodruff Counties.

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u>
                                     Dallos   i-Shrevepo
        100  0    100  200  300  400
              SCALE IN MILES
            FIGURE 1
REGIONAL   LOCATION    MAP

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r
 i

 i
 i
  \
  \
                             Independence County
                                  Jackson County
I
I
I

t
                                  LITTLE ROCK
  i
  i

  i
  i
  I
  i

 A.
ARKANSAS
        j	

                              FIGURE 2



               STATE   LOCATION   MAP
                                                         N
                                                    0   5   10
    WHITE  RIVER  PLANNING  AND DEVELOPMENT DISTRICT

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     The land in the study area is 1,381 square miles and there are about




32.8 persons per square mile versus 40.7 persons per square mile for the




State.  The acreage of developed area by land use category, such as resi-




dential, commercial, industrial, extractive, agricultural, institutional,




transportation and utilities in Independence and Jackson Counties is shown




in Appendix Table A-l.




     The study area is bordered on the East by Craighead and Poinsett




Counties; on the South by Woodruff and White Counties; on the West by




Cleburne and Izard Counties; and on the North by Sharp and Lawrence




Counties.




     There are two major cities in the study area—Batesville (Independence




County) and Newport (Jackson County).  There are several smaller towns in




the two-county study area.  These towns are shown in Appendix Tables A-2




and A-3.




     The study area is served by U. S. State Highway 67 and U. S. State




Highway 167.  Other state highways serving the area are:  14, 69, 122, 394,




25, 17 and 37 (shown in Figure 3).  The State provides a free ferry (Point




Ferry) which crosses Black River at Jacksonport.  The ferry provides a




year-round service from 7 a.m. to 7 p.m. unless the river is exceptionally




high.  The Missouri Pacific Railroad connects the study area with such




larger cities as Little Rock, St. Louis, Memphis and Kansas City (see




Figure 4).  Two major rivers cross the study area—Black River and White




River.  The latter is navigable with a private port at Newport.






1.1.2  Rest of Arkansas.  Other counties in the White River Planning and




Development District and in Arkansas will receive a secondary or a "spill-




over" economic effect from the construction and operation of the proposed

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              FIGURE 3


             STUDY AREA


INDEPENDENCE AND JACKSON COUNTIES
  Cave City
E  P EN  D  E N  C  E
                                           C.i"i|ib
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                                            St. Louis
                                            San Francisco
                                      f   U   L  T   0   N
                                                   INDEPENDENCE
       VA N    B  U R E  N
Legend

 %  Municipal  Airport

H-H-  Rail

/\A  Navigable  Water
                                                                                 uis
                                                                           Southwestern
                                   FIGURE 4l   •

                       AIR, RAIL AND WATER TRANSPORTATION

                                   IN WRPDD

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AP&L steam generating power station.  These counties will be White,
Woodruff, Stone, Izard, Sharp, Cleburne, Van Buren and Craighead.  Because
the economic effects on these counties will be rather negligible, the anal-
ysis in this study will be concentrated on the primary impact area of
Independence and Jackson Counties.

1.1.3     State of Arkansas.  The State of Arkansas consists of 75 counties
and is divided into eight planning and development districts.  The popula-
tion of the State of Arkansas was estimated in 1975 to be 2,116,000.  It
has a land area of 51,945 square miles with 40.7 persons per square mile.
About 7.6 percent of the Arkansas population, or 160,600 persons, live in
the White River Planning and Development District.
     Based on the latest data available from the U. S. Department of
Commerce, the per capita income in Arkansas in 1976 was $5,073, placing it
48th among the 50 states.  Only South Dakota, with a per capita income of
$4,796, and Mississippi, with $4,575, were below the Arkansas figure.  The
Arkansas per capita income was $1,368 below the national average of $6,441.

1.2    Population

1.2.1    Population Growth.  The population in the study area declined from
49,400 in 1950 to 43,175 in 1970, or by 12.6 percent.  During the same
period the State experienced an increase in population of 1.0 percent.  The
population decline that the study area experienced in the 1950's and in the
early 1960's ended in the late 1960's.  The population of the study area
                                              •\
then increased from 43,175 in 1970 to 45,300 in 1975, or by 4.9 percent.
As Table 1 shows, White River Planning and Development District followed
basically the same population changes as did the study area.  The population
of the WRPDD increased from 142,769 in 1970 to 160,600 in 1975, or by 12.5
percent.
                                    8

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                                                     TABLE  1

                                POPULATION OF STUDY AREA., WHITE RIVER PLANNING

                              AND DEVELOPMENT DISTRICT AND THE STATE OF ARKANSAS
Area
    1950
1960
1970
1972
1974
1975
% Change
                                                                                            1950-1970   1970-1975
Independence

Jackson

Study Area

White River P & DD

Arkansas
   23,488      20,048      22,723      24,400      24,400      23,600   (3.3)        (3.9)

   25,912      22,843      20,452      21,600      21,600      21,700   (21.1)       6.1

   49,400      42,891      43,175      45,800      46,000      45,300   (12.6)       4.9

  163,372     131,913     142,769     153,900     162,200     160,600   (12.6)       12.5

1,909,511   1,786,272   1,923,295   2,007,800   2,068,000   2,116,000    1.0         10.0
Source:  U.  S.  Department of Commerce, Bureau of the Census, General Population Characteristics. Arkansas, 1950
         and 1970. State and County Economic Data for Arkansas, Industrial Research and Extension Center, Little
         Rock,  May, 1974, U. S. Department of Commerce, Federal State Cooperative Program for Population Estimates,
         Series P-26, No. 75-4, May, 1976.

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1.2.2    Population, Area and Density.  The land area of the study area is




estimated to be 1,381 square miles.  Dividing the 1975 population of the




study area by its land area, a population density of 32.8 persons per




square mile is established.  The study area is more populated than the




WRPDD, which shows a population density ratio of 24.19 persons per square




mile.  The State shows a 1975 population density ratio of about 40.73 per-




sons per square mile.  The information on population, area and density per




square mile is shown in Table 2.






1.2.3    Urban Versus Rural Population.  The population of the study area




is basically rural, as shown in Table 3.  Only 34.6 percent of the popu-




lation of the study area lives in urban areas.  The White River District is




even less urbanized than the study area because the two largest cities of




the district (Newport and Batesville) are located in the study area.  In




the State, one-half of the population resides in urban areas.






1.2.4    Households.  In 1970 there were about 14,349 households in the




study area.   As Table 4 shows, about 11,819 of the households were of the




family type while the other 2,530 were listed as primary individuals.




About 10,447 of the families were headed by husband and wife; 282 had a male




head, and 1,090 had a female head of household.   Table 5 shows the number




of persons per household.  In 1970 there were 2.97 persons per household in




the study area, 2.94 persons per household in the District, and 3.05 persons




per household in the State.






1.2.5    Population by Race.  A very small number of non-white people live




in the study area.  Table 6 shows that only 8.3 percent of the area's popu-




lation is non-white.  The largest percent of non-white population lives in
                                    10

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                   TABLE  2
POPULATION,AREA AND DENSITY PER SQUARE MILE
Area
Independence
Jackson
Study Area
WRPDD
Arkansas
Source: U.S.
1970,
Population
1975
23,600
21,700
45,300
160,600
2,116,000
Department of Commerce,
Land Area in
Square Miles
752
629
1,381
6,637
51,945
Bureau of the Census ; Census
Population per
Square Mile
31.38
34.49
32.80
24.19
40.73
of Population,
General Population Characteristics, Arkansas.
                      11

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                                                TABLE  3

                              URBAN VERSUS RURAL POPULATION STUDY AREA,
                  WHITE RIVER PLANNING AND DEVELOPMENT DISTRICT, STATE OF ARKANSAS
AREA
Independence
Jackson
Study Area
WRPDD
Arkansas
Source: U. S.
1970
Urban
Number
7,209
7,725
14,934
29,556
960,865
Department of Commerce Bureau of
Percent
31.7
37.8
34.6
20.7
50.0
the Census,
Rural
Number
15,514
12,727
28,241
113,213
962,430
Census of
Percent
68.3
62.2
65.4
79.3
50.0
Population,
1960
Urban Rural
Number
6,207
7,007
13,214
20,486
765,303
1960 and
Number
13,841
15,836
29,677
111,427
1,020,969
1970, General
Percent
Urban Increasi
1960-1970
16.1
10.2
13.0
44.3
25.6
Population
Characteristics, Arkansas.

-------
                                                TABLE 4

                                 HOUSEHOLDS BY TYPE OF HOUSEHOLD HEAD
                                                 1970
Total Number
of Households
Area
Independence 7,740
Jackson 6,609
Study Area 14,349
W.R. Plan & D.D. 47,618
Arkansas 615,424
Source: U.S. Department of Commerce,

Total
6,384
5,435
11,819
39,483
502,107
Bureau of

Husband
Wife
5,717
4,730
10,447
35,279
437,740
the Census,
Families
Other Male
Head
138
144
282
1,027
13,259
Primary Individuals
Female
Head
529
561
1,090
3,177
51,108
Census of Population 1970,
Total
1,356
1,174
2,530
8,135
113,317
Male
Head
399
375
774
2,612
37,507
Female
Head
957
799
1,756
5,523
75,810
General Population Characteristic
Arkansas.

-------
                                                TABLE 5

                            POPULATION IN HOUSEHOLDS, NUMBER OF HOUSEHOLDS,
                                      AND PERSONS PER HOUSEHOLD

                                             1970 and 1960
Area
Independence
Jackson
Study Area
^_a
*- W.R. Plan.
& D.D.
Arkansas
Source:

Population in
Households
22,408
20,278
42,686
140,235
1,877,595
U.S. Department of
1970
Number of
Households
7,740
6,609
14,349
47,618
615,424
Commerce, Bureau of

Persons per
Household
2.90
3.07
2.97
2.94
3.05
the Census ,

Population
in Households
19,828
22,775
42,603
130,677
1,752,144
Census of Population
1960
Number of
Households
6,312
6,446
12,758
39,863
523,552
1960 and 1970, General

Persons per
Household
3.14
3.53
3.33
3.28
3.35
Population
Characteristics.  Arkansas.

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                                 TABLE 6
             POPULATION BY RACE FOR STUDY AREA, WHITE RIVER
         PLANNING AND DEVELOPMENT DISTRICT AMD STATE OF ARKANSAS

                                  1970
Region
Independence
Jackson
Study Area
WRPDD
Arkansas
Total
Population
22,723
20,452
43,175
142,769
1,923,295
Race Percent Distribution
White
22,189
17,392
39,581
133,600
1,565,915
Non-White
534
3,060
3,594
9,169
357,380
White
97.7
85.1
91.7
93.6
81.4
Non-White
2.3
14.9
8.3
6.4
18.6
Source:  U. S. Department of Commerce, Bureau of the Census,  Census of
         Population, 1970, General Population Characteristics,  Arkansas.
                                    15

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Jackson County  (14.9 percent).  Independence County has only 2.3 percent of




the population  that is non-white.  In the State about 18.6 percent of the




population is non-white.






1.2.6  Population by Sex and Age Distribution.  Tables 7, 8 and 9 show the




distribution of population by sex and age in 1970 for Independence and




Jackson Counties, the study area, White River Planning and Development




District and the State of Arkansas.




     As it is shown in Table 10, the dependency ratio of youth and old-age




persons on the working-age persons for the study area is 0.99.  This ratio




is below that of the District (1.03) and the State (1.06).






1.3  Employment and Economic Base




     Agriculture, government, manufacturing, service industries and retail




trade have been the primary factors contributing to the economic growth of




the study area during the last ten years.  These industries were not only




the income-creating factors, but also the employment-producing sectors.




Most of these sectors provided expanding employment opportunities to labor




that was displaced from industries which experienced declining employment,




such as agriculture.  Employment is of vital importance to the economic




growth of a region.  This section of the study will discuss the industrial




and occupational distribution of employment, as well as the unemployment




trends experienced by the area.




1.3.1  Industrial Distribution of Employment.  Total employment in the




District,  study area,  Independence and Jackson Counties increased since




1970, as the following four tables indicate.




     Table 11 shows that total employment in the District increased from




34,700 workers in 1960 to 37,350 in 1965; 47,625 in 1970; and 53,500 in




1975, or an increase of about 54.2 percent from 1960 to 1975, and 12.3




percent from 1970 to 1975.



                                     16

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                                TABLE 7
               POPULATION FOR SELECTED AGE GROUPS BY SEX,
                       MEDIAN AGE, FOR STUDY AREA
                                  1970
Independence
Total
All Ages
0-5
6-15
16-21
22-44
45-54
55-64
65 & over
Median Age
Source: US.
22
2
«_
2
5
2
2
3

,723
,006
.101
,110
,999
,648
,630
,229
33.9
Department
Male
10,989
995
2,072
1,058
2,896
1,319
1,210
1,439
32.5
Female
11
-
2
1
3
1
1
1

,734
,011
,029
,052
,103
,329
,420
,790
35.2
of Commerce, Bureau
Total
20,452
1,975
4,085
2,012
5,183
2,347
2,342
2,508
30.8
of the
Jackson
Male
9,946
1,033
2,089
1,035
2,418
1,133
1,089
1,149
28.8
Census
Female
10,506
942
1,996
977
2,765
1,214
1,253
1,359
32.7
, Census
Study Area
Total
43,175
3,981
8,186
4,122
11,182
4,995
4,972
5,737
33.1
Male
20,935
2,028
4,161
2,093
5,314
2,452
2,299
2,588
39.2
of Population,
Female
22,240
1,953
4,025
2,029
5,868
3,872
2,673
3,149
37.1
1970,
General Population Characterisitics,  Arkansas.

-------
                                                        TABLE 8


                                          POPULATION FOR SELECTED AGE GROUPS
                                     BY SEX, MEDIAN AGE, AND PERCENT DISTRIBUTION
                                                WHITE RIVER P.& D.D.  1970
oo
Population

All Ages
0-5
6-15
16-21
22-44
45-54
55-64
65 & over
Median Age
Source: U.
Total
142,769
12,650
26,596
14,194
34,728
16,333
17,341
20,927
33.6
Male
69,537
6,491
13,389
7,096
16,585
7,925
8,209
9,842
32.2
S. Department of
Female
73,232
6,159
13,207
7,098
18,143
8,408
9,132
11,085
34.8
Commerce, Bureau of
Total
100.0
8.9
18.6
9.9
24.3
11.4
12.2
14.7

the Census,
% Distribution
Male
100.0
9.3
19.3
10.2
23.8
11.4
11.8
14.2

Census of
Female
100.0
8.4
18.0
9.7
24.8
11.5
.12.5
15.1

Population, 1970,
                       General Population Characteristics, Arkansas, 1970.

-------
                 TABLE 9
    POPULATION FOR SELECTED AGE GROUPS
BY SEX, MEDIAN AGE, & PERCENT DISTRIBUTION
              ARKANSAS - 1970

All Ages
0-5
6-15
16-21
22-44
45-54
55-64
65 & over
Median Age

Total
1,923,295
194,168
385,944
202,295
496,132
208,012
198,984
237,760
29.1
Population
Male
932,310
98,902
196,344
99,510
238,729
99,035
93,650
106,140
27.7
% Distribution
Female
990,985
95,266
189,600
102,785
257,403
108,977
105,334
131,620
30.5
Source: US .Department of Commerce, Bureau
General Population Characteristics
Total
100.0
10.1
20.1
10.5
25.8
10.8
10.3
12.4

of the Census, Census
, Arkansas, 1970.
Male
100.0
10.6
21.1
10.7
25.6
10.6
10.0
11.4

of Population

Female
100.0
9.6
19.1
10.4
26.0
11.0
10.6
13.3

, 1970,


-------
                            TABLE  10
             DEPENDENCY RATIO FOR STUDY AREA, WRPDD,
                   ARKANSAS AND UNITED STATES
                              1970
Area

Independence
Jackson
Study Area
WRPDD
Arkansas
Source: U. S.
Population
Working Dependency Ratio
Total Youth Age Old Age Total
(0-20) (21-64) (65 and
over)
22,723 7,915 11,579 3,229 .96
20,452 7,794 10,150 2,508 1.02
43,175 15,709 21,729 5,737 .99
142,769 51,545 70,297 20,927 1.03
1,923,295 753,797 931,738 237,760 1.06
Department of Commerce, Bureau of the Census, General Population
Characteristics, Arkansas, 1970.
                                20

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                                                TABLE 11

                                         EMPLOYMENT BY INDUSTRY FOR
                               WHITE RIVER PLANNING AND DEVELOPMENT DISTRICT
                                           1960,  1965, 1970,  1975
1960 Employment 1965 Employment 1970 Employment

TOTAL, ALL INDUSTRIES kj
AGRICULTURE, FORESTRY, AND FISHERIES
MANUFACTURING
Durable Goods
Lumber and Wood Products
Furniture and Fixtures
Stone, Clay and Glass Products
Primary Metal Industries
Fabricated Metal Industries
Electrical Equipment and Supplies
Transportation Equipment
Other Durable Goods 21
Nondurable Goods
Food and Kindred Products
Apparel and Other Textile Products
Printing and Publishing
Other Nondurable Goods _3/
MINING
CONSTRUCTION
TRANSPORTATION AND PUBLIC UTILITIES
TRADE, TOTAL
Wholesale Trade
Retail Trade
Number
34,700
10,200
4,575

1,425
n.a.
n.a.
100





879
(D)
100

200
1,200
1,275
4,050
n.a.
n.a.
Percent Number
100.0 37,350
29.4 7,275
13.2 6,400

31.2 1,125
n.a.
n.a.
1,800





900
825
100

0.6 225
3.5 1,225
3.7 1,350
11.7 4,975
n.a.
n.a.
Percent Number
100.0 47,625
19.5 7,400
17.2 9,550
4,875
1,100
200
200
425
575
450
175
1,725
4,675
1,300
1,875
125
1,375
0.6 175
3.3 2,925
3.6 1,925
13.3 7,400
925
6,475
Percent
100.0
15.5
20.0
10.2
2.3
0.4
0.4
0.9
1.2
0.9
0.4
3.6
9.8
2.7
3.9
0.3
2.9
0.4
6.1
4.0
15.5
1.9
13.6
Estimated
1975 Employment
Number
53,500
6,750
11,350
5,700
1,050
275
275
550
775
650
250
1,900
5,650
1,475
2,300
175
1,725
200
3,650
2,150
9,125
1,150
7,975
Percent
100.0
12.6
21.2
10.7
2.0
0.5
0.5
1.0
1.5
1.2
0.5
. 3.6
10.6
2.8
4.3
0.3
3.2
0.4
6.8
4.0
17.1
2.2
14.9
FINANCE, INSURANCE, AND REAL ESTATE
525
1.5
975
2.6
1,625
3.4    2,225
4.2

-------
                                                TABLE 11  (Continued)
K>
NJ
                                                                                                           Estimated
                                                     1960 Employment  1965 Employment  1970 Employment  1975 Employment
Industry Title
SERVICES
PUBLIC ADMINISTRATION TOTAL
Federal Public Administration
State Public Administration
Local Public Administration
Other Non-agriculture
Number
11,514
1,161
n.a.
n.a.
n.a.

Percent Number Percent
33.2 13,755 36.8
3.3 1,170 3.1
n.a.
n.a.
n.a.

Number
15,550
1,100
576
160
376

Percent
32.7
2.3
1.2
0.3
0.8

Number
16,850
1,175
626
160
400

Percent
31.5
2.2
1.2
0.3
0.8

    1.  Primary metal industries in 1960 and 1965 include:  fabricated metal products; machinery, except electrical;
        electrical machinery, equipment and supplies; transportation equipment; and instruments and related products.

    2.  Includes ordnance machinery, except electrical, instruments and related products; and miscellaneous manufacturing.

    3.  Includes petroleum and coal products; paper and allied products; chemicals and allied products; rubber and
        plastic products', leather and leather products.

    4.  Adjusted to place of work.

    Source:  Arkansas Employment Security Division, Annual Manpower Planning Report North Central Arkansas District and
             Interim Manpower Projections North Central Arkansas Manpower Planning Area, Little Rock, Arkansas, 1975.

-------
     While agriculture's share of employment for the District declined from

 29.4 percent in 1960  to 12.6 in 1975, manufacturing's employment share

 increased from 13.2 percent in 1960 to 21.2 percent in 1975.  With the

 exception of mining,  all other industries, such as construction, transpor-

 tation and public utilities, trade, finance, insurance and real estate and

 services, experienced a substantial employment growth from 1960 to 1975.
                                                          \
     In 1975 the services sector employed more workers than any other

 industry in the District.  There were 16,850 service workers, or 31.5 per-

 cent of total employment.  Trade and finance, insurance and real estate

 were two sectors in which employment more than doubled from 1960 to 1975.

     The study area experienced basically the same overall employment

 growth as described above for the District.  As data in Table 12 indicates,

 total employment in the study area increased from 18,898 in 1970 to 20,728

 in 1974, with manufacturing increasing its share from 3,818 workers in 1970

 to 5,384 workers in 1974.  Farm employment declined from 2,247 in 1970 to

 1,753 in 1974.

     Tables 13 and 14 show that employment in Independence County increased

 from 9,990 in 1970 to 11,178 in 1974 and in Jackson County from 8,908 to

 9,550 during the same period.

     The total civilian labor force for White River Planning and Development

District from 1970 to 1974 is shown in Table 15.  The civilian labor force

 for the District increased from 52,200 in 1970 to 59,500 in 1974, an

 increase of about 14  percent.  Total employment for the same period

 increased from 48,200 to 55,000, a rise of about 14.1 percent.  Employment

 in agriculture remained basically the same, ranging between 6,400 to 7,300
                                    23

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                                         TABLE 12
                      EMPLOYMENT BY TYPE & BROAD INDUSTRIAL SOURCES
                     FOR STUDY AREA - (INDEPENDENCE & JACKSON COUNTIES)
                                       1970 - 1974
                                               1970
         1971    1972
                1973
                 1974
Total Employment
   Unemployment
   Unemployment rate

   Number of Proprietors
      Farm Proprietors
      Non-Farm Proprietors

   Wage and Salary Employment
      Farm
      Non - Farm
         Government
         Total Federal
         Federal Civilian
         Military
         State and Local

      Private Non Farm
         Manufacturing
         Mining
         Construction
         Transport, Comm. & Public Utilities
         Trade
         Finance, Insurance, and Real Estate
         Services
         Other
18,898  19,406
 1,125   1,100
   6.8     6.4
 4,732
 2,572
 2,160
 3,818
    39
   475
   591
 2,490
   299
 2,272
   213
4,783
2,538
2,245
20,189  20,732  20,728
 1,025     975   1,200
   5.6     5.3     6.5

 4,842   4,802   4,808
 2,504   2,470   2,469
 2,337   2,332   2,339
14,166
2,247
11,919
1,722
211
206
5
1,511
14,623
2,087
12,536
1,785
213
208
5
1,572
15,347
1,982
13,365
1,805
210
204
6
1,596
15,930
1,941
13,989
1,829
215
209
6
1,614
15,920
1,753
14,167
1,925
218
214
4
1,707
10,197  10,751  11,559  12,160  12,242
4,166
   43
  521
  592
2,568
  306
2,338
  217
 4,717
    45
   509
   607
 2,661
   333
 2,472
   215
5,370
   39
  473
  587
2,661
  312
2,514
  204
5,384
   29
  498
  596
2,665
  318
2,574
  178
Source:  Employment By Type and Broad Industrial Sources - Full and Part-Time wage and
         salary Employment Plus Number of Proprietors.  Arkansas Employment Security
         Division, Regional Economic Information System, Bureau of Economic Analysis.
         Un-dated.
                                           24

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                                                        TABLE  13

                                    EMPLOYMENT BY TYPE AND BROAD INDUSTRIAL SOURCES
                       FULL AND PART-TIME WAGE AND SALARY EMPLOYMENT PLUS NUMBER OF PROPRIETORS
                                                FOR INDEPENDENCE COUNTY
ro
Cn

Total Employment
Unemployment
Unemployment Rate
Number of Proprietors
Farm Proprietors
Non-Farm Proprietors
Wage and Salary Employment
Farm
Non-Farm
Government
Total Federal
Federal Civilian
Military
State and Local
Private Non-Farm^
Manuf ac tur ing
Mining
Construction
Transport. , Comm. , and Public Utilities
Trade
Finance, Insurance, and Real Estate
Services
Other
1970
9,990
575
6.4
2,602
1,380
1,222
7,388
626
6,762
922
136
134
2
786
5,840
2,577
39
163
257
1,288
134
1,191
191
1971
10,287
650
7.0
2,631
1,362
1,269
7,656
581
7,075
957
142
140
2
815
6,118
2,661
43
211
267
1,375
144
1,223
194
1972
10,823
525
5.4
2,666
1,344
1,322
8,157
552
7,605
965
140
137
3
825
6,639
2,965
45
207
288
1,464
151
1,336
183
1973
11,296
525
3.2
2,645
1,326
1,319
8,651
541
8,110
976
143
140
3
833
7,134
3,472
39
206
259
1,465
145
1,376
172
1974
11,178
775
7.8
2,648
1,325
1,323
8,530
489
8,041
1,034
152
150
2
882
7,007
3,571
29
195
240
1,337
130
1,359
146
        •"-Primary source for private non-farm employment:  ES-202 Covered Employment - Arkansas Employment Security Division
    Source:  Regional Economic Information System, Bureau of Economic Analysis

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                                                        TABLE 14
N>
                                    EMPLOYMENT BY TYPE AND BROAD INDUSTRIAL SOURCES
                       FULL AND PART-TIME WAGE AND SALARY EMPLOYMENT PLUS NUMBER OF PROPRIETORS
                                                  FOR JACKSON COUNTY

Total Employment
Unemp ley went
Unemployment Rate
Number of Proprietors
Farm Proprietors
Non-Farm Proprietors
Wage and Salary Employment
Farm
Non-Farm
Government
Total Federal
Federal Civilian
Military
State and Local
Private Non-Farm^-
Manufacturing
Mining
Construction
Transport. , Comm. , and Public Utilities
Trade
Finance, Insurance, and Real Estate
Services
Other
1970
8,908
550
7.1
2,130
1,192 x
938
6,778
1,621
5,157
800
75
72
3
725
4,357
1,241
—
312
334
1,202
165
1,081
22
1971
9,119
450
5.7
2,152
1,176
976
6,967
1,506
5,461
828
71
68
3
757
4,633
1,505
' —
310
325
1,193
162
1,115
23
1972
9,365
500
6.0
2,176
1,160
1,015
7,190
1,430
5,760
840
70
67
3
770
4,920
1,752
—
302
319
1,197
182
1,136
32
1973
9,436
450
5.4
2,157
1,144
1,013
7,279
1,400
5,879
853
72
69
3
781
5,026
1,898
—
267
328
1,196
167
1,138
32
1974
9,550
425
5.1
2,160
1,144*
1,016
7,390
1,264
6,126
891
66
64
2
825
5,235
1,813
—
303
356
1,328
188
1,215
32
         Iprimary source for private non-farm employment:
    Source:  Regional Economic Information System,  Bureau
 ES-202 Covered Employment
of Economic Analysis
- Arkansas Employment Security Division

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                                      TABLE 15


                                CIVILIAN LABOR FORCE
                     WHITE RIVER PLANNING & DEVELOPEMENT DISTRICT
                                    1970 - 1974
                             ANNUAL AVERAGE, 1970-1974
                                   (In Thousands)
  Item
  j./  Adjusted to a place of residence basis.

  2/  Place of work basis.
1970
1971
1972    1973
1974
Total Civilian Labor Force
Unemployment
Unemployment Rate (Percent)
Employment, Total JL/
Agriculture
Nonagriculture
Domestic Service, Self-Employed
and Unpaid Family Workers
Wage and Salary 21
Manufacturing
Nonmanuf acturing
52.2
4.0
7.7
48.2
6.6
37.2

8.0
29.2
9.0
20.2
54.2
4.2
7.7
50.1
6.8
38.5

8.4
30.2
9.3
20.9
57.6
4.0
6.9
53.6
7.1
41.6

8.8
32.8
10.6
22.2
59.4
3.6
6.0
55.9
7.3
43.3

8.8
34.5
11.2
23.3
59.5
4.5
7.5
55.0
6.4
42.9

8.5
34.4
10.9
23.5
Source:  Arkansas Employment Security Division, Manpower Projection North Central
         Arkansas Manpower Planning Area, Little Rock, Arkansas, 1975.
                                           27

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workers from 1970  to 1974.  Non-agriculture employment, however, increased




from  37,200 in 1970 to 42,900 in 1974.






1.3.2  Unemployment Trends.  The unemployment rate for the District, as it




is shown in Table  15, was not exceptionally high for the 1970-74 period.




It ranged from 6.0 to 7.7 percent.  Both counties, Independence and




Jackson, generally experienced a lower unemployment rate than did the




District, as evidenced in Tables 13 and 14.






1.3.3  Manufacturers by SIC and Employment.  The lists of manufacturing




firms operating in Independence County, Table 16, and Jackson County, Table




17, were developed to show the diversity of manufacturing firms in the




study area.




     As Tables 16 and 17 show, in 1976 there were 35 manufacturing firms in




Independence County and about 29 firms in Jackson County.  There was only




one firm employing more than 500 workers.  Arkansas Eastman Company is




projected to reach this size in 1978.  About 34.4 percent of the firms




operating in the study area employ less than 10 workers.




     The manufacturing firms are producing diversified products ranging




from shoes and foods to heavy equipment and chemical products.  Most of the




firms are concentrated in the food and wood-related industries.






1.3.4  Distribution of Employment by Occupation.  The occupational distri-




bution of employment in the District is shown in Table 18.  This very




detailed table shows the availability of workers in numerous occupations.




Comparing the kinds of workers that the AP&L plant will need during its




construction and operation phases (see Appendix Tables B-l and B-2) to the




1975 estimated employment by occupation for the District, it can be con-




cluded that most of the skilled and unskilled workers can be obtained from
                                    28

-------
                                     TABLE 16

                      MANUFACTURERS - INDEPENDENCE COUNTY
BY STANDARD INDUSTRIAL CLASSIFICATION, NAME,  LOCATION AND NUMBER OF EMPLOYEES
                                     1976

S.I.C.
2011
2016
2022
2026
2038
2048
2048
2048
2048
2051
2086
2086
2337
2421,
2429
2499
2512


2711
2752
2865
2951
3069
3143,
3144,
3149

Name
Milligan Packing Co.
Arkansas Poultry Co.
Hills Valley Foods, Inc.
Mack Farm Dairy Co.
Banquet Foods Corp.
Banquet Foods Corp. (Feed)
Banquet Foods Corp. (So.Div.)
Lanier, Inc.
Thompson Feed Co.
Ideal Baking Co.
Coca-Cola Bottling Co.
Royal Crown Bottling Co.
Westport Casuals, Inc.
Trotter Lumber Co.

Bowman Handles, Inc.
Riverview Furniture and
tut £ 4- 4 r*
Manufacturing L.O.
Batesville Guard Record Co.
Riverside Graphic
Arkansas Eastman
White River Bituminous, Inc.
General Tire and Rubber Co.
International Shoe Co.


Number of Employees
Location 1- 11- 50- 100- 200- 300- 500-
10 49 99 199 299 499 999
Batesville x
Batesville x
Batesville x
Batesville x
Batesville x
Batesville x
Batesville x
Batesville x
Floral x
Batesville x
Batesville x
Batesville x
Batesville x
Batesville x

Batesville x

O A- * 1 1

Batesville x
Batesville x
x
Batesville x
Batesville x
Batesville x



-------
                                                TABLE  16  (Continued)
u>
o
S.I.C.
3271,
3273
3272
3273
3274

3294,
3295
3281,
3295
3295
3295
3541,
3599
3662
3713

3822

3851


Mane
Smith Conerete Products,
Inc.
Arkansas Concrete Tank, Co.
Concrete Products Co.
Arkansas Lime Co.
(Rangair Corp.)
Midwest Lime Co.

McBride Stone Quarries

Galloway Sand & Gravel Co.
White River Materials, Inc.
Precision Tool Co.

DAVCO Electronics Corp.
White River Distribution,
Inc.
White Rogers Co. (Emerson
Elect.)
La Croix Optical Co.
Total (One not reporting) by
Total Number of Firms
Location
Batesville

Batesville
Batesville
Batesville
•
Batesville

Batesville

Batesville
Batesville
Batesville

Batesville
Batesville

Batesville

Batesville
Size


1- 11-
10 49
X

X
X


X

X

X
X
X

X
X



X
12 9
35
Number of Employees
50- 100- 200- 300- 500-
99 199 299 499 999




X












X


5 3 2 2 1

    Source:  Directory of Arkansas Manufacturers. 1976. Arkansas Industrial Development Foundation  (Little Rock, Arkansas

-------
                                                     TABLE 17

                                         MANUFACTURERS - JACKSON COUNTY
                 BY STANDARD INDUSTRIAL CLASSIFICATION, NAME, LOCATION, AND NUMBER OF EMPLOYEES
                                                      1976
S.I.C.
2011
2074
2075
2075
2421
2441
2451
2499
2541
2645
2711
2711
2751
2752
2899
3271
3273
3353
3361
3369
3429
3443
3448
3523
3599
3645
3679
3715
3811
3993


Name
Middle ton & Sons Packing Co.

Southern Cotton Oil Co., Inc.
Jackson County Rice Dryer
Curtner Lumber Co.
Associated Wood Products Co.
Countryside Industries, Inc.
C & D Corporation
Campbell Station Cabinet Shop
Evans Box Factory
Newport Daily Independent
Tuckerman Record
Stevens Printing Service
Craig Printing Co.
Diaz Refining Co.
Smith Concrete Products
Mobly Construction Co.
Revere Copper and Brass
Brown Jordon Co.
Camp Casting Company
Tennessee Forging Steel Corp.
Cee-Gee, Inc.
Fulline Building Corp.
Bowman Manufacturing Co.
Victor Metal Products
American Lantern Co.
J. E. Messenger Co.
Delta Trailer Co.
Aero Sonic Corp.
Newport Neon Sign Co.
Total by Size
Total Number of Firms
Number of Employees
Location 1- 11- 50- 100- 200- 300- 500-
10 49 99 199 299 499 999
Newport x

Newport x
Newport x
Newport x
Newport x
Newport x
Tuckerman x
Newport x
Newport x
Newport x
Tuckerman x
Newport x
Newport x
Diaz x
Newport x
Newport x
Newport x
Newport x
Newport x
Newport x
Diaz x
Newport x
Newport x
Newport x
Newport x
Newport x
Newport x
Newport x
Newport x
10 11 . 1 1 4 2
29
Source:   Directory of Arkansas Manufacturers,  1976, Arkansas Industrial Development Foundation,  (Little Rock, Ark.)

-------
                                   TABLE  18

                    ESTIMATED 1975 EMPLOYMENT BY OCCUPATION
               FOR WHITE RIVER PLANNING AND  DEVELOPMENT DISTRICT


Occupational Title                                     Number    Percent


TOTAL ALL OCCUPATIONS                                  46,025    100.00

PROFESSIONAL,  TECHNICAL, KINDRED                        4,025      8.74
 Engineers,  Technical                                     150      0.33
  Engineers, Civil                                          *
  Engineers, Electrical                                     *
  Engineers, Industrial                                    50      0.11
  Engineers, Mechanical                                     *
  Engineers, Metallurgical                                  *
  Engineers, Petroleum                                      *
  Engineers, Sales                                          *
  Engineers, Other                                         50      0.11
 Life  and  Physical Scientists                              50      0.11
  Agricultural  Scientists                                   *
  Atmospheric,  Space Scientists                             *
  Biological Scientists                                      *
  Chemists                       .                            *
  Physicists and Astronomers                                 *
Mathematical Specialists                                   *
  Statisticians                                              *
Engineers,  Science  Technicians                           250      0.54
  Agricultural, Biological Technicians,
  Except Health                                            50      0.11
  Chemical Technicians                                       *         -
  Draftsmen                                                 75      Q.16
  Electrical, Electronic  Technicians                         *
  Industrial Engineering Technicians                         *
 Mechanical Engineering Technicians                         *
 Surveyors                                                 50      0.11
 Engineering,  Science Technicians,  NEC                     50      0.11
Medical Workers,  Except Technicians                       625      1.36
 Chiropractors                                              *
 Dentists                                                   25      0.05
 Dietitians                                                  *
 Optometrists                                                *
 Pharmacists                                               50      0.11
 Physicians, MD and  Osteopaths                             75      0.16

-------
                             TABLE IB (.Continued)
Occupational Title    '                                Number    Percent
  Podiatrists                                               *
  Registered Nurses            .                          AGO      0.87
  Therapists                                                *         -
  Veterinarians                                             *         -
 Health Technologists and Technicians                    150      0.33
  Clinical Laboratory Technologists
   and Technicians                                         50      0.11
  Dental Hygienists                                         *
  Health Record Technologists and Technicians               *         -
  Radiologic Technologists and Technicians                 25      0.05
  Other Health Technologists and Technicians               50      0.11
 Technicians, Except Health                                50      0.11
  Airplane Pilots                                           *
  Air Traffic Controllers                                   *
  Enbaliners                                                 *         -
  Radio Operators                                           *  •
  Other Technicians, Except Health                          *
 Computer Specialists                                      25      0..05
  Computer Programmers                                      *         -
  Computer Systems Analysts                                 *
  Other Computer Specialists                                *
 Social Scientists                                          *
  Urban and Regional Planners                               *
 Teachers                                               1,800      3.91
  Adult Education Teachers                                  *
  Agriculture Teachers                                      *         -
  Art,  Drama, Music Teachers                               25      0.05
  Atmospheric,  Earth, Marine
   and  Space Teachers                                       *
  Biology Teachers                                          *
  Business Commerce Teachers                                *
  Chemistry Teachers                                        *
  Coaches, Physical Education Teachers                       *
  Economics Teachers                                        *
  Education Teachers                                        *
  Elementary School Teachers                             775       1.61
  Engineering Teachers                                      *
  English Teachers                                          *
  Foreign Language Teachers                                 *

-------
                                                TABLE  18 (Continued)
                  Occupational  Title
                                                       Number
        Percent
to
  Health Specialties  Teachers
  History Teachers
  Home  Economics  Teachers
  Law Teachers
  Mathematics Teachers
  Physics Teachers
  Preschool, Kindergarten Teachers
  Psychology Teachers
  Secondary School Teachers
  Sociology Teachers
  Social  Science  Teachers, NEC
  Miscellaneous Teachers, College
  and  University
  Teachers, College and University, NEC
  Teachers, Except College and
  University, NEC
  Theology Teachers
  Trade,  Industrial Teachers
Writers, Artists and Entertainers
  Actors
  Athletes, Kindred Workers
  Authors
  Dancers
  Designers
  Editors, Reporters
 Musicians, Composers
  Painters, Sculptors
 Photographers
 Public Relations Men, Publicity Writers
 Radio, Television Announcers
 Writers, Artists, Entertainers, NEC
Other Professional, Technical and Kindred
 Accountants
 Architects
 Clergymen
 Religious Workers, Except Clergymen
 Farm Management Advisors
 Foresters, Conservationists
 Home Management Advisors
   *
   *
   *
   *
  25
   *
550
   *
   *

   *
100

  50
   *
   *
175
   *
   *
   *
   *
   *
 50
   *
   *
   *
  *
  *
  *
750
125
  *
175

  *
 50
                                                                                    0.05

                                                                                    1.20
0.22

0.11


0.38
                                                                                    0.11
                                                                                    1.63
                                                                                    0'.27

                                                                                    0.38
                                                                                    0.11

-------
                              TABLE  18(Continued)
 Occupational Titles   .                                    Number    Percent


  Judges                                                       *         -
  Lawyers                                                     75      0.16
  .Librarians                                                  50      0.11
  Operations and Systems Researchers
   and Analysts                                                *         -
  Personnel, Labor Relations Workers                          75      0.16
  Research Workers, NEC                                      '50      0.11
  Recreation Workers                                           *
  Social Workers                                              50      0.11
  Vocational, Educational Counselors                          50      0.11
MANAGERS, OFFICIALS, PROPRIETORS                           4,325      9.40
 Buyers, Sales, Loan Managers                                350      1.20
  Bank Officials, Financial Managers                         150      0.33
  Creditmen                                                   25      0.05
  Buyers, Shippers, Farm Products                              *
  Buyers, Wholesale, Retail Trade                            100      0.22
  Purchasing Agents, Buyers,  NEC                              75      0.16
  Saist  Managers, Retail Trade                               100      0.22
  Sales  Managers, Except Retail  Trade                          50      0.11
 Administrators,  Public  Inspectors                            475      1.03
  Assessors,  Controllers,  and Treasurers;
  Local  Public Administration                                25      0.05
  Construction  Inspectors,  fublic
  Administration                                              *
  Health  Administrators                                        50      0.11
  Inspectors, Except  Construction, Public
  Administration                                             50      0.11
  Officials and Administrators,  Public
  Administration,  NEC                                         75       0.16
  Postmasters, Mail  Superintendents                           100       0.22
  School Administrators, College                               25       0.05
  School Administrators, Elementary
  and Secondary                                              125       0.27
Other Managers, Officials and Proprietors                 3,300       7.17
  Funeral .Directors                                            50       0.11
 Managers and Superintendents, Building                       25       0.05
 Office Managers, NEC                                        100       0.22
 Officers, Pilots, Pursers; Ship                              *         -
 Officials of Lodges, Societies and Unions                    *

-------
                                                TABLE  18 (Continued)
u>
Occupational Title
Railroad Conductors
Restaurant, Cafeteria, and Bar Managers
Other Managers and Administrators
SALES WORKERS
Advertising Agents and Salesmen
Auctioneers
Demonstrators
Hucksters, Peddlers
Insurance Agents, Brokers, and Underwriters
Newsboys
Real Estate Agents and Brokers
Stock and Bond Salesmen
Sales Representatives, Manufacturing
Sales Representatives, Wholesale
Sales Clerks, Retail Trade
Salesmen, Retail Trade
Salesmen, Services and Construction
CLERICAL WORKERS
Stenographers, Typists, Secretaries
Secretaries, Legal
Secretaries, Medical
Secretaries, Other
Stenographers
Typists
Office Machine Operators
Bookkeeping, Billing Machine Operators
Calculating Machine Operators
Computer, Peripheral Equipment Operators
Duplicating Machine Operators
Key Punch Operators
Tabulating Machine Operators
Other Office Machine Operators
Other Clerical Workers
Bank Tellers
Billing Clerks
Bookkeepers
Cashiers
Clerical Supervisors, NEC
Number
*
200
2,900
2,975
*
*
*
125
200
25
200
*
150
300
1,475
375
75
4,625
1,025
*
*
800
25
175
75
*
*
*
*
50
*
*
3,525
175
*
1,050
400
. *
Percent

0.43
6.30
6.46
-
—
—
0.27
0.43
0.05
0.43
-
0.33
0.65
3.20
0.81
0.16
10.05
2.23
-
-
1.74
0.05
0.38
0.16
-
-
-
-
0.11
-
-
7.66
0.38
-
2.28
0.87
-

-------
                                               TABLE 18 (Continued)
u>
Occupational Title
Collectors, Bill and Account
Counter Clerks, Except Food
Dispatchers, Starters, Vehicle
Enumerators, Interviewers
Estimators, Investigators, NEC
Expediters, Production Controllers
File Clerks
Insurance Adjusters, Examiners and
Investigators
Library Attendants and Assistants
Mail Carriers, Post Office
Mail Handlers, Except Post Office
Messengers, Office Boys
Meter Readers, Utilities
Payroll, Timekeeping Clerks
Postal Clerks
Proofreaders
Real Estate Appraisers
Receptionists
Shipping, Receiving Clerks
Statistical Clerks
Stock Clerks, Storekeepers
Teachers' Aides, Except School Monitors
Telegraph Messengers
Telegraph Operators
Telephone Operators
Ticket, Station, Express Agents
Weighers
Miscellaneous Clerical Workers, NEC
CRAFTSMEN, FOREMEN, KINDRED
Construction Craftsmen
Carpenters
Brickmasons, Stonemasons
Bulldozer Operators
Cement, Concrete Finishers
Electricians
Excavating, Grading, and Road Machine
Operators, Except Bulldozer
Number
*
75
25
50
100
50
75

*
75
150
50
*
25
25
100
*
*
150
150
75
175
75
*
*
150
*
50
175
7,050
2,900
1,350
225
200
75
225

325
Percent

0.16
0.05
0.11
0.22
0.11
0.16

-
0.16
0.33
0.11
-
0.05
0.05
0.22
-
-
0.33
0.33
0.16
0.38
0.16
-
-
0.33
.
0.11
0.38
15.32
6.30
2.93
0.49
0.43
0.16
0.49

0.71

-------
                                              TABLE  18 (Continued)
                 Occupational Title                                         Number     Percent


                   Floor Layers, Except Tile Setters                             *
                   Painters, Construction and Maintenance                       150      0.33
                   Paperhangers                                                  *
                   Plasterers                                                    *
                   Plumbers, Pipefitters                                        175      0.38
                   Plumber, Pipefitter, Apprentices                              *         _
                   Roofers and Slaters                                          50      0.11
                   Structural Metal Craftsmen                                   25      0.05
                   Tile Setters                                                 25      0.05
                  Foremen, NEC                                               1,025      2.23
                  Metalworking Craftsmen, Except Mechanics                      525      1.14
                   Blacksmiths                                                   *         _
                   Boilermakers                                                  *
                   Forgemen, Hammermen                                           *
                   Job and Die Setters, Metal                                   100      0.22
                   Machinists                                                   175      Q.38
w                  Millwrights            •                                       *
oo                  Holders, Metal                                               25      0.05
                   Pattern, Model Makers, Except Paper                           *
                   Rollers and Finishers, Metal                                  *
                   Sheetnetal Workers and Tinsmiths                             50      0.11
                   Tool and Die Makers                                          125      0.27
                   Tool and Die Maker Apprentices                                *
                  Mechanics, Repairmen, Installers                           1,600      3.48
                   Air Conditioning, Heating, and
                    Refrigeration                                              100      0.22
                   Aircraft                                                      *
                   Auto Body Repairmen                                         125      0.27
                   Auto Mechanics                                              650      1.41
                   Farm Implement                                               50      0.11
                   Heavy Equipment Mechanics, Including Diesel                 400      0.87
                   Household Appliance and Accessory .
                    Installers and Mechanics                                    75       0.16
                   Office Machine Repairmen                                      *          _
                   Radio and Television Repairmen                               50       0.11
                   Railroad, Car Shop Repairmen                                  *
                   Other Mechanics and Repairmen               .                100       0.22
                  Printing Trades Craftsmen                                  •  125       0.27

-------
TABLE  18 (Continued)
Occupational Title
Bookbinders
Compositors, Typesetters
Photoengravers and Lithographers
Pressmen and Plate Printers
Printing Apprentices, Except Pressmen
Transportation and Public Utilities
Electric Power Linemen and Cablemen
Telephone Installers and Repairmen
Telephone Linemen and Splicers
Other Craftsmen and Kindred Workers
Bakers
Cabinetmakers
Carpet Installers
Cranemen, Derrickmen, and Hoistmen
Decorators and Window Dressers
Furniture and Wood Finishers
Glaziers
Inspectors, Log and Lumber
Inspectors, Other
Jewelers and Watchmakers
Motion Picture Projectionists
Shoe Repairmen
Sign Painters and Letterers
Stationary Engineers
Tailors
Upholsterers
Craftsmen and Kindred Workers, NEC
OPERATIVES
Operatives, Except Transport
Semiskilled Metal Working
Drill Press Operatives
Furnacemen, Smeltermen, and Pourers
Grinding Machine Operatives
Lathe, Milling Machine Operatives
Other Precision Machine Operatives
Punch, Stamping Press Operatives
Solderers
Welders and Flame Cutters
Number
*
75
*
50
*
300
150
75
50
575
25
75
50
*
25
25
*
*
50
*
*
*
*
50
25
50
25
10,850
8,375
625
25
*
100
25
*
100
*
300
Percent

0.16
-
0.11
-
0.65
0.33
0.16
0.11
1.25
0.05
0.16
0.11
-
0.05
0.05
_
-
0.11
—
_
—
-
0.11
0.05
0.11
0.05
23.57
18.19
1.36
0.05
-
0.22
0.05
-
0.22
_
0.65

-------
                           TABLE 18  (Continued)
Occupational Title                      '                  Number    Percent
  Semiskilled Textile                                         75      0.16
   Other Textile Operatives                                   50      0.11
  Semiskilled Packing and Inspecting
   Operatives                                              1,400      3.04
   Checkers, Examiners,  and Inspectors;
    Manufacturing                                            675      1.47
    Graders and Sorters,  Manufacturing                        75      0.16
    Meat Wrappers,  Retail                                     25      0.05
    Packers and Wrappers, Except Meat  and
     Produce                                                 575      1.25
    Produce Graders and  Packers, Except
     Factory and Farm                                         50      0.11
   Other Operatives, Except Transport                       6,275     13.63
    Assemblers                                               925      2.01
    Bottling, Canning Operatives                             125      0.27
    Chainmen, Rodmen, and Axmen; Surveying                    *         -
    Clothing Ironers and  Pressers                             175      0.38
    Cue ting Operatives, NEC                                  125      0.27
    Dressmakers, Except Factory                               50      0.11
    Drillers, Earth                                           75      0.16
    Dry Wall Installers and Lathers                            75      0.16
    Dyers                                                     *         -
    Filers, Polishers, Sanders, and  Buffers                   75       0.16
    Garage Workers, Gas Station Attendants                  425       0.92
    Laundry and Dry Cleaning Operatives,  NEC                100       0.22
    Meat Cutters and Butchers,  Except
     Manufacturing                                           125       0.27
    Meat Cutters and Butchers,  Manufacturing                225       0.49
    Mine Operatives, NEC^                                    25       0.05
    Mixing Operatives                                        75       0.16
    Oilers, Greasers, Except Auto                              *
    Painters, Manufactured  Articles                          '50       0.11
    Photographic Process  Workers                              *
    Riveters and Fasteners                                     *         -
    Sailors and Deckhands                                     *
    Sawyers                                                 300      0.65
    Sewers and Stitchers                                   1,425       3.10
    Shoemaking Machine Operatives                         '   125      0.27

-------
TABLE 18 (Continued)
Occupational Title
Stationary Firemen
Winding Operatives, NEC
Machine Operatives, Miscellaneous
Specified
Operatives, NEC
Transport Equipment Operatives
Bus Drivers
Deliverymen and Routemen
Fork Lift and Tow Motor Operatives
Motormen; Mine, Factory, Logging
Railroad Brakemen
Taxicab Drivers and Chauffeurs
Truck Drivers
SERVICE WORKERS
Cleaning Service Workers
Chambermaids and Maids, Except Private
Households
C2e.-;-ers and Charwomen '
Janitors and Sextons
Food Service Workers
Bartenders
Bus Boys
Cooks, Except Private Household
Dishwashers

Food Counter and Fountain Workers
Waiters
Food Service Workers, NEC, Except
Private Household
Health Service Workers
Dental Assistants
Health Aides, Except Nursing
Nurses' Aides, Orderlies
Practical Nurses
Personal Service Workers
Attendants, Recreation and Amusement
Attendants, Personal Service, NEC
Barbers
Bootblacks
Child Care Workers, Except Private
Household
Number
25
50

975
700
2,475
275
500
175
*
^
50
1,450
5,250
1,100

100
175
825
1,550

*
725 .
•7 c
IJ
50
550

150
700
50
50
425
175
875
25
50
175
% *

f *% F
Percent
0.05
0. 11

2.12
1.52
5.38
0.60
1.09
0.38


0.11
3.15
11. Al
2.39

0.22
0.38
1.79
3.37


1.58
01 £.
• lo
0.11
1.20

0.33
1.52
0.11
0.11
0.92
0.38
1.90
0.05
0.11
0.38


/•v *t -•
                                          0.27

-------
TABLE 18 (Continued)
Occupational Title
Hairdressers and Cosmetologists
Housekeepers, Except Private Household
Welfare Service Aides
Protective Service Workers
Firemen, Fire Protection
Guards and Watchmen
Marshalls and Constables
Policemen and Detectives
Sheriffs and Bailiffs
Private Household Workers
Child Care Workers, Private Household
Cooks, Private Household
Housekeepers, Private Household
Maids and Servants, Private Household
LABORERS, EXCEPT FARM
Animal Caretakers, Except Farm
Carpenters' Helpers
Cor.?: ruction Laborers, Except Carpenters'
Helpers
Fishermen and Oystermen
Freight and Material Handlers
Garbage Collectors
Gardeners and Groundskeepers, Except
Farm
Lumbermen, Raftsmen, and Woodchoppers
Stock Handlers
Vehicle Washers and Equipment Cleaners
Warehousemen, NEC
Other Laborers
FARMERS AND FARM WORKERS
Farmers and Farm Managers
Farmers (Owners, Tenants)
Farm Managers
Farm Laborers and Farm Foremen
Farm Foremen
Farm Laborers, Wage Workers
Farm Laborers, Unpaid Family
*Less than 25.
Source: Arkansas Employment Security Division, Manpower
Number
375.
75
*
200
25
75
*
75
25
825
250
25
100
450
2,525
175
50

700
*
375
25

250
275
325
50
50
175
4,400
2,725
2,525
200
1,675
50
1,475
125

Projections,
Percent
0.81
0.16
_
0.43
0.05
0.16
_
0.16
0.05
1.79
0.54
0.05
0.22
0.98
5.49
0.38
0.11

1.52
_
0.81
0.05

0.54
0.60
0.71
0.11
0.11
0.38
9.56
5.92
5.49
0.43
3.64
0.11
3.20
0.27

North
Central Arkansas Manpower Planning Area, 1975.

-------
within the District or the study area.  The table shows that 4,025, or 8.7




percent, of those employees are classified as professional and technical,




and about 9.4 percent of the employment, or 4,325 persons, are holding




managerial positions.  In the District there are about 10,850 operatives




representing 23.6 percent of total employment.  It is from these occupa-




tional categories that the plant expects to draw most of its workers.




     It is estimated that most of the labor during the construction phase




will come from the study area and other local areas as far as 50 miles from




the site.  The craftsmen most difficult to obtain locally will be pipe




fitters and electricians.  About 60 percent of these two types of crafts




have to be imported from other parts of the state or country.  Local




workers proved themselves in the case of the Arkansas Eastman Plant to be




adaptable to new working conditions and experiences.  Verification of the




availability and quality of local workers is shown in Exhibit I of Appendix




B, which is a statement made by A. C. Roden, Daniels International, con-




tractor of the Arkansas Eastman Plant, Batesville.






1.4  Income and Spending




     Income is perhaps the most important measure of the economic vitality




and change of an area.  Income measures the level of economic prosperity




and reflects the outcome of the overall performance of the economic




conditions prevailing in the economy of the area being studied.  Changes in




total income express economic growth and the level of per capita income




reflects the economic welfare of the individuals in the area.  Therefore,




income becomes a yardstick for measuring economic growth, economic changes




and standards of living.
                                    43

-------
 1.4.1    Average Levels of Personal  Income.  The overall growth of income




 in  the  two-county  study area  is  shown  in Table 19.  The growth rates of the




 area are contrasted with  those of  the  White River Planning and Development




 District and  the State of Arkansas.  It is apparent from these data that




 the two counties have experienced  significant growth in income during




 recent years, having grown approximately $100 million, or 83.2 percent,




 from 1970  to  1975.  This  growth  rate is considerably above that of the




 State,  75.7 percent, but  somewhat  below that of WRPDD, 92.0 percent.  This




 seems to say  that  the two-county area  has experienced economic growth in its




 own right, while at the same  time  it is a part of an even larger and very




 viable growth area.




     Table 20 shows total personal income for Independence and Jackson




 Counties by source for 1974.  These  data show that Jackson County still




 depends more heavily on agriculture  as a source of income (25.5 percent)




 than does Independence County (10.6  percent).  Conversely, Independence




 County derives a larger portion  of its income from manufacturing (28.0 per-




 cent) than does Jackson County (18.7 percent).  Both counties derive a sig-




 nificant portion of their incomes  from wholesale and retail trade, services




 and the government sector, especially  state and local government.  Similar




 income distributions by major sources  for several previous years are given




 in Appendix Tables C-l and C-2.




     Per capita personal income  serves to measure the economic well-being




 of individuals in an area.  These  data are shown in Table 21 for the study




 area, WRPDD and the State of Arkansas  for 1970 to 1975.  The picture pre-




 sented here is somewhat different  from that observed in Table 19, dealing




with total personal income.  The difference is that the growth rate of per




 capita income has been greater during  this period for each of the two
                                     44

-------
                                                         TABLE  19

                                             TOTAL PERSONAL INCOME, ARKANSAS

                                                AND STUDY AREA, 1970-1975
                                                (In Thousands of Dollars)
                                         1970
                  1971
1972
1973
19 74
        Percent
        Change
1975    1970-75
Jackson County

Independence County

Study Area

White River Planning and
  Development District

Arkansas
$   58,639    $   58,558   $   64,562   $    81,997   $   91,141   $  109,000   85.9

    60,924        66,323       75,474       91,218       95,923      110,000   80.6

   119,563       124,881      140,036      173,215      187,064      219,000   83.2


   357,365       385,890      437,775      546,899      586,309      686,000   92.0

 5,560,001     5,972,950    6,712,811   7,900,253    8,659,036    9,770,000   75.7
Source:  Bureau of Economic Analysis, Regional Economics Information System,  Computer Printout, March, 1976; and Survey
         of Current Business. April, 1977.

-------
                                     TABLE 20

                         PERSONAL INCOME BY MAJOR SOURCES
                       FOR INDEPENDENCE AND JACKSON COUNTIES
                                      1974

                            (In Thousands of Dollars)
Total Income

By Type
Wage & Salary Disbursements
Other Labor Income
Proprietors Income
Farm
NonFarm
By Industry
Farm
Nonl'arm
Pri.v.-itt-
Manufacturing
Contract Construction
Wholesale 6. Retail Trade
Fin., Ins., & Real Estate
Transp., Comm. , & Pub. Utl.
Services
Other Industries
Government
Federal, Civilian
Federal, Military
State & Local
Total Population
Per Capita Income
Total Labor & Proprietors
Income (by place of work)
Less: Personal Contr. to SS
Net Labor & Proprietors
Income (by place of work)
Residence Adjustment
Net Labor & Proprietors
.Income (by Place of res.)
+Dividends
+Transf er Payments
Pers. Inc. by Place of Res.
Independence
County

$50,237
4,312
16,603
9,143
7,460

10,123
61,209
53,940
26,842
1,938
10,977
1,543
3,096
8,384
1,160
7,089
1,800
445
4,844
24,500
3,915

71,152
3,664

67,488
-731

66,757
11,599
17,567
95,923
Jackson
County

$42,532
3,459
26,213
20,694
5,519

23,259
48,945
43,315
17,030
3,212
9,268
1,940
4,032
7,486
347
5,630
767
396
4,467
21,700
4,206

72,204
3,012

69,192
-1,989

67,203
9,491
14,477
91,141
Percent of
Total Income
Independence
County

52.4
4.5
17.3
9.5
7.8

10.6
63.8
56.2
28.0
2.0
11.4
1.6
3.2
8.7
1.2
7.4
1.9
0.5
5.0



74.2
3.8

70.4
(0.8)

69.6
12.1
18.3

Jackson
County

46.7
3.8
28.7
22.7
6.T

25.5
53.7
47.5
18.7
3.5
10.2
2.1
4.4
8.2
0.4
6.2
0.8
0.4
4.9



79.2
3.3

75.9
(2.2)

73.7
10.4
15.9

Source:  Bureau of Economic Analysis, Regional Economics Information Systems.
                                        46

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                                                    TABLE  21

                                     PER CAPITA PERSONAL INCOME, ARKANSAS

                                           AND STUDY AREA,  1970-1975


Jackson County
Independence County
Study Area
White River Planning and
Development District
Arkansas

1970
$2,854
2,669
2,761
2,494
2,878

1971
$2,743
2,802
2,769
2,581
3,040

1972
$2,989
3,093
3,044
2,845
3,343

1973
$3,808
3,747
3,782
3,472
3,883

1974
$4,206
3,915
4,049
3,626
4,200

1975
$5,036
4,647
4,834
4,229
4,617
Percent
Change
1970-75
76.5
74.1
75.1
69.6
60.4
Source:   Bureau of Economic Analysis,  Regional Economics  Information  System,  Computer Printout, March, 1976; and
         Survey of Current Business, April,  1977.

-------
 counties  than  for either  the WRPDD or the State as a whole.  The two-county




 area experienced a growth in per capita income of 75.1 percent from 1970 to




 1975, while the WRPDD grew by 69.6 percent and the State of Arkansas by




 only 60.4 percent.  Simply stated, while total income in the two counties




 did not grow as rapidly as for the WRPDD, the population growth was less,




 which resulted in a somewhat larger rate of growth in income per capita.




 The study area has enjoyed a very respectable rate of economic growth and a




 significant improvement in the economic welfare of the people in recent




 years.






 1.4.2  Consumption Behavior - Retail Sales.  Retail sales for the State of




 Arkansas have shown a consistently strong pattern of growth.  The data




 shown in Table 22 indicate that sales at the state level increased 27.7




 percent from 1963 to 1967.  This compares with a 16.1 percent increase in




 the study area for the same period of time.  Independence County exceeded




 the state growth rate with a 29.6 percent increase.  However, Jackson




 County was far below the  state rate with a 6.6 percent growth.




     During the period of time from 1967 to 1972, Arkansas showed a 54.5




 percent increase in retail sales, while the study area showed a 43.9 per-




 cent increase.  The area  growth lagged behind the state, but to a much less




 extent than during the 1963-67 time period.  Again, Independence County




 exceeded the state growth rate with a 66.0 percent increase, and Jackson




 County growth continued to be below the state rate at 24.9 percent.  The




 growth rate in retail sales for Batesville during the 1967-72 time period




was a phenomenal 78.2 percent, well above the state, study area and county




 rates.   Newport also showed marked progress during this time, recovering




 from declining sales in the 1963-67 period to a healthy 35.2 percent growth.
                                    48

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                                              TABLE 22




                                            RETAIL SALES




                 BATESVILLE. NEWPORT. INDEPENDENCE AND JACKSON COUNTIES. STUDY AREA




                          AND WHITE RIVER PLANNING AND DEVELOPMENT DISTRICT




                                           1963-1967-1972
Percent Change
Area
Independence
Batesville
Jackson
Newport
Study Area
WRPDD
Arkansas
Source: U. S. Department of
U. S. Department of
1963 Sales
(000)
$ 21,882
19,281
31,107
25,401
52,989
130,381
1,984,375
Commerce, Bureau of Census,
Commerce , Bureau of Census ,
1967 Sales
(000)
$ 28,368
23,416
33,159
24,650
61,527
166,398
2,534,619
1963 Census of
1967 Census of
1972 Sales
(000)
$ 47,105
41,718
41,420
33,334
88,525
250,784
3,912,255
Business, Vol. II,
Business, Vol. II,
1963-67
29.6
21.4
6.6
(3.0)
16.1
27.6
27.7
Part I, Section 5,
Part I, Section 5,
1967-72
66.0
78.2
24.9
35.2
43.9
50.7
54.5
Table 3.
Table 3.
U.  S.  Department of Commerce,  Bureau of Census,  1972 Census  of  Business,  Vol.  II,  Part I,  Section  4,  Table  6.

-------
The estimated retail sales for the study area given in Table 23 show a


yearly breakdown from 1970 through 1976.  The data used for the computation


of Table 23 are shown in Appendix Tables D-l and D-2.   These data clearly


illustrate a positive growth in both retail sales and  the retailing


industry serving the needs of local and area consumers.



1.5  Housing



1.5.1  Composition.   As shown by Table 24, the year-round housing within


the study area in 1970 was primarily single family units.  This category


comprises 90.1 percent of the year-round housing, with multiple occupancy


units accounting for 6.2 percent, and mobile homes or  trailers accounting


for the remaining 3.6 percent.  The percentage of single family units in


the study area exceeded that of the State, which is 85.8 percent.  There is


a larger proportion of multi-family units in Jackson County than in


Independence County, with Jackson County having 7.8 percent of total year-


round housing as two or more units per structure, while Independence County


has only 4.8 percent.


     The record of new construction for the study area during the time


period 1970 to 1976 is not complete as only the larger urban areas issue


permits for construction and thus maintain records. Of note, however, is


the amount and type of construction in the two major towns, Batesville and


Newport, within the study area.  Data for these two towns are shown in


Table 25.  There were 425 new housing units built in Batesville, Indepen-


dence County, during the 1970-76 period, a 13.6 percent net increase (35


units were removed during the period).  Of the new housing units built, 42


percent were multi-unit structures.  During the same time period, there


wore 563 structures built in Newport, Jackson County,  a 16.4 percent net


increase.  About 37.7 percent of the new housing units built in Newport


were multi-unit structures.
                                    50

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                                 TABLE 23

           ESTIMATED RETAIL SALES FOR THE STUDY AREA, 1970-76


Year                           Study Area                    Percent Change
1970
1971
1972
1973
1974
1975
1976
$ 64,934,819
78,222,391
88,525,000
101,363,949
112,689,420
122,774,601
145,410,326
__
17.0
11.6
12.7
10.1
8.2
15.6
Source:  Retail sales determined using the following methodology:

         Study Area Sales Tax 1972
                                       = Tax Rate
         Study Area Retail Sales 1972
         Study Area Sales Tax (Year N)   _   .. _ ,
             3	  = Retail Sales
              Tax Rate

         Sample Calculation

         $ 2,445,706a
                         = .0276
         $88,525,000°
         $4.013,325      = $145}410>326 = 1976 Retail Sales for the Study Area
           .0276

Note:  The Arkansas sales tax is 3 percent of the gross receipts from the
sales of tangible personal property and certain selected services.  The tax
is paid by the consumer at the point of final sale and is computed on the
total consideration received without any deductions for the cost of labor.
A basic explanation for the .0276 rate calculation above is the exemption of
gasoline, cigarettes, beer, etc., from the basic rate of 3 percent.

     aAll sales tax data furnished by Department of Finance and Administra-
tion, State of Arkansas, Little Rock, Arkansas.

     b!972 Retail Sales from:   U. S. Department of Commerce, Bureau of the
Census, 1972 Census of Retail Trade;  Area Statistics:  Arkansas, January,
1975, p. 4-42.
                                    51

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                                             TABLE 24
                        YEAR ROUND HOUSING UNITS,  BY TYPE OF STRUCTURE
                           INDEPENDENCE,  JACKSON COUNTY,  STUDY AREA,
                 WHITE RIVER PLANNING & DEVELOPMENT DISTRICT AND ARKANSAS—1970



YEAR
One Unit

Area
Independence
Jackson
Study Area
W.R. P.
& D.D
Arkansas
Total
Units
8,367
7,061
15,428

54,013
672,795

Number
7,628
6,284
13,912

49,216
577,436

%
91.2
89.0
90.1

91.1
85.8
AROUND HOUSING UNITS
-Two or More Units

Number %
400 4.8
559 7.8
959 6.2

2,710 5.0
70,379 10.5

Mobile Home

Number
339
218
557

2,087
24,980


or Trailer

%
4.
3.
3.

3.
3.


0
1
6

9
7
Source:  U.S.  Department of Commerce,  Bureau of Census,  1970 Second Count  Summary Tape
         (Washington:   Central User's  Service); U.S.  Dept,  of Commerce,  Bureau of Census
         Census of Housing, 1970:   General Housing Characteristics, United States,
         Advanced Report HC(VI)-1,  Feb.,  1971.   Table 2,  p.5.   (Washington:  GPO)

-------
                                                     TABLE  25

                               YEAR ROUND HOUSING STRUCTURES BY NUMBER OF UNITS
                                            BATESVILLE AND NEWPORT
                                                   1970-1976
City and number
  of units within
  structure
 All Units 1970
Number
Percent
            Constructed
                Removed
1970-1976      1970-1976
            All Units 1976
           Number
           Percent
Batesville
  All sizes combined
  Single family
  Two units
  Three and four units
  Five or more
  Mobile Home or Trailer
2,875
2,496
  139
   68
  113
   59
 100.0
  86.8
   4.8
   2.4
   4.0
   2.0
   425
   245
    92
     8
    80
   n.a.
35*
35*
3,265
2,706
  231
   76
  193
   59
100.0
 82.9
  7.1
  2.3
  5.9
  1.8
Newport
All sizes combined
Single family
Two units
Three and four units
Five or more
Mobile Home or Trailer

2,700
2,168
311
96
64
61

100.0
80.3
11.5
3.6
2.4
2.2

563
351
16

196
n.a.

121 3,142
121 2,398
327
96
260
61

100.0
76.3
10.4
3.1
8.3
1.9
*Estimated by WRPDD.   No records maintained.  No active condemnation program exifets in Batesville.

Source:  U. S. Department of Commerce,  Bureau of Census,  1970 Census of Housing,  Housing Characteristics  for  States,
         Cities, and Counties;  Vol.  I,  Part 5, Table 58.   U.  S.  Department of Commerce, Bureau of  Census,  Construction
         Report. Housing Authorized by  Building Permits and Public Contracts, 1970, 1971,  1972,  1973,  1974, 1975,
         Table 5; 1976,  Table 4.
         White River Planning and Development District,  Housing Policy Plan for the White River  Region,  Survey  data.

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1.5.2     Tenancy and Vacancy.  The number of owner-occupied units within




the study area is 66.1 percent of the total occupied units, as shown in Table




26.  This compares with 66.7 percent for Arkansas.  Independence County




has a much higher rate of owner occupancy, 72.8 percent, than Jackson




County, which has 58.2 percent.




      The vacancy rate, shown in Table 27, for the study area is 7 percent




of the year-round housing units, or slightly over 1,000 units.  The vacancy




rate for Independence County is 8 percent, and is 6 percent for Jackson




County.  These figures must be tempered, however, by the fact that 22 per-




cent of the housing in the study area lacks some or all plumbing and is




therefore sub-standard.  These data are shown in Appendix Table E-l.  Cor-




rection or removal of this type of structure is being actively pursued by




the Town of Newport in Jackson County, as shown in the same appendix.  How-




ever, no such program exists in Batesville, Independence County.  The




availability of adequate rentals in either single units or multi-units is




practically non-existent.  This analysis of the study area is shown in




Exhibits I and II of Appendix E.




      Transient housing is shown on Table 28.  There is a total of 512 motel




rooms within the study area.






1.6    Public Service and Costs




      This section provides an inventory of details concerning the type and




extent of public services available in the impact area.  It further evaluates




the ability of public services to accommodate the anticipated expansion in




population over the next several years.   Table 29 summarizes data on public




services available in the area.
                                    54

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                                                      TABLE  26
Ln
                              TOTAL OCCUPIED HOUSING UNITS - OWNER OCCUPIED UNITS AND
                           RENTER OCCUPIED UNITS - INDEPENDENCE COUNTY,  JACKSON COUNTY,
                    STUDY AREA,  WHITE RIVER PLANNING AND DEVELOPMENT DISTRICT,  AND ARKANSAS
                                                       1970
Area
Independence
Jackson
Study Area
W.R. P. & D.D
Arkansas
Total
Occupied
Units
7,
6,
14,
47,
615,
740
609
349
618
424
Owner Occupied Units
Number
5,
3,
9,
33,
410,
631
849
480
989
438
Percent of
Total Units
72
58
66
71
66
.8
.2
.1
.4
.7
Renter Occupied
Number
2.109
2,760
4,869
13,629
204,986
Units
Percent of
Total Units
27.
41.
33.
28.
33.
7
8
9
6
3





          Source:   U.S.  Dept.  of Commerce,  Bureau of Census.   Census of Housing,  1970,
                   General  Housing Characteristics,  Arkansas,  Final Report HC(1)-A5,  Table  29,  p.62.

-------
                                           TABLE  27
                      VACANCY CHARACTERISTICS OF YEAR ROUND HOUSING UNITS
                  FOR BATESVILLE,  NEWPORT,  INDEPENDENCE AND JACKSON COUNTIES,
               THE STUDY AREA,  AND WHITE  RIVER PLANNING AND DEVELOPMENT DISTRICT
                                            1970
Area
Independence
Batesville
Jackson
Newport
Tuckerman
Study Area
W.R. P. & D.D.
Total
Year - Round
Housing Units
8,367
2,879
7,061
2,720
608
15,428
54,013
Year-Round
Occupied Housing
Units
Number
7,740
2,669
6,609
2,614
587
14,349
47,618
Percent
92
93
94
96
• 97
93
88
Year-Round
Vacant Housing
Units

Number Percent
627
210
452
106
21
1,079
6,395
8
7
6
4
3
7
12
Source:   U.S.  Department  of Commerce,  Bureau  of  Census,  1970  Census  of  Housing.
         Housing Characteristics  for States,  Cities,  and Counties, Arkansas; Table A-3

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                                TABLE 28

                      TRANSIENT HOUSING FACILITIES
                                                                 Total
Location                  Number of Facilities              Number of Rooms
Independence County
Batesville
Cave City
Jackson County
Newport
Tuckerman
Study Area
6
4
2
5
4
1
11
330
250
80
182
152
30
512
Source:  Newport Area Chamber of Commerce.
         Batesville Area Chamber of Commerce.
                                    57

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                                      TABLE 29

                              COMMUNITY SERVICES  FOR
                                    IMPACT AREA
Independence
  Batesville
  Newark
  Desha
  Oil Trough
  Salado
  Cushman
  Locust Grove
  Sulphur Rock
  Rosie
  Pleasant
    Plains
  Magness
  Moorefield

Jackson
  Newport
  Tuckerman
  Swifton
  Diaz
  Grubbs
  Jacksonport
  Tupelo
  Campbell
  Station
  Beedeville
  Amagon
  Weldon
CU ±J J^ -±xj O O
0CCC HP, -H
c£j 4-> o o >« o< vi I-H x 4J ^ o cd co o
o •Howa)fdtd'3 HtdtdrHMai -H
•H Cd,CtdQP,t-l i-l(U4J-Htd C/3T)>
4J o 4-* o o co td p* co H PI GO td w
td MwCO)PM604JCd 4-1 -H C >% O 0)
i-HI^-O CUO 
-------
1.6.1  Adequacy of Public Utilities and Roads in Project Study Area.
     Energy:  Electricity is supplied by Arkansas Power and Light.  There
has been an ample supply of power within the area for both residences and
industry.

     Natural gas is supplied by Arkansas-Louisiana Gas Company.  It is in
limited supply and all industrial users are treated as interruptible
customers.  The cities of Batesville and Newport are served, plus many
customers along the transmission line between the two cities.  Most of the
                                   2
remaining area is served by LP gas.
     Water Systems:  Nearly 90 percent of the area's population is supplied
by ground water.  Water resources are located near demand areas and there
is no need to transport water over long distances.  Water is plentiful in
the area, with the major problem being the lack of distribution facilities
to furnish rural residents with a suitable supply.-*  Table 30 shows the
source and use of water by county.
     Wastewater Treatment Facilities;  The larger towns in the impact area
utilize centralized sewage treatment facilities.  Smaller towns and rural
residences make use of individualized septic systems.^  For details see
Exhibit I of Appendix F.
     Transportation;  The highway system is the most important transpor-
tation link in the area.  Figure 5 shows the various routes through the two
counties.  There are 454 miles of state highways and 1,527 miles of local
roads within the area.   Table 31 shows details of these roads by type of
construction.  For details of road types, see Appendix F, Tables F-l,  F-2
and F-3.
Footnotes are shown in Appendix I.
                                    59

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                                 TABLE 30

                      SOURCE AND USE OF WATER, 1970

                        (MILLION GALLONS PER DAY)
Type of
Supply
Public


Industry


Agriculture


County Totals


Water
Source
Ground
Surface
Total
Ground
Surface
Total
Ground
Surface
Total
Ground
Surface
Total
Independence
County
.10
2.02
2.12
.03
.33
.36
5.85
2.07
7.92
5.98
4.42
10.40
Jackson
County
.89
0
.89
.41
0
.41
58.73
.89
59.62
60.03
.89
60.92
Source:  Overall Economic Development Program 1977, White River Planning
         and Development District, Batesville, 1977.  (Data provided by
         U.  S.  Geological Survey)
                                     60

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                           LAWRENCE
                  o ellr=   T    A|c
                ~i'         ~
                                                      CRAIGHEAD
                           (T2) Amagon
                                             POINSETT
                 FIGURE  5
RURAL STATE HIGHWAY  FEDERAL AID SYSTEMS MAP

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                                 TABLE 31

               ROAD AND STREET MILEAGES,  INDEPENDENCE AND

                  JACKSON COUNTIES AND ARKANSAS TOTALS
Independence
Classification County
Rural
Municipal
Urban
Total State Highways
County roads
City Streets
Total Local Roads
205
10
12
227
708
102
810
Jackson
County
198
14
15
227
618
99
717
Two-County
Total
403
24
27
454
1,326
201
1,527
Arkansas
Total
13,886
1,054
985
15,925
46,960
8,347
55,307
Source:  Arkansas State Highway Department, Division of Planning and
         Research, 1977.
                                     62

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     Figure 6 shows traffic counts for each highway in the impact area.


Traffic levels on Highways 14 and 122 are presently much higher than on


Highway 69 between Newport and Newark.  Highway 69 from Batesvillc to


Newark is heavily traveled.  Point Ferry (see Appendix F, Table F-4) is the


bottleneck for Highway 69 between Newport and Newark.  In 1976 it averaged


only 129 vehicles per day.


     Bus service through Jackson County includes five daily stops at


Newport, Tuckerman and Swifton, served by Continental Trailways and Great


Southern.  Amagon has two stops daily.  Independence County bus service


includes three round trips daily by Wells Bus Line from Batesville to


Little Rock.  Desha, Cushman, Locust Grove and Pleasant Plains are served


twice daily.


     There is a private port facility on the White River at Newport owned


by Mobley Concrete Company.  The company dredges sand and gravel from the


river bed and barges it to the port for land shipment.  River shipment in


the study area is almost non-existent.


     Figure 7 shows the Missouri Pacific Railroad lines through the area.


Service is provided to industrial areas in Batesville and Newport.  Amtrak


provides passenger service daily from Newport to Chicago, Illinois and to

              Q
Laredo, Texas.


     There is no commercial air service in the impact area, although the


Batesville airport was designed for commercial service.  It can accommodate


single wheel aircraft to 35,000 Ibs., dual wheels to 50,000 Ibs., and dual


tandem wheels to 80,000 Ibs.  Runway length is 6,000 ft.  The Newport air-


port will handle 30,000 Ib. single wheel aircraft and has a runway length


of 5,000 ft.
Footnotes are shown in Appendix I.



                                    63

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                                    FIGURE 6
                    1976 TRAFFIC  COUNT FOR THE STUDY AREA
                                                                   " I VI \ I I  J r ^* '


                                                                    U^CL hooC3o!   2<
                                            4900
                                          BroiJlord
                                          4500   '
                                             c O
  1600  I4IOO1
       1900
330 (37^  ^"-^  "'
  440
                                      64

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                                      MISSOURI
                                   I	1

                                                   •    CLEBURNE      L	 	     	 	
                                                             "             "~   ™
                           	
,	J     X

                                                                FIGURE 7

                                     ARKANSAS TRANSPORTATION OFFICIAL MAP, 1975, ARKANSAS RAILROADS

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Adams Field Municipal Airport in Little Rock provides the nearest major

commercial air service.^  Jonesboro also provides daily air service to St.

Louis and Memphis.

     Communications:  There are four newspapers published in the impact

area, as follows:

                                                                   Paid
Location           Name                    When Published       Circulation

Batesville   Daily Guard                 M-F evening               7,417

Newport      Daily Independent           TMWThS evening            3,837

Tuckerman    Tuckerman Record            Weekly on Wednesday       1,400

Newark       Tri-County Journal          Weekly on Thursday        4,000

     The Batesville area is served by AM radio station KBTA with 1,000

watts of power, sunrise to sunset.  License permits night broadcast at 250

watts.  The Newport area is served by KNBY-AM with 1,000 watts, sunrise to

sunset, and KNBY-FM, having 3,000 watts, continuing into the nighttime

hours. -^

     Telephone service within the study area is provided by Southwestern

Bell.

     Financial Institutions:  Total capital resources in an area, plus

adequate and capable financial institutions, are among the most important

elements which determine the economic base and vitality of a region.  Capi-

tal resources are necessary to fund the economic growth process and adequate

facilities insure the proper flow of these resources.

     There are ten very capable financial institutions with home offices

located within the study area.  These financial institutions are as follows:

     Batesville;
          (1)  First National Bank
          (2)  The Citizens Bank
          (3)  Batesville Federal Savings & Loan
          (4)  Independence Savings & Loan
Footnotes are shown in Appendix I.
                                    67

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     Newark;
          The Bank of Newark

     Newport:
          (1)  First National Bank
          (2)  Merchants and Planters Bank
          (3)  Newport Federal Savings and Loan

     Tuckerman;
          (1)  The Bank of Tuckerman
          (2)  Jackson County National Bank

     These institutions have done an adequate job of providing for the

financial needs of the area.  The historical growth in assets, loans and

deposits for these institutions is shown in Table 32.  The rate of growth

has been remarkable, especially in recent years.  Total deposits of all

institutions in the area grew by $142.8 million from 1970 to June, 1977, or

152 percent.  This represented an annual growth in deposits of almost $22

million per year.  Since 1974 this growth has been almost $28 million per

year.

     While deposit growth has been significant, loan demand has increased

even faster—195.6 percent from 1970 to June, 1977.  Again, the growth in

loan demand has been more rapid in recent years, resulting in an increase

in the loan-to-deposit ratio from 63.5 in December, 1975, to 75.7 in June,

1977.  This signifies that the area has come alive in the past three to

four years and is better able to support and to cope with changing forces

than in previous decades.


1.6.2  Adequacy of Public Safety Facilities.

     Police;  The Independence County Sheriff has three deputies and four

patrol cars working out of the Batesville office, plus resident deputies

located at Sulphur Rock, Newark, Cushman, Pleasant Plains and Oil Trough.
                                     68

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                                                        TABLE  32

                                  ASSETS, LOANS AND DEPOSITS OF FINANCIAL INSTITUTIONS
                                          IN INDEPENDENCE AND JACKSON COUNTIES
                                                        1970-1977
City
Jackson County
Assets
Loans
Deposits
L/D Ratio
Independence County
Assets
Loans
Deposits
L/D Ratio
Study Area
Assets
Loans
Deposits
L/D Ratio
1970

$ 49,391
25,921
44,591
58.1

54,302
34,686
49,322
70.3

103,693
60,607
93,913
64.5
1971

$ 56,065
28,503
50,928
56.0

62,759
40,152
56,920
71.0

118,824
68,655
107,848
63.7
1972

$ 64,489
33,398
58,561
57.1

76,651
47,784
69,526
68.7

141,140
81,182
128,087
63.4
1973

$ 75,183
37,094
68,534
54.1

88,563
58,129
80,583
72.1

163,746
95,223
149,117
63.9
1974

$ 84,063
43,594
73,732
59.1

103,500
65,681
93,823
70.0

187,563
109,275
167,155
65.4
1975

$ 93,844
48,489
85,555
56.7

125,163
78,337
114,259
68.6

219,007
126,826
199,814
63.5
1976

$101,256
54,802
89,261
61.4

147,954
103,643
132,813
78.0

249,210
158,445
222,074
71.3
1977

$105,064
61,217
94,001
65.1

159,456
117,922
142,670
82.7

264,520
179,139
236,671
75.7
Percent
Change
1970-77

112.7
136.2
110.8


193.6
240.0
189.3


155.1
195.6
152.0

Source:   Published call statements for each institution for December 31 of each year,  except June 30, 1977.

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In addition, Newark has a city marshall.  The Batesville police department

has 11 men and two meter maids.  There are three patrol cars and an investi-

gator's car.

     The Jackson County Sheriff has six deputies working out of the Newport

office, plus resident deputies located at Tuckerman, Swifton, Grubbs and

Weldon.  In addition, Tuckerman has four policemen.  Swifton, Grubbs and

Beedeville have one policeman each.  The Newport police department has 11

policemen with six patrol cars. ^

     Fire Protection;  The cities of Batesville and Newport have paid fire

fighters; whereas, most of the remaining towns use volunteer forces.

Batesville has a force of three paid and 18 volunteer firemen, while Newport

has 11 paid, plus 12 volunteers.  Tuckerman has one paid fire fighter, plus

                                                              11
a volunteer force.  The following towns have volunteer forces:

     Amagon                              Jacksonport
     Beedeville                          Newark
     Campbell Station                    Oil Trough
     Cushman                             Swifton
     Diaz                                Tupelo
     Desha                               Weldon
     Grubbs

     Medical Facilities;  Table 33 shows the number of hospital beds in the

area.   The occupancy rates of the four hospitals vary from 42.8 to 83.7,

with an average of 53.7.  Table 34 presents data on health manpower for the

area and makes comparisons with state averages.  The study area averages

one physician per 1,542 people.  There are 5 nursing homes in the area with
                    14
a total of 417 beds.
Footnotes are shown in Appendix I.
                                    70

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                                 TABLE 33

                  PATIENT UTILIZATION BY HOSPITAL, 1976
  County                                     Number of            Occupancy
Institution              Location          Licensed Beds            Rate
                                                                  (Percent)

Independence
  Dr. Gray's            Batesville              55                  83.7
  White River
    Medical Center      Batesville             106                  42.8

Jackson
  Harris                Newport                132                  44.7
  Newport               Newport                 86                  60.1

    Total                                      379                  53.7
Source:  Area Data Supplement to Application for Funding,  Delta-Hills
         Health Systems Agency, Newport, 1977.
                                    71

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                                                TABLE 34




                               SELECTED HEALTH MANPOWER, BY AREA, 1976*
Inhala-
tion
Popula- Optom- Registered Practical Phar- Physical Thera-
Region tion Physicians Dentists etrists Nurses Nurses macists Therapists pists
Arkansas 1,923,295 2,280 748 202 6,080 6,838 1,445 53 59
Independence
County 22,723 16 9 4 47 69 19 0 0
Jackson
County 20,452 12 7 2 33 78 15 0 2
Two-County
Total 43,175 28 16 6 80 147 34 0 2
*State figures are for those residing in the state; county figures include only those actually practicing.
Sources: Delta-Hills Health Systems Agency, Area Data Supplement to Application for Funding (Newport, 1977) ,
Popu-
lation
Medical per
Technol- Physr
ogists cian
185 844
2 1,420

0 1,704
2 1,542

and Arkansas
State Health Department.

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1.6.3  Adequacy of Public School Facilities.  There are 15 separate school




districts in  the impact area.  Tables 35, 36, 37 and 38 offer information




with which  to evaluate these districts.  Table 35 shows the size of each




school, as  measured by average daily attendance.  This varies from 163 for




Sulphur Rock  to 2,530 for Newport.  Expenditure per pupil, an often used




gauge of educational quality, varies from $665 to $1,087; whereas, the




state average is $856.  Student/teacher ratios are shown in Table 36.  The




impact area average ratio of 18.55 is well under the 20.60 state average.




Tables 37 and 38 point up high school ratings and various tax data, including




borrowing power of each district.  School tax millage for the impact area is




approximately the same as the state average.




     Other  educational institutions in the impact area include White River




Vo-Tech School in Newport, Gateway Vo-Tech in Batesville, and Arkansas




College in  Batesville, which is a four-year church-sponsored institution.






1.7  Community Cohesion




     In an  attempt to determine the attitudes and opinions of the residents




of the area surrounding the proposed building site, a questionnaire was




mailed to 155 households (see Exhibits I and II, Appendix H).  The method-




ology entailed the use of a structured mail questionnaire sent to each




household selected, using a random number generator applied to area tele-




phone directories.  This procedure allowed each household the same proba-




bility of being included in the sample and, therefore, increased the valid-




ity of the  sample returns.




     The total returns received by the cut-off date amounted to 41.3 per-




cent, or a  total of 64 questionnaires.  (An enumeration of responses tabu-




lated by communities may be seen in Exhibits III, IV, V and VI in Appendix




H.)  According to well-recognized sources in the field of marketing






                                    73

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                                  TABLE 35




SELECTED RANKING DATA FOR INDEPENDENCE AND JACKSON COUNTY SCHOOL DISTRICTS





Average Number

School District
Independence County
Batesville
Cord/Charlotte
Cushman
Desha
Floral
Newark
Oil Trough
Pleasant Plains
Southside
Sulphur Rock
Jackson County
Beedeville
Grubbs
Newport
Swifton
Tuckerman
*Ranking is from 1 to 384 for
*1975-76 school year.
Source: Rankings of Arkansas
Per Pupil
Expenditure

$ 812
843
806
788
976
1,087
820
732
665
900

934
807
834
976
735
Arkansas School

School Districts
State
Ranking*

205
159
217
239
74
37
192
322
378
122

95
216
168
75
319
Districts,

Daily
of
Attendance305 Teachers

1,823
231
254
263
183
260
319
351
525
163

204
349
2,530
287
743
1976, expenditure


98
12.5
12.5
15.9
13
18.5
17
18.3
31
11

11
17
121.2
20
37
per pupil


Average
Teacher
Salaries

$ 9,549
9,623
10,190
9,862
9,288
10,047
9,524
9,301
9,659
9,315

8,941
9,387
10,525
8,943
9,129


on Selected Items, Department of Education, Little

Number of
Certified
Personnel

107.5
13.5
14.5
16.9
14
20.5
19
19.3
34
12

12
19
127.2
21
40


Rock, January,
Average
Salary of
Certified
Personnel

$10,015
9,940
10,658
10,084
9,593
10,238
9,890
9,484
10,002
9,678

9,186
9,779
10,786
9,136
9,495


1977.

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                                 TABLE  36

            STUDENT/TEACHER RATIOS, SELECTED SCHOOL DISTRICTS
                              1975-76 DATA
 School                      Number of          Number of          Student/Teacher
Districts                    Students           Teachers                Ratio
State of Arkansas             436,576           21,194                  20.60
  Independence County           4,372              244                  17.9
    Batesville                  1,823               95                  19.19
    Cord/Charlotte                231               13                  17.77
    Cushman                       254               13                  19.24
    Desha                         263               15                  17.19
    Floral                        183               13                  14.08
    Newark                        260               18                  14.44
    Oil Trough                    319               17                  18.76
    Pleasant Plains               351               19                  18.67
    Southside                     525               31                  16.94
    Sulphur Rock                  163               10                  16.3
  Jackson County                4,113              213                  19.3
    Beedeville                    204               11                  18.55
    Grubbs                        349               19                  18.37
    Newport                     2,530              123                  20.57
    Swifton                       287               19                  15.11
    Tuckerman                     743               41                  18.12
      Independence and
        Jackson Counties
        Total                   8,485              457.3                18.55


Sources:  Rankings of Arkansas School Districts on Selected Items, Department of
          Education, Little Rock, January, 1977.
          Annual Statistical Report of the Public Schools of Arkansas, Department
          of Education, Little Rock, January, 1977.
                                    75

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                         TABLE 37




VARIOUS SCHOOL DISTRICT STATISTICS IN INDEPENDENCE COUNTY

Rating of High Schools
Area Square Miles
Average Daily Attendance
Grades 1-12 1975-76
Kindergarten 1975-76
Average Number Belonging
Grades 1-12 1975-76
Kindergarten 1975-76
Enumeration 1976
Assessed Valuation 1975
Assessment Ratio 1975
1976 Mills Voted
M. & 0.
Debt Service
Total
District Debt 7-1-76
Borrowing Power 7-1-76
Local Receipts 1975-76
1976-77 (EST)
Batesville
NCA
69
1,823
138
1,930
155
1,955
$15,162,720
19.60
22.00
34.00
56.00
$1,756,000
$518,408
$771,738
$864,511
Cord-
Charlotte
B
115
231
16
244
18
243
$1,510,380
19.74
31.00
19.00
50.00
$94,700
$131,857
$78,652
$72,668
Cushman
A
77
254
24
270
30
284
$1,044,774
20.75
25.00
30.00
55.00
$140,969
$15,747
$52,225
$51,500
Desha
A
37
263
19
273
21
289
$1,059,295
19.07
35.00
24.50
59.50
$137,679
$21,215
$49,863
$55,314
Floral
B
74
183
15
201
16
261
$833,930
19.30
30.50
32.50
63.00
$127,071
$1,980
$45,264
$48,219
Newark
A
76
260
21
272
23
277
$2,612,045
19.09
37.00
8.00
45.00
$25,261
$366,546
$119,392
$113,014

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                                     TABLE 37  (Continued)

Rating of High Schools
Area Square Miles
Average Daily Attendance
Grades 1-12 1975-76
Kindergarten 1975-76
Average Number Belonging
Grades 1-12
Kindergarten 1975-76
Enumeration 1976
Assessed Valuation 1975
Assessment Ratio 1975
1976 Mills Voted
M. & 0.
Debt Service
Total
District Debt 7-1-76
Borrowing Power 7-1-76
Local Receipts 1975-76
1976-77 (EST)
Source: Annual Statistical Report of
Oil Trough
A
87
319
25
331
47
360
$2,158,829
19.84
26.00
22.00
48.00
$135,835
$187,989
$96,112
$99,220
the Public Schools of
Pleasant Plains Southside
A
87
351
24
388
29
404
$1,419,440 $2
18.72
19.00
26.00
45.00
$91,856
$121,060
$65,771
$68,125
Arkansas, Department
A
36
625
61
659
66
636
,726,850
20.30
24.00
27.00
51.00
$343,131
$65,897
$125,334
$127,235
Sulphur Rock
B
34
163
15
173
17
195
$878,065 $29
19.17
52.00
8.00
60.00
$87,019 $2
$44,692 $1
$50,465 $1
$52,528 $1
of Education, Little Rock,
— Total —

692
4,472
358
4,741
422
4,904
,406,328

30.15
23.10
53.25
,939,521
,473,411
,454,816
,552,334
January,
1977.

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                                                        TABLE  38




                               VARIOUS SCHOOL DISTRICT  STATISTICS  IN JACKSON COUNTY AND STATE

Rating of High Schools
Area Square Miles
Average Daily Attendance
Grades 1-12 1975-76
Kindergarten 1975-76
Average Number Belonging
Grades 1-12 1975-76
Kindergarten 1975-76
Enumeration 1976
Assessed Valuation 1975
Assessment Ratio 1975
1976 Mills Voted
M. & 0.
Debt Service
Total
District Debt 7-1-76
Borrowing Power 7-1-76
Local Receipts 1975-76
1976-77 (EST)
Beedeville
0
73
204
11
173
12
218
$1,985,920
20.39
25.00
21.00
46.00
$98,512
$199,376
$76,473
$84,844
Grubbs
. A.
80
349
26
369
29
271
$2,271,810
19.96
24.00
26.00
50.00
$262,000
$78,772
$104,092
$105,411
Newport
NCA
284
2,530
61
2,662
133
2,765
$22,372,110
20.55
15.00
34.00
49.00
$1,921,000
$1,434,817
$1,013,015
$1,048,482
Swifton
A
72
287
19
300
22
291
$3,246,480
19.83
20.00
25.00
45.00
$333,026
$153,946
$134,502
$137,428
Tuckerman
A
103
743
40
784
44
755
$6,404,300
19.77
22.00
23.00
45.00
$680,240
$280,405
$264,777
$283,684
Total

612
4,113
157
4,288
240
4,300
$36,280,620

21.20
25.80
47.00
$3,294,778
$2,147,316
$1,592,859
$1,659,849
State Total

53,553
408,055
18,521
429,878
33,050
449,712
$3,301,868,665

27.92
22.87
50.79
$274,555,427
$224,002,195
$157,428,034
$167,489,544
Source:   Annual Statistical  Report  of the Public Schools of Arkansas, Department of Education, Little Rock, January, 1977.

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research,  this figure is exceptionally good, and further indicates the

validity of this section of the report (see:  Walter B. Wentz, Marketing

Research;  Management and Methods, New York:  Harper and Row, 1972, p. 83).


1.7.1    Ability and Willingness of Communities to Absorb New People.  The

first two  questions examined in Table 39 indicate that the vast majority of

the respondents held favorable attitudes toward new residents.  Over 95

percent of the respondents indicated that new residents had been well

accepted in the past.  In addition, over 90 percent of the respondents

thought that the new residents associated with the construction and oper-

ation of the proposed AP&L facility would be accepted by the members of

their community.


1.7.2    General Attitudes Toward Industrial Development.  When questioned

concerning this factor, there was a favorable response.  In fact, 93.8 per-

cent of the respondents stated that they believed that the residents of the

area favored industrial development.  And even more to the point, when

asked specifically about the construction of the proposed AP&L facility,

90.6 percent stated that they believed that the residents of their communi-

ties would welcome such an action.

     In addition to the survey being discussed, another survey was conducted

by the Tri County Journal, the weekly paper published in Newark, Arkansas.

In the June 30, 1977 issue of the Journal, the following statement was made:

     "Are you in favor of the proposed AP&L electric generating plant
     being built in this area?"

Of the 200 persons contacted by phone, this was the finding:   142 were in

favor of the plant being built, 32 were opposed, and 26 did not have an

opinion.
                                    79

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                                                        TABLE 39

                                          OPINIONS OF IMPACT AREA RESPONDENTS

                                      CONCERNING ATTITUDES OF COMMUNITY RESIDENTS
Questions to Respondent
                                                                      Response
         % of              % of                   % of
Yes    Response    No    Response    Opinion    Response    Total    %
Have new residents in your community been
generally well accepted in the past?

Do you think that the relatively large
number of new residents associated with the
construction and operation of the proposed
AP&L facility will be accepted by the
members of your community:

Do you believe that the population of your
area favors industrial development?

In your opinion, will your community
welcome the construction of the AP&L
generating plant at the proposed location
in your area?
 61
95.3
 58      90.6
 60      93.8
 58      90.6
1.6
                  4.7
                  6.2
                  9.4
3.1
                       4.7
64   100.0
            64   100.0
                                   64   100.0
                                   64   100.0
Source:  Survey conducted by the author.--.

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     According to the results of this survey, only 13 percent of the

respondents did not favor building the AP&L plant at its proposed I IH-..-I I Lon.

This differs by only 3.6 percent from the results of the study currently

being discussed (see Exhibit VII, Appendix H).


1.7.3  Sense of Community Identity.  The area respondents were asked to

rate their communities on local pride and their support of civic activities

that lead to community improvement.  Each respondent was asked to check one

of the following statements they thought best described their communities.

The responses given are as follows:


                    Statement                             Number Responding

a.  Generally not interested in any improvements.                1

b.  Some effort is given to improvements in the
    community.                                                   5

c.  Some people or groups are generally seeking
    improvements in the community.                              33

d.  Extremely active in seeking any improvement for the
    community.                                                  25

     It is evident that the vast majority of those responding believed their

community had a great deal of public support for civic activities and

improvement.  Local interest groups are evidently active in seeking community

betterment projects.


1.8  Projected Economic Development for the Study Area without Project
     Conditions

     A number of methodologies and techniques were used in projecting the

different economic variables for the study area.  These variables were

population, income, employment and earnings.  The results derived from

projecting the economic variables were compared in most cases to the trends

shown by OBERS projections for the water resource subareas 1101 and 802, in

which the study area belongs.
                                    81

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     The following sections describe briefly the techniques employed in

projecting the economic variables.  Also, this section depicts the projected

changes and identifies the trends and the overall economic development of

the study area.


1.8.1    Population Forecasts.  The methodology used to project the popu-

lation for the study area may be described as a simplified "Cohort Survival"

technique.  The projected population from 1980 to 2010 was derived by using

the natural increase and migration rates of population changes.  The natural

increase of population is the number of births over a period of time less

the number of deaths.  Migration can be either net inmigration, if people

are moving into the area faster than they are moving out, or net outmigration,

if people are moving out of the area faster than they are moving in.

     Projections of population levels in the two-county study area involved

the following steps:

     1.  The past death and birth rates of the study area were close
         to the rates used by the Bureau of the Census in its projec-
         tion of Series D.15

     2.  Projections of population by age and sex for Independence and
         Jackson Counties were made by Industrial Research and Exten-
         sion Center from 1975 to 1990 using the above-described assump-
         tions .

     3.  Using the same methodology the author projected the population
         for the years 1995,  2000, 2005 and 2010.

     4.  In the case of Jackson County, the IREC projections showed the
         population of the county for 1975 as declining to 20,194 from
         20,452 in 1970.   Since recent estimates show the population of
         Jackson County to be 21,700, all IREC projections from 1975 to
         1990 were adjusted to incorporate the estimated population
         increase in the county.
Footnotes are shown in Appendix I.
                                     82

-------
1.8.2    Projected Population for the Study Arcn.   Based on the methodology




described and source mentioned above, the popul.-if ion Tor the study nrea was




projected to 1980, 1985, 1990, 1995, 2000, 2005 and 2010.  The population




projections prepared by the White River Planning and Development District




were not accepted by this study because all available evidence and trends




indicated that their projections were overly optimistic.




     A summary of the population projections by sex for the study area,




Independence and Jackson Counties, is shown in Table 40.  It was projected




that the population of the study area will increase from 43,175 in 1975 to




47,564 in 1980.  By 2010 the population of the study area is expected to




increase to 64,537.  This increase in population represents an average




annual rate of about 1.2 percent.






1.8.3    Projected Population for Independence and Jackson Counties. Tables




41 and 42 show the projected population by age and sex for Independence and




Jackson Counties from 1975 to 2010.  The population of Independence County




is expected to increase from 22,723 in 1970 to 24,564 in 1980 and 31,437 in




2010.  The population of Jackson County will increase from 20,452 in 1970




to 23,000 in 1980 to 33,100 in 2010.  These two tables contain a lot of




detailed information on the distribution of population by age and sex to be




used for different analytical purposes.




     The projected urban-rural population for Independence and Jackson




Counties and the study area is shown in Table 43.   These projections were




based on estimates made by White River Planning and Development District.




By 2010 the urban population of the study area (35,725) is expected to be




greater than that of the rural population (28,812).  In 1970, however, the




rural population of the study area exceeded the urban population of the area




by 13,307.






                                     83

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                                                           TABLE  40
                                               PROJECTED POPULATION BY SEX FOR
06
INDEPENDENCE AND JACKSON COUNTIES, AND THE STUDY
AREA TOR 1975, 1980, 1985, 1990, 1995, 2000, 2005, 2010
Prelected
Independence
Year
1970 Census
1975
1980
1985
1990
1995
2000
2005
2010
Male
10
11
11
12
12
13
13
14
15
,989
,369
,837
,374
,920
,358
,923
,545
,243
Female
11,734
12,198
12,727
13,281
13,836
14,342
14,925
15,515
16,194
Total
22,723
23,567
24,564
25,655
26,756
27,700
28,848
30,060
31,437
Male
9,946
10,451
10,481
11,734
12,412
13,215
14,127
14,991
15,889
Population
Jackson
Female
10
11
12
12
13
14
15
16
17
,506
,197
,519
,666
,388
,285
,173
,209
,211
Total
20,452
21,700
23,000
24,400
25 ,800
27,500
29,300
31,200
33,100
Male
20,935
21,820
22,318
24,108
25,332
26,573
28,050
29,536
31,132
Study Area
Female
22,240
23,395
25,246
25,947
27,224
28,627
30,098
31,724
33,405

Total
43,175
45,215
47,564
50,055
52,556
55,200
58,148
61,260
64,537
   Source:  Tables 41 and 42.

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                   TABLE 41

PROJECTED POPULATION FOR INDEPENDENCE COUNTY
               BT AGE AND SEX
                1975 TO 2010
Sex and Age Group
Both Sexes, All Ages
Under 5 years
5-9 years
10 -14 years
15 -19 years
^. 20 -24 years
;£' 25 -29 years
5 30 -34 years
35 -39 years
40 -44 years
45 -49 years
50 -54 years
55 -59 years
60 -64 years
65 -69 years
70 -74 years
75 years and over
Male, All Ages
Under 5 years
5-9 years
10 -14 years
15 -19 years
1970
Census
22,723
1,636
1,928
2,101
1,941
1,512
1,281
1,232
1,272
1,313
1,336
1,312
1,310
1,320
"1,118
870
1,241
10,989
801
980
1,062
984
1975
23,567
1,818
1,717
2,013
1,959
1,685
1,454
1,419
1,352
1,317
1,335
1,357
1,331
1,296
1,236
967
1,311
11,369
915
840
1,020
972
Projections
1980
24,564
1,987
1,909
1,793
1,878
1,702
1,620
1,610
1,559
1,400
1,339
1,357
1,379
1,319
1,216
1,076
1,420
1985
25,655
2,057
2,087
1,993
1,673
1,631
1,638
1,795
1,768
1,616
1,424
1,362
1,382
1,368
1,240
1,059
1,562
11,837 12,374
1,000
960
874
934
1,035
1,050
999
800
1990
26,756
2,039
2,160
2,179
1,860
1,455
1,570
1,815
1,972
1,833
1,645
1,450
1,387
1,374
1,290
1,081
1,646
12,920
1,026
1,086
1,093
915
1995
27,700
1,910
2,141
2,248
2,042
1,635
1,423
1,740
1,975
2,027
1,863
1,672
1,477
1,385
1,298
1,120
1,744
13,358
989
1,077
1,129
1,008
2000
28,848
2,055
2,100
2,236
2,111
1,822
1,568
1,598
1,913
2,030
2,054
1,891
1,699
1,476
1,312
1,137
1,846
13,923
1,044
1,128
1,127
1,044
2005
30,060
2,195
2,240
2,203
2,099
1,886
1,765
1,743
1,788
1,968
2,057
2,082
1,919
1,696
1,406
1,153
1,860
14,545
1,100
1,179
1,178
1,042
2010
31,437
2,312
2,381
2,343
2,080
1,879
1,819
1,935
1,923
1,843
1,995
2,086
2,110
1,917
1,625
1,238
1,951
15,243
1,160
1,235
1,229
1,093

-------
                                                   TABLE 41 (Continued)
oo
20
25
30
35
40
45
50
55
60
65
70
75
-24
-29
-34
-39
-44
-49
-54
-59
-64
-69
-74
years
years
years
years _
years
years
years
years
years
years
years
years and over
Female,
Under
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
- 9
-14
-19
-24
-29
-34
-39
-44
-49
-54
-59
-64
-69
-74
, All Ages
5 years
years
years
years
years
years
years
years
years
years
years
years
years
years
years
years and over
739
638
583
628
606
656
663
618
592
535
387
517
11,734
835
948
1,039
957
773
643
649
644
707
680
649
692
728
583
483
724
829
696
715
654
656
616
659
666
609
547
442
533
12,198
903
877
993
987
856
758
704
698
661
719
698
665
687
689
525
778
819
781
780
802
684
667
619
663
658
565
454
577
12,727
987
949
919
944
883
839
830
757
716
672
738
716
661
651
622
843
787
772
876
875
839
696
671
624
656
612
470
612
13,281
1,022
1,037
994
873
844
866
919
893
777
728
691
758
712
628
589
950
674
742
866
983
916
854
701
677
619
612
511
645
13,836
1,013
1,074
1,086
945
781
828
949
989
917
791
749
710
755
678
570
1,001
790
624
827
961
1,018
931
860
707
673
574
509
681
14,342
921
1,064
1,119
1,034
845
799
913
1,014
1,009
932
812
770
712
724
611
1,063
883
740
709
930
996
1,033
937
866
704
628
475
679
14,925
IjOll
972
1,109
1,067
939
828
889
983
1,034
1,021
954
833
772
684
662
1,167
919
833
825
819
965
1,011
1,039
942
862
659
527
645
15,515
1,095
1,061
1,025
1,057
967
932
918
969
1,003
1,046
1,043
977
834
747
626
1,215
917
869
918
935
854
980
1,017
1,045
939
817
558
677
16,194
1,152
1,146
1,114
987
962
950
1,017
988
989
1,015
1,069
1,065
978
808
680
1,274
   Source:  Industrial Research and Extension Center, Little Rock, Arkansas.  Projections from 1995 to 2010 by the author.

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                TABLE 42

PROJECTED POPULATION FOR JACKSON COUNTY
            BY AGE AND SEX
             1975 TO 2010
Sex and Age Group
Both
Sexes, All Ages
Under 5
5
10
15
20
Lo, 25
N 30
35
40
45
50
55
60
65
70
75
Male,
- 9
-14
-19
-24
-29
-34
-39
-44
-49
-54
-59
-64
-69
-74
years
years
years
years
years
years
years
years
years
years
years
years
years
years
years
years and over
All
Under 5
5
10
15
20
25
30
35
40
- 9
-14
-19
-24
-29
-34
-39
-44
Ages
years
years
years
years
years
years
years
years
years
1970
Census
20,452
1,573
1,999
2,057
1,898
1,392
1,142
1,029
1,057
1,108
1,194
1,153
1,190
1,152
967
629
912
9,946
828
1,051
1,029
1,001
647
542
488
478
511
1975
21,700
1,845
1,605
2,040
1,975
1,758
1,367
1,893
1,063
1,085
1,128
1,215
1,171
1,219
1,107
868
1,041
10,451
955
846
1,063
976
911
629
564
520
499
Projections
1980 1985
.23,QDO
2,024
1,886
1,656
1,960
1,850
1,732
1,403
1,242
1,104
1,106
1,127
1,242
1,196
1,172
1,012
1,288
10,481
1,035
966
874
1,033
897
874
644
575
529
24,400
2,074
2,077
1,927
1,587
1,853
1,806
1,781
1,464
1,293
1,147
1,123
1,172
1,269
1,201
1,074
1,562
11,734
1,073
1,079
1,001
854
952
878
903
683
610
1990
25,800
2,193
2,229
2,038
1,677
1,935
1,909
1,883
1,548
1,367
1,212
1,186
1,242
1,344
1,251
1,135
1,651
12,412
1,135
1,175
1,057
903
1,007
929
955
722
645
1995
27,500
2,338
2,397
2,173
1,788
2,063
2,035
2,008
1,654
1,458
1,293
1,265
1,320
1,430
1,308
1,210
1,760
13,215
1,210
1,245
1,128
963
1,072
991
1,018
770
691
2000
29,300
2,491
2,535
2,315
1,880
2,198
2,173
2,144
1,758
1,557
1,377
1,347
1,406
1,524
1,410
1,289
1,876
14,127
1,290
1,312
1,201
1,026
1,143
1,055
1,084
820
733
2005
31,200
2,652
2,710
2,440
2,028
2,340
2,309
2,276
1,872
1,654
1,474
1,451
1,503
1,623
1,498
1,373
1,997
14,991
1,373
1,395
1,280
1,092
1,217
1,124
1,155
874
780
2010
33,100
2,814
2,910
2,610
2,151
2,453
2,450
2,416
1,986
1,754
1,556
1,523
1,589
1,721
1,592
1,457
2,118
15,889
1,456
1,472
1,357
1,158
1,290
1,191
1,224
927
827

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                                              TABLE 42  (Continued)
45 -49 years
50 -54 years
55 -59 years
60 -64 years
65 -69 years
70 -74 years
75. years and over
Female, All Ages
Under 5 years
5-9 years
10 -14 years
15 -19 years
20 -24 years
25 -29 years
30 -34 years
! 35 -39 years
40 -44 years
45 -49 years
50 -54 years
55 -59 years
60 -64 years
65 -69 years
70 -74 years
75 years and over
574
559
560
529
469
294
386
10,506
745
948
1,028
897
745
600
541
579
597
620
594
630
623
498
335
526
521
564
540
542
497
390
434
11,197
890
759
952
999
847
738
607
569
286
507
651
631
677
610
478
607
506
519
552
545
529
414
534
12,519
989
920
782
932
943
858
759
667
575
600
608
690
651
643
598
574
537
512
522
561
520
439
610
12,666
1,001
998
926
733
901
928
878
781
683
610
611
650
708
681
635
952
568
542
525
593
547
464
645
13,388
1,058
1,054
981
Ilk
928
980
928
826
722
644
644
717
751
704
671
1,006
605
578
562
632
568
495
687
14,285
1,128
1,152
1,045
825
991
1,044
990
884
767
688
687
758
798
740
715
1,073
645
616
628
674
638
527
735
15,173
1,201
1,223
1,114
854
1,055
1,118
1,060
938
824
732
731
778
850
772
762
1,141
687
656
642
718
656
562
780
16,209
1,279
1,315
1,160
936
1,123
1,185
1,121
998
874
787
795
861
905
842
811
1,217
728
695
682
761
697
596
828
17,211
1,358
1,438
1,253
993
1,163
1,259
1,192
1,059
828
828
828
907
960
895
861
1,290
Source:  Industrial Research and Extension Center, Little Rock,  Arkansas.   Projections from 1995 to 2010 by the author.

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                                                     TABLE A3

                            PROJECTED DHBAN-RDHAL POPULATION FOR INDEPENDENCE COUNTY,
                                       JACKSON COUNTY, AND STUDY AREA FOR
                            1970, 1975, 1980, 1985, 1990, 1995, 2000, 2005 AND 2010
Year
1970
1975
1980
1985
'3* 1990
1995
2000
2005
2010
Independence County
Urban Rural
7,209
7,871
8,794
9,621
10,516
11,302
12,174
13,166
14,210
15,514
15,696
15,770
16,034
16,240
16,398
16,674
16,894
17,227
Jackson
Urban
7,725
8,658
12,006
13,420
14,964
16,500
18,166
19,968
21,515
Rural
12,727
13,042
10,994
10,980
10,836
11,000
11,134
11,232
11,585
Study
Urban
14,934
16,529
20,800
23,041
25,480
27,802
30,340
33,134
35,725
Area
Rural
28,241
28,738
26,764
27,014
27,076
27,398
27,808
28,126
28,812
Source:  Table-40.  White River Planning and Development  District.   Population and  Economics.  December,  1971.

-------
     In short, the population growth of the study area will be rather small.

 i
However, the findings of the study indicate a reversal of the population


decline experienced in the study area during the last decade. :




1.8.4    Labor Force Trends in Study Area.  This section of the report was


constrained by the lack of a labor market information study for the area.


Therefore, the study had to use the demand for labor by industry,, for which


data were available.  This demand for labor reflected the area's economic


growth and the changes in the composition of employment among the various


industries.  Future employment requirements were projected to 2010 on the


basis of past trends and expected growth potentials.


     The high rate of outmigration that occurred in the study area during


the 1950's and the low rate in the 1960's was reflected in the changes of


the total labor force.  The size of the labor force from 1960 to 1970


increased by 849 workers.  This increase in the labor force during the


1960's was basically due to the low rate of outmigration.  The decline of


outmigration in the 1960's was one of the relevant factors that was consid-


ered in projecting the area's labor force participation rates, i.e., the


percent of population that is in the labor force.  This ratio was estimated


for 1960 and 1970 to be 31.1 percent and 32.8 respectively.  Table 44 shows


the labor force participation rates and projected total employment for the


study area.  The labor force participation rates were projected to increase


because of the anticipated potential growth of the area and the expected


decline of outmigration or the possible inmigration.


     Total wage and salary employment projected for the study area will in-


crease from 14,161 workers in 1970 to 25,169 workers in .2010, or by about


77.7 percent.
                                     90

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                                 TABLE 44

             TOTAL EMPLOYMENT AND LABOR FORCE PARTICIPATION
                 RATES FOR STUDY AREA 1960 AND 1970 AND
          PROJECTED TO 1975, 1980, 1985, 1990, 1995, 2000, 2005
                                AND 2010
                               Labor Force                  Wage and Salary
Year                       Participation Rates                Employment
1960                              31.1                          13,339
1970                              32.8                          14,161
1975                              34.5                          15,628
1980                              35.0                          16,647
1985                              35.6                          17,819
1990                              36.2                          19,025
1995                              37.0                          20,424
2000                              37.8                          21,980
2005                              38.4                          23,524
2010                              39.0                          25,169
Source:  Table 40. Calculations by the author.
                                    91

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1.8.5    Projecting Employment in Agricultural and Non-Agricultural Industries.

     This section discusses the distribution of employment by industry based

on census data.  The steps used to estimate the distribution of employment by

industry for the years 1980, 1985, 1990, 1995, 2000, 2005 and 2010 are

described below:

     1.  Show census employment distribution by industry for 1960 and
         1970.

     2.  Compute percent change of employment distribution for all
         industries from 1960-1970.

     3.  To obtain the 1980 distribution, the 1960-1970 change (step 2)
         is applied to 1970 base in the following manner.  Each indus-
         try's 1970 employment share was multiplied by the sum of 100.0,
         plus the percent change of the distribution from 1960 to 1970
         of this industry, and the result was posted as end of step 3.
         For example, if manufacturing represented 20 percent of total
         employment in 1960 and 30 percent in 1970, the percent change
         from 1960 to 1970 is 50 percent.  Multiply the 1970 share of
         manufacturing, 30 percent by the sum of 100.00 + 50.  Thus, the
         distribution of manufacturing employment for 1980 will be 45
         percent.  Finally, add the employment distribution of the indi-
         vidual industries to obtain the total for all industries.

     4.  The 1980 employment distribution was adjusted to make the items
         in the distribution sum to 100.00.  The adjustments of the indi-
         vidual distribution were made on a proportional basis.  The
         purpose of these adjustments was to make the estimates represent-
         ative of the past trends and reflective of any foreseeable
         future changes in employment.  The same approach was used to
         estimate the employment distributions for the other years.  The
         future employment by industry was derived by applying the esti-
         mated distribution of employment by industry to the projected
         total employment.


1.8.6    Analysis of Employment Changes in the Study Area.  Despite the pro-

jected overall increase in total employment requirements, manpower needs in

agriculture are expected to continue their decline at least until 1980.  As

Table 45 shows, agricultural employment by 1980 will be about 998 workers.

Agricultural employment after 1980 will be expected to stabilize at a level

of about 1,000 workers.

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                                                           TABLE  45




                                            PROJECTED EMPLOYMENT BY INDUSTRY FOR




                                                STUDY AREA FROM 1975 TO 2010
VO
Industry
Total Employment
Agriculture, forestry
and fisheries
Goods-Producing Industries
Mining
Construction
Manufacturing
Service-Producing Industries
Transportation, Communications
and Public Utilities
Wholesale and Retail Trade
Finance, Insurance and
Real Estate
Services
Government
Census
1970
14,135

1,964
4,841
102
1,099
3,640
7,330

792
2,779

334
3,066
359
Projection:
1975
15,628

1,406
6,438
93
1,188
5,157
7,784

879
2,859

390
3,293
363
1980
16,647

998
7,507
83
1,331
6,093
8,142

956
3,023

416
3,381
366
1985
17,819

1,000
8,295
76
1,454
6,765
8,524

1,044
5,196

446
3,464
374
1990
19,025

1,000
8,922
71
1,546
7,305
9,103

1,110
3,394

476
3,743
380
1995
20,424

1,000
9,356
65
1,670
7,621
10,068

1,196
3,715

531
4,238
388
2000
21,980

1,000
10,141
60
1,780
8,301
10,839

1,305
3,846

594
4,698
396
2005
23,524

1,000
10,913
58
1,905
8,950
11,611

1,416
3,966

658
5,171
400
2010
25,169

1,000
11,710
55
2,037
9,618
12,459

1,536
4,196

730
5,594
403
  Source:   Projections by the author.

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     The employment in the goods-producing industries  (mining, construction




and manufacturing) was projected to increase from 4,841 workers in 1970 to




11,710 workers in 2010, or by 141.9 percent.  Employment in the service-




producing industries  (transportation, trade, finance,  services and govern-




ment) will grow from  7,330 workers in 1970 to 12,459 in 2010, or by 70.0




percent.  These projections indicate that the rate of  job growth in the




study area will be faster in the goods-producing industries than in the




service-producing industries.  Mining will show no significant employment




changes from 1970 to  2010'.  Manpower requirements in manufacturing, however,




will increase from 3,640 workers in 1970 to 9,618 workers by 2010, or by




164.2 percent.  Thus, manufacturing will show a substantial growth, a needed




impetus to boost the  area's economic growth.  Transportation, communication




and public utilities will increase their manpower requirements by 93.9 per-




cent or from 792 workers in 1970 to 1,536 workers in 2010.  Employment in




wholesale and retail  trade will increase for the same  period from 2,779 to




4,196 or by about 51.0 percent.  Finance, insurance and real estate will




expand and thus increase their employment from 334 employees in 1970 to




about 730 employees in 2010.  Services, which is the second largest employer




in the area, will increase their manpower requirements from 3,066 workers in




1970 to 5,594 in 2010, or by 82.5 percent.




     The employment composition in the study area will change as a result of




different rates of growth among industries.  Employment in services and




manufacturing will increase significantly in proportion to total non-agricul-




tural employment.   Slight declines are anticipated in  the employment share




of mining industries and service-producing industries.  The share of goods-




producing industries, however, will increase from 34.3 percent in 1970 to




about 46.5 percent in 2010.
                                    94

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1.8.7  Projections of Total Personal Income and Per Capita Personal Income.

Certain considerations were necessary in the development of the income

projections because no forecasts of future income for the study area were

available in the source materials reviewed.

     1.  Past trends in the area as developed from local base data
         were used to provide a satisfactory measure of future income
         growth.

     2.  The rates of change of total and per capita personal income
         projections by OBERS for the water resource subareas 1101 and
         802 were used to estimate changes in income levels for the
         study area.


1.8.8  Projected Total Personal Income.  The projections of total personal

income in the study area were based on the assumption that the total

personal income of the study area will increase at about the same rate as

indicated in the OBERS projections for the water resource subareas related

to the study area.  The total personal income levels for 1980, 1985, 1990,

1995, 2000, 2005 and 2010 were estimated by using the 1960 and 1970 percent

relationship of the area's income to the water resource subareas.

     Table 46 shows the projected total personal income for the study area

from 1980 to 2010.  It will increase to $320.0 million in 1980; to $492.0

million in 1990; to $762.0 million in 2000; and to $1,171.0 million in

2010.  The rate of increase of personal income for the study area will

approximate the rates projected for the water resource subareas 1101 and

802.  The projected personal income assumes a minimal annual rate of infla-

tion.

     In short, the analysis of total personal income of the study area indi-

cates a sizable rate of growth.  During the thirty-five year span, the

total personal income of the area is expected to increase by at least five

times the 1975 level.

                                     95

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                                 TABLE  46      ;

             PROJECTED TOTAL PERSONAL INCOME FOR STUDY AREA
                                1980-2010

                         (In Thousands of Dollars)
Year
1970
1975
1980
1985
1990
1995
2000
2005
2010
Personal
Income
$119,563
219,000
320,000
400,000
492,000
614,000
762,000
945,000
1,171,000
Percent
Change

83.2
46.1
25.0
23.0
24.8
24.1
24.0
23.9
Source:  Projections by the author.
                                    96

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1.8.9  Projected Per Capita Personal Income.  The per capita personal




income for the study area was estimated by dividing the projected total




personal income by the projected population.  According to Table 47, the




per capita income of the study area will increase from $2,761 in 1970 to




about $18,145 in 2010.  The per capita income for the study area in 2010




will be more than six times greater than the 1970 per capita income.  The




projected per capita income for the study area reflects an improvement in




the area's living standards.




     The above income projections for the study area were developed from




forecasts prepared for the related water resource subareas.  However, these




income figures indicate only a moderate rate of  growth and a  less  than




average living standard for the area and do not  consider  an unusual econo-




mic development growth.






1.8.10  Projections of Total Earnings by Source for the Study Area.  Total




earnings is an important component of personal income and thus it deserves




special mention even though it has been covered implicitly in the preceding




discussion of personal income.  Earnings is the sum of wages and salaries,




other labor income, and proprietor's incomes in each industry.




     In determining the future earnings for the study area, it was assumed




that the prevailing shares of earnings to personal income for the water




resource subareas 1101 and 802 will be approximately equal to those of the




study area.  The range of the share of earnings to personal income for the




subareas from 1970 to 2010 was between 76.2 percent and 78.3 percent.  In




applying these shares to projected personal income, the total earnings for




the study area were derived and are shown in Table 48.  A similar share




analysis process was used in determining the earnings for the study area by
                                     97

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                                 TABLE  47




                PROJECTED PER CAPITA PERSONAL INCOME FOR




                      STUDY AREA FROM 1980 TO 2010
Year
1970
1975
1980
1985
1990
1995
2000
2005
2010
Per Capita
Personal
Income
$ 2,761
4,834
6,728
7,990
9,361
11,123
13,105
15,426
18,145
Percent
Change

75.1
39.2
18.8
17.2
18.8
17.8
17.7
17.6
Source:  Projections by the author.
                                    98

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                                                         TABLE  48

                                       PROJECTED TOTAL EARNINGS BY  SOURCE  FOR THE
                                              STUDY AREA FROM 1970  TO  2010

                                                (In Thousands of  Dollars)
Industry
Total Personal Income
Total Earnings
Agri., Forestry &
Fisheries
- Contract Construction
V&-
\o
Manuf ac turing
Transp. , Comm. & Public
Utilities
Wholesale & Retail Trade
Fin., Ins. & Real Estate
Services
Government
1970
$ 119
91
22
3
23
4
13
2
10
8
,563
,135
,953
,892
,886
,848
,941
,449
,570
,596
1975
$ 219,000
166,878
38,382
8,177
48,394
8,177
22,362
5,840
19,526
16,020
1980
$ 320,000
247,040
56,820
11,858
71,641
12,352
33,103
8,646
28,904
23,716
1985
$ 400,000
308,800
68,245
15,749
90,478
15,749
41,997
10,808
36,438
29,336
1990
$ 492,000
380,800
84,157
19,422
111,574
19,420
51,789
13,328
44,934
36,176
1995
$ 614,000
475,236
102,175
24,238
140,194
24,712
65,107
17,109
56,078
45,623
2000
$ 762,000
593,598
127,624
30,274
175,110
30,867
81,323
21,370
70,045
56,985
2005
$ 945
739
151
37
218
38
101
27
88
76
,000$
,935
,687
,737
,281
,477
,370
,378
,052
,953
2010
1,171,000
916,893
187,963
46,762
270,483
47,678
125,614
33,925
109,111
95,357
Source:  Projections by the author.

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 source or  industry.  The share of earnings produced by each  industry in




 this  study area was derived by expressing the projected earnings  from each




 industry for  the  two subareas as a percent of the total earnings  of the two




 subareas.  It was assumed that the share of each industry's  earnings to




 total earnings for the water resource subareas applies to the study area.






 1.8.11  Analysis of Total Earnings.  Table 48 shows the projected total




 earnings by source for the study area from 1970 to 2010.  It indicates that




 total earnings from agriculture will increase from $22.9 million  in 1970 to




 $187.9 million in 2010.  Construction, manufacturing, trade  and services




 will be the rapid growing industries.  The contribution of the government




 sector will also be very substantial.  Manufacturing, government, trade and




 services will be the leading earnings-producing sectors.  In 2010 manufac-




 turing will contribute to the total earnings of the study area about $270.5




 million, trade $125.6 million, services $109.1 million and government $95.4




 million.






     In summary, it was projected that the population of the study area




will sustain  future growth, especially after 1980.  The area's total




personal income will increase from about 119.6 million in 1970 to $1,171




million in 2010.  The per capita income will reach the $18,145 level by




 2010.  Total employment is expected to increase.  Manpower needs in agri-




culture are estimated to stabilize by 2010 at a level of 1,000 workers.




The projections show that the employment requirements in the goods-producing




 industries will grow faster than in service-producing industries.  Manufac-




 turing,  government, trade and services will be the main contributors to the




 area's total earnings.
                                     100

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1.9    Determination of Employment and Income Multipliers




     The study of regional multipliers stresses the interrelationships of




sectors within a regional economy and the spread of impulses originating in




any one sector to all other sectors either directly or indirectly.  The




relevance of  the multiplier for programming regional development is very




important.  It points out how growth or slowdown in one sector induces




growth or reduction in another.  One of the most straightforward and useful




types of regional multiplier analysis is the employment multiplier that is




associated with economic base studies.




     The economic base type of analysis distinguishes between basic (pri-




mary, non-local) industry and nonbasic (local, service, derivative) industry,




A basic activity is the area's stimulus because it provides the export sur-




plus which generates the net income stream upon which new demand and employ-




ment is created.




     Basic employment is defined as that employment which leads to the




production of goods or services which are exported outside the boundaries




of the region under study and for which payment is received from outside of




the region.^-"




     Nonbasic employment is defined as the employment which leads to the




production of goods and services that are consumed or used within the




boundaries of the region.




     In addition to the pioneer work made by Homer Hoyt, while in the




Division of Economics and Statistics in the Federal Housing Administration,




several others wrote on the economic base concept. °
Footnotes are shown in Appendix I.
                                    101

-------
     The  following procedures were used in determining  the basic and nonbasic

employment  for  the study area.

     (a)  The Index of Local Specialization  (ILS) for the White River
          Planning & Development District was developed for 1960,
          1965, 1970 and 1975 by industrial  classification.

     (b)  The ILS was converted to show what share of employment in
          each  industrial classification was basic or nonbasic.

     (c)  These shares of basic or nonbasic  employment by industrial
          classification were applied to the employment in the study
          areas to estimate the basic and nonbasic employment by indus-
          trial classification for the study area.


1.9.1     Index  of Local Specialization (ILS).  The ILS is used to identify

the economic base of a region.  The index is a ratio expressing an industry's

share of  national employment.  The index can be used as an indicator of the

product specialization of the regional industry.

            e.^        where e^ regional industry 1 employment
            e,.              e,. regional total employment
  ILS =    ——                                 <
            E^              E^ national industry *• employment
            Et              Et national total employment

     Table 49 shows the Index of Local Specialization (ILS) for the White

River District  in 1960, 1965, 1970 and 1975  by industrial categories.

     In order to assess any possible difference in regional productivity of

industry, a survey was conducted and its results are shown in Table 50.

Since most of the manufacturing firms in the area are branches of multifirm

corporations, they were able to estimate their performance and thus make

their response  to the questionnaire rather valid.

     When the ILS is greater than 1 in industry X, it indicates that

specialization in industry X is greater in the region than in the nation.

The ILS, therefore, can be used as an indicator of regional specialization
Footnotes are shown in Appendix I.

                                     102

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                                          49
                        INDEX OK LOCAL SPECIALISATION
                                    FOK
                WHITE RIVER PLANNING AND DEVELOPEMKNT DISTRICT
                       IN 1960, 1965, 1970, and 1975

Agriculture, Forestry and Fisheries
Manufacturing
Durable Goods
Lumber and Wood Products
Furniture and Fixtures
Stone, Clay, and Glass Products
Primary Metal Industries
Fabricated Metal Industries
Electrical Equipment and Supplies
Transportation Equipment
Non-Durable Goods
Food and Kindred Products
Apparel and other Textile Products
Printing and Publishing
Mining
Construction
Transportation and Public Utilities
Trade, Total
Wholesale Trade
Retail Trade
Finance, Insurance, and Real Estate
Services
Public Administration
Federal Public Administration
State & Local Public Administration
Other Non-Agriculture
1960
3-53
.52
—
4.33
—
—
.39



—
.93
—
.21
.54
.79
.60
.67

—
.37
2.96
.26

—

1965
3.18
.68
—
3.54
—
—
.57



	
.98
1.16
.20
.67
.73
.64
.75

—
.6.1.
2.88
.22

—

1970
3.42
.82
.72
3.16
.71
.52
.53
.69
.38
.16
.95
1.20
2.26
.19
.47
1.36
.70
.81
.40
.95
.73
2.21
.J4
.35
.09

1975
3.08
' .98
.84
2.97
.96
.71
.74
.92
.58
.24
.1.17
1.39
2.94
.26
.42
1.67
.76
.85
.41
.99
.83
1 . 91
.13
.36
.07

Source:  Calculations by the author.
                                   103

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                                 TABLE 50

                RESULTS OF THE SURVEY MAILED TO SAMPLE FIRMS
              IN DIFFERENT INDUSTRIES AS TO THEIR PRODUCTIVITY
                  RELATIVE TO THE NATIONAL AND THEIR EXPORTS
                                 Productivity
                                 Relative  to
                                   National
           Amounts Exported

Export   Large   Medium   Small
Agriculture                        Greater        Yes      X
Manufacturing
  Food and Kindred Products          Less         Yes               X
  Apparel and Other Textile
    Products                         Same         Yes               X
  Lumber and Wood Products           Same         Yes      X
  Leather and Leather Products       Same         Yes      X
  Stone, Clay, and Glass Products    Less   .       No                       X
  Fabricated Metal Products          Same         Yes               X
  Machinery, Except Electrical       Same         Yes                       X
  Electrical Equipment & Supplies    Same         Yes                       X
Non-manufacturing
  Mining                             Less          No
  Contract Construction              Same        Some                       X
  Transportation-Public Utilities    Less        Some                       X
  Trade                              Same        Some                       X
  Finance, Insurance and Real
    Estate                           Less        Some                       X
  Service and Miscellaneous
    Non-manufacturing
  Government                         Same        Some                       X
 Source:  Results of a survey conducted by  the author.
                                     104

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in a product.  If  the ILS of an industry  is greater  than 1,  it may be


inferred indirectly or implicitly  that a  region  is export oriented 1n  that


particular industry.  But in such  a case,  two assumptions are in order.


First, the industry's Marginal Physical Product  of Labor (M?PL) needs  to be


equal to or greater than the national marginal productivity  and, secondly,


the regional consumption for the good should be  equal  to or  less than  the


national consumption for the same  good.H


     When the index is less than 1, several inferences can be made.  First,


the MPP, of the industry in the region is  less than  the marginal product-


ivity of the same  industry nationwide.  Second,  the  region will not export


substantial quantities of goods or services of the industry  in question.


Third, the relative low employment concentration in  the region may also be


contributed to the region's high marginal  labor  cost (MLC).  Fourth, it can


be added that under certain conditions some regional industries may show


less relative employment concentration due to their  very high HPF]^


     The survey that was conducted to estimate the productivity of


industries in the  region and to determine  their  exports tends to reduce the


probabilities for  error in estimating the  region's specialization in basic


or nonbasic activities.


     When the coefficient of ILS is say 5, it indicates that the region is


5 times as specialized in the industry as  is the nation as a whole.  By


inference (considering the necessary assumptions outlined above) the


industry has 5 times as many workers as are needed for the region's own


consumption of the good or service.  In other words, one-fifth of the


region's industry employment is required to satisfy  domestic needs and the

                                                                            o -I
remaining four-fifths are "surplus" workers presumably producing for export.
Footnotes are shown in Appendix I.
                                   105

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1.9.2  Conversion of ILS into Basic and Nonbasic Shares of Employment.  As




the example mentioned above indicates, the ILS can be converted to show the




share of basic and nonbasic employment in each industrial category.  Those




shares are shown in Table 51.






1.9.3  Basic and Nonbasic Employment in the Study Area.  Due to the fact




that the socioeconomic and demographic characteristics of the counties of




the White River District are basically the same, it can be assumed that the




share of basic and nonbasic employment determined for the region can be




applied to the study area.




     Table 52 shows employment in the study area by industrial categories




and by basic and nonbasic employment.  This table is important in providing




the data for the calculation of basic-nonbasic ratios (indirect employment




multiplier) and the regional employment multiplier for the study area.  Total




employment for years 1970, 1972 and 1974 is listed in the first three columns




by industry.  The last six columns show the basic and nonbasic employment by




industry.  That part of employment which produces and caters to the local




market is classified as nonbasic employment.  That part which produces for




the regional, national and world markets is classified as basic.






1.9.4  Basic-Nonbasic Ratios (Indirect Employment Multiplier) and Regional




Employment Multiplier.  The data of the previous table can be used to




calculate both an indirect employment multiplier and a regional employ-




ment multiplier.




     In Table 53 the basic-nonbasic ratios or indirect employment multipliers




are calculated on the basis of total employment in 1970, 1972 and 1974.  An




average employment multiplier for the years of 1970, 1972 and 1974 was also
                                   106

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                                                         TABLE 51

                                         BASIC AND NONBASIC SHARES OF EMPLOYMENT
                                              BY INDUSTRIAL CATEGORIES FOR
                                      WHITE RIVER PLANNING AND DEVELOPMENT DISTRICT
1960

Agriculture
Manufacturing
Mining
Construction
Transportation and
Public Utilities
Trade
Finance, Insurance and
o Real Estate
Service
Government
Basic
.72
.36
.07
.50

.46
.41

.28
.66
.02
Nonbasic
.28
.64
.93
.50

.54
.59

.72
.34
.98
1965
Basic
.69
.43
.09
.42

.42
.42

.46
.65
.03
Nonbasic
.31
.57
.91
.58

.58
.58

.54
.35
.97
1970
Basic
.71
.53
.09
.27

.47
.42

.54
.55
.01
Nonbasic
.29
.47
.91
.73

.53
.56

.46
.45
.99
1975
Basic
.68
.60
J09
.40

.50
.46

.59
.48
.01
Nonbasic
.32
.40
.91
.60

.50
.54

.41
.52
.99
Source:   Estimates by the author.

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                                                          TABLE 52

                         EMPLOYMENT BY INDUSTRIAL CATEGORIES AND BY BASIC AND NONBASIC EMPLOYMENT
                                             FOR STUDY AREA, 1970, 1972, 1974
Employment

Wage & Salary
Employment
Farm
Non-Farm
Government
Federal
State & Local
3 Private Non-Farm
3 Manufacturing
Mining
Construction
Transport. , Comm. ,
& Pub. Utilities
Trade
Fin. , Ins. , &
Real Estate
Services
Other
1970

14,166
2,247
11,919
1,722
211
1,511
10,197
3,818
39
475

591
2,490

299
2,272
213
1972

15,347
1,982
13,365
1,805
210
1,596
11,559
4,717
45
509

607
2,661

333
2,472
215
1974

15,920
1,753
14,167
1,925
218
1,707
12,242
5,384
29
498

596
2,665

318
2,574
178
Share Employment by
Basic Nonbasic
Employment Employment
1970 1975 1970 1975

—
.71
—
.01
—
—
—
.53
.09
.27

.47
.44

.54
.55
~™

—
.68
—
.01
—
—
—
.60
.09
.40

.50
.46

.59
.48
~~

—
.29
—
.99
—
—
—
.47
.91
.73

.53
.56

.46
.45
—

—
.32
—
.99
—
—
—
.40
.91
.60

.50
.54

.41
.52
"~
Market Served
Basic Nonbasic
Employment Employment
1970

6,549
1,595

17



2,023
3
128

278
1,095

161
1,249

1972

7,313
1,348

18



2,830
4
204

303
1,224

196
1,186

1974

7,590
1,192

19



3,230
3
199

298
1,226

188
1,235

1970

7,617
652

1,705



1,795
36
347

313
1,395

138
1,023
213
1972

8,034
634

1,787



1,887
41
306

304
1,437

137
1,286
215
1974

8,330
561

1,906



2,154
26
299

298
1,439

130
1,339
178
Source:  Table I2 .   Calculations by the author.

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                                TABLE 53

                 BASIC-NONBASIC EMPLOYMENT RATIOS AND

                 EMPLOYMENT MULTIPLIER FOR STUDY AREA
                                           Basic-Nonbasic
                                              Ratio or
                                         Indirect Employment
                                              Multiplier
                        Regional
                        Employment
                        Multiplier
L.  Based on total employment:  1970
2.  Based on total employment:  1972
3.  Based on total employment:  1974
6,549

7,617


7,313

8,034


7,590

8,330
                                                   = 1:1.16
                                                     1:1.10
                           2.16
                           2.10
                                                                    2.10
4.  Based on the 3-year average
    employment:  1970, 1972, 1974
21,452

23,981
                                                   = 1:1.12
                          2.12
Source:  Calculations by the author.
                                    109

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calculated.  The corresponding regional employment multipliers are simply

                                         22
basic-nonbasic employment plus unity (1).

     This study attempted to resolve some of the limitations of the basic-

nonbasic ratios and regional employment multiplier by:

     (a)  Developing the ILS.

     (b)  Survey the productivity of industries.

     (c)  Survey the share of production exported by those industries.

The 3-year average indirect employment multiplier 1:1.12 indicates that for

each basic employment created in the study area, another 1.12 nonbasic

employment opportunities will be induced in the area.  The regional employ-

ment multiplier shows the direct and indirect employment created in the area.

     This study has shown evidence  that the indirect employment multiplier

in the study area is greater than 1, ranging from 1.10 to 1.16.


1.9.5    Determination of Consumption Multiplier or Regional Income Multiplier.

The late Charles Tiebout divides a community's economy into three sectors:

exports, local investment and local consumption.  Tiebout considers income

as a unit of measurement of an area's economic performance.  Thus, income

accrues to local families from the aforesaid three sectors. ^

          In the short run, income created by exports and local invest-
     ment depends largely on forces other than the level of local
     income—mostly on forces operating outside the local market.  All
     of this means that, for short run analysis, export and local
     investment income are taken as given, that is, they are measured
     but not explained by a base study.  This leaves the local consump-
     tion sector which is explained.  The income derived from the local
     consumption sector depends upon local spending out of income orig-
     inating in other sectors, just as nonbasic employment depends upon
     basic employment. *
Footnotes are shown in Appendix I.
                                    110

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     According to Tiebout, if the base analyst wants to be quite sophisti-

                                                    25
cated, he could use a multiplier formula as follows:

                                                            i
Local Income Increase = Increase in Basic Income   X
                                                  ,   Nonbasic Income
                                                        Total Income
         ,  Nonbasic Income  is the Local Consumption or Local Income Multiplier
              Total Income

Nonbasic Income - Study Area, 1974 = $74,268,00025a

Total Income - Study Area, 1974   = $187,064,000

Substituting to:       	1      _    1   _ 	!L_
                       1- $ 74.268.000   1-.397  .603
                          $187,064,000


The income multiplier described above has its main effect over a relatively

short period of months or years, since it is based primarily on public and

private expenditures for current consumption.  A longer term multiplier effect

can also develop, based on investment expenditures stemming from the initial

confusion of payroll spending and tax payments.  No attempt has been made

to estimate this secondary income multiplier, however, owing to the lack of

data on which to develop projections.



2.0  ENVIRONMENTAL IMPACT ACTION


2.1  Construction Impacts


2.1.1  Employment and Population Changes


2.1.1.1  Impact on Employment.  The economic base analysis described in the

previous section concluded that the average local employment multiplier is

1.12 for the study area.  That is, for each new basic employment created in

the area, 1.12 new indirect (nonbasic) employment is induced.
Footnotes are shown in Appendix I.
                                     Ill

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                                                      TABLE 54




                             ESTIMATED QUARTERLY EMPLOYMENT BY CRAFT DURING CONSTRUCTION
Quarter
1
2
3
4 -
1
2
3
4
1
2
>-* -i
E 4
1
2
3
4
1
2
3
4
1
2
3
4
Year
1979
1979
1979
1979
1980
1980
1980
1980
1981
1981
1981
1981
1982
1982
1982
1982
1983
1983
1983
1983
1984
1984
1984
1984
Carpenters
10
15
17
28
32
33
35
40
46
58
• 63
58
48
37
39
46
45
48
45
46
37
33
10
2
Iron
workers
8
25
36
47
56
65
77
82
98
125
136
124
104
79
82
98
100
112
110
98
79
56
35
8
Painters
2
4
5
7
8
9
10
12
13
16
18
16
14
11
12
13
14
16
15
13
11
8
5
2
Electricians
2
9
14
20
22
26
30
34
39
50
54
50
42
32
33
39
40
44
41
39
32
24
20
16
Boiler-
makers
2
8
20
25
33
41
46
55
65
83
90
83
67
53
56
65
66
73
70
65
53
27
15
—
Mill-
wrights
4
8
12
15
17
21
25
29
33
42
45
42
34
27
29
33
35
38
35
33
27
16
12
—
Pipe-
fitters
4
12
20
23
27
33
39
44
52
66
72
66
54
42
44
52
56
59
57
52
42
30
25
3
Insulators
—
—
—
—
5
8
10
12
13
17
18
17
14
11
11
13
15
15 :
15
13
11
15
17
18
Operators
5
10
17
17
17
21
24
28
33
42
45
42
34
26
28
33
37
40
40
33
26
20
17
3
Laborers
10
19
39
78
113
153
184
214
248
331
353
342
249
212
221
258
282
295
292
248
212
121
24
8
Total
50
110
180
260
330
410
480
550
640
830
905
840
660
530
560
650
690
740
720
640
530
350
180
60
Source:   Arkansas Power and Light Company.

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     During the construction phase of the plant, AP&L expects to employ




several hundred craft workers and 40-50 supervisors.  Table 54 shows the




number of workers by craft to be employed at the plant site by AP&L quarterly




during its construction phase.  Table 55 summarizes the number of craft




workers and supervisors to be employed during the construction phase of the




plant.
                                  TABLE 55




                      ESTIMATED QUARTERLY EMPLOYMENT




                            DURING CONSTRUCTION
 Quarter
Year
Craftsmen
Supervisors
Total
1
2
3
4
1
2
3
4
1
2
3
4
1
2
3
4
1
2
3
4
1
2
3
4
1979
1979
1979
1979
1980
1980
1980
1980
1981
1981
1981
1981
1982
1982
1982
1982
1983
1983
1983
1983
1984
1984
1984
1984
50
110
180
260
330
410
480
550
640
830
905
840
660
530
560
650
690
740
720
640
530
350
180
60
30
35
35
35
40
40
40
45
45
50
50
50
45
45
45
40
40
40
40
40
40
35
35
30
80
145
215
295
370
450
520
595
685
880
955
890
705
575
605
690
730
780
760
680
570
385
215
90
    Source:  Arkansas Power and Light  Company
                                     113

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     Tables  54 and 55 state the total amount of new direct employment that




will be  created as a result of constructing the new power plant.  The indi-




rect effect  that the plant will have on the employment of the local economy




is shown in  Table 56.  The indirect effect on employment was derived by




multiplying  the new direct employment induced by the construction of the




plant  times  the average employment multiplier.  It was estimated that on the




average  AP&L will employ annually about 535 workers during the construction




phase.   The  annual direct effect of the AP&L plant on the employment of the




local  economy is shown in the second column of Table 56.  The construction




phase  will start with an average annual employment of about 185 workers,




during the third year of the project about 854 workers will be employed,




and during the last year of construction, about 315 workers will be




employed.




     In  addition to the direct effect, the construction of the plant will




have an  indirect effect on the local employment.  The indirect effect is




shown  in the fourth column of Table 56.  During the first three years of




construction, about 957 new supporting jobs will be generated.  Most of the




new supporting jobs generated in the area will be phased out when the




construction nears completion and the number of construction related workers




declines.




     Taking  into consideration that the majority of the technical workers




employed for the construction of the recently completed Arkansas Eastman




Plant  came from within the study area or within a 50-mile radius, it can be




stated that most of the workers needed by AP&L will be supplied by the area.




Mr. A.  C. Roden, Daniels International, the building contractor of the




Arkansas Eastman plant,  stated in an interview with regard to the availa-




bility of local technical labor needed for the construction of a big plant




that:

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                                           TABLE 56




                                 ESTIMATED EMPLOYMENT IMPACT




                                  DURING CONSTRUCTION PHASE
Year
1979
1980
1981
1982
1983
1984

Direct Effect
on
Employment
Average Annual
Craft and Supervision
185
482
854
645
732
315
Annual Average 535
Employment
Multiplier
1.12
1.12
1.12
1.12
1.12
1.12

Indirect Effect
on
Employment
207
333
417
-234
97
-467

Cumulative
Indirect Effect
on
Employment
207
540
957
723
820
353

Source:   Arkansas Power and Light.   Estimates by the author.

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          Not too many single qualified boilermakers were used on the
     job.  Trainees, unskilled laborers, who proved to be quickly and
     easily trained, were used.  They produced exceptionally high
     quality products in less than the pre-planned time for construc-
     tion.  Additionally, I trained pipe fitters and welders.  I noted
     that the hardest to obtain craftsmen were pipe fitters and elec-
     tricians.  Of the total employees in these two crafts, 40% came
     from the local area and 60% from outside the area.  I used about
     400 pipe fitters and welders; approximately 160 came from the
     local area.  Of the 150 electricians employed, about 55 came from
     the local area.

          He further stated that:

          Boilermakers were all local.
          Ironworkers—easiest to man.
          Operators were plentiful.
          Millwrights were plentiful.
          Carpenters—not too plentiful but enough.


     Based on the Arkansas Eastman plant experience and statements made by

other local contractors as to the availability of local labor to man the

construction of the AP&L plant, the needs for technical labor to be imported

will be rather limited.  An estimated amount of skilled labor to be imported

to the area is shown below:

                    Estimated Type of Imported Labor

     Type                                                        Number

     Electricians (60% of maximum needed)                          30

     Pipe fitters (60% of maximum needed)                          45

     Others       (15% of the average annual workers)             135 •

          Total                                                   210

     About 75 electricians and pipe fitters and 135 other workers may need

to come from areas outside the study area.  Special attention needs to be

given also to the local availability of a large number of iron workers since

at times as many as 136 iron workers will be needed.  The availability of

carpenters will depend basically on the level of housing construction going

on in the area at the same time the plant is being constructed.
                                    116

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     It is also found that most of the workers will commute to the plant




site, thus there will be less pressure on the housing, schools and other




facilities available in towns close to the site of the plant.





     In short, during the construction phase of the AP&L plant, several




hundred new jobs will be generated through both direct and indirect effects.




Most of the labor needed will be supplied by the local area.





2.1.1.2  Impact on Unemployment.  The construction of the AP&L plant will




produce several positive effects in the study area, but the most beneficial




effect will be the one on unemployment.  For purposes of analyzing the unem-




ployment conditions which are estimated to exist with and without the con-




struction of the AP&L plant, the date of July, 1977 was used as a bench-




mark date.  The most recent information available as to the civilian labor




force, employment and unemployment is for June, 1977.  These data appear in




Table 57.  The same table shows employment, unemployment and the unemploy-




ment rate before and after the construction of the AP&L plant in the study




area.





     On the average during the construction period, local employment will




increase by around 675 jobs.  This figure is based on the average direct




employment, estimated to be 535 construction jobs plus the net increase




of 353 jobs associated with induced employment over the course of the




project, minus an estimated 210 jobs filled by imported workers.





     It was estimated that average unemployment in the study area will decrease




from 1,025 to 100 (1025-925 = 100), or from 4.8 percent prior to the con-




struction of the plant to 0.5 percent if the action is taken.  The civilian




labor force of the study area with construction would be increased by 210




workers, representing the estimated amount of workers that need to be im-




ported into the area to fill some scarce labor skills not available in the




local area.




                                    117

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                                TABLE 57

                EFFECTS OF CONSTRUCTING THE INDEPENDENCE
                STEAM ELECTRIC STATION ON THE EMPLOYMENT
                     AND UNEMPLOYMENT OF STUDY AREA
Labor
    Study Area
Without Construction
   as of 6/30/77
    Estimated
Study Area Situation
 With Construction
  as of 6/30/77
Civilian Labor Force

Unemployment

Unemployment Rate

Employment
       21,525

        1,025

            4.8

       20,500
       21,735

          350

            1.6

       21,385
Source:  Arkansas Department of Labor, Employment Security Division,
Preliminary Labor Force Estimates, August, 1977.  Estimates by the author.
                                    118

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 2.1.1.3  Impact on Population.   Taking  into  consideration  that only a small




 number of newly generated  job openings  will  be  filled by persons moving  in




 from areas outside the  study area,  it can be stated  that the impact of the




 construction  of the AP&L plant on  local population will be limited.  It was




 estimated in  a  previous section  that the direct and  indirect effects on




 local employment of constructing the AP&L plant will be the creation of as




 many as 890 new jobs  in the area, but only about 210 job openings will be




 met  by outside  labor.   The methodology  used  in  determining the number of




 people to move  into the area is  shown in footnote 1 of Table 58.  It was




 estimated that  about  534 people  would move into the area as a result of job




 opportunities created by the construction of the AP&L plant.






 2.1.2  Income and Spending Changes






 2.1.2.1  Direct Income  Changes.  The annual  payroll for the construction of




 the  AP&L  plant  is  shown on Table 59.  This amount is estimated to be about




 $3.2 million  the first  year of construction,  reaching a high of $15.9




 million during  the  third year and then  dropping to $7.7 million in the last




 year of construction.   Since more than  75 percent of the workers to be




 employed  during the construction of the plant will come from within the




 study area, it  seems that  the same percentage of the payroll will be earned




 by residents  of the area.  It is expected that the workers employed from




within  the  area will spend 80 percent of their income locally,  and that




workers from  outside the area will spend 60  percent of their income locally.




Thus, using these proportions, the income earned during construction and




spent locally can be estimated and is shown  in the last column of Table 59.




It was  estimated that the  total  annual payroll for the six years of con-




struction will be about $64.5 million.   Of that amount about $48.4 million




will be spent in the local economy.
                                     119

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                                 TABLE 58

                 ESTIMATED TOTAL POPULATION GAINS IN THE

                 STUDY AREA DURING THE CONSTRUCTION PHASE
                                      Potential
                                      Population
                                     to be Moved into            Population
                                       the area                     Gains
Direct and indirect
  employment                              210
Family members of workers                 - 324
     Total                                534                       534
     •'•The number of people moving into the study area due to the direct and
indirect effects on employment by constructing the plant was estimated on
the basis of the following procedure:

     210     Jobs generated and held by outsiders
    x.77     Male or female workers heads of families
     162     Workers, probable heads of families
     +48     Singles
     210     Total married and single workers
     210     Total outside workers
     -48     Singles
             Workers head of family
             Persons per family
             Persons in families
             Singles
     534     Number of persons to move in study area

The ratio  _£z.  = .60 shows that for each job created, about 0.6 persons move
           890
into the area.
                                    120

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                                 TABLE 59

                    ESTIMATED ANNUAL PAYROLL BY AP&L
                           DURING CONSTRUCTION

                        (In Thousands of Dollars)
Year
1979
1980
1981
1982
1983
1984
Total
Annual
Payroll
$ 3,246
8,525
15,926
13,057
16,017
7,763
$64,534

Locally Spent
Income
$ 2,434
6 , 394
11,944
9,793
12,013
5.822
$48.400

Source:  Arkansas Power & Light.  Estimates of locally spent income by the
author.
                                    121

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          TABLE 60




 ESTIMATED QUARTERLY PAYROLL




     DURING CONSTRUCTION
Quarter
1
2
3
4
1
2
3
4
1
2
3
4
1
2
3
4
1
2
3
4
1
2
3
4
Year
1979
1979
1979
1979
1980
1980
1980
1980
1981
1981
1981
1981
1982
1982
1982
1982
1983
1983
1983
1983
1984
1984
1984
1984
Total
Payroll
$ 368
664
955
1,259
1,660
1,989
2,278
2,598
3,222
4,103
4,470
4,131
3,596
2,912
3,069
3,480
3,947
4,236
4,114
3,720
3,357
2,340
1,447
619
Source:  Arkansas Power and Light Company.
              122

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     The estimated quarterly wage and payroll to craft workers and super-


visors during  the six years of construction is shown in Table 60.



2.1.2.2      Induced Income and Spending (Multiplier Effects).  As a result

of constructing the AP&L plant, there will be several basic activities that

will be positively affected and thus increase the basic income of the area.

The activities that will probably be affected will be the following:

     AP&L Construction Workers Payroll
       spent in the study area                             $48,400,000

     Locally Purchased Supplies                              1,000,000

     Increase  in Local Tax Revenues                          27,263,588

          Total Increase in Basic Income                   $76,663,588
                                         ,       r
     The construction of the plant and production of the above basic activ-

ities or expenditures will have a multiplied effect in the study area.  The

AP&L construction payroll was shown in Table 59.  It is very difficult to

estimate the amount that will be spent by the contractor on locally pur-

chased supplies.  With the exception of gravel, sand and fuel, very few

other supplies will come from the study area.  Estimates given by some

experts do not value the amount of local purchases more than one million

dollars during the construction period.  Due to the very minimum effoct

that each school district will feel with regard to new student population,

it is likely that additional state school aid will be negligible.

     New local tax revenues resulting from the construction of the plant are

explained in a rather detailed form in a following section.  This section

concludes that the additional local tax revenue during the six-year construc-

tion period will be $27,263,588.

     In estimating the multiplied effect that the basic activities or expend-

iture will have on the study area, the previously determined Local Income

Multiplier (1.66)  for the study area was applied.


                                    123

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     In calculating the increase in local income due to growth of basic

income, the following procedure is used:

                                                               1
Increase in Local Income = Increase in Basic Income X
                                                      1 - Nonbasic Income
                                                            Total Income

or

Increase in Local Income = Increase in Basic Income X Local Income Multiplier

Substituting:

Increase in Local Income = $76,663,588 x 1.66 = $127,261,556


     In short, the income of the study area will increase, as a result of

the multiplier effect on the income generated by the basic activities of the

AP&L plant, by an amount of about $127.3 million during the six-year con-

struction period.  In the long run, this effect can be greater if one

considers the local investment multiplier.


2.1.2.3  Impact on Retail Sales.  The proposed AP&L plant will have a posi-

tive effect on the retain sales of the study area.  The basic income earned

from the construction of the plant and spent locally has been determined to

be $48,400,000 over a six-year period.  This amount would have a direct

effect of increasing retail sales by $30.6 million.  This rate of income

spent by the general public on retail sales was determined to be 0.632.
          Study Area Retail Sales (1972)   = $ 88,525.000 =
          Study Area Personal Income (1972)  $140,036,000 ~
     Multiplying the retail sales/personal income ratio (0.632) by the addi-

tional income earned and spent locally ($48,400,000), the increase of retail

sales in the study area during the six years can be estimated as being

$30,588,800.
                                     124

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     The estimated increase in retail sales as measured above shows the

direct effect of income on retail sales.  To be more realistic, however,

the  total effect of  the increase in income on retail sales must be determ-

ined from income derived in the area after the income multiplier is applied.

     This multiplier was calculated in a previous section and was determined

to be 1.66.  When it is applied to the increase in basic income of $76.7

million, the total increase in income in the short run will be $127.3

million.  By applying the rate of income spent on retail sales by the gen-

eral public of 0.632, this could create an estimated increase of $80.4

million in retail sales for the six-year construction period.  Table 61

shows the estimated  retail sales gained due to the increase in income in

the study area.
                                TABLE 61
              ESTIMATED RETAIL SALES GAINED DUE TO INCREASE
                    IN INCOME OVER CONSTRUCTION PHASE
                        (In Thousands of Dollars)
                                              Increase in Retail Sales
Due to Payroll Increase                                $30.6

Additional Increase Due to
  Multiplier Effect                                     49.8

    Total Increase of Retail Sales
      Due to Increase in Income                        $80.4
2.1.3  Housing Impacts


2.1.3.1  Projected Pattern of Construction Worker Relocation.  In a

previous section of this report, it was determined that on the average 534

persons may move into the study area, possibly to Batesville, Newport or

Newark, as a result of the construction phase of the AP&L plant.  This num-

ber as shown in Table 58 constitutes about 162 workers who are heads of


                                     125

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families, or 486 persons in families, and about 48 single workers.   The rest

of the labor needs, as this study previously concluded, will be met by

people commuting from surrounding areas to the site of the plant.

     In determining how the housing needs of the workers will be met by the

already available housing units and what the demand for new housing needs

will be in the area, two approaches were used:

     (a)  The Housing Coordinators of the White River Planning and
          Development District, the Executive Vice-President of the
          Newport Chamber of Commerce, and real estate developers were
          interviewed on this matter.

     (b)  Present housing availability as shown in Tables 24 and 27
          was used to determine the extent to which the existing housing
          can meet the new housing needs.

     (a)  Results of the Interviews.  The following statements are  summaries

of interviews with the White River Planning and Development District, the

Chamber of Commerce and realtors, shown in Exhibits I and II in Appendix E.

     The housing coordinators of the White River Planning and Development

District stated:

          Temporary housing in Independence and Jackson Counties is
     primarily within Batesville and Newport, respectively.  Rental
     units in these two towns are very scarce.  Most vacancies are
     either for sale or are sub-standard.  The majority of new con-
     struction is single family, owner-occupied, and there is no sig-
     nificant number of multi-unit housing under construction.  They
     did speculate that with a project the size of the proposed AP&L
     power plant, and lasting several years as planned, some of the
     local workers who presently rent may purchase homes and some
     rentals will be built during the latter stages of construction.

     Chamber of Commerce and realtors stated:

          Rental houses in Newport are for the most part sub-standard.
     As a result of the condemnation program, these units are identi-
     fied for upgrading or demolition as soon as they become vacant.
     Very few are upgraded.  Most homes which are vacant are for sale.
     The availability of apartments is also limited.   There is one
     apartment building presently under construction which will have
     15 units.  This is the extent of multi-unit construction in
     Newport.  Real Estate developers are keeping a close watch on  the
     AP&L power plant project, with the intention of constructing,  or
     upgrading present housing  as soon as the location and construc-
     tion start date is established.

                                     126 .

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     It can be concluded from the. above statements made by local experts on

housing availability that:

     a)  Rental units are very scarce.

     b)  Most vacancies are either for sale or sub-standard.

     c)  Availability of apartments is limited.

     d)  Private sector, however, may be mobilized to construct housing
         to meet future housing needs.

     In short, meeting the housing needs of the labor force would be a

serious problem, at least at the beginning of the project.

     (b)  Existing Housing and Housing Needs.  This report showed that an

average of about 210 housing units or living accommodations will, be needed

to meet the housing needs created by the labor employed during the construc-

tion of the AP&L plant.

     Considering the lack of rental housing in the area, the high occupancy rate

of the 512 motel rooms available in the area, and the high cost of motel

living, it can be said that the ability to house more than 200 new families

or individuals will come from three sources:

     (1)  Purchase of vacant houses for sale

     (2)  Use mobile homes

     (3)  Build new housing

     It was estimated that most of the vacant houses are substandard or need

substantial upgrading.  The current number of housing units available for

sale, according to statements made by local realtors, is either not suffi-

cient to meet the needs or the price range of available housing is above

that which can be afforded by the workers at the plant.  In Batesville and

Newport, the two largest cities in the study area, 985 new housing units

were built from 1970 to 1976, but only 276 units were apartment-type housing
                                    127

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accommodations.  From a survey made the occupancy of these apartments is

very high under present demand conditions.  Some of the single workers (20-

30) may be accommodated by the available apartments.

     The rest of the needs must be met by either mobile homes moved into an

area close to the site or the construction of new houses.  If, on the basis

of the data presented and interviews conducted, it is assumed that existing

available housing units will meet about 20 percent of the needs (.20 X 210),

then about 170 additional housing accommodations may be needed.

     Considering that about 40 to 50 employees on the site will be of the

supervisor level, then part of the housing needs will require new houses,

and the remainder mobile homes.

     It is estimated that the new housing needs can be met by the following

allocation:

                     ALLOCATION OF NEW HOUSING NEEDS

     Mobile Homes                                             120

     New Housing Units                                         50

          Total New Housing Needs                             170


2.1.3.2    Impact of New Housing.  The development of the new housing and

the renting or sale of vacant housing in the area will produce the following

impact in the local economy:


                         TOTAL NEW HOUSING COST
New Mobile Homes (120 @ $10,000)                                 $1,200,000
New Housing Units (50 @ $35,000)                                  1,750,000
Renting of Apts. or Houses (40 @ $150 monthly for 6 years)           432,000

     Total New Housing Cost and Rental Cost                      $3,382,000

     Rounded to $3,400,000
                                    128

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This means that about $2.9 million in value of housing will be added in the




study area, and about $0.5 million of rentals will be added to the income of




the local economy.  The estimate of the cost of housing was based on Marshall




and Swift Residential Cost Handbook, which stated that in September, 1976,




the average construction cost of homes in Newport and Batesville was about




85% of the national average, ($42,500 X .85) = $36,125.




     An additional factor which must be emphasized is the impact on tax




revenues due to the creation of new real estate property values.  Based on




the present tax law which requires that real property be assessed at 20 per-




cent of market value, these new properties will increase the assessed real




estate value by ($2,950,000 X .20) = $590,000.  Applying an average rate of




67.2 mills for the study area, real property taxes will be increased by




$39,648 per year.  This rate was obtained by considering the rate for the




various incorporated communities within the study area.






2.1.4    Public Service Impacts.  This section treats the public-sector




impact of the previously estimated changes in employment, population,




housing and other factors during the plant's construction phase.  The pro-




jected changes will bring both benefit and burden to the public sector, and




the two will not necessarily be distributed evenly throughout the impact




area.






2.1.4.1    Requirements for Additional Utility Services




     Energy;  Over the six-year construction phase of the AP&L plant, 210




new jobs will be met by workers imported into the area.  These newly imported




workers should bring approximately 162 new families into the area.  With




three people per family, plus 48 single workers, a population increase of




534 is projected.  This will mean 170 new homes, all using electricity and
                                    129

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 some using natural gas.  The remainder  (mainly mobile homes) will use LP


 gas.  The supply of electricity and LP  gas will be sufficient.  The supply


 of natural gas will be sufficient if these houses are built close to an


 already existing gas line.


     Water Systems:  Since water is plentiful in the area, there will be


 little problem in adding 170 new homes  to the existing water systems, pro-


 vided these homes are well dispersed.   Newark is served from two wells and


 serves customers a few hundred yards beyond the city limits.  The Newark


 water system extends west up Highway 69 to the city limits of Magness.  The


 majority (an estimated 60 to 80) of the estimated 120 mobile homes to be

                                                 fy f
 added in the area would be served by this system.


     Wastewater Treatment Facilities:   Batesville's facilities already have


 need for expansion and improvement.  Other facilities vary greatly in size


 and quality, as discussed in Exhibit I, Appendix F.  The Newark facility


 has a lift station south of town on Highway 122 with a force main extended


 to the east along the Missouri Pacific Railroad to the city's stabilization

     27
 pond.    It will be sufficient to handle the anticipated influx of 60 to


 80 mobile homes.  Expansion will not be necessary (the plant will have its


 own on-site waste treatment system).




 2.1.4.2  Requirements for Road and Traffic Control Improvements.  Expenses


 for road upkeep during the construction phase will increase.  Also,  it is


 estimated (see Section 2.1.5,2)'that an additional 178 cars would be owned


by residents in the impact area.  Highways 122 and 69 in the Newark area


will be the more severely affected roads.  Because of housing availability


and highway access, most construction workers will live in (or near) New-


port, Batesville or Newark.
Footnotes are shown in Appendix I.



                                    130

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     The Point Ferry across Black River at Jacksonport, although free, will

slow traffic and discourage workers from using that route.  It presently

operates from 7:00 a.m. to 7:00 p.m. and can carry six cars per trip.  (Tn

1976, the 24-hour annual average traffic count at Point Ferry was 129 vehic-

les.  There were 65 days during which the ferry did not operate.)™  Thus,

most workers who live in Newport will utilize Highway 14 to Oil Trough, then

Highway 122 to Newark.

     State Highway District 5 Engineer Jim Chaney stated that the major need

for improvement in the area is Highway 69 from Batesville to Newark.  It is

in the Department's five-year plan for upgrading, probably to include

widening to 22 feet from the present 20 feet.  The sharp corner south of

Sulphur Rock is to be corrected.  Survey work is complete on this project.

The prospects of the AP&L plant will probably speed up this work.

     The intersection of Highways 67 and 14 near Newport is dangerous because

of the angle of approach and slope, calling for improvement.  More frequent

surfacing will be required on all roads in the area.  County roads will be

burdened as well, but Independence County will have considerable revenue for

road improvement from their 11.4 mills tax on the new facility.  Estimates

of the County's tax intake are shown in Exhibit II, Appendix G.  The addi-

tional tax revenue for the county is estimated to rise from $135,500 In 1979

to $1,524,667 in 1984.  Jackson County will have some increased costs of

road improvements, but only some spillover benefits from property tax

revenues.

2.1.4.3  Requirements for Increased Public Safety Service.  U. S. cities

with populations from 10,000 to 24,999 in 1976 averaged 2.05 policemen per

1,000 persons. "  Such data are not collected for smaller cities.  For

Batesville this would call for 15 policemen.   Batesville actually has 11

policemen, or 1.526 per 1,000 population.  A 1968 study of Arkansas police
Footnotes are shown in Appendix I.
                                     131

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departments showed an average of  1.164 per  1,000  for cities  in  the 5,000  to


            30
9,999 class.    This would call for eight policemen.  It would  appear  from



these data that Batesville could  handle  the expected increase in population



with little or no increase in the size of its police force.  Newport has  11



policemen for a population of 7,854 or 1.401 per  1,000 persons, which  exceeds



the state average.  Newark, with  only one city marshall, will need at  least



one additional marshall  (or policeman) because of its central location in



the impact area.  A policeman will cost  about 8,220 per year (Arkansas aver-



age police salary).



     Newark is the largest city in the area with  only a volunteer fire depart-



ment.  For comparison Tuckerman, with twice the population, has one paid  fire



fighter to support its volunteer  force.  Newark will thus need  to add  a paid



fireman at an approximate salary  of $7,829  or increase its volunteer force.



     The hospital occupancy rate in the  area, shown in Table 33, is low,



averaging 53.7 percent in 1976.  No new hospitals will be needed.  Health



manpower in the area is generally adequate  (Table 34), with one practicing



physician per 1,542 persons, although the state average is one resident



physician per 844 persons.  The situation is not considered critical by the



Bureau of Health Manpower unless the number of doctors drops below one per



4,000 population.^2




2.1.4.4  Requirements for Increased Public  School Facilities.  There is a



wide discrepancy in expenditure per pupil among the 15 school districts in



the area,  as can be seen in Table 35.   Newark is ranked 37th in the state,



while Southside is ranked 378th.  Student/teacher ratios better reflect the



ability of a school system to handle an increase in enrollment.   The state



average student/teacher ratio is 20.60.   The two-county average is 18.55.



If the estimated 126 new pupils were evenly distributed throughout the



various districts, their impact would be negligible.  They will likely,
Footnotes are shown in Appendix I.

                                     132

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however, be concentrated somewhat in three districts:  Batesville, Newport




and Newark.  If they were divided equally, with 42 in each, it would raise




the student/teacher ratio in Batesville to 19.63; Newport to 20.91; and




Newark to 16.78.  All these figures are reasonably near the state average of




20.60.  A few additional teachers may be added, but the burden will not be




great for any one district.  With 20 students per teacher, the 126 new pupils




would require six new teachers, if all were to attend a single school district.




At an average salary of $10,000, the additional cost would be $60,000.  Six




new classrooms could be added at a cost of from $70,000 to $150,000, depend-




ing upon how many separate structures would be involved.  The Newark school




district will gradually derive a great benefit from its 45 mill property tax.




From $534,833 in 1979, this amount is estimated to grow to about $6.0 million




in 1934.  (See Exhibit II, Appendix G.)  As shown in Table 37, the Newark




school district has almost no debt, and has borrowing power in excess of esti-




mated needs for expansion.  Batesville,.Newport and the other school districts




in the impact area are also in generally excellent financial condition, as




shown in Tables 37 and 38.  These districts will have the burden of additional




students, but will also benefit from added property taxes on new dwelling




units and increased state subventions due to increased attendance.






2.1.4.5  Impact on Financial Institutions.  The earnings of financial insti-




tutions in the impact area will be affected in a positive manner during the




construction phase of the project as a result of increased deposits and in-




creased demand for loans.  Deposit growth during this phase will result pri-




marily from increasing incomes of persons and businesses and rapidly grow-




ing tax revenues resulting from additional property and turnback taxes.
                                    133

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     An effort was made to estimate the additional income accruing to




financial institutions in the region as a result of the construction of the




plant  facility.  An  examination was first made  of  historical  relationships




between annual  total personal  income  in  the area and growth in deposits.   It




was  found that  on  the average  deposits increase by an amount  equal  to  12.5




percent of  the  annual personal income.   By applying this  factor  to  the




projected income growth during the construction phase, it yields an  estimated




increase in deposits of $6.2 million  (see Table 62).  Increased  tax  revenues




during the  construction phase will amount to $27,263,588, all of which  it  is




assumed will  show  up in deposits of one  type or another.  This procedure





yields an estimated  growth  in  total deposits during construction of




$33,438,588.  Assuming the  financial  institutions  will earn a two percent




margin on these deposits, this yields an income of $668,772,  which will be




added  to the  area  economy by the financial institutions during the construc-




tion period.











 2,1.4.6     Impact  on Minorities.  It is estimated  that about  50 persons, or




about 9 percent of the people expected to move  into the impact area, will




likely be minorities.  This amount was estimated based on the fact that




about 8.5 percent  of  the population in the study area represents minorities.




     About  30 non-white workers will be employed during the six years of




construction.   The amount of the non-white employed workers was  derived by




assuming that  about 3.1 percent of the employed will be non-white.   The




assumption was based on the fact that  the minorities make up 3.1  percent of




the labor force in the study area.




     The amount of income to be earned by employed non-whites  in  the six-




year period was estimated to be $2.2 million by multiplying the  number of




employed non-white workers times the average annual income of  craftsmen and




labor.





                                      134

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                            TABLE 62

                AN ESTIMATE OF INCOME GENERATED BY
                   FINANCIAL INSTITUTIONS DURING
                        CONSTRUCTION PERIOD
Growth in area's income due to AP&L
payroll and locally purchased supplies                           $ 49,400,000

Percent of income going to deposits                              	.125

Deposit growth from income                                       $  6,175,000

Deposit growth from new taxes due to
construction of AP&L plant                                         27,263.588

Total deposit growth                                             $ 33,438,588

Income margin                                                    	.02

Income attributable to deposit growth                            $    668,772
SOURCE:  Computations provided by the author.
                                   135

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2.1.5  Fiscal Impacts.  Table 63 shows the historical data for selected




major sources of revenue for the study area.  Table G-l, Appendix G, shows




historical data for sales tax and personal income tax for the study area




from 1970-76.  Federal revenue sharing funds for counties and cities was




initiated in 1973.  The method of computation of the funds to be provided




is based on per capita income of the specific area, county or city, popu-




lation of the area and the taxation efforts made by the county or city.




The exact formula to be used for future computations is not available as it




is normally a result of a compromise between the two different methods for




computation used by the United States Senate and House of Representatives.




     The state returns funds to counties and municipalities in two cate-




gories, general funds, which may be used for administration purposes, and




special funds, which are used for road and street needs.  These funds are




derived from two major tax bases:  a) the general taxes, which include




sales and use taxes, personal and corporate income taxes and similar levies;




and b) the special taxes, which consist of automobile license fees, gasoline




taxes, severance taxes, and like revenues.  The principles used for compu-




tation of these funds are defined in Acts of Arkansas, Act 750, 1973, which




is presented as Exhibit I in Appendix G.




     The property taxes shown in Table 63 are the county's share, and do




not include taxes levied and collected in each separate school district.






2.1.5.1  Assessed Valuation Changes.  The increase in revenues projected for




the state and the study area for the construction phase are shown on Table




64.  The total revenue gained is about $30.8 million.  This figure excludes




a small amount of property tax paid before commencement of construction in




1979.  The study area will gain $27.3 million, mostly from the increase in




property taxes from the AP&L plant.  Exhibit II in Appendix G shows AP&L's





                                    136

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U)
                                                           TABLE  63

                                       REVENUES FROM SELECTED SOURCES FOR BATESVILLE,
                               NEWPORT, INDEPENDENCE AND JACKSON COUNTIES, AND THE STUDY AREA
                                                 FOR YEARS 1970 THROUGH 1976

Federal Revenue Sharing
Independence County
Batesvllle
Jackson County
Newport
Study Area
State Revenue Turn Back
Independence County
Batesville
Jackson County
Newport
Study Area
Property Taxes*
Independence County
Jackson County
Study Area
Total Revenues for Study Area
1970
$216,599
122,135
243,547
130,325
$712,606
$ 44,565
68,687
$113,252
$825,858
1971
$292,383
135,959
262,233
148,689
$839,264
$ 44,565
74,536
$119,101
$958,365
1972
n.a.
$149,769
290,603
162,490
$602,862
$ 44,565
76,438
$121,003
$723,865
1973
$256,214
99,569
^405,753
155,396
$916,932
$336,701
150,772
300,068
170,, 056
$957,597
$ 85,379
75,753
$ 161,132
$2,035,661
1974
$203,440
59,606
401,912
150,472
$815,430
$ 377,289
188,937
340,158
202,233
$1,108,617
$ 85,379
78,822
$ 164,201
$2,088,248
1975
$221,689
99,641
352,981
142,198
$816,509
$ 371,999
189,143
348,061
195,196
$1,104,399
$ 63,843
79,856
$ 143,699
$2,064,607
1976
$258,226
172,056
291,529
143,433
$865,244
$ 410,969
201,377
370,770
213,558
$1,196,674
$ 63,843
79,018
$ 142,861
$2,204,779
   Note:  Due to method of recording historical data, taxes were averaged for Independence County for reporting period.
         *Taxes reported do not include special levies by specific school districts.

   Source:  Mrs. D. Pearson, County Tax Collector's Office, Independence County, Arkansas.
            Mr. J. B.  Thompson, County Treasurer, Jackson County, Arkansas.
            Mr. M. Smith, City Clerk, Batesville, Arkansas.
            Mrs. V. Sherly, County Clerk, Independence County,  Arkansas.
            Mr. P. Heard, City Clerk, Newport, Arkansas.

-------
                                                    TABLE 64

                               PROJECTED GAINS  FROM SELECTED REVENUE SOURCES FOR

                           ARKANSAS AND THE STUDY AREA DURING THE CONSTRUCTION PHASE

State Gain:
Sales Tax
Automobile License
Personal Income Tax
Gasoline Tax
Total
Study Area Gain:
.M
US
00 Federal Revenue Sharing
State Turnback:
General
Special
Property Tax:
Plant*
Housing

Total Annual Gain:
Total Gain
1979

$ 61,544
3,382
101,752
10,761
$177,439



n.a.

$ 7,566
12,010

670,500
39,648
$729,724
$907,163

1980

$161,634
3,382
276,652
10,761
$452,428



n.a.

$ 7,946
12,608

1,931,333
39,648
$1,991,535
$2,443,963

1981

$301,957
3,382
520,330
10,761
$836,430



n.a.

$ 8,341
13,238

3,921,333
39,648
$3,982,560
$4,818,990

1982

$247,561
3,382
448,868
10,761
$710,572



n.a.

$ 8,758
13,900

5,906,500
39,648
$5,968,806
$6,679,378

1983

$303,682
3,382
577,854
10,761
$895,679



n.a.

$ 9,195
14,594

6,919,500
39,648
$6,982,937
$7,878,616

1984

$147,186
3,382
301,140
10,761
$462,469



n.a.

$ 9,655
15,326

7,543,167
39,648
$7,607,796
$8,070,265

Total Gain

$1,223,564
20,292
2,217,596
64,556
$3,526,018



n.a.

$ 51,461
81,676

26,892,563
237,888
$27,263,588

$30,789,606
*Assumes all owners pay pro-rata shares of property taxes  on plant
 Source:  State  of Arkansas,  Department of Finance and  Administration.
          Acts of Arkansas.   750,1973.
          Arkansas Power and  Light  Company.
          Mrs. J.  Moser, County Tax Collector's Office,  Independence County.
          Mrs. D.  Pearson,  County Tax Collector's Office,  Jackson County.

-------
share  (60 percent) of the annual property taxes to be paid on the plant to




Newark School District and Independence County.  It is assumed, however,




that all owners will pay pro rataproperty taxes on the plant.




     Property taxes from the plant were reported by Arkansas Power and




Light Company, and were based on the standard 20 percent valuation rate and




a total of 56.4 mills for the Newark School District and Independence County.




The property taxes from new housing within the study area were calculated




by multiplying the estimated number of new residences, 170, by the average




value, $17,350, as shown in section 2.1.3, applying the 20 percent valua-




tion rate, and using a 67.2 millage rate.  This millage rate was obtained




as a simple average of the rates for each incorporated area within the study




area, which is shown in Table G-2, Appendix G.






2.1.5.2  Tax Revenue Changes.  Personal income tax is clearly the major




contribution to state revenue gains and amounts to over $2.2 million during




the construction phase.  This estimate was obtained by dividing the annual




construction payroll by the average annual wage of the employees, and then




dividing by 12 to obtain an average monthly wage.  The standard state tax




withholding for a family of three, as shown in Exhibit III of Appendix G, was




used to estimate the average monthly withholding.  The average monthly with-




holding was then multiplied by 12 to obtain the annual withholding, which




was then multiplied by the average annual construction employment.




     The gasoline tax and license fees, estimated to be $84,858 over the six




years of the construction phase, were obtained by first deriving the number




of additional vehicles which are expected to be introduced into the area




during the construction phase.  This was accomplished by assuming an average




of 3 persons per household, and then dividing the projected population




increase, 534, by this figure, yielding 178 vehicles.  The number of vehicles






                                    139

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was  then multiplied by $19,  the standard cost of a license.  Estimated gaso-




line taxes were computed by  multiplying the number of vehicles by the aver-




age  yearly miles driven, 9,957, as reported by the Automobile Manufacturers




Association.  The total annual vehicle miles was then divided by an assumed




14 miles per gallon of gasoline to arrive at the number of gallons of gaso-




line consumed per year.  The results were multiplied by .085, the Arkansas




gasoline tax rate.  It was assumed that the number of vehicles, miles driven




and  fuel consumption would remain stable during the construction time period.




Not  all revenues which would be increased as a result of the gain from both




population and payroll in the study area are shown.  For example, data for




tobacco and alcoholic beverages are not available on a city or county basis;




therefore, no base existed for computation of estimated gains.




     Revenue gains by the study area are primarily in the area of property




taxes, as stated in section 2 above, and comprise over 99 percent of the




projected revenue increases.  Federal revenue sharing was not projected due




to the complexities as described above.  Despite the increased level  of




revenues flowing to the State from the study area, the pooling of all




revenues and the use of per capita distribution will not significantly




change the funds being returned to the study area from the state turnback




program.  A simplified method of computation was used to compute the turn-




back, as a detailed computation using the principles contained in the




governing legislation would have required estimating population and income




for every municipality and county in Arkansas.   Therefore, the monthly per




capita turnback for 1977 of $1.12 general funds and $1.70 special funds, as




reported by the state treasurer's office,  was used as the basis for the




projection.  This per capita amount was multiplied by the projected increased




population during the construction phase,  534,  and escalated at 5 percent
                                    140

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per year for the construction time period, thus assuming a stahle inflation




rate.






2.1.5.3  Sales and Use Tax Impacts.  As shown on Table 64, sales and use




tax amounts to over $1.2 million during the period of construction.  The




sales and use tax computation was accomplished by multiplying the annual




payroll by the retail sales/personal income ratio, 0.632, developed in sec-




tion 2.1.2.3, and then multiplying the result by 0.03, the state sales tax




rate.  Sales taxes paid as a result of retail sales generated due to the




multiplier effect on the payrolls are not included because the sales gene-




rated due to this effect are not on an annual basis.






2.1.2  Community Cohesion Impacts.  In an effort to determine the residents'




attitudes and opinions concerning the contemplated construction at the pro-




posed location, a set of factors relating to the human environment was com-




piled.  Nine basic areas were included in the list presented to the question-




naire respondents.  These factors may be seen in Table 65.




     Each respondent was asked to record an opinion as to the effect the




proposed facility might have on each of the factors listed.  Three degrees




of "effect" were allowed in recording an answer:  1. "Positive effect",




2. "No effect", and 3. "Harmful effect".  In addition, an answer of "No




opinion" could also be recorded.






2.1.6.1  Estimate of Potential Impacts on Local Communities' Quality of  '




Life Characteristics.  The questionnaire sent to area respondents attempted




to take into consideration the point that the quality of the human environ-




ment acceptable to a group is a matter of opinion.  With this in mind, the




question posed to the survey respondent asked:
                                    141

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                                                           TABLE 65




                                             OPINIONS OF IMPACT AREA RESPONDENTS




                           CONCERNING EFFECT OF PROPOSED PLANT ON QUALITY OF LIFE CHARACTERISTICS
f*
Ranking of Effect
Positive
Effect
Quality of Life Characteristics
Water (rivers, streams, lakes)
Air (smoke, pollutants, odors)
Noise levels
Sources of energy
Natural resources of the area
Traffic on area roads and highways
Recreation sites or wildlife areas
Safety of the community
Cultural or historical factors of the area
COMPOSITE OF ALL CHARACTERISTICS
Number
10
—
1
41
12
17
12
8
20
121
%
15
-
1
64
18
26
18
12
31
21

.6
-
.6
.1
.8
.6
.8
.5
.3
•0
No
Effect
Number
40
43
53
10
37
26
40
42
34
325
%
62.5
67.2
82.8
15.6
57.8
40.6
62.5
65.6
53.1
56.4
Harmful
Effect
Number
8
7
3
—
8
13
5
4
2
50
%
12.5
10.9
4.7
—
12.5
20.3
7.8
6.3
3.1
8.7
No
Opinion
Number
6
14
7
13
7
8
7
10
8
80
%
9.4
21.9
10.9
20.3
10.9
12.5
10.9
15.6
12.5
13.9
Total
Number
64
64
64
64
64
64
64
64
64
576
%
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
   Source:  Survey conducted by the author.

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          The points included in  the following list contribute to the
     quality of life.  If the proposed AP&L plant is constructed in
     your area, and accepted environmental standards are followed, how
     do you think each of the listed factors will be effected?

     The results of the survey are presented in Table 65.  Examination of

the tabulated responses shows an  evident pattern of positive attitudes on

the part of the area residents.   Taking into consideration that the answer

"No Effect" was actually a positive answer relating to the quality of life

characteristics of the area, then the respondents tended to accept the idea

that the plant had little negative effect on their community.  In fact,

taking a composite look at the data shows that only 8.7 percent of the total

responses to all characteristics  were given as "Harmful Effect".


2.1.7  Summary of the Overall Income Impact of the Construction Phase of

AP&L Plant on the Study Area.  The overall income gains in the study area

in the short run are estimated by adding the income gains in the local

economy due to the increase in basic economic activities and income gains

from an increase in nonbasic (local) activities.

     Table 66 summarizes the total income impact of the construction phase

of the AP&L plant.

     The basic income gains in the study area from the construction of the

AP&L plant were estimated to be $76.7 million.  The multiplied effect of

this basic income was estimated to be $127.3 million.  In the long run,

this effect can be greater if one considers the local investment multiplier.
                                    143

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                                TABLE 66

                 SUMMARY TABLE SHOWING THE TOTAL INCOME
                  IMPACT OF THE CONSTRUCTION PHASE OF
                   INDEPENDENCE STEAM ELECTRIC STATION
                           ON THE STUDY AREA
Basic Income Gains
  Payroll spending                                            $ 48,400,000
  Locally purchased supplies                                     1,000,000
  Increase in local tax revenues                                27,263,588
                                                              $ 76,663,588
  Local Income Multiplier                                       x	1.66

Total Income Impact                                           $127,261,556
Source:  Computations by the author.
                                   144

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 2.2  OPERATION  IMPACTS




     In  the preceding section 2.1,  the impact on the study area of




 constructing  the AP&L plant was analyzed and the results of such an analysis




 were presented.  The impact of payroll and of other basic activities that




 will occur were studied.  It showed that during the six-year construction




 period an impact of varying degrees at varying times will be generated on




 the local economy.  The economic impact of the construction project will




 peak during the third to fourth year of construction and after that will




 steadily decrease.  However, before the overall effect of the construction




 phase is terminated at the end of the sixth year, it will be supplemented




 by the operation phase, which will begin at a low level during the last two




 years of the  construction phase.  This overlap will produce a continuing




 economic effect on the local economy.




     Table 67 shows the type of employment by the AP&L plant over its




 operation phase.  The operating staff is assumed to remain constant at 207




 for the life  of the plant.




     Table 68 shows the annual payroll by AP&L to its employees during the




 operation phase, 1983-2012.  The salaries were figured at a 6 percent esca-




 lating rate.






 2.2.1  Employment and Population Changes






 2.2.1.1  Direct Employment.  As Table 67 indicates the direct employment




will hold at a  constant number of 207 employees.  The required employment




needs by occupation to man the AP&L plant operations is shown in the last




column of Table 69 and compared to the increased regional needs by occu-




pation from 1975 to 1980.   The plant's occupational needs will add some




pressure on the growing demand for professionals in the district.
                                    145

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                                TABLE 67

               PROPOSED TYPE OF EMPLOYMENT BY INDEPENDENCE
            STEAM ELECTRIC STATION DURING ITS OPERATION PHASE
POSITION
Plant  Supt.                                  1
Asst.  Plant Supt.                            1
Office Manager                               1
Sec. to Supt.                                1
Steno-Clerk                                  1
Clerk-Typist                                 3
Operations Supvsr.                           1
Shift  Supvsrs.                               5
Asst.  Shift Supvsrs.                         5
Train  Onloaders                              4
Asst.  Train Onloaders                        4
Coal System Operators                        8
Stacker Reclaimers                           4
Dozer  Operators                              8
Trainees                                    16
Plant  Laborers                              16
Ash Hauler                                   8
Ash Pit Operators                            4
Plant  Operators                              4
Asst.  Plant Operators                        4
Boiler Operators                             4
Auxiliary Operators                          4
Filter Plant Operator                        4
Supvsr. of Plant Maint.                      1
Asst.  Maint. Supvsr.                         2
Sr. Plant Maint. Elect.                      1
Plant  Maint. Elect.                          6
Plant  Maint. Elect. Hlprs.                   7
Machinist Repairman                          1
Plant  Repairmen                             16
Plant  Repairmen Hlprs.                      17
Helpers                                      7
Storekeeper, Plant                           2
Stores Supervisor                            1
Sr. Inst. Technicians  ..                     2
Instrument Technicians                       9
Instrument Technician Hlpr.                 11
Results Engineer                             1
Asst. Results Engineer                       3
Coal Yard Supvsr.                            1
Mechanical Engineer                          1
Civil  Engineer                               1
Electrical Engineer                          1
Plant  Chemist                                1
Clerk  Chemist                                3
Chemical Engineer                          _ 1
	207

Source:  Arkansas Power and Light Company

                                    146

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                                 TABLE  68

            PROPOSED ANNUAL PAYROLL BY AP&L TO ITS EMPLOYEES

                DURING THE OPERATION PHASE, 1983 TO 2012
Year
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Average
Monthly S alary !
$1,523
1,614
1,711
1,814
1,923
2,038
2,160
2,290
2,427
2,573
2,727
2,891
3,064
3,248
3,443
3,649
3,868
4,100
4,346
4,607
4,884
5,177
5,487
5,817
6,166
6,536
6,928
7,344
7,784
8,251
Annual
Payroll
$3,026,506
4,009,176
4,250,124
4,505,976
4,776,732
5,062,392
5,365,440
5,688,360
6,028,668
6,391,332
6,773,868
7,181,244
7,610,976
8,068,032
8,552,412
9,064,116
9,608,112
10,184,400
10,795,464
11,443,788
12,131,856
12,859,668
13,629,708
14,449,428
15,316,344
16,235,424
17,209,152
18,242,496
19,335,456
20,495,484
     •^Salaries escalate at 6% per year.  The operating staff remains
      constant at 207 for life of plant.

Source:  Arkansas Power and Light Company.
                                     147

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                                 TABLE  69

                  EMPLOYMENT PROJECTIONS BY OCCUPATION
              WHITE RIVER PLANNING AND DEVELOPMENT DISTRICT
                             AND AP&L PLANT
                                1975-1980
Occupation
Total, All Occupations
Professional, Technical
Managers, Officials, Proprietors
Sales Workers
Clerical Workers
Craftsmen, Foremen
Operators
Service Workers
Laborers, Except Farm
Farmers and Farm Workers
1975
46,025
4,025
4,325
2,975
4,625
7,050
10,850
5,250
2,525
4,400
1980
51,575
4,425
5,250
3,575
5,425
8,300
12,450
5,600
2,750
3,800
Change
1975-80
5,550
400
925
600
800
1,250
1,600
350
225
-600
. Employment
by AP&L
207
82
3
—
7
31
52
9
23
~~
Source:  Research & Statistics Section, Arkansas Employment Security Division,
Manpower Projections, North Central Arkansas Manpower Planning Area, October, 1975.
                                    148

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     Since the labor supply for the same period is not available and the




fact that the Arkansas Eastman Plant has already employed a large number of




locally available professionals, the AP&L will need to either train on the




job or bring in professionals from outside the study area.




     Based on the increasing demand for professional, technical, managers,




craftsmen, foremen and operatives in the area, the Arkansas Eastman plant




and other firms' experience, it could be suggested that about 60 percent of




professional, technical, managers, craftsmen, foremen and operatives need




to be recruited from outside the study area.  It is estimated that about




100 (168 X .60) highly skilled personnel will be hired from outside the area.




     A survey was conducted on July 20, 1977, of vehicle license plates of




employees of the Arkansas Eastman Plant, located 13 miles southeast of




Batesville.  The results are shown in Table 70.  The 127 vehicles surveyed




were registered in 30 separate locations.  Batesville accounted for 60 per-




cent of the total vehicle registrations; however, 21 vehicles were regis-




tered in cities outside the study area.  Additionally, it was observed at




the time of the survey that 30 residences in the $50,000 plus cost range




were located outside of Batesville, at the intersection of Gap Road and




Highway 69, an area close to the plant.  Several of the houses were in the




final stages of construction and the remainder appeared recently completed.




The number of vehicles still registered outside the study area, the number




of medium to high income houses recently constructed near the Arkansas




Eastman plant, and the limited number of highly qualified technical workers




available in the area validates the assumption that more than half of the




professional and technical employees will be recruited from outside the area.

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                       TABLE  70

   ARKANSAS EASTMAN EMPLOYEE VEHICLE REGISTRATION
                 BY PLACE AND NUMBER
                     JULY, 1977
Place
Amity
Augusta
Eatesville
Bradford
Cave City
Concord
Desha
Fayetteville
Floral
Forrest City
Hardy
Jacksonville
Little Rock
Locust Grove
Magness
Mammoth Spring
Marmaduke
Marked Tree
Mt. Pleasant
Newark
Newport
Oil Trough
Pangburn
Quitman
Siloam Springs
Smithville
Strawberry
Sulphur Rock
Thida
Tuckerman
Total
Number
1
1
76
2
4
3
3
1
1
1
1
1
2
3
2
1
1
1
2
2
5
2
1
1
1
1
1
2
2
2
127
Source:  Survey by author.
         Arkansas Motor Vehicle Division.
                          150

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2.2.1.2  Induced Employment.  In deriving the induced employment, the




employment multiplier (1.12) was applied to the number employed at the




plant during its operation phase (207).  The induced employment is figured




to be about 232 (207 X 1.12).  The effect of such an employment on the




area's total employment and unemployment picture which existed during the




construction phase will be limited, if any, because it will offset the




number of workers laid off upon the completion of the construction of the




plant.






2.2.1.3  Projected Population Changes.  It was estimated in a previous




section of this report that about 534 persons will move into the area as a




result of the construction of the plant.  The operation phase of the plant




will possibly add 300 people (100 workers X 3 persons per family).  This




will be less than the number of persons that moved into the area during the




construction period.  Thus, the long  term effect on population will be negli-




gible, assuming that upon completion  of the construction phase the majority




of the persons who moved into the area will move out seeking other employment




opportunities.  The net increase in study area population due to the project,




therefore, is estimated to be on the  order of around 400 persons.






2.2.2  Income and Spending Changes






2.2.2.1  Direct Income and Spending Changes.  As Table 68 shows,  the annual




payroll for the operation of the plant will begin with $3,026,506 in the




first year and will reach the amount of $20,495,484 in 2012.  Salaries were




figured on an escalated rate of 6 percent per year.  These payrolls are




expressed in future values.  The following payroll data shows the same




information as that shown in Table 68, but aggregated in three different




time periods (decades).
                                     151

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                         PROPOSED PAYROLL BY DECADE

               1983 - 1989                             $ 30,996,346
               1990 - 1999                               74,967,120
               2000 - 2012                              192.328,668

                    Total Payroll, 1983 - 2012         $298,292,134

     The above information shows that payroll during the 1980's will be

about $31 million, in the 1990's it will be about $75 million, and from

2000-2012 it will be about $192.3 million.  The total amount of payroll

over the life of the plant (1983-2012) will be about $298.3 million.


2.2.2  Indirect (Induced) Income and Spending Changes.  The induced income

produced by the operation payroll during the life of the plant can be

determined by applying to the annual payrolls the 80 percent spending rate

for local residents and the estimated income multiplier (1.66).  It is

assumed that this local income multiplier will remain constant in the future

due to the fact that the urban-rural makeup of the area will not change

substantially during the projected period (see Table 43).  By applying the

local income multiplier (1.66) to the portion of annual payroll spent

locally (80 percent), the induced annual income is derived.  Table 71 shows

the annual payrolls and the estimated induced annual incomes from 1983-2012.

It was estimated that the induced income, as a result of the $298.3 million

payroll from 1983-2012, will be over $396.1 million.  In addition to pay-

roll, other basic income will be generated by the AP&L plant.  As shown

later in Table 75 the other basic incomes are:  Locally purchased supplies,

$4.5 million, and increase in local tax revenues, $229.2 million.  Thus

the total basic income generated by the AP&L plant over its operation phase

will be equal to about $472.4 million.  Applying the 1.66 income multiplier

to the estimated total basic income ($472.4 million), the total induced
                                     152

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                                 TABLE  71

                ANNUAL PAYROLL DURING THE OPERATION, PHASE
                   AND ESTIMATES OF MULTIPLIER EFFECT
                              1983 TO 2012
Year
1983
1984
1985
1986
1987
1988
1989
Subtotal
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
Subtotal
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Subtotal
Total
Annual
Payroll
$ 3,026,506
4,009,176
4,250,124
4,505,976
4,776,732
5,062,392
5,365,440
$30,996,346
5,688,360
6,028,668
6,391,332
6,773,868
7,181,244
7,610,976
8,068,032
8,552,412
9,064,116
9,608,112
$ 74,967,120
10,184,400
10,795,464
11,443,788
12,131,856
12,859,668
13,629,708
14,449,428
15,316,344
16,235,424
17,209,152
18,242,496
19,335,456
20,495,486
192,328,668
$ 298,292,134 $ 298,292,134
Induced Income-
Multiplier
Effect of
Payroll
$ 4,019,200
5,324,186
5,644,164
5,983,936
6,343,500
6,722,856
7,125,304
$ 41,163,146
7,554,142
8,006,071
8,487,689
8,995,697
9,536,692
10,107,376
10,714,346
11,357,603
12,037,146
12,759,572
$ 99,r>r)6,33'5
13,524,883
14,336,376
15,197,350
16,111, 104
17,077,638
18,100,2r)l
19,188,839
20,340,104
21,560,642
22,853,752
24,226,033
25,677,484
27,218,004
255,412,470.
$ 396,131,951 $ 396,131,951
Source:  Table 68,and estimates by the author.
                                    153

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income for the study area is derived.  This total induced income is esti-




mated to be $783.8 million; i.e., $472.2 million x 1.66 = $783.8 million.





     The overall induced income of the study area is expected to increase




over the life of the plant (1983-2012) by about $783.8 million.  About




$310.9 million will be derived as a result of the consumption multiplier




effect applied to total basic activities (again, refer to Table 75).  If,




in addition to the consumption multiplier, the local investment multiplier




is applied to the total basic activity, the overall effect on the local




economy could be greater than $783.8 million.





2.2.2.3  Impact on Retail Sales.  The operation of the AP&L plant will




affect positively the retail sales of the study area.  The basic income




earned from the operation of the plant in terms of payrolls has been




determined to be about $238.6 million over the 30-year operation phase.




This amount will increase the retail sales during the same period by about




$150.8 million.  The increase in retail sales was derived by multiplying




the retail sales/personal income ratio (0.632), as it was determined in




section 2.1.2.3, by the additional income earned ($238.6 million).  Thus,




the increase in retail sales during the 30-year operational period of the




plant is figured to be $150.8 million as follows:



                         $238.6 million X 0.632 = $150.8




     To be more realistic, however, the total effect of the increase in




income on retail sales must be determined on income derived in the area




after the income multiplier is applied.  Thus, by applying the average rate




of income spent on retail sales of 0.632 to the total induced income of




$784.1 million, retail sales will increase by an estimated amount of $495.6




million over the 30-year operation period of the plant.  Table 72 shows the




estimated sales gained due to increase in income in the study area.
                                     154

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                                TABLE 72

              ESTIMATED RETAIL SALES GAINED DUE TO INCOMES
                        OVER THE OPERATION PHASE

                        (In Thousands of Dollars)
                                                      Increase in
                                                      Retail Sales
Due to Income Increase                                  $150.8
Additional Increase due to
  Multiplier Effect                                      344.8

     Total Increase of Retail Sales
       Due to Increase in Income                        $495.6
2.2.3    Housing Impacts


2.2.3.1    Estimated New Housing Investments.  It was estimated in the

employment section that AP&L, during the operation phase, will need to hire

about 100 employees from outside the study area.  Due to the employment

status of these employees, most of them being engineers, managers or super-

visors, more expensive housing facilities will be demanded than for the

workers during the construction phase.  Thus, neither the mobile homos (1.20

units) nor the rather inexpensive housing (50 units) suggested to be built

during the construction phase will satisfy the needs of these employees.

     It is possible, however, that about half of the houses (25 units) con-

structed to meet the needs of construction workers will be purchased by some

of the employees of the operation phase of the project.  If such is the

case, then about 75 more housing units of about $50,000 each will be needed.

     The estimated investment in such a housing project will be approximately

$3,750,000 = ($50,000 X 75).
                                    155

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     Another  factor  to be considered with regard to the new housing invest-




ment is  the impact that this investment will have on tax revenues.  Due to




the creation  of new  real estate property, the property taxes collected will




increase.  It is estimated that the $3.75 million new housing project will




contribute about $50,400 annually to the property tax revenues of the area.




This amount was figured by assessing the new property at 20 percent of value.




That is, $3,750,000  X .20 = $750,000.  The assessed value is multiplied by




67.2 mills to get the property taxes for the new housing units.  This rate




is the same as that  used for projecting property taxes during the construc-




tion phase, and it is assumed to remain constant during the operation phase




of the power  plant.






2.2.4    Public Service Impacts.  This section treats the impact on the




public sector of the previously estimated changes in employment, population,




housing and other factors during the operation phase of the new plant.  The




report has previously estimated that about 534 persons will move into the




area during the construction phase.  The operation phase will add approxi-




mately 300 people.  This number is less than the number moved in during the




construction  phase,  thus the effect of the operation phase on population




will be less  than the construction phase.  In other words, there will be a




decline in population from the average impact over the construction period.




This permanent increase in population has been estimated to be around 400




persons.






2.2.4.1  Utilities.  Utilities such as water systems and wastewater treat-




ment facilities which have been built up to support the construction phase




will support  the operations phase.
                                    156

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2.2.4.2  Public Safety.  Fire and police protection, which increased some-




what during the construction phase, will now be adequate.  Hospitals and




health service in the area will be adequate to support the estimated




population during this phase.






2.2.4.3  Public Schools.  The rapid increase in property tax paid to the




Newark school district should exceed any possible needs for expansion.




The burden of increased pupil population which occurred during the con-




struction phase now is reversed as the benefits of new taxes appear.  Other




school districts in the area will receive some spillover property tax bene-




fits from increased property values in their boundaries, plus increases




in state subventions, which should be sufficient to offset their increases




in school population.






2.2.4.4  Financial Institutions.  The earnings of financial institutions




of the area will be elevated to higher levels after the construction of




this facility.  The results of the analysis of the additional income accru-




ing to these institutions are presented in Table 73.  Area income growth




resulting from the new facility and calculated over the operating phnsc




amounts to $243,133,707, including locally purchased supplies.  As discussed




earlier in this report, about 12.5 percent of the additional income can be




expected to be added to deposits of financial institutions.  This deposit




growth is expected to be about $30,391,713, resulting from the operation




of the new generating facility during the period 1983 to 2012.
                                   157

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                            TABLE 73

                AN ESTIMATE OF INCOME GENERATED
               BY FINANCIAL INSTITUTIONS DURING
                       OPERATION PERIOD
Growth in area income due to AP&L payroll
and locally purchased supplies                                  $243,133,707

Percent of income going to deposits                             	.125

Deposit growth from income                                      $ 30,391,713

Deposit growth from new taxes due to AP&L
plant                                                            229,236,420

Total deposit growth                                             259,628,133

Income margin                                                   	.02

Income attributed to deposit growth                                5,192,563
Source:  Computations provided by the author.
                                   158

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     Growth in property taxes and turnback taxes resulting from this devel-




opment during the operational period of the plant will total, about




$229,236,420.  It is assumed that all these taxes will be deposited in some




form.  Therefore, total deposit growth resulting from this endeavor will be




about $259,628,133.  If it is assumed that a two-percent margin is earned




on these additional deposits, some $5,192,563 in additional income will




be added to the earnings of the local financial institutions.






2.2.5  Fiscal Impacts






2.2.5.1  Property Taxes.  As was seen in the construction phase, the bulk




of the revenues generated for the study area is the result of the property




taxes on the proposed  plant.  As Table  74  shows, about  $229.0 million  in




revenues is expected to be received within the study area.  Of this amount,




more than $226.9 million in property taxes goes to the Newark School District




and Independence County.  The tax rate of 56.4 mills was assumed to remain




stable during the time period the plant will operate.




     Property taxes for new residential construction which is projected to




occur to meet the needs of the professional employees of the plant during




the operation are estimated to be over $1.5 million.  This was calculated by




using the housing valuation estimated to be $750,000.  The assessed valu-




ation of new housing was multiplied by the average tax rate of 67.2 mills,




as shown in Table G-2, Appendix G.   A constant tax rate over the time period




of plant operation was assumed.






2.2.5.2  Sales and Use Tax and Other Taxes.  The total tax revenues gene-




rated by the operation of the power plant throughout its expected 30-year




life exceed $1.1 billion.  The state and federal governments receive approx-




imately 80 percent of these revenues and the study area 20 percent.  Arkansas






                                    159

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                                                      TABLE 74

                                 PROJECTED GAINS FROM SELECTED REVENUE SOURCES FOR

                               ARKANSAS AND THE STUDY AREA DURING THE OPERATION PHASE
                                                       1985  Revenue
                                          Total Revenue for 30 Years
                                              Life of the Plant
   State Gain:
     Sales Tax (power sales and coal supply):
          Automobile license
          Personal income tax
          Corporate income tax
          Gasoline tax

                      Total
M
O\
0  Study Area Gain:
     Federal Revenue Sharing:
     State Turnback:
          General
          Special
     Property Tax:
          Plant*
          Housing

                      Total

   Total Annual Gain:

   Total Gain During Life of Plant:
$12,089,500
      3,382
    150,232
 18,136,000
     10,761

$30,389,875
       n.a.

$     7,232
     11,480

  7,565,833
     50.400

 $7,634,945

$38,024,820
$362,685,000
     101,460
  11,875,840
 544,080,000
     322.830

$919,065,130
        n.a.

     216,966
     344,405

 226,974,990
   1.512.000

$299,048,361
                                             $1,148,113,491
   *Assume all owners will pay pro-rata shares of property  taxes.
   Source:   Arkansas Power and Light
             State of Arkansas, Department of Finance  and Administration
             State of Arkansas, Treasurer
             Automobile Manufacturers Association,  1971 Automobile  Facts  and  Figures,  (Detroit, Michigan)
             Computation by author.

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Power and Light estimated that the sales taxes on fuel consumed each year


would amount to $3,334,000, and the sales tax on fuel inventory would be


$843,000, as shown in Exhibit IV, Appendix G.  Sales taxes arising from


payroll spending and local procurements are estimated to amount to around


$462,500 per year when the plant becomes fully operational.  Sales tax


revenue generated by sales of power to ultimate customers has been esti-


mated at about $7.45 million per year when both units are in full opera-


tion (on the basis of projected average rates per KWH in 1983-85 (see


Exhibit V, Appendix G).


     The tax revenues from automobile operation by project personnel was
                         ->

assumed to remain the same as for the construction phase, that is, 178


automobiles, each driving 9,957 miles per year, averaging 14 miles per


gallon of gasoline, with the gasoline tax rate and license fee also remain-


ing stable at .085 and $19 respectively.


     Federal revenue sharing funds for the area were not estimated for the


same reasons they were not estimated for the construction phase of the


operation; that is, no constant formula for computation is available.


     State turnback funds projected for the study area during the operation


phase are projected to decline somewhat on an annual basis from the construc-


tion phase average level.  Assuming a net population increase of 500 persons,


turnback funds in 1985 are projected to amount to about $18,712.  Over the.


30-year period at that rate they would total over $561 thousand.



2.2.5.3  Income Taxes on Additional Power Sales.  Estimated Sate and Federal


Corporate Income Taxes generated by the plant operation were provided by


Arkansas Power and Light Company (see Exhibit V, Appendix G).  These reve-


nues are expected to be over $18 million per year after Unit 2 comes on


stream in 1985.   These estimates were based on 40 percent ownership by
                                   161

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Arkansas Electrical Cooperative Company, and Jonesboro City Water and

Light Company, neither of which pay income taxes.  Income tax revenues

for the 30-year life of the plant at that level would amount to over

$544 million  (see Table 74).

     Estimates of the personal income tax paid by the employees amounts

to over $11.8 million during the operation phase of the plant.  The esti-

mate was obtained by use of the average monthly employee wage, a family

of 3, and the standard withholding for Arkansas income tax, as shown in

Exhibit III, Appendix G.  As Arkansas Power and Light Company projected

a 6 percent per year increase in pay during each year of operation, the

income tax was escalated at this same rate.  This calculation assumes

that the tax rate will remain stable during the period of operation.


2.2.6  Community CohesionImpacts.  There is no doubt about the fact that

an undertaking of this magnitude will have a profound effect on the study

area.  Survey results show, however, that the vast majority of the respond-

ents held the opinion that their progressive communities will willingly

accept the plant and the workers into their area.  Although several news-

paper articles have played on the mixed emotions held by the residents

concerning the announcement of the AP&L plant (Exhibits VII, VIII, IX, X,

XI and XII,  Appendix H), the results of the attitude survey show that posi-

tive opinions are held by the vast majority.   In fact, a quote made by the

Major of Newark, Rosemary Williams,  in a recent "Commercial Appeal" article

(see Exhibit VIII, Appendix H) stated:

          But we can't mess up progress for a few people.  There are
     those who are making their living here that were born and raised
     here—and their ancestors were here—and they need something too.

          They feel their children are growing up and going to college
     and then going somewhere else to live.
                                    162

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          Why, my three boys don't live here because they have better
     jobs elsewhere.

     There is no doubt about the fact that the construction of the AP&L

plant will provide area residents with the "better jobs" mentioned by Mayor

Williams.  With these jobs will come increased personal incomes, improved

roads, better schools, and greater levels of community services.  All of

these improvements will be forthcoming while, in the opinion of the vast

majority of residents surveyed, there will be no significant decrease in

the quality of life.
                                    163

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          SUMMARY OF THE OVERALL INCOME IMPACT OF THE OPERATION
                 PHASE OF THE AP&L PLANT ON THE STUDY AREA
     The overall impact that the operation of the AP&L plant will have on

the study area is summarized in the following Table 75.


                                TABLE 75

                SUMMARY OF THE TOTAL INCOME IMPACT OF THE

           OPERATION PHASE OF THE AP&L PLANT ON THE STUDY AREA


                                                               Amount
Basic Income Gains:
  Payroll                                                   $238,633,707
  Increase in Local Tax Revenues                             229,048,361
  Locally Purchases Supplies
  ($150,000 per year  for 30 years)                             4.500,000
                                                            $472,182,068
  Local Income Multiplier                                   _x	1.66
Total Local Income Gained from
      Basic Activities                                      $783,822,233
Source:  Computations by the author.

     The basic income gains in the study area over the operation life of

the plant were estimated to be about $472.2 million.  About $238.6 million

will represent payroll payments; about $229.0 million will be mostly addi-

tional property tax revenues; and about $4.5 million will be for locally

purchased supplies.  The latter amount was estimated by assuming that the

AP&L plant will purchase locally about $150,000 per year in supplies.

In 30 years the locally purchased supplies will amount to $4.5 million.
                                    164

-------
               SUMMARY OF THE TOTAL INCOME IMPACT OF THE
                CONSTRUCTION AND OPERATION PHASES OF THE
                     AP&L PLANT ON THE STUDY AREA
     The following Table 76 shows the combined income impact of the

construction and operation phases of the AP&L plant on the study area,


                                TABLE 76

                SUMMARY OF THE TOTAL INCOME IMPACT OF THE
                CONSTRUCTION AND OPERATION PHASES OF THE
                      AP&L PLANT ON THE STUDY AREA
Basic Income Gains:
  Payroll                                                      $287,033,707
  Increase  in Local Tax Revenues                                256,311,949
  Locally Purchased Supplies                                      5,500,000
            Total                                               $548,845,656
                                                               ^c	1.66

Total Local Income Gained
    from Basic Activities                                      $911,083,789
Source:  Computations by  the author

     It was estimated that  the combined  income  impact on  the  study area wiI

be about $911.1 million.  The AP&L plant over its  life will, generate; about

$548.8 million of additional basic income  in the study area.
                                    165

-------
         APPENDIX A
DELINEATION OF THE STUDY AREA

-------
                                                                 Appendix A
                                 TABLE A-l

             ACREAGE OF DEVELOPED AREA BY LAND USE CATEGORY
                FOR INDEPENDENCE, JACKSON AND STUDY AREA
                                  1976
Land Use
Category
Residential
Commercial
Industrial
Extractive
Strip & Clustered
Settlement
Open Space
Agricultural
Institutional
Transportation,
Utilities
TOTAL
Independence
3,459
988
494
494
2,965
254,519
231,785
247
494
495,445
Jackson
2,471
494
988
0
2,224
78,085
336,558
494
247
421,561
Study Area
5,930
1,482
1,482
494
5,189
332,604
568,343
741
741
917,006
Source:  Soil Conservation Service
                                    166

-------
                                                                 Appendix A
                                TABLE A-2

                           POPULATION, BY TOWN

                           INDEPENDENCE COUNTY
Town
Batesville
Newark
Desha
Oil Trough
Salado
Cushman
Locust Grove
Sulphur Rock
Rosie
Pleasant Plains
Magness
Moorefield

1960
6,207
728

237
250


225
150
112
140
«
Population
1970
7,209
849
600
524
449T
427
300
224
256T
162
139
127

1977*
7,209
849

524

427

290

162
139
127
*Latest available data; largely represents 1970 Census.
T = Township
Source:  Industrial Research and Extension Center, Population Growth of
         Arkansas' Towns and Cities:  1940 to Present.
                                    167

-------
                                                                 Appendix A
                                TABLE A-3

                           POPULATION, BY TOWN

                             JACKSON COUNTY
Town
Newport
Tuckerman
Swifton
Diaz
Grubbs
Jacksonport
Tupelo
Campbell Station
Beedeville
Amagon
Weldon

1960
7,007
1,539
601
348
360
-
201
140
-
234
^
Population
1970
7,725
1,731
703
283
442
306
246
218
144
136
133

1977*
7,854
1,731
703
674
442
306
246
218
144
136
133
*Latest available data; largely represents 1970 Census.
Source:  Industrial Research and Extension Center, Population Growth of
         Arkansas' Towns and Cities:  1940 to Present.
                                    168

-------
APPENDIX B
EMPLOYMENT

-------
                         TABLE B-l




ESTIMATED QUARTERLY EMPLOYMENT BY CRAFT DURING CONSTRUCTION



Quarter Year Carpenters
1
2
3
4
1
2
3
4
1
2
.£ 3
^° 4
1
2
3
4
1
2
3
4
1
2
3
4
1979
1979
1979
1979
1980
1980
1980
1980
1981
1981
1981
1981
1982
1982
1982
1982
1983
1983
1983
1983
1984
1984
1984
1984
10
15
17
28
32
33
35
40
46
58
63
58
48
37
39
46
45
48
45
46
37
33
10
2
Source: Arkansas Power















Iron


Boiler-
workers Painters Electricians makers
8
25
36
47
56
65
77
82
98
125
136
124
104
79
82
98
100
112
110
98
79
56
35
8
and Light





2
4
5
7
8
9
10
12
13
16
18
16
14
11
12
13
14
16
15
13
11
8
5
2
Company .





2
9
14
20
22
26
30
34
39
50
54
50
42
32
33
39
40
44
41
39
32
24
20
16






2
8
20
25
33
41
46
55
65
83
90
83
67
53
56
65
66
73
70
65
53
27
15
—






Mill-
wrights
4
8
12
15
17
21
25
29
33
42
45
42
34
27
29
33
35
38
35
33
27
16
12
—






Pipe-
fitters
4
12
20
23
27
33
39
44
52
66
72
66
54
42
44
52
56
59
57
52
42
30
25
3










Insulators Operators Laborers Total

_
-
-
5
8
10
12
13
17
18
17
14
11
11
13
15
15
15
13
11
15
17
18






5
10
17
17
17
21
24
28
33
42
45
42
34
26
28
33
37
40
40
33
26
20
17
3






10
19
39
78
113
153
184
214
248
331
353
342
249
212
221
258
282
295
292
248
212
121
24
8






50
110
180
260
330
410
480
550
640
830
905
840
660
530
560
650
690
740
720
640
530
350
180
60
li-
re
0
CL
x'
CO

-------
                                                                  Appendix B

                                 TABLE B-2

                PROPOSED  TYPE  OF  EMPLOYMENT  BY  INDEPENDENCE
             STEAM ELECTRIC  STATION  DURING ITS  OPERATION PHASE


 POSITION
 Plant  Supt.                                  1
 Asst.  Plant  Supt.                            1
 Office Manager                               1
 Sec. to  Supt.                                1
 Steno-Clerk                                  1
 Clerk-Typist                                3
 Operations Supvsr.                           1
 Shift  Supvsrs.                               5
 Asst.  Shift  Supvsrs.                         5
 Train  Onloaders                              4
 Asst.  Train  Onloaders                        4
 Coal System  Operators                        8
 Stacker  Reclaimers                           4
 Dozer  Operators                              8
 Trainees                                   16
 Plant  Laborers                              16
 Ash Hauler                                   8
 Ash Pit  Operators                            4
 Plant  Operators                              4
 Asst.  Plant  Operators                        4
 Boiler Operators                             4
 Auxiliary Operators                          4
 Filter Plant Operator                        4
 Supvsr.  of Plant Maint.                      1
 Asst.  Maint. Supvsr.                         2
 Sr. Plant Maint. Elect.                      1
 Plant  Maint. Elect.                          6
 Plant  Maint. Elect. Hlprs.                   7
 Machinist Repairman                          1
 Plant  Repairmen                             16
 Plant  Repairmen Hlprs.                      17
 Helpers                                      7
 Storekeeper, Plant                           2
 Stores Supervisor                            1
 Sr. Inst. Technicians                        2
 Instrument Technicians                       9
 Instrument Technician Hlpr.                 11
 Results  Engineer                             1
 Asst. Results Engineer                       3
 Coal Yard Supvsr.                            1
 Mechanical Engineer                          1
 Civil  Engineer                               1
 Electrical Engineer                          1
 Plant  Chemist                                1
 Clerk  Chemist                                3
 Chemical Engineer                          	1
	207

 Source:  Arkansas Power and Light Company

                                     170

-------
                                                                 Appendix B

                                EXHIBIT I
                INTERVIEW WITH CONSTRUCTION SUPERVISOR OF
                    ARKANSAS EASTMAN PLANT AS TO THE
                       AVAILABILITY OF LOCAL LABOR
Date;  July 20, 1977.  Interview of Mr. A. C. Roden, Daniels International,

Contractor for Construction of Eastman Kodak Plant.


General;  The Eastman Kodak Chemical plant is comparable to the type of

plant AP&L will build from the standpoint of quantity, type and skill level

of the workers used for the construction.  There were just over 800 workers

employed at the peak of the construction at Eastman.

The construction was non-union, open-shop.


Personnel;  Mr. Roden stated that he did not use a single qualified boiler-

maker on the job, but trained unskilled laborers, who proved to be quickly

and easily trained, and produced exceptionally high quality products in less

than the pre-planned time for construction.  Additionally, he trained pipe

fitters and welders.

He noted that the hardest to obtain crafts were pipe fitters and electricians,

Of the total employees, 40% came from the local area and 60% from outside

the area.  He defined the local area as including the workers who commuted

as much as 50 miles one way.   He used about 400 pipe fitters and welders;

approximately 160 came from the local area.  Of the 150 electricians

employed, about 55 came from the local area.

     Boilermakers were all local.
     Ironworkers - easiest to man.
     Operators were plentiful.
     Millwrights were plentiful.
     Carpenters - not too plentiful but enough.
                                     171

-------
                                                                 Appendix B




                          EXHIBIT I  (Continued)






Comment;  Due to the recent completion of the Eastman construction, there is




a high probability that the workers trained by Daniel International are




still available within the area.  The 40%-60% ratio of local to imported




labor appears to be a valid figure for all major construction outside the




Little Rock-Pine Bluff area as it was estimated by local contractors (Jones-




boro) and confirmed by Mr. Roden for the Eastman contract.
                                    172

-------
APPENDIX C




 INCOME

-------
                                                                       APPENDIX C



                                      TABLE  C-l


                        PERSONAL INCOME BY MAJOR SOURCES


                             FOR INDEPENDENCE COUNTY


                                    1970-1974


                             (In Thousands of Dollars)


By Type
Wage & Salary Disbursements
Other Labor Income
Proprietors Income
Farm
NonFarm
By Industry
Farm
NonFarm
Private
Manufacturing
Contract Construction
Wholesale & Retail Trade
Fin., Ins., & Real Estate
Transp., Comm. , & Pub. Utl.
Services
Other Industries
Government
Federal, Civilian
Federal, Military
State & Local
Total Population (Thousands)
Per Capita Income
Total Labor & Proprietors
Income (by place of work)
Less: Personal Contr. to SS
Net Labor & Proprietors
Income (by place of work)
Residence Adjustment
Net Labor & Proprietors
Income (by Place of res.)
^Dividends
+ Transfer Payments
Pers. Inc. by Place of Res.
1970


33,110
2,615
10,252
5,263
4,989

6,287
39,690
34,938
15,748
1,217
7,537
1,149
2,142
6,056
846
4,752
1,169
275
3,308
22.8
2,669

45,977
1,779

44,198
-656

43,542
7,599
9,783
60,924
1971


36,347
2,960
10,215
5,047
5,168

5,978
43,544
38,271
16,727
1,606
8,559
1,295
2,441
6,335
964
5,273
1,290
380
3,603
23.7
2,802

49,522
2,166

47,356
-660

46,696
8,244
11,383
66,323
1972


41,276
3,438
12,668
6,657
6,011

7,573
49,809
44,118
19,732
1,835
9,652
1,453
2,929
7,323
912
5,691
1,403
395
3,888
24.4
3,093

57,382
2,580

54,802
-737

54,065
9,062
12,347
75,474
1973


47,061
3,889
19,650
12,592
7,058

13,566
57,034
50,678
24,066
1,806
10,812
1,528
3,041
8,121
938
6,356
1,633
404
4,319
24.3
3,747

70,600
3,317

67,283
-812

66,471
10,391
14,356
91,218
1974


50,237
4,312
16,603
9,143
7,4-60

10,123
61,029
53,940
26,842
1,938
10,977
1,543
3,096
8,384
847
7,089
1,800
445
4,844
24.5
3,915

71,152
3,664

67,488
-731

66,757
11,599
17,567
95,923
Source:  Bureau of Economic Analysis, Regional Economics Information Systems , Arkansas
          Employment  Security Division.

-------
                                                                      APPENDIX C

                                     TABLE C-2

                        PERSONAL INCOME BY MAJOR SOURCES

                               FOR JACKSON COUNTY

                                    1970-1974

                             (In Thousands of Dollars)

By Type
Wage & Salary Disbursements
Other Labor Income
Proprietors Income
Farm
NonFarm
By Industry
Farm
NonFarm
Private
Manufacturing
Contract Construction
Wholesale & Retail Trade
Fin., Ins., & Real Estate
Transp., Comm. , & Pub. Utl.
Services
Other Industries
Government
Federal, Civilian
Federal, Military
State & Local
Total Population (Thousands)
Per Capita Income
Total Labor & Proprietors
Income (by place of work)
Less: Personal Contr. to SS
Net Labor & Proprietors
Income (by place of work)
Residence Adjustment
Net Labor & Proprietors
Income (by Place of res.)
4-Dividends
4-Transfer Payments
Pers. Inc. by Place of Res.
1970

26,969
1,796
17,788
13,989
3,799

16,666
29,887
26,043
8,138
2,675
6,404
1,300
2,706
4,514
306
3,844
603
257
2,984
20.5
2,854

46,553
1,477

45,076
-1,095

43,981
6,371
8,287
58,639
1971

29,620
2,184
13,360
9,442
3,918

11,880
33,284
29,040
10,472
2,444
6,727
1,442
2,794
4,888
273
4,244
596
353
3,295
21.4
2,743

45,164
1,658

43,506
-1,272

42,234
6,808
9,516
58,558
1972

33,342
2,668
14,009
9,539
4,470

11,940
38,079
33,495
13,567
2,455
7,189
1,535
2,880
5,560
309
4,584
636
353
3,595
21.6
2,989

50,019
2,012

48,007
-1,504

46,503
7,494
10,565
64,562
1973

37,899
3,028
24,711
19,494
5,217

22,048
43,590
38,452
16,338
2,574
7,761
1,577
3,423
6,456
323
5,138
779
362
3,997
21.5
3,808

65,638
2,586

63,052
-1,714

61,338
8,507
12,152
81,997
1974

42,532
3,459
26,213
20,694
5,519

23,259
48,945
43,315
17,030
3,212
9,268
1,940
4,032
7,486
347
5,630
767
396
4,467
21.7
4,206

72,204
3,012

69,192
-1,989

67,203
9,491
14,447
91,141
Source:  Bureau of Economic Analysis, Regional Economics Information Systems, Arkansas
          Employment  Security Division.

-------
APPENDIX D




RETAIL SALES

-------
                                                                  APPENDIX U
                                 TABLE D-l

                               RETAIL SALES

                  FOR COUNTIES AND MAJOR TOWNS WITHIN THE

               WHITE RIVER PLANNING AND DEVELOPMENT DISTRICT

                              1963-1967-1972
County                            1963              1967              1972
                                 (000)             (000)             (000)
Cleburne                        $  7,719          $ 11,161          $ 25,933
Fulton                             5,226             5,619             7,656
Independence                      21,882            28,368            47,105
  Batesville                      19,281            23,416            41,718
Izard                              3,554             6,764            10,773
Jackson                           31,107            33,159            41,420
  Newport                         25,401            24,650            33,334
Sharp                              3,993             5,851            10,671
Stone                              4,714             7,302             8,596
Van Buren                          4,508             6,626            10,653
White                             36,847            48,147            76,287
  Searcy                          21,914            25,460            49,999
Woodruff                          10.831            13,401            11.690

     Total                       130,381           166,398           250,784
Source:  U. S. Department of Commerce, Bureau of Census, 1963 Census of
         Business. Retail Trade Area Statistics, Vol. II, Part 1, Section 5,
         Table 3.
         U. S. Department of Commerce, Bureau of Census, 1967 Census of
         Business, Retail Trade Area Statistics, Vol. II, Part 1, Section 5,
         Table 3.
         U. S. Department of Commerce, Bureau of Census, 1972 Census of
         Business, Retail Trade Area Statistics, Vol. II, Part 1, Section 4,
         Table 6.
                                    175

-------
                                                                   APPENDIX D
                                 TABLE  D-2

                 SALES TAX RECEIPTS - INDEPENDENCE COUNTY,

                 JACKSON COUNTY AND STUDY AREA - 1970-1976
Year
1970
1971
1972
1973
1974
1975
1976
Study Area
$1,792,201.00
2,158,938.00
2,445,706.00
2,797,645.00
3,110,228.00
3,388,579.00
4,013,325.00
Independence
$ 875,767.30
1,053,721.63
1,238,853.94
1,476,816.13
1,542,492.00
1,730,675.37
2,294,742.29
Jackson
$ 916,433.70
1,105,216.49
1,206,851.58
1,320,828.77
1,567,736.12
1,657,903.58
1,718,582.52
Source:  State of Arkansas, Department of Finance and Administration, Little
         Rock, Arkansas.
                                    176

-------
APPENDIX E




 HOUSING

-------
                                TABLE  E-l
                        HOUSING CHARACTERISTICS
FOR INDEPENDENCE AND JACKSON COUNTIES, PRINCIPLE TOWNS, STUDY AREA, AND
             WHITE RIVER PLANNING AND DEVELOPMENT DISTRICT
                                 1970
Total Total
Year Lacking
Round Some or all
Housing Plumbing Owner
Total
Total
Area Housing
Independence 8,
^J Batesville 2,
Jackson 7 ,
Newport 2,
Tuckerman
Study Area 15,
W.R. P.
&D.D. 54,
Source: 1970
U.S.


371
881
091
720
608
462

039
8,359 1
2,879
7,064 1
2,720
608
15,423 3

54,039 13
Census of Housing,
Dept.


of Commerce,


,893
220
,515
255
38
,408

,399
Housing
Bureau


5,631
1,665
3,849
1,380
414
9,480

33,989
Occupied Housing Units Vacant
Occupied
Renter Occupied Migratory Year
Year Roui
With Negro Total Lacking With Round per cent
Head of Some or all Negro Head of total
Household
99
57
362
191
51
461

1,261
Characteristics for
of Census,


Tables 25


2,109
1,004
2,760
1,234
173
4,869

13,629
States, Cities
, 27, and 29.


Plumbing of Household
615 88 12 619
52 2 210
830 455 27 455
282 - 106
28 22 - 10
1,445 543 39 1,074

4,366 1,259 324 6,421
and Counties, Arkansas.



housing
7%
7
6
4
1.6
7

12
fc
M
M
X
W

-------
                                                                  APPENDIX E
                                EXHIBIT I

              INTERVIEW CONCERNING RENTAL HOUSING AVAILABILITY
                            IN THE STUDY AREA
Date:  July 20, 1977.  Mrs. Donna Goltry, Planner; Messers. Bud Clark and

Dennis Wiles, Housing Coordinators; White River Planning and Development

District.

General.  Temporary housing in Independence and Jackson counties is

primarily within Batesville and Newport respectively.  Rental units in

these two towns is very scarce.  Most vacancies are either for sale or are

sub-standard.  The majority of new construction is single family, owner-

occupied, and there is no significant number of multi-unit housing under

construction.  They did speculate that with a project the size of the

proposed AP&L power plant, and lasting several years as planned, that some

of the local workers who presently rent may purchase homes and open some

rentals during the later stages of construction.

     It was further stated that Newport has an active condemnation program.

As a result, 121 sub-standard houses were demolished during the 1970 - 76

time period.  Batesville does not have such a program, and as a result it

was estimated that only 5 houses per year have been removed from Batesville

during the 1970 - 76 time period.
                                    178

-------
                                                                  APPENDIX E

                               EXHIBIT II

              INTERVIEW CONCERNING RENTAL HOUSING AVAILABILITY
                                IN NEWPORT


Date.  August 6, 1977.  Mr. William H. Heard, Executive Vice-President,

Newport Area Chamber of Commerce, and Real Estate Developers.

General.  Rental houses in Newport are for the most part sub-standard.

As a result of the condemnation program, these units are identified for

up-grading or demolition as soon as they become vacant.  Very few are

up-graded.  Most homes which are vacant are for sale.  The availability

of apartments is also limited.  There is one apartment building presently

under construction which will have 15 units.  This is the extent of multi-

unit construction in Newport.  Real Estate developers are keeping a close

watch on the AP&L power plant project, with the intention of constructing,

or up-grading present housing, as soon as the location and construction

start date is established.
                                    179

-------
      APPENDIX F




PUBLIC SERVICE & COSTS

-------
                                                .•VIUY.k.*O.V.^ .."•;. i . A .  »»..ilifl.kl 1 .* i ., I  .Vivj.tli^.Ni
                                                      Division of (Manning and Research           TABLE  F-l
                                        In Cooperation with the Federal Highway Ad.iii.iistratlan, U.S. Department of Transportation
DoteJAN'UARY 1,1977 County_LMIf:PFMDFh!CF
ROAD AND STREET MILEAGES
STATE HIGHWAY SYSTEM

<
a
3
a
MUNICIPAL
URBAN

INTERSTATE
F.A. PRIMARY
F.A. SECONDARY
NON- FEDERAL AID
TOTAL RURAL
INTERSTATE
F.A. PRIMARY
F.A. SECONDARY
NON-FEDERAL AID
TOTAL MUNICIPAL
INTERSTATE
F.A. PRIMARY
F.A. SECONDARY
NON-FEDERAL AID
TOTAL URBAN
TOTAL STATE HIGHWAYS
VEHICLE
MILES
201,293
5S.652
56,343
313,288
5.5S1
7,659
1,162
14,412
24,988
3S,053
64,041
391,741
	
Concrete
1.17
.38
1.55

.12
.06
.20
1.75
Bituminous
High
Type
77.27
27.84
16.64
121.75
1.92
5.60
7.52
3.02
G.51
11.53
140. 00
low
Type
8.25
51.78
60.03
.11
2.72
2.83

62.86
Gravel
8.36
1.80
11.38
21.54


21.54
Graded




Unimproved
.09
.09


.09
TOTAL
86.80
38.27
79.89
?04.96
1.92
5.71
2.72
10.35
3.14
b.59
11.73
??7.04
                                                            LOCAL ROAD SYSTEM
COUNTY FEDERAL AID
COUNTY NON-FEDERAL AID
TOTAL COUNTY ROADS
FOREST HIGHWAYS F.A.S.
FOPEST DEVELOPMENT F.A.S.
FOREST DEVELOPMENT N.A..
FEDERAL RESERVATION
TOTAL FEDERAL ROADS
CITY STREETS F.A.S. EXTENSIONS
CITY STREETS NON F.A.S.
OTHER CITY STREETS
TOTAL CITY STREETS
ROADS NOT PUBLICLY MAINTAINED
TOTAL LOCAL ROADS
lit 127
3t,553
47,680





•55
l»88i>
4C,483
4,:, 463

9 C , 1 4 3

.08
.08







1.22
1.22

1.30
11.72
lb.04
26. 76






2.90
23.29
26.19

52.93
6.74
40.02
48.76





.36
3.54
30.94
42. U4

91.60
34.98
582.67
617.65





.02
8.36
23.40
31.78

649.43

14.77
14.77







.07
.07

14.84














55.44
652.58
708.02





.36
14. 8U
56. 9<:
102.10

MO.l*
                                                           TOTAL ROAD SYSTEM
I TOTAL ALL ROADS
                                             UU4
3.051    193.751    154.461    670.971
.091  1.037.16 I

-------
                                                   Division of Planning and Research   TABLE  F-2
                                     In Cooperation with the Federal Highway Adminiitration, U.S. Department of Transportation
Dated ANUARY 1,1977 County JACKSON
ROAD AND STREET MILEAGES
STATE HIGHWAY SYSTEM

<
CC.
ID
ct
MUNICIPAL
z
<
23
«
•T)
INTERSTATE
F.A. PRIMARY
F.A. SECONDARY
NON-FFDERAL AID
TOTAL RURAL
INTERSTATE
F.A. PRIMARY
F.A. SECONDARY
NON-FEDERAL AID
TOTAL MUNICIPAL
INTERSTATE
F.A. fRIMARY
F.A. SECONDARY
NON-FEDERAL AID
TOTAL URBAN
TOTAL STATE HIGHWAYS
VEHICLE
MILES
108,947
27,156
52,600
260.703
35, 860
2,399
5,324
43.591
74,413
3,502
5,303
83.218
395.512
Concrete
1.27
1.27

.54
.14
.68
1.95
Bituminous
High
Type
45.45
12.92
49.10
107.55
5.47
1.52
3.44
10.43
7.76
1.21
3.55
12.52
130.50
Low
Type
25.00
47.32
72.32
3.77
3.77
.33
.35
.68
. 76.77
Grovel
3.08
13.95
17.03

.69
.69
17.72
Graded




Unimproved
.09
.09


.09
TOTAL
46.72
41.00
110.54
19R.xft
5.47
1.52
7.21
14.20
8.30
2.23
4.04
14.57
7 7 7 - 0 \
                                                        LOCAL ROAD SYSTEM
COUNTY FEDERAL AID
COUNTY NON-FEDERAL AID
TOTAL COUNTY ROADS
FOREST HIGHWAYS F.A.S.
FOREST DEVELOPMENT F.A.S.
FOREST DEVELOPMENT N.A.
FEDERAL RESERVATION •
TOTAL FEDERAL ROADS
CITY J1REETS F.A.S. EXTENSIONS
CITY STREETS NON F.A.S.
OTHER CITY STREETS
TOTAL CITY STREETS
ROAD5- NOT PUBLICLY MAINTAINED
IOTA! '•'_ -::.\. 3OADS
2,045
30,411
32,456





61
2,091
29,107
31,339
4
63,799









.06
7.13
7.19

7.19










1.71
1.71

1.71
.40
8.81
9.21






3.41
42.92
46.33

55.54
19.78
472.44
492.22





.46
8.04
30. 15
38.65

530.07

103.00
103.00






.96
4.26
5.22
.24
100.46

13.21
13.21







.25
.25

1^.46
20.18
597.46
617.64





.46
12.47
86.42
99.35
.24
717.7*
                                                       TOTAL ROAD SYSTEM
I TOT-XL r.\\  ROADS
34  I     45
-------
                                                                      TABLE F-3
                                             In Cooperation with the Federal Highway Administration, U.S. Department of Transportotio
DofeJ^'HMkY 1,1977 County STATE TOTAL
ROAD AND STREET MILEAGES
STATE HIGHWAY SYSTEM

<
0£
2
MUNICIPAL
URBAN
INTERSTATE
F.A. PRIMARY
F.A. SECONDARY
NON-FEDERAL AID
TOTAL RURAL
INTERSTATE
F.A. PRIMARY
F.A. SECONDARY
NON-FEDERAL AID
TOTAL MUNICIPAL
INTERSTATE
F.A. PRIMARY
NON-FEDERAL AID
TOTAL URBAN
TOTAL STATE HIGHWAYS
VEHICLE
MILES
4,4Cfc,b34
10,Q4t,5eu
Z, 133,561
j t c 9 2 » 4 t 4
20,2el,4£C
175,234
l,415,SbS
41 0,026
534, CIS
?,535,rjt7
l,3£l,14u
4,CC4,1C4
I,5c7,937
6C5,8cJ
c, 029, Qt-ti
Concrete
'tG4.27
104.44
6.3C
37. 9t
3:>2.99
17.51
16. b4
5.22
14,16
53.74
c9.12
64. 4b
• fc.C-9
7.C9
1 L> V . 3 t'
:C, Sic, 'till 7Vo.il
Bituminous
High
Type
9.5<*
3, 666. Ci>
1,009.29
1,773.2U
6 , 4 6 'J . c 8
. Go
394.U6
124. 5H
215.01
74 ->.:>_,
. lil
354.11
2^4.Ut
l!il.6. 7 /
Low
Type
495.42
1, 003.75
3,153.52
5 ,4- ;><•:. 09
23. 3o
6B.77
13'J.33
^31.96
3.79
32.10
30.13
66. UL
'*> ,7piJ.67
Grovel
37. 4U
301. 51
1,045.22
1,384.13
2.0/
21.53
23.60
1.66
A.K5
6.51
1 , 4 1 4 . ?. t
Graded
11.21
17.21
26.42
.36
.36
.58
.88
1.46
3J. 24
Unimproved
1.09
1.11
4.46
6.6S

'
C.-.66
TOTAL
413. fal
4,307.20
3,133.17
6,031.59
13,885.77
17.i)S
435.06
210.65
390.69
1,054.19
b9.93
422. 3b
277.85
194.57
9C4.73
15,924.69
00

CO
                                                                 LOCAL  ROAD SYSTEM
COUNTY FEDERAL AID
COUNTY NON-FEDERAL AID
TOTAL COUNTY ROADS
FOREST HIGHWAYS F.A.S.
FOREST DEVELOPMENT F.A.S.
FOREST DEVELOPMENT NA.
FEDERAL RESERVATION
TOTAL FEDERAL ROADS
CITY STREETS F.A.S. EXTENSIONS
CITY STREETS NON F.A.S.
OTHER CITY STREETS
TOTAL CITY STREETS
ROADS NOT PUBLICLY MAINTAINED
TOTAL LOCAL ROADS
5 1 1 , L S ,-.
3,133,042
j , c44 ,i_>'i
c •» o c (
2, So j
41,49C
15»tS5
t4,C5i
23,417
4^0,'/4j
4 , 9 4 i! , 2 1» 7
!J,4bC,C-4S
1 J9, jli
- , 3t4, J4-:
5.3d
46.43
Ji.il

. /C
20.40
436.13
ii.9.23

- 1 1 . ii 4
245.11
513.27
75o . j> b
16.i>d
1 U . 5 (i
15. Jl
107.72
1,772.14
I,««i5.37
^3.-./
-i j - •/
«: , /«._/» l L.
7t>^.62
3,^39.24
^ , J42. i.i6
12. 2J
J.91
27.03
113.06
1131:;. 2 3
2 7 . / 5
3/1.10
3,384.92
JT7U3.77
ili.t>0
i/ , 09(;. ->6
1,411.21
3J.969. 31
32,3d0.72
.c'o
06. HC
931.06
46.64
i,0fc4.o-i
O. 0 l
409.01
1,531.92
1,947.77
j , 3 o i . ii '.;
3c , /i;o..JJ
2J.Y9
6,^14.33
L»jciji6«12
/.Hi
484.95
Li. 65
501.01
33.30
179. Ob
212.38
t)iJ.79
10, 305. .30
80B.17
&bb,17
39.95
2.57
42.52
i.71
46. 2d
47.99
V4.54
2,439.11
44,520.95
46, 96C.Cc
20.30
92.19
I,4b2.99
lt)7.50
I,7b2.96
50. bO
943.24
7,352.47
b', 346. 51
4 , 4 3 c . 4 C
1,0/3.22| 61,5^^.9^
                                                                TOTAL  ROAD SYSTEM
   TOTAL ALL ROADS
» <: C C » /i.U  I

-------
                                  TABLE F-4
APPENDIX F
                      ARKANSAS STATE HIGHWAY DEPARTMENT
                      Division of Planning and Research
                           in Cooperation with the
                      U.S. Department of Transportation
                       Federal Highway Administration
                       AVERAGE ANNUAL TRAFFIC VOLUMES

                                 POINT FERRY
Year
1969
1970
1971
1972
1972*
1973
1974
1975
1976
Passenger
Cars -
33
32
57
121
125
121
100
106
77
Pickup
Trucks
29
27
47
74
80
66
72
70
49
Single
Unit
Trucks
7
5
7
6
7
4
6
5
2
Truck &
Trailer
Units
0
0
0
1
0
0
0
0
0
Total3
Vehicles
69
64
111
202
212
191
179
181
129
Adjusted
A.D.T.
69
64
111
202
212
191
177
181
129
Days Not Oper.
1
159
29
11
32
23
210
110
0
0
2
0
4
10
0
0
0
0
0
0
3
0
0
3
14
12
29
44
55
65
4
0
82
0
0
0
19



Annual average daily traffic for each day of operation
1 - High water

2 - Repairs

3 - Unknown
4 - Inspection - 19
    Construction - 82
                                         184

-------
                            EXHIBIT I



                  Wastewater Treatment Facilities, 1974
Service Area One
Service Area Number One includes population centers which exceed or are




expected to approach or exceed 5,000 population by 1990.






Batesville Region




Batesville has an interceptor pumping station with a capacity of about 12




million gallons per day (M.G.D.).  The main pumping station could be consid-




ered to have a capacity of 3.0 M.G.D.  There are three oxidation ponds with




a total surface area of 126.8 acres.  Present oxidation pond design criteria




allows a loading of 30 Ibs. of BOD per acre per day, plus a second pond with




30 days detention time.  The present pond capacity has a population equiva-




lent of about 22,400 people assuming 0.17 Ibs. of BOD per person per day.




The present BOD loading of the oxidation ponds equates to a population




equivalence of 40,300 people.  It is obvious that the treatment capacity is




overtaxed and improvement is needed.  This condition has come about due to




the high industrial use of the waste disposal system.






Newport Region




Sewage treatment in the.City of Newport consists of two 30-acre oxidation




ponds.   These ponds have adequate capacity to serve a population of 10,500.




It has been recommended to the City that a 20-acre oxidation pond be added




due to the fact that population of the City is expected to exceed the capacity




of the existing treatment facility within the next five years.   The 20-acre




pond would have adequate capacity to serve 3,500 people.  Flans are also




being made to add a pumping station and outfall.
                                     185

-------
Service Area Two




Service Area Two includes population centers of 500 or more in 1970, but are




not considered urban or urbanizing.






Newport Airbase




Sewage from the Newport Airbase is pumped from the collection sump into an




open drainage ditch.  There is a sewage treatment plant available with ade-




quate capacity to serve the airbase area; however, the plant is currently in




a state of disrepair.






Service Area Three




Service Area Three includes population centers of less than 500 people in




1970 and rural areas which are expected to remain stable.  The majority of




this area is served by individual septic systems.  There is a large variance




in the type of individual systems used.  Effectiveness of the systems is as




varied as the many types within the District.  A discussion of these and




other systems is to follow.






Swifton Region




The Town of Swifton has an oxidation pond of about 5 acres with lift stations




and a pump station.  Currently, the pond has adequate capacity for a town the




size of Swifton.   At this time, there are no plans to expand in the next 3-4




years.   There are 295 service connections to the system.






Tuckerman Region




The Town of Tuckerman has a small oxidation pond with a main pumping station.




The system serves approximately 770 connections and has a capacity of about




2,000,000 gallons per day and will serve more than 5,000 residents.  This is




more than adequate for the next 10 years.
                                    186

-------
Use of Individual Septic Systems

The most widely used sewage disposal system within the District is the indi-

vidual septic tank.  The magnitude of the waste water treatment problem in

rural areas is on par with urban areas except for the much lower densities

in the rural area.  The types and variety of systems is as varied as the

range of effectiveness thatcan be found in rural systems.  Many serve as

designed—functioning extremely well, but almost as many are constructed in

areas where the basic design features of the system cannot function.  The

result is sewage that surfaces or finds its way into water resources.
Source:  Overall Economic Development Program, 1977, White River Development
         District, Batesville, Arkansas, 1977.
                                    187

-------
    APPENDIX G




TAXES AND REVENUE

-------
oo
vo
                                                            TABLE  G-l


                                               SELECTED ARKANSAS TAXES  COLLECTED

                                  IN  INDEPENDENCE AND JACKSON COUNTIES, AND  THE STUDY AREA

                                                  FOR YEARS  1970 THROUGH 1976

Independence County
Sales & Use Tax
Personal Income Tax
Total
Jackson County
Sales & Use Tax
Personal Income Tax
Total
Study Area
Sales & Use Tax
Personal Income Tax
Total
1970

$ 875,767
n.a.
n.a.

916,434
n.a.
n.a.

1,792,201
n.a.
n.a.
1971

$1,053,722
n.a.
n.a.

1,105,216
n.a.
n.a.

2,158,938
n.a.
n.a.
1972

$1,238,854
n.a.
n.a.

1,206,852
n.a.
n.a.

2,445,796
n.a.
n.a.
1973

$1,476,816
n.a.
n.a.

1,320,829
n.a.
n.a.

2,797,645
n.a.
n.a.
1974

$1,543,492
n.a.
n.a.

1,567,736
n.a.
n.a.

3,111,228
n.a.
n.a.
1975

$1,730,675
1,211,585
2,942,226

1,657,904
1,289,733
2,947,637

3,388,579
2,501,318
5,889,897
1976

$2,294,742
1,580,317
3,875,059

1,718,583
1,682,273
3,400,856

4,013,325
3,262,590
7,275,915
   Source:  Department of Finance and Administration, State of Arkansas.
                                                                                                                              w
                                                                                                                              2
                                                                                                                              O
                                                                                                                              i-l
                                                                                                                              X

                                                                                                                              O

-------
                      TABLE G-2

     PROPERTY TAX RATES WITHIN THE STUDY AREA

                       1977
                                                       APPENDIX G
Incorporated
   Areas
  Rate
(Mills)
Independence County:

  Batesville
  Southside
  Moorefield
  Floral
  Sulphur Rock
  Charlotte
  Pleasant Plains
  Newark
  Cave City
  Desha
  Cushman
  Magness
  Oil Trough

Jackson County:

  Newport
  Swifton
  Tuckerman
  Grubbs
  Beedeville

Average for Study Area
  78.0
  62.4
  72.4
  74.4
  74.4
  61.4
  61.4
  61.4
  72.4
  71.4
  71.4
  61.4
  64.4
  71.4
  61.9
  60.9
  65.9
  61.9

  67.2
Source:  Mrs. P. Crawford, Tax Collector's Office,
           Jackson County, Arkansas.
         Mrs. J. Moser, Tax Collector's Office,
           Independence County, Arkansas.
                           190

-------
                               APPENDIX
            EXHIBIT I
GENERAL  ACTS
             OF THE

 Sixty-Ninth General  Assembly
             OF THE

       State of Arkansas

           Volume II
           Book 2

Passed at the Regular Session held at the Capitol in
the City of Little Rock, Arkansas, convening on the
8th day of January,  1973, and recessed on the 24th
day of April, 1973.
    INCLUDING ACTS OF THE FIRST
       EXTRAORDINARY SESSION
             OF THE
    SIXTY-EIGHTH GENERAL ASSEMBLY
     February 7, 1972 — February 16, 1972
            191

-------
ACT 750]         ACTS OF  AKKANSAS             188.'{

this Act being necessary for the preservation of the
public peace, health and safety shall take effect and
be in  full force from and after July 1, 1973.

    APPROVED:  April 16, 1973.
                    ACT 750

AN ACT to Provide for the Distribution of All State
    Taxes, Licenses and Fees After the Same Have
    Been Deposited into the State Treasury; to
    Define and Describe Various Funds and Fund
    Accounts to Be Established and the Purposes
    for Which They May Be Used; and for Other Pur-
    poses.

Be It Enacted by the General Assemhli/ of the State.
    of
  SECTON 1.  Short Title. This Act shall hereafter
be known and cited as the "Revenue- Stabilization
Law" of Arkansas of 1973.

    SECTION 2.   Declaration of Policy. Because of
the many revenue laws of the  State providing for
the levying and collecting of taxes, licenses and fees
for the support of state government and its agencies
and enacted  by this General Assembly or by the
General Assembly in the past, it is hereby declared
to be the policy of the General Assembly with respect
to all such revenues and other State income which
are required by lawto be deposited in the State Treas-
ury to provide  for the handling and  deposit of the
                      192

-------
1884             ACTS OF ARKANSAS         [Acr 750

same in the manner provided in the Revenue Classifi-
cation Law of this State and in this Act in the follow-
ing manner:

    (A)  To declare the objects and  purposes for
which the General Revenue as defined in the
Revenue Classification Law and  other incomes
individually and collectively are to be used. It is the
intent  and purpose  of this Section and other  provi-
sions of this Act relating thereto to comply with the
provisions of the Constitution, including Section 11
of Article 16 thereof.

   (B)   Because of the  fact that the constitutional
and  fiscal agencies  of the State and certain  other
defined agencies or  programs, either individually or
collectively, render  services to every  state  depart-
ment,  board, commission, institution, agency, or
activity supported from  revenues deposited  in the
State Treasury, it is declared to be the policy of the
General Assembly that  all taxes, licenses, and fees
defined as "general revenues" and "special  reve-
nues" under the provisions of the Revenue Classifi-
cation  Law shall contribute to the support of such
constitutional and fiscal agencies and other defined
agencies in the proportion and for the purposes  as
provided by law for the  payment of such services.

    (C)  As to the taxes, licenses and fees, and other
revenues contributing to the "general revenues" as
defined in the  Revenue  Classification  Law, it  is not
the  purpose of this Act to levy or to change  the
amount or rate of such taxes, but to state; the purpose'
for which such  "general revenues"  are to be  used;
and this Act shall not be construed as amending any
of the provisions of the law with respect to such taxes
                       193

-------
ACT 750]          ACTS OF ARKANSAS             1885

defined to he "general revenues" except for the pur-
pose of providing for the distribution of the same
and defining the purposes for which such revenues
are raised and collected.
    (D) As to the special taxes, licenses, fees, and
other revenues contributing to the special revenues
as provided in the  Revenue Classification  Law, it
is not the intent of said Revenue Classification Law,
or of this Act to levy or change the amount or rate
of such taxes,  nor to change the purposes for which
such special revenues are to be  used as provided for
by law; and this Act shall not be construed as amend-
ing any of the provisions of the law with respect to
the "special revenues" as defined  herein, except for
the purpose of providing for the distribution of the
same and providing that the purposes for which such
revenues are collected, shall also include the services
rendered to the constitutional and fiscal agencies
and other defined agencies in the manner provided
in the  Revenue Classification Law and herein.

    SECTION 3.   Fiscal Year Established.  The
fiscal year of the State, for the conduct of its financial
affairs, shall commence on July  1st and end on .June
30th of the following year.

    SECTION 4.  STATE APPORTIONMENT
FUND CREATED.  There is hereby created on the
books of the State Treasurer, the .State Auditor and
the Chief Fiscal Officer of the  State,  a  fund to be
known as the  "State  Apportionment  Fund".  From
and after the effective date of this Act all "General
Revenues" and all  "Special Revenues", as  defined
in the "Revenue  Classification  Law of  Arkansas",
shall be deposited by the State Treasurer into the
                      194

-------
ACT 750]         ACTS OK ARKANSAS             1915

to be deposited into the State Treasury by law.

    (11)  There is hereby established on  the books
of the State Treasurer, State Auditor, and Chief
Fiscal Officer of the State, a fund to be  known as
the "State College  of Arkansas  Fund". Such fund
shall  be  used for the maintenance, operation, and
improvement of the State College of Arkansas, and
shall consist of such general revenues as may be pro-
vided by law and any other  funds made available
for the support of the State College of Arkansas and
which are  required to be deposited into  the State
Treasury by law.

    (12)  There is hereby established on  the books
of the State Treasurer, State Auditor, and Chief
Fiscal Officer of the State, a fund to  be  known as
the "Community Junior Colleges Fund". Such fund
shall  be  used for the maintenance;, operation, and
improvement of the various Community Junior Col-
leges, and shall consist of such general  revenues as
may be provided by law and any other funds made
available for the support of the various community
junior colleges and which are required to be deposited
into the State Treasury  by law.

    SECTION  7.   MISCELLANEOUS FUNDS
CREATED. (A) Administration Revolving Fund.
There is hereby established on the books of the State;
Treasurer, State Auditor, the Chief Fiscal Officer of
the State, a fund to be known as the "Administration
Revolving  Fund".  Such fund shall  consist  of  non-
revenue receipts derived from services purchased
and rentals reccircd hij  the Deimrhncnt of Finance
and Administration from various agencies of the
                     195

-------
1916             ACTS OF ARKANSAS         [Acr 750

federal, state, county, and city government and
approved business concerns,  balance of the State
Administration  Department Revolving Fund on
June 30,1973, federal funds as may become available
for the support of the various programs of the Depart-
ment of Finance and Administration supported from
such fund. Such fund shall be used for personal ser-
vices, maintenance, operation and improvement of
only those activities or programs of the Department
of Finance and Administration which are responsible
for providing the services  as provided by Act 45 of
1968 (First  Extraordinary Session), and all laws
amendatory thereto.

    (B)  Municipal Aid Fund. There is hereby estab-
lished on the books of the State Treasurer, State
Auditor, and the Chief Fiscal Officer of the State,
a  fund to  be known as the "Municipal Aid Fund".

    (1)  Such fund shall consist of such general
revenues as  may be made available to such fund by
the Revenue Stabilization Laiv, and  those special
revenues derived from highway user imposts, known
as "Highway Revenues" as may be made available
to such fund for the benefit of municipalities by the
Arkansas Highway Revenue Distribution Law.

    (2)  All of the "general revenues" and the
"special revenues" shall be distributed within ten
(10) days after the  close of each calendar month to
the respective cities of the first and second class and
incorporated towns on the basis of population accord-
ing to the most recent federal census,  with the
amount to be apportioned to each such city or incor-
porated town to be in the proportion that each popu-
lation bears  to the total population of all such cities
                      196

-------
ACT 750]         ACTS OK  ARKANSAS             1917

and incorporated towns.  Provided that the monies
received by the  respective cities and  incorporated
towns under this Act shall he revenues of the year
in which received by them, and shall not be revenues
of the year which  such monies were collected and
paid into the State Tre'asury. Of the monies so
received by the  respective cities and  incorporated
towns, the "general revenues" shall be  used for
general purposes of municipal  government and the
"special revenues" derived from highway revenues
shall be used as provided  by the Arkansas Highway
Revenue Distribution Law. Provided, however, that
in the event the  Workmen's Compensation Commis-
sion lias paid claims from  the Miscellaneous Revolv-
ing Fund on account of any municipal employee
covered under  Workmen's Compensation, such
amount is to be deducted from (General Revenue turn-
back as  provided by Act 470 of 1973 and Act 4
-------
1918             ACTS OF ARKANSAS         |Arr 750

revenues" to any cities or incorporated towns in this
State that have expended funds belonging to such
city or town for the payment of annual membership
dues to, or for the purchase of services rendered by
the Arkansas Municipal League or any other league
or association of cities in this State, unless the books,
affairs  and records  of such Arkansas Municipal
League or any other league or association of cities
and tows of this State receiving monies from cities
or towns has been audited by the Division of Legisla-
tive Audit, or consent for such audit by the Division
of Legislative Audit has been given by  any such
league or association. The Division of Legislative'
Audit is hereby authorized to audit the books, affairs
and  records of the Arkansas Municipal League or
any  other league or association of cities or incor-
porated towns in this State, upon request thereof
by the  appropriated officials of such league or
association.

    (C)  County Aid  Fund. There  is  hereby estab-
lished on the books  of the State Treasurer, State
Auditor, and the Chief  Fiscal  Officer of the State,
a fund to be known as the "County Aid  Fund".

   (1)  Such fund  shall  consist of  the  "general
revenues" as may be  provided  by  the  Rc.venn.c.
Stabilization  Law  to  such  fund; those  special
revenues derived from highway user imposts, known
as Highway Revenues, as may be provided by the
Arkansas Highway Revenue Distribution Law; those
special revenues as set out in Subsection (75) of Sec-
tion  8 of the  Revenue Classification Law; and 25%
of all severance taxes other than those imposed upon
saw timber and timber products as set out  in Subsec-
                    198

-------
ACT 750]         ACTS OK ARKANSAS            1919

tion (19) of Section 8 of the Revenue Classification
Law.

   (2) All of the "general revenues" and "special
revenues" shall be distributed within ten (10) days
after the close of each calendar month to the respec-
tive counties as follows:

   (a) The general revenues made available to the
County Aid Fund by the Revenue Stabilization Law
shall  be  distributed seventy-five  percent  (75%)
divided equally among the seventy-five (7.r>) counties
of this State  and  twenty-five percent (25%) on the
basis of population according to the most recent
decennial federal census with each county to receive
the proportion that its population bears to the total
population of the  State. The monies so received by
the County Treasurer shall be credited to the County
General Fund to be used for general county purposes
unless otherwise appropriated by the Quorum  Court.

    (b)  The special revenues to be distributed to the
respective  counties shall be as  may be authorised
by law.

    (c)  All monies received  by the respective
counties  under this section shall be  revenues of the
year  which received by them, and shall not be
revenues of the year in which such monies were col-
lected and  paid into the State Treasury.

    (d) Provided, however, that in the event the
Workmen's Compensation Commission has paid
claims from the Miscellaneous  [{evolving Fund on
account of any county employee covered under Work-
                     199

-------
1920             ACTS OF ARKANSAS         [Acr 750

so deducted are to be transferred to the Miscellaneous
Revolving Fund, there to be used as provided by law.
by Act 470 of 1973 and Act. 4<>9 of 1973. 8nc.li wotiiat
so deducted are. to be transferred to the Miscellaneous
Revolving Fund, there to be used as provided by law.

   (3)  It shall be unlawful for the State Treasurer
to distribute any "general revenues" to any county
in this State or any "special revenues" to any county
in this State that has expended funds belonging to
such county for the payments of annual membership
dues to, or for the purchase of services rendered by,
the Arkansas Association of Counties to other league
or association  on  counties in this State,unless the
books, affairs, and records of such Arkansas Associa-
tion  of Counties or other league or association of
counties in this State receiving monies from the
counties has been  audited by the Division of Legisla-
tive' Audit, or consent for sucli audit by the Division
of Legislative Audit has been given  by any such
association or league of counties. The Division of
Legislative Audit is hereby authorized  to audit the
books of the Arkansas Association of Arkansas
Counties or any other league  or association of
counties of this State, upon request thereof by the
appropriate official of such association or league.

   (D)  State  Budget Revolving  Fund. There is
hereby established on the books of the State
Treasurer, State Auditor, and the Chief Fiscal
Officer of the State, a fund to be known as the "State
Budget  Revolving Fund".

   (1)  The State Budget Revolving Fund shall con-
sist of funds made available and transferred to it
                     200

-------
                                                                   APPENDIX G
                                  EXHIBIT II
                         HELPING  BUILD  ARKANSAS
 ARKANSAS POWER & LIGHT COMPANY

            ^T."  PO. BOX 351  LITTLE ROCK. ARKANSAS 7SSO3 • (SOD 371 - .4QOO
                                        August 3, 1977
Mr. Robert T. Mott
Dames & Moore
500 Sansotne Street
San Francisco  CA  94111

Dear Mr. Mott:

          In response to your memorandum of June 29 to Mr. Joel Patterson
requesting information for the socio-economics section of the Independence
Environmental Impact Statement, I am enclosing my estimate of property taxes
on the plant from initiation of construction through the first full year of
operation.

          As the basis of my estimate I have used 60% of the estimated Total
Construction Expenditures which were furnished by our Construction Budget
and Forecast Section.  An assessment rate of 20%, and the current tax rates
for Newark School District and Independence County were used.

          I believe you are familiar with the Arkansas system of assessing
and paying taxes, but to refresh your memory, expenditure made prior to 1977
are the basis of our 1977 assessment and the taxes will be paid in 1978.
Expenditures made through 1977 will be the basis of oiuf'^978 assessment and
the taxes will be paid in 1979.  Taxes during the years following completion
of construction will be assessed in the same manner as during construction.

          If you should have any questions regarding the procedure I have
used, please let me know.
                                        Sincerely yours,
                                        Roy ^H. Smith
                                        Manager, Corporate Records
 RHS:dsw

 Enclosures

 cc;  Mr.  Joel  Patterson
 TAX PAYING. INVESTOR OWNED
                                      201
                                    MLMFJER MIDDLE SOUTH UTILITIES SYSTEM

-------
                                               ESTIMATE OF PROPERTY TAXES ON .
                                            INDEPENDENCE STEAM ELECTRIC STATION
                                         FROM INITIATION OF CONSTRUCTION THROUGH**
                                                  FIRST YEAR OF OPERATION
(All Figures in Thousands of Dollars)
Expenditures
I'nit 1 Ur.ic 2
1579 26,523 1,620
^5^C 57,960 9,120
133: 78,120 27,720
15c2 36,8iO 68,760
1953 2,160 51,720
1554 33,180
19i> 1.200
S3
o
S3

Total
•Expenditures
By Years
28,140
67,080
105,340
105,600
53 ,880
33,180
1,200



Iota.
Expcndit jrcs
To ?;:e
35,653
102,733
203,573
314,173
368,053
401,233
402 ,433


Assessed
Valuation
(3 207.
7,131
20,547
41,715
62,835
73,611
80,247
80,487


News rk
School District Tax
? 45 Mills
320.9
92i.6
1,877.2
2,827.6
3,312.5
3.611.1
3,621.9


Indcpcr.der.ee
County Tax
? ll.i' Mil Is
81.3
234.2
475.6.
716.3
339.2 •
914.3
917.6


Total
4r-:.2
1,153.S
2,352.5
3,5-^ .9
4,151. '
4,525.9
4,539.5


** Figures represent AP&L  00  percent  share  only.   All  owners are assumed to pay prorata  share of property  taxes,

-------
     INDEPENDENCE STEAM ELECTRIC STATION
       TOTAL CONSTRUCTION EXPENDITURES
(NOT REDUCED FOR AECC/JONESBORO PARTICIPATION)

         Millions  of Dollars
             Unit  1
Unit 2
Total
Prior to 1977
1977
1978
1979
1980
1981
•1932
1933
1984
1985
Total
2.3
2.9
4.9
44.2
96.6
130.2
61.4
3.6


346.1
.7
2.3
1.2
2.7
15.2
46.2
114.6
86.2
55.3
2.0
326.4
3.0
5.2
6.1
46.9
111.8
176.4
176.0
89.8
55.3
2.0
672.5
                        203

-------
                                                          EXHIBIT III
                                                ARKANSAS PERSONAL INCOME TAX
WITHHOLDING SCHEDULE
Monthly Pay Period
™»
Fr»ra T^rouph
$ .01
150.01
170.01
184.01
192.01
200.01
208.01
216.01
220.01
230.01
240.01
256.01
260.01
2R6.01
306.01
320.01
040.01
366.01
380.01
406.01
420.01
446.01
466.01
500.01
•540.01
580.01
620.01
6C0.01
700.01
740.01
780.01
820.01
8C0.01
900.01
940.01
$150.00
176.00
184.00
192.00
200.00
238.00
216.00
22G.OO
236.00
246.00
256.00
266.00
286.00
300.00
320.00
346.00
366.00
386.00
400.00
426.00
446.00
4SO.OO
500.00
5-10.00
S80.00
62000
660.00
700.00
740.00
7SO.OO
820.00
860,00
600.00
9-10.00
ll|
•i6*
p "3 s
f OS
1
Jjf
III
1
8.
X O y
With Hi Oioiodinu
$ .00
.13
.20
.27
.34
.41
.49
.58
.07
.70
.85
.94
1.23
1.08
2.13
2.58
3.03
3.48
3.93
4.38
4.83
5.28
6.04
6.94
8.06
9.32
10.58
11.84
13.10
14.30
15.62
17.24
19.04
20.84
22.64
$ .00
.13
.20
.27
.34
.41
.49
.58
.67
.76
.85
.94
1.23
1.68
2,13
2.58
3.03
3.48
3.93
4.40
4.90
5.40
6.25
7.25
8.63
10.03
11.43
12.83
14.23
15.03
17.32
19.12
20.92
22.72
24.52
$ .00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.22
.07
1.12
1.S7
2.02
2.47
2.9"2
3.37
3.82
4.58
5.48
8.60
7.88
9.12
10.38
11.64
12.90
14.16
15.78
17.58
19.38
21.18
ii.
I!
ECi

1*1
111
|!
list
Slol
. Will! 1 D6
6.62
7.83
9.14
10.40
1 l.GO
10.23
15.0$
16:83
13.06
ji,
1
|||
c **
-, " c
ill.
win, f D.P..J..-H,
9 .00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.03
.48
.93
1.88
1.83
2.28
3.04
3.94
5.06
6.32
7.58
8.84
10.10
11.36
12.62
14.24
16.04
17.84
19.84
9 .00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.03
.43
.93
1.40
1.90
2.40
3.25
4.25
5.63
7.03
8.43
9.83
11.23.
12.63
1-1.32
16.12
17.92
19.72
21.52
'j
.1
.1
\
!c
X
.c
.c
.0
.3
.8
1.5
2.4
3.6;
4.R-
6.J.
7.0;
8.0-
9.«;c
11.11
12.7?.
14,"?
1-0
o
                                         SOURCE:   STATE OF ARKANSAS,  DEPARTMENT OF
                                                   FINANCE AND ADMINISTRATION.
•z.
o
                                                                  20

-------
                     Monthly Pay Period—Continued
ivicra
-,„ ThTOu.
L'.Ol
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
D.OI
6.01
0.01
0.01
0.01
G.OI
0.01
0.01
0.01
0.01
n.oi
0.01
1,020.00
1,060.00
1,100.00
1,140.00
1,150.00
1,220.00
1,260.00
1,300.00
1,340.00
1,380.00
1,420.00
1,460.00
1,500.00
1,540.00
1,580.00
1,020.00
1,668.00
1,700.00
1,740.00
1,780.00
1,520.00
1,860.00
1,900.60
1,940.00
1,950.00
2,020.00
2,000.00
2,083.00
1 	
g
I
ill
1
Wllh M> 0:»BD»U
£4.44
20.24
28.04
29.84
31.04
33.44
35.24
37.04
38.94
41.34
43.74
46.14
48.54.
50.94
53.34
55.74
58.50
60.54
62.94
•05.34
67.74
70.14
72.54
74.d4
77.34
79.74
82.14
83.54
26.32
28.12
29.92
31.72
33.52
35.32
37.12
39.04
41.44
43.84
46.24
4S.64
51.04
53.44
55.84
53.24
61.00
63.04
65.44
67.84
70.24
72.64
75.04
77.44
79.84
82.24
8-1.64
8C.04
22.98
24.78
20.58
28.38
30.18
31.93
33.78
35.58
37.48
39.88
42.28
44.68
47.08
49.48
51.88
54.23
57.04
59.03
61.48
03.88
63.28
68.68
71.03
73.43
75.88
78.28
80.68
82.03
' 1
i!|
1
«
•a
It •
I11!
!fil
sssa
With 1 Oiwnilxit
23.94
25.74
27.54
29.34
31.14
32.94
34.74
36.54
38.44
40.84
43.24
45.64
48.04
50.44
52.84
55.24
58.00
60.04
62.44
64.84
67.24
69.04
72.04
74.44
76.84
79.24
81.64
83.04
25.82
27.62
29.42
31.22
33.02
34.82
36.62
3-3.54
40.94
43.34
45.74
48.14
50.54
55'.34
57.74
60.50
62.54
64.94
67.34
69.74
72.14
74.54
76.94
79.34
81.74
84.14
85.54
22.48
24.28
26.08
27.88
29.68
31.48
33.28
35.08
36.98
39.38
41.78
44.18
46.53
48.98
51.38
53.78
56.54
58.58
60.98
63.38
65.78
68.18.
70.58
72.98
75.33
77.78
80.18
81.58
Sii
Sgg
ill
\lss
Wit!) 2 DjplIUllflU
23.44
23.24
' 27.04
2S.84
30.64
32.44
34.24
36.04
37.94
40.34
42.74
45.14
47.54
49.94
52.34
54.74
57.50
59.54
61.94
04.34
66.74
00.14
71.54
73.94
. 76.34
78.74
81.14
82.54
25.S2
27.12
28.92
30.72
32.52
34.32
36.12
38.04
40.44
42.84
45.24
47.64
50.04
52.44
54.84
57.24
60.00
32.04
64.44
66.84
C9.24
71.6-1
74.04
76.44
78.84
81.24
83.64
85.04
21.98
23.78
25.58
27.38
29.13
30.98
32.78
34.58
36.48
38.88
41.23
43.68
46:os
48.48
50.88
53.28
56.04
58.03
60.48
62.88
65.28
67.63
70.08
72.48
74.88
77.28
79.63
81.08
•3
C
i*
Hi
II!
1
ill
Married nr Hrad (if
family »ud Y.m
CUlm Br.lh
liunptloru
WitA 9 DlMJdiSU
22.94
2-1.74
20.54
28.34
30.14
31.94
33.74
35.54
37.44
39.84
42.21
44.64
47.04
49.44
51.84
51.24
57.00
59.01
61.44
C3.84
66.24
C8.C4
71.04
73.44
75.84
78.24
80.04
S2.04
£4.82
26.62
28.42
30.22
32.02
33.82
35.62
37.54
39.94
42.34
4-1.74
47.14
49.54
51.94
54.34
56.74
59.50
61.54
63.91
66.34
68.74
71.14
73.54
75.94
78.31
80.74
83.14
51.54
21.48
23.28
25.08
28.88
23.63
30.48
32.28
34 £d
35.98
38.38
40.78
43.18
45.58
47.98
50.38
52.78
5o.54
57.58
59.08
62.38
64.78
67.18
09.58-
71.98
74.38
76.78
79.18
60.58
|
IB*
g
III
ill
U»n4*d or H«»d at
Ku&llj uul You
CUlm Xotb
i^etaplloiu
Will. 4 D«9MdMtt
22.44
24.24
20.04
27.84
29.64
31.44
33.24
35.04
36.94
39.34
41.74
44.14
46.54
48.94
51.34
53.74
50.50
58.51
60.94
63.34
05.74
08.14
70.54
72.94
75.34
77.74
80.14
81.54
24.32
20.12
27.92
29.72
31.52
33.32
35.12
37.04
39.44
41.84
44.24
46.64
49.04
51.44
53.84
56.24
59.00
01.04
63.44
05.84
08.24
70.64
73.04
75.44
77.84
80.24
82.64
84.04
20.98
22.78
24.58
26.38
28.18
29.98
31.78
33.pS
35:48
37.88
40.28
42.68
45.08
47.48
49.88
52.28
55.04
57.08
59.48
61.88
64.28
66.68
69.08
71.48
73.83
76.28
78.68
80.08
ill
HI
1
ill
m
TT.OII "fiD
TIOJL pira /IIB^M
p P**u J° P'tu*n
Wita I D«c
-------
                                                              APPENDIX G

                          EXHIBIT IV



                         HELPING  BUILD  ARKANSAS
ARKANSAS  POWER & LIGHT  COMPANY

                 PO BOX SSI  LITTLE ROCK. ARKANSAS 733O3 -(SOD 37 1 - 4OOO


                                    July 5,  1977
Mr. Robert T. Mott
Dames & Moore
500 Sansome Street
San Francisco, California  94111

           SUBJECT:  Power Plant Data
                     Independence Steam Electric Station

           REF:      Ltr. #AC3 to Mr. Ron Kear

Dear Mr. Mott:

In accordance with our conversation last Wednesday,  June 29,  I  have re-
calculated the ad valorem taxes and sales and use taxes associated with
Independence Steam Electric Station.

I have also recalculated the following items so they will  all  be on a
consistent basis, one which shows the average annual or levelized cost
of operation over thirty years.

     a)  Operations & Maintenance (excl. fuel)      $ 11,863,000
     b)  Fuel Cost                                   171,751,000
     c)  Ad Valorem or Sales & Use Taxes              14,397,000
     d)  Capital Recovery                             78,818,000

             TOTAL                                  $276,829,000

Attached for your convenience and review is our revised answer to those
items previously questioned;  also attached are my calculations showing
how I obtained the amounts listed above.  If you should have any comments
or questions, please call me.

                             Very truly yours,


                              C^-v-~X^_  ^
                             iJcimes L. Hanson
                             Production Cost &
JLH:aw                       Budget Administrator

cc:  Messrs: Joel Patterson  (w/a)
             George  Eubanks  (  "  )
Attachment    Ron  Kear        (  "  )

                                  206

-------
                          000's OMITTED
1983
Dollar
$000
O&M 6,937
Taxes
Fuel 111,133
Capital Recovery 672,000
O&M Estimated to Escalate at
Fuel Estimated to Escalate at
:<..„•..'
Sales Tax'on fuel used annual

1983
Dollar
$000
Ad Valorem-Plant 8,064
Ad Valorem-
Coal Stockpile 337
Sales Tax -
Coal Stockpile 843
Sales Tax -
Fuel Used 3,334
Total Payment
for 30 Yr Est.
at XX
548,426

7,383,548

6% per year.
5% per year.
ly estimated to i
TAXES
Total Payment
for 30 Yr Est.
at 4%

10,110
25,290
221,507
Present
Worth @
im
101,146

1,464,336


Capital
Recovery
@ 11 '4%
11,863
14,397
171,751
78,818
276,829

ncrease at 5% per year.

Present
Worth 9
11 \l

2,873
7,187
43,930
D&M - Estimated taxes created by the plant, rail line, transmi
and fuel for the life of the plant, per year if availabl
AP&L- Ad Valorem Taxes



Capital
Recovery
0 11 '4%
8,064
337
843
5,153
14,397
ssion lin
e.

a)  Plant cost ($672,000,000) X assumed assessment rate (20%)  X
    assumed millage (60) equals $8,064,000
                               207

-------
                                    - 2 -

        b)  Coal stockpile ($28,105,488) X 20% X 6f equals $337,000

        Sales/Use Taxes

        a)  Annual fuel requirement for'1983 ($111,133,000) X tax rate (3%)
            equals $3,333,990.

        b)  Coal stockpile ($28,105,488) X (3%) equals $843,165.

D&M  -  Cost of the plant over its lifetime including:

        a)  Capital investment

        b)  Operating cost

        c)  Total cost

AP&L -  All value shown below are in 1983 dollars, assuming an 11*4% present
        worth value:

                    Operating Cost          $  11,863,000

                    Fuel Cost                 171,751,000

                    Ad Valorem & Sales
                      or Use Taxes             14,397,000

                    Capital Recovery           78,818,000

                            TOTAL           $ 276,829,000
                                      208

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                          EXHIBIT V    APPENDIX C
                          HELPING  BUILD  ARKANSAS
  ARKANSAS POWER & LIGHT  COMPANY.
            9TH & LOUISIANA STPEETS . LITTLE ROCK. ARKANSAS 78803 • (OO1J 378-4311
                                                                  •


                                    August  18, 1977
Mr. Robert T. Mott
Dames ft Moore
500 Sansome Street
San Francisco, CA  94111
Dear Mr. Mott:

        Enclosed is a schedule  showing  estimated  sales  taxes and income
taxes associated with Arkansas  Coal Units  1 and 2.  This  is  in response
to items 2 and 3 of your June 29 memorandum to Mr. Joel Patterson.

        If you have any questions concerning  the  figures  or  the method
of development, please advise us.
                                     Sincerely,
                                    J.  H. Flynif
JHF/skw

cc:  Messrs. John Harton
             Joel Patterson
             Jim Hanson
             Nathan Langston
Enclosure
                                   209
                                   . ...til

 TAX PAYING. INVESTOR OWNEO  f-'ji* O MEMBER MlUni I am IT 1.1 i ITI. ,-r..

-------
             SOCIO-ECONOMIC EVALUATION-ARKANSAS COAL UNITS  1 &  2
1.  Estimated sales tax on sales  of energy from plant in first  full
    year of operation:
                                               »

    .     1983 - Unit 1       $  4,044,000
         1985 - Unit 2         3,407,000

    Based on 65% load factor for  700 MW unit.   Energy priced at
    average rate per KWH in projected  year for  sales to  ultimate
    customers.  Three percent sales tax rate applied.
2.  Estimated State and Federal Income Taxes generated:

         1983 - Unit 1       $ 9,427*000
         1984 - Unit 1         9,324,000
         1985 - Unit 2         8,812,000

    Based on 407. ownership by AECC and Jonesboro with no income
    taxes payable by them.
8/18/77
CORPORATE PLANNING
                                 210

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     APPENDIX H




COMMUNITY COHESION

-------
                                    EXHIBIT I                         APPENDIX H
Arkansas State University
DIVISION OF GENERAL BUSINESS AND ECONOMICS
           COLLEGE Or BUSINESS
              P O DRAWl R O
      STATE UNIVERSITY. ARKANSAS I Hi!
     TELEPHONE 501 Oil 3037 JONESBORO
                                          August 16, 1977
           We are currently  involved in a research project to  determine the
       possible effect of building the proposed Arkansas Power  & Light
       generating plant in your area.  The enclosed questionnaire is designed
       to  gather information  about your opinion on certain quality of life
       factors.  The success  of the project depends on your cooperation.

           The questionnaire that we are asking you to complete is divided
       into eight basic areas.  Each question  is considered to  be important
       to  the overall results of the study. Please read each question carefully
       and record your answer as you see fit—there are no right or wrong
       answers.

           We wi.J.1 
-------
                                         EXHIBIT II
                                         QUESTIONNAIRE
                                                                       APPENDIX H
1. Do you hold an elective or appointed office
   in your down, county or area?
   NO
   YES
     (If yes, give title:
..'.  Please give the name of your city or town:
   Located in
                                County.
3.  In your opinion,  will your community welcome
   the construction  of the AP&L generating
   plant at the proposed location in your area?
              NO
                NO OPINION
4. Do you believe that the population of your
   ajrea favors in dustrial development?

   YES	  NO	  NO OPINION	

5. Have new residents in your community been
   generally well accepted in the past?
                                                    YES
                                                       NO
                    NO OPINION
6.  Do you think that the relatively large
   number of new residents associated with the
   construction and operation of the proposed
   AP&L facility will be accepted by the
   members of you community?
                                                    YES
            NO
NO OPINION
   7.  Mow would you rate the residents of your area on their local pride and support of
      civic activities that lead to community improvement?
                                (PLEASE CHECK ONLY ONE ANSWER)

      	a.  Generally not interested in any improvements.

      	b.  Some  effort is given to improvements in the community.

      	c.  Some  people or groups are generally seeking improvements in the community.

          d.  Extremely active in seeking any improvement for the community.
   8.  The  points  included in the following list contribute to the quality of life.   If the
      proposed  AP&L plant is constructed in your area,  and accepted environmental standards
      are  followed, how do you think each of the listed factors will be effected?
Positive
           No
                      (PLEASE PLACE A CHECK AT THE SIDE OF EACH STATEMENT)

                      Harmful    No
                               Opinion
                                       1.  Water (Riversf  streams,  lakes)

                                       2.  Air (Smoke,  pollutants,  odors)

                                       3.  Noise levels

                                       4.  Sources of Energy

                                       5.  Natural resources of the area

                                       6.  Traffic on area roads and highways

                                       7.  Recreation sites or wildlife areas

                                       8.  fiafoty of the: community

                                       9.  Cultural or historical factors of the area
                                               212

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                                           EXHIBIT III
                                         QUESTIONNAIRE
                                                                  APPENDIX  H
1. Do you hold an elective or appointed offiqe
   in your town, county or area?
   NO
   YES
(If  yes,  give title:
..'. Please give the name of your city or town:

           Newark                	
   Located in
      Independence
                                County.
3.  In your opinion, will your community welcome
   the construction of the AP&L generating
   pKmt at the proposed location in your area?
              NO  2
            NO OPINION —
                                           4. Do you believe  that  the  population of your
                                              area  favors  in  dustrial  development?

                                              YES  8   NO  2    NO  OPINION —

                                           5. Have  new residents in  your community been
                                              generally well  accepted  in the past?

                                              YES  10  NO  —    NO  OPINION —
6. Do you think that the relatively large
   number of new residents associated with the
   construction and operation of the proposed
   AP&L facility will be accepted by the
   members of you community?
                                              YES  3    NO_
                    NO OPINION
   7.  How would you rate the residents of your area on their local pride and support  of
      civic activities that lead to community improvement?
                                (PLEASE CHECK ONLY ONE ANSWER)

       — a.  Generally not interested in any improvements.

       — b.  Some effort is given to improvements in the community.

      _8	c.  Some people or groups are generally seeking improvements in the community.

       2  d.  Extremely active in seeking any improvement for the community.
   8.  The points included in the following list contribute to the quality of life.   If  the
      proposed APSL plant is constructed in your area, and accepted environmental standards
      -
-------
                                          EXHIBIT IV
                                         QUESTIONNAIRE
                                                                  APPENDIX  H
1. Do you hold an elective or appointed office
   in your town, county or area?
   NO
   YES
(If  yes,  qive  title:
   Please give the name of your city or town:

         Batesville
   Located in    Independence
                           _Coun ty.
3.  In your opinion,  will your community welcome
   t:ho construction  of the AP&L generating
   plant at the proposed location in your area?
   YES  18
    NO  3    NO OPINION  —
4. Do you believe that the population of your
   area favors in dustrial development?

   YES 20   NO 1    NO OPINION —

5. Have new residents in your community been
   generally well accepted in the past?

   YES 21   NO —   NO OPINION —
6. Do you think that the relatively large
   number of new residents associated with the
   construction and operation of the proposed
   AP&L facility will be accepted by the
   members of you community?

   YES 19   NO 2    NO OPINION —
   7.  How would  you rate the residents of ypur area on their local pride and support of
      civic activities that lead to community improvement?
                                (PLEASE CHECK ONLY ONE ANSWER)

       — a.  Generally not interested in any improvements.

       ~~ b.  Some  effort is given to improvements  in the  community.

      __9_c.  Some  people or groups are generally seeking  improvements in the community.
       1 2  d.  Extremely active  in seeking  any improvement for the community.
   U.  The  points  LncJudcd in the  following list contribute to the quality of life.   If the
      proposed  APSL plant is constructed in your area,  and accepted environmental standards
      are  followed,  how do you think each of the listed factors will be effected?

                      (PLEASE PLACE A CHECK AT THE SIDE OF EACH STATEMENT)

      Positive    No    Harmful    No
               Effect:   Effect  Opinion

                                       1. Water (Rivers, streams, lakes)

                                       2. Air (Smoke,  pollutants, odors)

                                       3. Noise levels

                                       4. Sources of Energy

                                       5. Natural resources of the area

                                       6. Traffic on area roads and highways

                                       7. Recreation sites or wildlife areas

                                       8. Safoty of the commun.ity

                                       9. Cultural or historical factors of the area

                                               214
• 3
__
	
13
2
6
3
2
H
14
12
1.7
4
14
4
.1.4
14
1. 1
2
4
1
— _
4
9
1
2
1
2
5
3
4
1
2
3
3
1

-------
                                           EXHIBIT V
                                         QUESTIONNAIRE
                                                                   APPENDIX H
1. Do you hold an elective or appointed office
   in your town, county or area?
   NO
   YES
(IE  yes,  qive title-.
   Please qive the name of your city or town:

         OilTrough	
   Located in   Independence
                           _County.
3.  In your opinion, will your community welcome
   the construction of the AP&L generating
   plant at the proposed location in your area?
              NO  1
            NO OPINION —
4. Do you believe that the population of your
   area favors in dustrial development?

   YES  9    NO  1    NO OPINION  —

5. Have new residents in your community been
   generally well accepted in the past?
                                          YES 9
            NO —
NO OPINION  1
6. Do you think that the relatively large
   number of new residents associated with the
   construction and operation of the proposed
   AP&L facility will be accepted by the
   members of you community?
   YES  9    NO —
NO OPINION  1
   7.  How would you rate the residents of ypur area on their local pride and support of
      civic activities that lead to community improvement?
                                (PLEASE CHECK ONLY ONE ANSWER)

      _l _ a.  Generally not interested in any improvements.

       3   b.  Some effort is given to improvements in the community.

       4   c.  Somo people or groups are generally seeking improvements in the community.

       2   d.  Extremely active in seeking any improvement for the community.
   B.  The  points included in the following list contribute to the quality of life.  If the
      proposed AP&L plant is constructed in your area, and accepted environmental standards
      ci ro  followed, how do you think each of the listed factors will be effected?

                      (PI.KASI-J PLACE A CHECK AT T.1IK SIDE OF EACH STATEMENT)
                 No
                      Harmful
                                 No
       ;LL1'if;J:   r'lf J-£I; ^  Affect  Opinion
         2
1
7
3
3
9
2
6
6
8
                                       1. Water (Rivers, streams, lakes)

                                       2. Air (Smoke, pollutants, odors)

                                       3. Noise levels

                                       4. Sources of Energy

                                       5. Natural resources of the area

                                       6. Traffic on area roads and highways

                                       7. Recreation sites or wildlife areas

                                       8. Safety of the community

                                       9. Cultural or historical factors of the area

                                               215

-------
                                           EXHIBIT  VI
                                         QUESTIONNAIRE
                                                                   APPENDIX H
1. Uo you hold an elective or appointed office
   in your town, county or area?

   NO
   YES
(If  yes,  give title:
..'.  Please give the name of your city or town:

         Newport                      	
   Located in   Jackson
                            County.
3.  In your opinion, will your community welcome
   the construction of the AP&L generating
   plant at the proposed location in your area?
   YES  23
    NO  —   NO OPINION  —
4. Do you believe that the population of your
   area favors in dustrial development?

   YES 23    NO —   NO OPINION —

5. Have new residents in your community been
   generally well accepted in the past?

   YES 21    NO 1    NO OPINION 1

6. Do you think that the relatively large
   number of new residents associated with the
   construction and operation of the proposed
   AP&L facility will be accepted by the
   members of you community?

   YES 22    NO —   NO OPINION 1
   7.  How would you rate the residents of your area on their local pride and support of
      civic activities that lead to community improvement?
                                (PLEASE CHECK ONLY ONE ANSWER)

      _--^_a.  GeneraJ.ly not interested in any improvements.

        2 b.  Some effort is given to improvements in the community.

       12 c.  Some people or groups are generally seeking improvements in the community.

        9 d.  Extremely active in seeking any improvement for the community.


   0.  The points included in the following list contribute to the quality of life.  If the
      proposed AP&L plant is constructed in your area, and accepted environmental standards
      cire followed, how do you think each of the listed factors will be effected?

                      (PLEASE PLACE A CHECK AT THE SIDE OF EACH STATEMENT)

                                 No
                               Op i.ni.on

                                  1    1. Water (Rivers, streams, lakes)

                                  5    2. AjLr (Smoke, pollutants, odors)

                                  1    3. Noise levels

                                  5    4. Sources of Energy

                                  4    5. Natural resources of the area

                                  4    6. Traffip on area roads and highways

                                  2    7. Recreation sites or wildlife areas

                                  3    8. Safety of the community

                                  3    9. Cultural or historical factors of the  area

                                               216
>/; i 1 i wo
•: r 1 1 • < : i.
4


15
6
5
7
•5
7
No !l,i r ml u 1
KMc-cl KITect.
1.6 2
18
22
3
12 1
13
14
15
1.3

-------
                                                                                 APPENDIX H
                                     EXHIBIT  VII
V oIu  B  e  2  -  Number   19         Newark.   Arkansas   72562

                      T  h u  r  s d a Y7  June   30,   1977
              Location    Still   Uncertain
                Arch P. Pettlt, president of
              Arkansas Power and Light Co..
              speaking on a Jonesboro tele-
              vision program, saiil the deci-
              sion on the location of the pro-
              posed  plant should be made by
              AP&L officials within 90 days.
              He saiil  the decision Is crucial
              because  AP&L  is "running out
              of time."
                Petttt  strongly denied reports
              Sunday that a decision has been
              made  on the location of a pro-
              posed  $*700 million power plant.
                A   Memphis newspaper re-
              ported earlier this week that
              AP& L will announce next month
              that, the plant will be construct-
              ed at Newark In independence
              county, one of five sites under
              consideration by the utility.
                Pettit  denied that report.
                "I can assure you that as of
              this point In time, we have not
              made  a final determination as to
              the exact location of that facil-
              ity," Pettit  said.   ^  ,,. , ;.
               . Further,'  'Pettit did not rule
              out  the  possibility that AP&L
              would use Aikansas lignite as
              fuel for the new facility.  He
              said  If  AP&L  chooses to use
              lignite,  then the best  location
              for  a  new  power  plant would
              be along the Ouachlta River in
             ^Siiulh   Arkansas.  AI'&I.  Is
              studying two possible  situs in
              that area.            '
  Pettit said, however, that a
review  of  AP&L's  fuel  re-
sources shows that a coal-fired
plant probably would be the best
alternative as a fuel source for
the  new  plant.   In that case,
Pettit said the Newark location
was "essentially" a good loca-
tion for a power plant  because
coal for the plant would be ship-
ped to Arkansas from Wyoming.
  "If  that  becomes  the case,
then the facility will be  located
in the north part of the  state,"
Pettit said.
  The Tri County Journal made
a telephone survey this week, In
order to sample the feelings of
the people in this area regard-
Ing the proposed electric gene-
rating  plant that   Arkansas
Power & Light Company Is plan-
ning  to construct.  Newark Is
one  of  five sites In  the  state
being considered. The proposed
local site Is  four miles south-
east  of Newark on Ark.  Hwy.
69  S., la the vicinity o*  Swan
Pond.        .,      ,  .   ....
  The question asked was; "Are
you  in  favor of the  proposed
.AP&L electric generating plant
being  built  in  this  area?"
  Of  the 200 persons  contacted
by phone, this was the finding;
142  were in favor of the  plant
being  built, 32 were opposed,
and  20 did  not have an opinion.
                                            217

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                            KXHIB1T  VIII
               "CoimtU'iT ia I. Appo.'il"  -  Memphis,  TN
                         August 2'-i,  I')/.7
                                                                  API'KNDTX  H
Restaurantless Newark
     Views Future  Boom
  With  Mixed Emotion
              By F.I.I/.AKKTH FAIR
       From The fomm»r< 1*1 Appdtl
       Jortrvboro. Aik., RtirfBu

         NKWAKK, Ark. - Newark has 849 citi-
       zens,  four gas stations, two grocery
       stores, a general store, drug store, furni-
       ture store, laudromat and no restaurant —
       its hopes of getting a Dairy Queen only
       recently were dnshcil.
         I'lir.  in n few years  a 1673 million,
       l.MKl  megawatt, coal-burning power plnnt
       and even sooner the rx-nple, problems and
       profits from its construction.
         "They made .1 joke about us the other
       day in the Bate.wille Guardian  (news-
       paper)," said  Kosemary Williams,  the
       mayor of Newark.
         "Twenty-seven restaurants in Batesville
       and not a place to Ret a cup of coffee in
       Newark. Well, we thought we  were going
       to get a Dairy Queen, but they backed out
       on us."

         Tuesday in the  Newark High School
       cafetorium Arkansas  Power  and Light
       officials directed a coffee and doughnut'
       hoopla to officially  announce their choice
       of the Newark  site. (The Commercial Ap-
       peal reported the selection June 21.)

         For the city,  the new site will mean as
       many ns 1,000 new workers from the time
       the plan! begins construction in 1979 to its
       operation in 1983, earning a total of $64:
 million A fifth of those workers will stay
 indefinitely, earning W million each year.

  The Newark School District, located
 across two city blocks, will receive $8 mil-
 lion each year in ad valorem taxes  —
 mure than 10 times its current budget

  All of which indicates a booming future
 for a town without a restaurant and a tiny
 high school, a future that some arc view-
 ing a little skeptically, Mayor Williams
 said.
  "Kach resident you talk with will feel a
p little bit different about  the  plant," she
' said.  "I think the banker's quite pleased
! with the deal and I'm sure the businesses
 are. Rut a few people with asthma and the
'• like- they aren't real pleased."
   Mayor Williams, who at 58 decided to
 run for mayor and get a college education,
 described the problem the city faces in
 having the energy plant.
   "We are mostly retired and elderly peo-
 ple at the present time. A lot of people
 come here from Michigan and Illinois,  and
 this would sort of spoil the retirement-
 village idea they have," she said.
   "But we c.'m't mess up progress for a
 few people. There are those who arc mak-
 ing their living  here that were born  and
 raised here -- and  their ancestors were
 here — and they need something, too.
   "They feel their children are growing
 up and going to college and then going
 somewhere else to live," she said.
   "Whv. my three boys don't live here be-
 cause they have better jobs elsewhere."
                                218

-------
                                                                      APPENDIX  H
                         EXHIBIT  IX
         "Commercial  Appeal" -  Memphis,  TN
                     August  24, 1977
 Pettit  Tells  Newark
 Power Plant Plans
from The Commercial Appeal
Jonesboro, Ark.. Bureau

  NEWARK, Ark. - The new Independ-
ence steam electric station  to  be  built
near here will burn low-sulfur Wyoming
coal, but  Arkansas  lignite, a low-grade
coal, could be the fuel source for a future
power plani, the  president of Arkansas
Power and l.iRhi Co snid here Tuesday.
  Arch  Pettit, speaking at the official an-
nouncement of the Newark site for the
J672-million power plant,  said AP&L is
continuing  to look for  sites  for future
plants.
  Ugnite "will obviously be one of the
things we look at," Pettit said. "Now that
this plant  is. located and sited, you move
rich! on to look where the next one is
going to go."

  However, Pettit said such a plant would
have to be built  near the  lignite source.
Most of the lignite in the state is in South
and Central Arkansas.
  AP&L representatives were joined by
officials of the Arkansas Electric Cooper-
ative Corp. and the Jonesboro city Water
and Light Department.
  The cooperative will own 35 per cent of
Independence station and Jonesboro 5 per
cent. The  three  utilities  wilJ file  joint
applications with the state  Public Service
Commission to build the plant.

  The station to be built on a 3,000-acre
site on the  White River near here will be
nearly identical in size and design to the
White Bluff station currently under con-
struction at Rcdficld near Pine Hluff.

  If the PSC gives its approval, construc-
tion of the  first unit al the Independence
stnlioii would bt'Kin in  1979. It would go
into operation in  I9H.1. The second unit is
scheduled for operation in 198S.
  Pettit said Newark was chosen as the
best  of five  acceptable sites  because-
Newark was both economically and envi-
ronmentally suited for the type of station
needed.
  AP&L said  the only  water discharged
into the White River from the station will
be from the cooling tower. The water will
contain only the normal minerals that are
in the original river water, officials said.

  The Newark plant would not use "scrub-
bers,"  expensive  devices that  remove
some of the pollutants before entering the
atmosphere, Pettit said. Scrubbers could
be added at a later date.

  Water to the cooling towers  will be
pumped indirectly from ihe nearby White
River.
  Fly ash and solid wastes generated from
the plant would be placed in special dis--
posal areas.
  "When you recognize that the money
you are spending is going  to intangible
things, which I'm in agreement with — we
need clean  air and clean water — that is a'
problem," Pettit said.
  "We've seen the  point of view of taking
an area that had some pollution in it and
taking it back to a pristine area overnight.
  "The  money  that's  involved  in  time
frame  and  ecology available  to us just
doesn't lend itself to doing that," he said.
                             219

-------
                                   EXHIBIT X
                    "The  Jonesboro Sun" - Jonesboro,  AR
                               August  23, 1977
                                         APPENDIX  H
 Power   Answers    Given
         Hy RUSTYSTAHR
   Jonesboro's next  electrical power
  question may have been  answered
  today in the small town of Newark in
  Independence County.
   Arkansas Power and Light officials,
  in conjunction with the Arkansas Elec-
  tric  Cooperative Corp. (AICCC)  and
  Jonesboro's'.City Water  and Light
  (CW&L) officially announced plans to
  construct a  $672  million  coal-fired
  generating  station  with  a  1,600
  rnegi'V'K  capacity.  The  two-unit^
  station is scheduled to go on-line in 1983
  with 800 megawatts and in 1985 with
  l.fiOO.
   The plant will be constructed on the
  White River,  off Arkansas 69, a few
  miles east of Newark.
   Although CW&L recently agreed to .
  purchase 70 megawatts from AP&L's i
  White Bluff plant, a question was still .•
  unanswered.  In  1985, Jonesboro's con- i
  tract with the  Southwestern Power t
  Adrninistation (SPA)  runs out.  The >
<*SPA is  expected  to  convert i
:  Jonesboro's  54  megawatts  of  firm i
.  power to peaking power. That would ;
  give  Jonesboro 80  megawatts  of •
i  peaking power  from SPA, but would
  leave CW&L  looking for firm power
  sources.
f   Purchased  power  from AP&L would
s  far  exceed the cost of present SPA ,
0  hydro-electric power. The White Bluff
  project was designed to help alleviate
  the  problem, but  Jonesboro's  con-
  tinued growth will require even more
  power.
   William R. Stuck, chairman of the
  CW&L Board of Directors, explained
  that Jonesboro's electrical needs were
  growing by 10 per cent each year when
  he  spoke  this  morning  at  AP&L's
  announcement  meeting  in the  high
  school auditorium at Newark.
   Part of the White Bluff arrangement
  allows for CW&L to  purchase five per
  cent  of  all future AP&L generating
  plants. Marion  Ulmcr,  manager of
  CW&L,  didn't  say  whether  or not
  Jonesboro would commit to purchase
  five  per cent  of the Independence
  County plant, lint noted that lh<- com-
  pletion date "dovetails with the SPA
  proposal to convert."
  He added,  "All  the financing  we
linve done so far was done with future
projects in mind."
  At this point, CW&L would turn the
question of joining the Independence
plant  over  to their  consulting
engineers  —  R.  W.  Beck and
Associates  Ulmer said the  firm will
probe the financial situation and the
future electrical i|eeds of Jonesboro.
  Reeves  Ritchie,  chairman of the
AP&L  Board,  said  after  today's
meeting  that  the AECC  and CW&L
financial help at White Bluff expedited
the announcement of the Independence,
plant.
  "It obviously helped.... We were in a
cash flow crunch," said  Ritchie.  He
added that the announcement would
have eventually been made, because
AP&L's financial condition was slowly
improving a/ter a recent rate increase.
  Arch Pettit, president of AP&L, told
local residents that his firm would do
everything it could to satisfy the com-
munity  and regulatory agencies and
"have a plant we can be proud of." The
plant will burn  low-sulfur  Wyoming
coal  and is designed along the same
lines as the White Bluff plant. Pettit
noted that the two Independence units
were scheduled to be at White Bluff. A
Public  Service  Commission  ruling
changed those plans. The plant will
have 215 permanent employes and
numerous construction personnel.
  Stuck and Harry Oswald, general
manager of AECC, said there would be
a scramble for power in the mid-1980s
and  expressed  confidence  in  their
ability to buy into future AP&L ven-
tures.  Pettit  noted  that  other
cooperatives and municipal systems
may be added to the ownership list
before 1979, when the construction is
due to start.
  A Newark town meeting will be held
Aug. 31  at 7 in the evening in the high
school auditorium. Specifics of the con-
struction and environmental impact of
the  plant -will be discussed. CW&L
officials are scheduled to attend
  AP&L  officials were  hounded  all
weekend for an early release and some

      220
 members  of  the  news  media
 spnnilated correctly.  However,  the
name of the proposed  plant was  not
unveiled until today. It will be called
the Independence  Steam  Klectric
Station
  Ritchie said the name means more*
than  just a  location.  It  indicates
another move to reduce dependence on •
foreign  fuel  supplies for American
energy.
  If  Jonesboro  buys   another  80
megawatts, K will ryn 150 megawatts
by 1985. Jonesboro i? also on the road
to energy independence.             '

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                                                                APPENDIX  H
                     EXHIBIT XII
        "Commercial Appeal"  - Memphis, TN
                   August 22,  1977
Newark  Mayor  Happy
      About  AP&L  Decision
  NEWARK,  Ark. (AP) - Mayor Rose-
mary Williams of Newark said Sunday she
was happy with Arkansas Power & Light
Co.'s decision to build a $700-million, coal-
fired generating plant here because it will
help develop  the locality.
  Ms. Williams said the plant would help
the schools and "it will probably get us
better roads."
  "We hadn't solicited it at all," she said.
"They chose their own site. In 1975 they
asked what our opinion would be on build-
ing the plant here and to have a public
meeting."
  She said persons attending the meeting
were split "about 50-50" on whether the
plant should be  built here.
  (The Commercial Appeal reported earli-
er this summer that AP&L had selected the
Newark site among five others, but com-
pany officials steadfastly refused to con-
firm they had made the selection until Sat-
urday.)

  A company spokesman would not give
specifics Saturday of the utility's decision
to build the plant on the banks of the White
River about three miles southeast of here
and 14 miles  southeast of Batesville.
  Construction will be a joint effort by
AP&L, the Arkansas Electric Cooperative
Corp. which serves several Arkansas mu-
nicipalities, and  the  City  of Jonesboro
Light & Water Department.
  AP&L,  the  cooperative,  and the Jones-
boro utilities  will hold a news conference
Tuesday at Newark to announce the site
and financing and operating agreements
between the three to construct the plant.
  The agreement called for the cooperat-
ive to supply 35 per cent of the financing
for the new plant and the City of Jones-
boro to supply 5 per cent of the financing.
  AP&L began looking for a site for an-
other coal-fired plant in 1974 after the
state Public Service Commission approved
only 2 of 4 proposed 800-megawatt units at
the utility's Redfield  plant.
  The utility earlier this year entered into
financial agreements  in which the cooper-
ative would finance and own 35 per cent
and  Jonesboro 5 per  cent of the Redfield
plant, which is to be completed by 1982.

  Ms. Williams said  AP&L officials told
her "there would be a definite unveiling of
the  project Tuesday and asked me if I
would be there."
  The other four sites under consideration
were on the White River near Des Arc, at
Devil's  Bend on the Arkansas River in
Faulkner County and Tale's Bluff and Mill-
er's  Bluff  on the Ouachita River in Oua-
chita County.
                             221

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                                                                        APPENDIX  H
                       EXHIBIT XI
"The  Wall  Street Journal"  - Southwest Edition
                    August 23,  1977
   Middle South  Unit
   Plans  $672 Million
   Plant  in  Arkansas
       Xpreial li> THK WALLSTRKKTJOURNAL
     LITTLE  ROCK -  Arkansas Power  &
   Light Co., a  unit of Middle South  Utilities
   Inc.,  said it  plans to  build a $672  million
   power plant  consisting of  two  800,000-kilo-
   w;itt  generating units  on the White River
   near Newark  in north central Arkansas.
     A spokesman said the utility  already has
   agreed to buy 150 million tons of low-sulphur
   Wyoming coal from a joint  venture of a unit
   of Peabody Coal Co. and a unit of Panhandle
   Pi|N-I jne Co. to fin- the new plant during its
   30-year life. He wouldn't disclose the value
   of  tin1  contract.  A company source esti-
   mated the average price of  coal over the life
   of the contract at $15 a ton.  Including escala-
   tion but excluding transportation.
     Arch  I'.  Petlil, Arkansas Power presi-
   dent, said the company plans to file an ap-
   plication with the Arkansas Public  Service
   Commission before year-end  for permission
   to build  the plant. The utility said it hopes
   constmction  can begin by  the  fall of 1978.
   The plant's first unit is scheduled to start up
   in 1983, the second in 1985.
     The  utility originally sought  permission
   for the two units in 1974 when  it asked the
   commission for authority to build four 800,-
   000-kilowatt units at White Bluff on the Ar-
   kansas River about  30 miles south of Little
   Rock. At that time,  citing  environmental
   reasons, the  commission granted authority
   for only two  units at White Bluff. "The two
   units proposed for Newark are essentially
   the third ,unl fourth units planned for White
   Bluff," Mr. Pettit said.
  The Newark site was one of five studied
by Dames & Moore, an Atlanta environmen-
tal consulting firm, in a rejxirt filed in 1(.»7!>
during the company's three-year search for
a second plant site.
  The spokesman said details of the financ-
ing  plans  for  the  two  units won't be an-
nounced until the utility gets a hearing with
the  commission on the  proposal. However.
the  utility  said the financing plan probably
will include a proposal to sell part of the
Newark plant's generating capacity to Ar
kansas Kleclrtc Cooperatives Corp. ami the.
cily of Joneslxiro. a device used in financing
the  White  Bluff  plant.  Other municipal
power companies also are negotiating for a
jx-rcentage of  the plant's generating capa-
city.
                               222

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APPENDIX I




FOOTNOTES

-------
    White River Planning and Development District, Overall Economic Development
Program 1977 (Batesville; 1977), p. 44, and Independence County Industrial Park
Location Plan (Batesville, 1976), p. 16.

   2Ibid. , pp.  44,16.

   3Ibid. , pp.  45, 17.

   4Ibid. , pp.  45, 17.

   ^Arkansas State Highway and Transportation Department, Division of Planning
and Research.

   ^Manager, Newport Bus Depot and Wells Bus Line and Depot,  Batesville.

    A. Harvey,  City Manager, Newport.

   8Ibid.

   ^Federal Aviation Administration Flight Service Station, Jonesboro.

        Manning, Director, News Bureau, Arkansas State University.
  •^County Sheriffs, Independence and Jackson Counties.
         Collier, Planner, White River Planning and Development District,
Batesville.
          River Planning and Development District, Overall Economic Development
Program 1977, Appendix H.
     .S. Department of Commerce, Bureau of the Census, Population Estimates and
Projections, (Washington:  Government Printing Office), Series P-25, No. 40,
p. 12.

  16John M. Mattila and Wilbur R. Thomson, "The Measurement of the Economic
Base of the Metropolitan Area, (Land Economics , Vol. XXXI Number 3, August,
1955), pp. 215-228.

  17Ibid.  pp.  215-216.

  -^Source of those writing on the economic base concept:

Andrews, Richard B., "Comment re:  Criticisms of the Economic Base Theory,"
   Journal of the American Institute of Planners, Vol. 24 (1958).
                                   223

-------
Andrews, Richard B., "Mechanics of the Urban Economic Base," series of articles
   in Land Economics, Vols. 29 to 31 (May 1953 to Feb. 1956).

Alexander, John W., "The Basic-Nonbasic Concept of Urban Economic Functions,"
   Economic Geography, Vol. 30 (July 1954).

Blumenfeld, Hans, "The Economic Base of the Metropolis,  "Journal of the
   American Institute of Planners, Vol. 21 (Fall 1955).

Federal Reserve Bank of Kansas City,  "The Employment Multiplier in Wichita,"
   Monthly Review. Vol. 37 (Sept. 1952).

Barford, Borge, Local Economic Effects of a Large-Scale Industrial Undertaking,
   Copenhagen, 1938.

Daly, M. C.,  "An Approximation to a Geographical Multiplier,"  Economic Journal,
   Vol. 50  (June-Sept.  1940).

University of New Mexico, Bureau of Business Research, and Federal Reserve
   Bank of Kansas City, The Economy of Albuquerque, New Mexico, Albuquerque,
   1949.

Cincinnati City Planning Commission, Economy of the Area, Cincinnati, Ohio, 1946.

Hildebrand, George, and Arthur Mace, Jr.,  "The Employment Multiplier in an
   Expanding Industrial Market:  Los Angeles County, 1940-47, "Review of
   Economics and Statistics, Vol. 32 (Aug. 1950).

Hoyt, Homer, The Economic Base of the Brockton, Massachusetts Area, Brockton,
   Massachusetts, 1949.

Hoyt, Homer, and Weimer, Arthur M., Principles of Urban Real Estate, Ronald
   Press, Chapter 18, 3rd edition, 1954.

Leven, Charles L., "Measuring the Economic Base,"  Papers and Proceedings of the
   Regional Science Association, Vol. 2 (1956).

Leven, Charles L., Theory and Method of Income and Product Accounts for Metro-
   politan Areas, Including the Elgin-Dundee Area as a Case Study, Iowa State
   College, Ames, Iowa, 1958, mimeographed.

Mattila, J. M., and W. R. Thompson,  "Measurement of the Economic Base of the
   Metropolitan Area," Land Economics, Vol. 31 (Aug. 1955).

Mayer, Harold M., "Urban Nodality and the Economic Base," Journal of the
   American Institute of Planners, Vol. 20 (Summer 1954).

North, Douglass C., "The Spatial and Interregional Framework of the United
   States Economy:  An Historical Perspective,"  Papers and Proceedings of the
   Regional Science Association, Vol. 2 (1956).
                                    224

-------
Pfouts, R. W., and E. T. Curtis,  "Limitations of the Economic Base Analysis,"
   Social Forces, Vol. 36 (May 1958).

Roterus, V., and W. Calef,  "Notes on the Basic-Nonbasic Employment Ratio,"
   Economic Geography, Vol.  31 (1955)

Steiner, Robert L., "Urban and Inter-Urban Economic Equilibrium," Papers and
   Proceedings of the Regional Science Association, Vol. 1 (1955).

Stolper, W. F., and Charles M. Tiebout,  "The Balance of Payments of a Small
   Area as an Analytical Tool,"  1950, mimeographed.

Thomas, Morgan D. , "The Economic Base and a Region's Economy,"  Journal of
   the American Institute of Planners, Vol. 23, No. 2 (1957).

Tiebout, Charles M. , "Exports and Regional Economic Growth," Journal of
   Political Economy, Vol. 64 (April 1956).

Tiebout, Charles M. , "A Method of Determining Incomes and their Variation in
   Small Regions,"  Papers and Proceedings of the Regional Science Association,
   Vol. 1 (1955).

Ullman, Edward L. , "The Basic-Service Ratio and the Area Support of Cities,"
   1953, mimeographed.

Wilson, Andrew W. , "The Supporting-Dependent Analysis of Income Payments to
   Individuals," Arizona Business and Economic Review, University of Arizona,
   Aug., 1955.

  •"John Kaminarides, An Economic Base Study for East Arkansas - An Analysis
of Regional Employment Specialization, Net Export Workers and Self Sufficiency,
Annals 1975, Midsouth Academy of Economists.

  20Ibid.. p. 3.

  21Mattila, op. cit. p. 219.

  22Detailed methodology is shown in Walter Izard, Methods of Regional Anal-
ysis;  An Introduction to Regional Science, (N.Y., John Wiley & Sons Inc. 1960)
pp. 190-193.  Werner Z. Hirsch, Urban Economic Analysis, (New York, McGraw-
Hill Book Company) pp. 190-192.
  00
  "Charles M. Tiebout, The Community Economic Base Study, Committee for
Economic Development, Paper No. 16, 1962, p. 58.

  24Ibid. , p. 58.

  25ibid. , p. 60.
          River Planning and Development District, Independence County In-
dustrial Park Location Plan (Batesville, 1977), p. 12.
                                    225

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   2?Ibid.

   ^Arkansas  State Highway and Transportation Department,  Division  of  Planning
 and Research.

   ^International City Management  Association, The Municipal Yearbook  1977.
 (Washington,  D.  C.),  p.p.  94.

     Roland Mullins, Police and Fire Department Costs  in Arkansas  Municipalities.
(North Little  Rock, 1969),  p.  2.

   •^International City Management  Association, p.  95.
   oo
     Arkansas  State Health  Department.
                                    226

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                           PART 9
ENVIRONMENTAL MONITORING PROGRAM

-------
   TECHNICAL SUPPORT DOCUMENT



             PART 9



ENVIRONMENTAL MONITORING PROGRAM

-------
                               CONTENTS
                                                                 Page
9.0  ENVIRONMENTAL MONITORING PROGRAM	9.0-1
9.1  AIR MONITORING PROGRAM	9.1-1
     9.1.1  Pre-Operational Phase	9.1-1
            9.1.1.1  Sulfur Dioxide	9.1-1
            9.1.1.2  Nitrogen Dioxide	9.1-2
            9.1.1.3  Suspended Particulates	9.1-2
            9.1.1.4  Meteorological Monitoring 	 9.1-2
            9.1.1.5  Additional	9.1-3
     9.1.2  Post-Operational Monitoring Phase. . .   	 9.1-3
            9.1.2.1  Performance Tests 	 9.1-3
            9.1.2.2  Routine In-Stack Monitoring 	 9.1-4
            9.1.2.3  Sulfur Retention Tests	9.1-5
            9.1.2.4  Ambient Air Monitoring	9.1-5
            9.1.2.5  Supplementary Control System	9.1-6
9.2  AQUATIC MONITORING PROGRAM	9.2-1
     9.2.1  Pre-Operational Phase	9.2-1
            9.2.1.1  White River 	 9.2-1
            9.2.1.2  Wells, Lakes, Ponds, and Streams	9.2-4
     9.2.2  Post-Operational Phase 	 9.2-5
9.3  TERRESTRIAL MONITORING PROGRAM	9.3-1
     9.3.1  Pre-Operational Phase	9.3-1
            9.3.1.1  Vegetation Monitoring 	 9.3-1
            9.3.1.2  Soil Monitoring 	 9.3-2
            9.3.1.3  Miscellaneous Monitoring	9.3-3
     9.3.2  Post-Operational Phase 	 9.3-4

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                                TABLES
9.1-1     Summary of Pre-Operational and Post-Operational
          Ambient Air Monitoring 	   9.1-7
9.2-1     Chemical and Physical Test Parameters  	   9.2-6
9.3-1     Typical Vegetation 	   9.3-5

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                              PART 9
                 ENVIRONMENTAL MONITORING PROGRAM
     The major environmental  areas potentially impacted by the operation
of a power plant are air, water, and land use.  The purpose of the
following sections is to describe the monitoring program proposed for
these three environmental areas at the Independence Steam Electric
Station.
     Minor areas of environmental consideration normally include noise,
aesthetics, and solid waste.   For a coal-fired plant, such as the
Independence Steam Electric Station, solid waste is likely to be of
greater consideration.  While the monitoring of solid wastes will not be
undertaken specifically, the proposed monitoring of air and water will,
to a great extent, detect the effects of any improper handling or
disposal of solid wastes.
     The environmental monitoring program will be organized into two
phases:  pre-operational and post-operational.  During the pre-operational
phase, air, aquatic, and terrestrial information will be collected to
establish a baseline upon which future determinations concerning the
environmental impact of the Independence Steam Electric Station may be
based.  Pre-operational monitoring will assist in the confirmation of
preliminary assumptions concerning the baseline environment in the
vicinity of the plant.  Post-operational monitoring, following operation
of Unit One and continuing beyond full operation of the plant, will
provide:
      0   information from which a full assessment, in increments,
          of the environmental impact of the plant on the area can
          be developed.
      0   data whereby the atmospheric modeling program can be
          confirmed.
      0   information which will contribute to the determination
          of whether or not a supplemental control system will be re-
          quired for operation of the plant under the most adverse
          meteorological conditions.
                                    9.0-1

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     0   reference information for the determination of effects of
         future coal-fired power plants on the environs in which they
         are sited.  This information will contribute significantly
         to the future siting requirements relative to such plants.
     0   early warning of any unexpected, adverse effects which
         might occur, thereby permitting a rapid response to minimize
         such effect.
     The environmental monitoring program described in the following
sections is similar to that for the White Bluff Steam Electric Station,
a coal-fired generating station being constructed by the applicant at
Redfield, Arkansas.  This program will be tested at White Bluff prior to
implementation at the Independence site.  The results of the evaluation
of the elements of this monitoring program at White Bluff will provide
experience upon which to update and/or modify the monitoring program
proposed for the Independence Steam Electric Station.  The applicant
reserves the right to propose such modifications as are indicated from
new information available prior to implementation of the Independence
Steam Electric Station environmental monitoring program.
                                    9.0-2

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9.1  AIR MONITORING PROGRAM
9.1.1  Pre-Operational Phase
     Although the monitoring requirements of the Arkansas Air Pollution
Code and the Federal Standards of Performance for New Stationary Sources
pertain to monitoring after emission source operation begins, the appli-
cant proposes to begin ambient air quality monitoring before operation
commences to provide assurance of a functioning monitoring network at
the start of operation and to establish background conditions, both
average and peak levels, occurring in the site area at the time operation
begins.  Monitoring activities will be oriented toward the three major
pollutants recognized as being associated with coal-fired steam electric
stations: sulfur dioxide, nitrogen oxides, and particulate matter.  Pre-
operational monitoring will be initiated to obtain at least one year of
reliable background information for each of these pollutant classes
prior to beginning operation of Unit One.
9.1.1.1  Sulfur Dioxide
     Several methods of sulfur dioxide (S02) monitoring have been ap-
proved as equivalent methods. Among these are:
     0  Gas chromatographic separation with flame photometric detection
     0  Coulometric detection
     0  Coloimetric detection
     0  Molecular fluorescence with photometric detection.
The Philips analyzer uses the coulometric detection method.  The Meloy
analyzer uses a flame photometric detection method.  An analyzer manu-
factured by Thermo Electron illustrates use of the fluorescence prin-
cipal.  These instruments are representative of the continuous monitors
which will be employed to accomplish ambient sulfur dioxide monitoring.
Selection of specific equipment will be finalized closer to the date of
field deployment in order to insure that latest equivalency ratings are
taken into consideration.
     Four monitoring stations are proposed.  The exact location of these
stations will be based on a variety of considerations including atmospheric
                                    9.1-1

-------
modeling results, station accessibility, proximity of interfering sources
such as vehicular traffic, power availability, land acquisition, and
location of population centers and other sensitive receptor areas.  It
is anticipated that pre-operational stations will be located within a
distance of 1 to 5 miles from the plant site.  Final location selections
will be made taking into account experience gained from the post-opera-
tional White Bluff monitoring program.  Each monitoring station will be
located in a controlled-environment trailer capable of being relocated
as conditions and results may warrant.
     Sulfur dioxide monitors will be equipped with recorders which will
provide a continuous record of sulfur dioxide levels at each station.
Records will be retained for future reference and will be made available
to appropriate authorities on request.
9.1.1.2  Nitrogen Dioxide
     Two of the four stations at which SOp is to be monitored will be
equipped with continuous nitrogen oxides analyzers.  These will be of a
type designated as equivalent or reference methods.  These instruments
will be capable of monitoring both NO and NCL and will be equipped with
strip chart recorders to provide a continuous record of concentrations.
Records will be retained in storage for future reference.
9.1.1.3  Suspended Particulates
     Mass flow controlled high volume samplers will be utilized to col-
lect suspended particulates for measurement of total suspended particu-
lates in micrograms per cubic meter.  Selected filters will be retained
for possible later chemical analysis.  High volume samplers will be in-
stalled at each of the four monitoring sites.  All records developed in
the course of monitoring will be retained in storage for future reference.
9.1.1.4  Meteorological Monitoring
     It is recognized that meteorological conditions should be measured
concurrently with air quality data.  The principal meteorological para-
meters to be measured are wind speed and direction, temperature, and hu-
midity.  A 210-foot meteorological tower and associated instrumentation
will be installed at the Independence site.  Information obtainable from
                                    9.1-2

-------
this tower will include wind speed and direction (three elevations),
temperature (three elevations), and humidity (two elevations).  Rainfall
will also be measured.  Recorded data will be retained for future reference.
9.1.1.5  Additional
     In addition to the three pollutants normally associated with the
operation of a coal-fired power plant, which are discussed above, there
are other items of concern which will be monitored by periodic tests.
These include trace element and sulfate concentrations in Hi-Vol particu-
late samples.  Periodic tests of soil and vegetation will be performed
to check for effects such as change in soil acidity and trace element
content and changes in health of vegetation.  Tests will, for the most
part, be conducted in close proximity to the four pre-operational monitor-
ing sites.
9.1.2  Post-Operational Monitoring Phase
     The post-operational phase will commence with the operation of Unit
One at the Independence site.  The pre-operational monitoring system
will continue to function in the manner described.  Any augmentation of
this system will be initiated early enough to insure operation coinci
dent with the commercial operation of Unit One.
9.1.2.1  Performance Tests
     At the time that Unit One becomes operational, tests will be con-
ducted to measure  (1) coal sulfur content, ash content, heating value,
and consumption rate; (2) the quantity of sulfur dioxide and nitrogen
oxides leaving the stacks; and (3) stack gas opacity.  Test methods will
be in conformance with those outlined in Standards of Performance for
New Stationary Sources, 40 CFR 60.  Specific monitoring requirements
include:
     1.   Photoelectric or other type smoke detector and recorder (to
          monitor opacity).
     2.   Instrument for continuous monitoring and recording of sulfur
          dioxide emissions.
                                    9.1-3

-------
     3.   Instrument for continuous monitoring and recording of nitrogen
          oxides emissions.
     4.   Application of ASTM methods to determine coal sulfur content
          and heating value.
A file of all measurement records and reports will be retained for at
least two years and will be available to the appropriate authorities on
request.
     In addition to the above tests, a field performance test for par-
ticulate removal efficiency will be run on each of the electrostatic
precipitators within 60 days after achieving the maximum production
rate, but not later than 180 days after initial startup of each unit.
An additional performance test will be conducted on the electrostatic
precipitators under normal operating conditions, 9 to 12 months after
initial operation, without a shutdown to clean equipment prior to testing.
     The collection of emission data, the continued operation of the
four ambient air quality monitoring stations, and the collection of
meteorological data will constitute an analytical program designed to
accurately assess the effect of the plant on the local environment.
9.1.2.2  Routine In-Stack Monitoring
     For continuous monitoring of nitrogen oxides, the measuring instru-
ments will probably operate on the principal of absorption of electro-
magnetic radiation.  The gas sample will be passed through the sampling
cylinder of the monitor where it will be exposed to electromagnetic
radiation of a particular wave length, depending upon the constituent to
be measured.  The amount of incident radiation absorbed by the gas is
proportional to the concentration of the gas present.  In this manner
the amount of NO  in the flue gases will be measured directly and on a
                /\
continuous basis.  These monitors will trigger alarms in the control
room if concentration levels are too high.
     For particulate monitoring, the test equipment will probably in-
clude some type of light source transmitting a beam through the stack
gases and impinging upon a photoelectric device.  Since the amount of
light passing through varies directly in relation to the amount of
                                     9.1-4

-------
 suspended participate material present, such a system can be calibrated
 to continuously monitor the amount of particulates being emitted.  This
 system will also trigger alarms in the plant control room if particulate
 emissions reach unacceptable levels.
     Sample ports will be installed on the stack with provisions for
 power and safe access in accordance with accepted engineering practice.
 The sampling ports will permit the acquisition of additional data on
 sulfur oxide emissions to correlate with calculated emissions based on
 coal analysis.
 9.1.2.3  Sulfur Retention Tests
     Arkansas Power & Light Company has conservatively estimated that 10
 percent of total sulfur will be retained in ash.  Mass balance tests
 will be conducted to verify that 10 percent sulfur retention is, in
 fact, a conservative figure.
     The mass balance procedure will involve determination of the sulfur
 content of coal, sulfur content of ash, and sulfur emitted in flue
 gases.  This will provide accurate assessment of the amounts of sulfur
 dioxide which will be released to the atmosphere when burning the
 specific coal supplied to the Independence Steam Electric Station.
 Results of these tests will be submitted to the appropriate authorities.
 9.1.2.4  Ambient Air Monitoring
     If experience at White Bluff demonstrates the need for supplemen-
 tary monitoring, the pre-operational ambient air monitoring program at
 Independence Steam Electric Station will  be augmented prior to startup
 of the first unit by the addition of a monitoring station at a range of
 10 to 15 miles, and the acquisition of portable S0? and NO  instruments
                                                  £.       /\
which can be operated in a vehicle.  The portable instruments will
 permit a much greater flexibility for detection of concentrations of
 these two pollutants over a much broader area and in accordance with
 daily wind characteristics.  In addition,  high volume samplers will  be
 placed on at least three sites along the plant boundary for the primary
 purpose of registering the effect of fugitive dust emissions.  A summary
of both pre-operational  and post-operational  ambient monitoring components
                                    9.1-5

-------
is shown in Table 9.1-1.  Data collected from the post-operational
program will be made available at any time upon request, and will  be
summarized and submitted routinely to appropriate agencies on a quarterly
basis or more frequently as required.
9.1.2.5  Supplementary Control System
     Based on available information concerning coal  quality, on assump-
tions related to ash sulfur retention, and on reasonable modeling  tech-
niques and assumptions, it appears that the Independence Steam Electric
Station as designed will meet all State and Federal  standards without
the need for a supplementary control system (SCS).  Compliance with
ambient standards will be thoroughly confirmed through operation of the
post-operational monitoring program with its combination of fixed  and
portable measurement stations. Since modeling results for both units in
operation indicate that the Arkansas 30-minute Sp? standard will be
approached more closely than other standards, particular attention will
be paid to evaluation of compliance with this standard.
     Should monitoring results obtained after one or both generating
units are in operation indicate than an ambient standard is being
exceeded on infrequent occasions, permission will be sought to implement
a supplementary control system involving reduction in plant load during
those periods determined to result in highest concentrations.
     Since the need for an SCS does not appear pressing at this time,
the details involved in such a system are not presented in this ap-
plication.  It is anticipated that equipment already planned for the
post-operational monitoring program will be sufficient to provide  the
foundation for implementation of an SCS.  Probably the only supplemental
components needed will be a better means of monitoring upper air meteoro-
logical data at levels of interest and a means of telemetering ambient
S02 measurements to a central location for timely automated data proces-
sing. Upper air data would most likely be collected  from periodic
balloon soundings.
                                     9.1-6

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                                  Table 9.1-1

                       Summary of Pre-operational  and
                    Post-operational  Ambient Air Monitoring
Pollutant
Sulfur Dioxide
Sulfur Dioxide
Sulfur Dioxide
Sulfur Dioxide
Sulfur Dioxide
Sulfur Dioxide
Nitrogen Dioxide
Nitrogen Dioxide
Nitrogen Dioxide
Particulates
Particulates
Particulates
Particulates
Particulates
Particulates
Particulates
Particulates
Tentative
Monitor
Locations
2-5 mi
2-5 mi
2-5 mi
2-5 mi
Portable
12-15 mi
2-5 mi
2-5 mi
Portable
2-5 mi
2-5 mi
2-5 mi
2-5 mi
Plant Boundary
Plant Boundary
Plant Boundary
12-15 mi
Sample
Frequency
Continuous
Continuous
Continuous
Continuous
Continuous
Continuous
Continuous
Continuous
Continuous
Weekly/24 hr.
Sample
Weekly/24 hr.
Sample
Weekly/24 hr.
Sample
Weekly/24 hr.
Sampl e
Weekly/24 hr.
Sample
Weekly/24 hr.
Sample
Weekly/24 hr.
Sample
Weekly/24 hr.
Pre-
Operational
Phase
X
X
X
X


X
X

X
X
X
X




Post-
Operational
Phase
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
                                        Sample
Soil, vegetation, and precipitation samples will be collected and analyzed at
random intervals during both the pre- and post-operational phases.
                                          9.1-7

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9.2  AQUATIC MONITORING PROGRAM
     The needed onsite monitoring program is defined by the National
Pollutant Discharge Elimination System (NPDES) permit.  This permit
defines the effluent limitations, onsite monitoring requirements, and
compliance schedules.  The following proposed aquatic monitoring program
of the potentially impacted water bodies in the vicinity of the Inde-
pendence site is voluntary and has the purpose of determining the
operational effects of the Independence Steam Electric Station upon the
natural hydrologic environs.  Monitoring activities will be oriented
toward the principal hydrologic elements:  the White River, wells,
lakes, ponds, and streams in the site vicinity.
9.2.1  Pre-Operational Phase
     The pre-operational aquatic monitoring program will provide at
least one year of reliable background information concerning the status
of existing water systems within the vicinity of the Independence site.
These data will be in addition to that collected previously and reported
in the Environmental Impact Statement.
9.2.1.1  White River
     Aquatic monitoring programs conducted by electric utilities are
usually designed to determine the effects upon aquatic ecosystems re-
sulting from once-through circulating water systems.  The Independence
Steam Electric Station will use natural draft cooling towers and con-
sequently, the concern regarding thermal discharges will be less signi-
ficant.  However, the blowdown from the cooling towers will be returned
to the White River, and some slight changes in the chemical composition
of the river water within this blowdown plume will result.
     Runoff from the plant site will be collected and treated prior to
entering the makeup stream, and ultimately the blowdown.  Therefore,
surface water pollution from this source is not expected to be signi-
ficant.  Should it occur, it would be detected in the results of the
monitoring program conducted in the White River.
     The aquatic monitoring program will be designed to obtain data on
existing chemical, physical, and biological characteristics of that
                                    9.2-1

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stretch of the White River subject to influence by the Independence
Steam Electric Station.  It is proposed that three sample points be
designated for observation, one of which will function as a control
point during the post-operational phase of the monitoring program.  Data
collected would be identical for each site.  The sites should be located
to ascertain:
     1.   Existing and continuing ambient levels outside the influence
          of the plant,  (upstream)
     2.   Levels in proximity to the plant discharge at a point which is
          anticipated to be at the 25 percent mixing zone.
     3.   Existing and continuing ambient levels following complete
          mixing of the plant effluent with the river (downstream).
     Within the three major sampling classifications, the White River
monitoring program may be defined as indicated below.  Complete records
of all tests will be maintained, and a semi-annual summary report
prepared.
Chemical and Physical
     Tests will be conducted at quarterly intervals for at least the
first year to measure the naturally occurring levels of the parameters
indicated in Table 9.2-1.  Subsequent frequency of testing will be based
on the results of this first-year program.  In general, test procedures
to be used will conform to the guidelines contained in Standard Methods
for the Examination of Water and Wastewater, or similar references.
Instrumentation is prescribed under each test procedure.
     The major physical consideration is temperature.  A portable oxygen
meter with an automatic temperature compensating oxygen probe will be
used to measure dissolved oxygen, and will also provide the necessary
temperature data.  The Arkansas standards prescribe a sampling depth of
5 feet or middepth, whichever is less for determining compliance with
the 93°F maximum and 5°F rise limits.
                                    9.2-2

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     During these tests, additional observations will  be made for unusual
colors, odors, solids, floating material, oil, grease and/or deposits.
These will be reported for the period.
Biological
     Pre-operational biological sampling will be conducted to supplement
data which were collected in conjunction with preparation of the EIS.
The two sets of data, together with information available from the
literature, will provide a good understanding of the types and abundance
of aquatic organisms which occur in the site area.
     Sampling activities during the pre-operational period will be
conducted near the three stations at which water quality is to be moni-
tored.  These stations will be in the vicinity of stations monitored
during the data collection surveys for the EIS in order to permit
meaningful comparison of results.  During the first year of the pre-
operational program, sampling will be conducted once each during the
fall, spring, and summer.  After this period, an assessment of the
sampling frequency will be made and the program adjusted, if appropriate,
in light of results of the first year's data collection.  Currently, it
is anticipated that semiannual sampling will be sufficient after the
first year.
     The major components of the aquatic ecosystem which will be studied
during the pre-operational program include:  phytoplankton, periphyton,
zooplankton, benthic macroinvertebrates, and fish.  Each of these compo-
nents, with the exception of periphyton, will be collected during each
sampling effort; periphyton will be collected only once a year.
     Collection methods for each component will be similar to those
described in TSD Part 5 in order to facilitate comparison of the data
collected during each sampling program.  In addition,  because of the
gravel bottom, it is anticipated that pre-operational  sampling for
benthic macroinvertebrates will include the use of a Surber sampler
whenever river conditions permit.  It is likely that fish sampling tech-
niques will be limited to seining and gill netting, as river level
                                  9.2-3

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conditions permit, since the previous use of fyke nets yielded only a
very limited amount of additional information.
     Identification of phytoplankton and zooplankton specimens collected
during the spring period will be conducted to the lowest practicable
taxonomic level; during other collection periods, classification will be
made only among major groupings such as Chlorophyta and Cyanophyta for
phytoplankton and Rotatoria and Copepoda for zooplankton.  Periphyton
identification will be made only to the generic level.  However, benthic
macroinvertebrate and fish specimens will be identified to the lowest
practicable taxon during each collection period.
9.2.1.2  Wells, Lakes, Ponds, and Streams
     The proposed utilization of holding, treatment, and disposal ponds
at the Independence Steam Electric Station will present the potential
for ground water contamination.  Although preliminary studies indicate
soil composition will restrict leachate from the various ponds from
entering the ground water, a monitoring network will be established to
provide early detection of the extent and nature of leaching, if any.
Offsite wells will be sampled to provide a reference point for any
future comparisons.
     One of the mechanisms for removal of sulfur dioxide from the
atmosphere is by rainout or washout.  Although effects are expected to
be virtually undetectable, it is considered prudent to obtain a broad
range of chemical information on streams, lakes, and ponds in the
vicinity of the plant to confirm the expectation of insignificant effects.
     Sampling of selected wells, lakes, ponds, and streams within a 15-
mile radius of the Independence site will be undertaken to define the
existing chemical and physical quality of these existing offsite water
systems.  Effects of leaching, if any, are expected to occur in a south-
easterly direction from the plant site.  Ground water tests (wells)
should be concentrated in this direction, and as close to the site
boundary as possible.  Wells tested on the right bank of the White River
will not be exposed to any effect from leaching.  Offsite surface water
sample sources should be concentrated in the northeast quadrant and
                                  9.2-4

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within the radius of 15 miles.  The maximum concentrations associated
with the health and welfare related standards is predicted to occur
within a radius of 25 miles.
     Chemical and physical tests will be conducted to measure the natu-
rally occurring levels of the parameters listed in Table 9.2-1.  The
practicality of conducting certain of these tests on ponds, as compared
to streams or lakes, is subject to question and may warrant deletion of
certain chemical parameters based on the characteristics of the sample
source.  Test procedures to be used will generally conform to the guide-
lines contained in Standard Methods for the Examination of Mater and
Wastewater, or similar references.  Instrumentation is prescribed under
each test procedure.
     Initial chemical testing will be conducted on a quarterly basis. If
a significant variation in specific chemical characteristics fails to
develop for sample points after these tests, the sampling frequency may
be reduced to semiannual.  A semiannual summary report will be prepared
analyzing the results of this test program, subject to inhouse review.
Emphasis will be placed on a summation of comparative results.
9.2.2  Post-Operational Phase
     The post-operational phase initiated with the operation of Unit One
will utilize the same program described under the pre-operational phase.
However, when this phase is initiated, sampling frequency should revert
to the shortest duration specified under pre-operation.  Frequency of
sampling may be reduced as results become stabilized, but in no instance
should sampling be less frequent than semiannual.  The range of sub-
stances investigated under the pre-operational phase should also extend
into the post-operational period.
     The effluent monitoring program will augment the water monitoring
program following start-up of Unit One.  In addition, monitoring of deep
wells and shallow test wells should be initiated during this phase.
Water levels will be recorded and the records maintained during the life
of the plant.
                                  9.2-5

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                             Table 9.2-1
                 Chemical and Physical Test Parameters
 1.  Aluminum
 2.  Ammonia
 3.  Barium
 4.  BOD5
 5.  Boron
 6.  Cadmium
 7.  Calcium
 8.  Chloride
 9.  Chromium
10.  COD
11.  Copper
12.  Dissolved Oxygen
13.  Fecal Coliforms
14.  Iron
15.  Magnesium
16.  Mercury
17.  Nitrate
18.  Nitrite
19.  Organic Nitrogen
20.  Orthophosphorus
21.  Pesticides
     a.  Treflan
     b.  Atrizine
22.  pH
23.  Phenols
24.  Radiological
     a.  Radium 226
     b.  Strontium 90
     c.  Beta
25.  Silica
26.  Specific Conductance
27.  Strontium
28.  Sulfate
29.  Temperature
30.  Titanium
31.  Total Alkalinity
32.  Total Dissolved Solids
33.  Total Hardness
34.  Total Phosphorus
35.  Total Suspended Solids
36.  Turbidity
37.  Zinc
                                     9.2-6

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9.3  TERRESTRIAL MONITORING PROGRAM
     The purpose of the proposed monitoring program is  to determine  the
operational effects of the Independence Steam Electric  Station  on  the
surrounding terrestrial environment.  Of primary concern is  the effect
of plant emissions to the atmosphere; most noticeably sulfur dioxide
    ), on the vegetation and soil in the site vicinity.
9.3.1  Pre-Operational Phase
     The pre-operational terrestrial  monitoring program will  provide  at
least one year of reliable background information concerning  the  status
of the terrestrial environment.  Vegetation monitoring and soil sampling
will generally be conducted within a  radius of 15 miles from  the  Inde-
pendence site, with greatest emphasis at the range of 2 to 5  miles.
9.3.1.1  Vegetation Monitoring
     The sensitivity of vegetation to pollutants characteristically
emitted by a coal-fired power plant is related almost completely  to
sulfur dioxide.  Methods of vegetation monitoring are consequently
tempered by this fact.  Effects, theoretically, would develop from the
absorption of sulfur dioxide into the leaves or as sulfate from the
soil; soil pH could also have an effect on growth and production.
     Vegetation monitoring can be divided into two categories:
     1.   Controlled - various sensitive species planted specifically as
          indicators of air pollution damage.
     2.   Uncontrolled - species existing in the natural environment, or
          planted for production (e.g., crops, vegetables) or as  an
          ornamental (e.g., trees, shrubs).
Within these two categories, the vegetation monitoring program may be
defined as indicated below.
Controlled
     Monitoring will be conducted in  conjunction with the operation of
the air monitoring stations, and sensitive species will be planted
(e.g., alfalfa, lettuce, elm).   Two types of data acquisition will be
                                    9.3-1

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conducted during the controlled monitoring.   Observations  by a  trained
plant pathologist will be made to determine  the type and extent of  plant
injury.  Photographs will be taken at the time of observation to docu-
ment the condition of the vegetation.  In addition,  chemical  analyses
will be conducted to determine the sulfur and trace  element contents of
the plant residue, utilizing standard laboratory instruments.
     The collection of vegetation monitoring data must be  supported by
narrative descriptions of conditions which may have  a bearing on the
validity of the sample or photograph, e.g.,  climatological  conditions
existing, lighting, filter used, fertilizers applied.
Uncontrolled
      The objective of uncontrolled monitoring is to determine  the
effects of plant operation on the ambient vegetation in the site vicinity.
A list of vegetation in the geographical  area of the plant, which in-
cludes crops, pasture, typical garden vegetables and trees, is  provided
in Table 9.3-1.
     Uncontrolled monitoring will be objective in the selection of  "test
plots" and cover a much broader range of  vegetation  species than con-
trolled monitoring.  Insofar as possible, "test plots" will be  close to
the air monitoring stations to permit correlation with levels of sulfur
dioxide, but this is not the controlling  criteria.   "Test  plots" will be
identified by range and bearing from the  plant site.  The  "test plots"
will typify the vegetation in the area in which it is located.
     Data acquisition at the "test plots" will utilize field observation
(documented by photographs) and chemical  analyses, as performed in  the
controlled monitoring.  In addition, use  will be made of false-color
infrared aerial photography to provide a  more widespread indicator  of
plant stress.  These photographs may be taken semi-annually during  the
spring and summer when vegetation is actively growing and  is most likely
to exhibit signs of stress.
9.3.1.2  Soil Monitoring
     Typical soil analyses contain information relating to  the  suit-
ability of certain soil for a specific use.   Similar information is
                                    9.3-2

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required in the background study, but emphasis will  be placed  on  sulfur
content (change) and periodic analysis for selected  trace elements.
     Agricultural land will normally be well  mixed from tillage practices
and is subjected to periodic treatment with agricultural  chemicals,
including fertilizers, herbicides, and insecticides.   These  factors will
complicate the identification of any changes  in elemental  concentration
due to discharge from the power plant.  Samples will,  therefore,  be
obtained from uncultivated as well as cultivated land.
     Soil testing will normally be conducted  by an independent lab-
oratory using recognized procedures.  Samples will be  supplied by AP&L,
and routinely analyzed for the following components:
          Potassium           Calcium        pH
          Organic Matter      Manganese      Mercury
          Phosphorous         Sodium         Sulfur
     Soil samples will be collected semiannually, one  sample from each
site during the height of the growing season and one during  the dormant
period.  Periodic (annual) sampling for selected trace elements will
also be included.  Aluminum, arsenic, barium, cadmium, boron,  chronium,
nickel, selenium, and titanium will be considered.
     Soil samples will be obtained within a radius of  15 miles, with
greatest emphasis being placed on the acquisition of samples from the
northeast and southeast quadrants, due to the prevailing meteorological
conditions, and within a belt of 2 to 5 miles.  Soil analyses  will be
tabulated and summarized in an annual report.  Any pertinent observa-
tions relative to air and vegetation monitoring will be noted.
9.3.1.3  Miscellaneous Monitoring
     It is considered appropriate under the heading  of "Terrestrial
Monitoring Program" to identify other monitoring routines which will be
included to provide a well-rounded program.
Noise
     Off-set noise surveys will be conducted  near the  plant  boundary and
population centers.  Exact information concerning any  ambient conditions
which may have an effect on the results will  be logged.

                                     9.3-3

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Materials
      Static monitors will provide information concerning possible
effects on materials.  However, photographs of existing concrete or
steel structures in the area (2 to 5 miles) will  be considered, coupled
with a narrative description of the inspection.
Wildlife and Domestic Animals
      Resource material available from the Environmental  Impact State-
ment and through State agencies and academic institutions will  be com-
plied; but outside of statistical information complied in this  manner,
no further monitoring is considered necessary.
9.3.2  Post-Operational Phase
     The post-operational phase of the terrestrial  monitoring program is
identical to the pre-operational phase.  Frequency of sampling, if
reduced during pre-operation, will be re-established at the original
interval when Unit One becomes operational.  The needed frequency of
sampling will then be evaluated based on operative data.   The "test
plots" concept will be incorporated into the additional post-operational
air monitoring station.
                                    9.3-4

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                             Table 9.3-1



                          Typical Vegetation
CROPS
Cotton*
Soybeans*
PASTURES
Lespedeza
Dallas
White Clover*
GARDEN VEGETABLES
Tomatoes*
Cucumbers
Okra
Collards
Southern Peas
Watermelons

TREES
Oaks
Pecan*
Yellow Pine
Maple
Oats Corn
Rice* Peanuts

Bahia
Burmuda
Fescue

Turnip Greens
Sweet Potatoes
Squash*
Lettuce*
Mustard
Greenbeans
Cabbage

Hickory
Cedar
Elm*
Sweetgum
Wheat Graii
Rye Barli

Alfalfa*
Rye Grass
Coastal

Green Peas
Field Peas
Onions
Potatoes
Lima Beans
Beets


Sycamore
Birch
Elder
Box Elder
   Designates recommended indicator species to be selected for monitoring,
                                     9.3-5

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