EPA
United States
Environmental
Protection Agency
Office of
Research and
Development
Energy.
Minerals and
Industry
EPA-600/7-77-072c
July 1977
ENERGY FROM THE WEST:
A PROGRESS REPORT OF
A TECHNOLOGY ASSESSMENT
OF WESTERN ENERGY
RESOURCE DEVELOPMENT
VOLUME
Interagency
Energy-Environment
Research and Development
Program Report
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RESEARCH REPORTING SERIES
Research reports of the Office of Research and Development, U.S. Environmental
Protection Agency, have been grouped into nine series. These nine broad cate-
gories were established to facilitate further development and application of en-
vironmental technology Elimination of traditional grouping was consciously
planned to foster technology transfer and a maximum interface in related fields.
The nine series are:
1 Environmental Health Effects Research
2 Environmental Protection Technology
3. Ecological Research
4 Environmental Monitoring
5. Socioeconomic Environmental Studies
6 Scientific and Technical Assessment Reports (STAR)
7. Interagency Energy-Environment Research and Development
8 Special" Reports
9. Miscellaneous Reports
This report has been assigned to the INTERAGENCY ENERGY-ENVIRONMENT
RESEARCH AND DEVELOPMENT series Reports in this series result from the
effort funded under the 17-agency Federal Energy/Environment Research and
Development Program These studies relate to EPA's mission to protect the public
health and welfare from adverse effects of pollutants associated with energy sys-
tems. The goal of the Program is to assure the rapid development of domestic
energy supplies in an environmentally-compatible manner by providing the nec-
essary environmental data and control technology. Investigations include analy-
ses of the transport of energy-related pollutants and their health and ecological
effects; assessments of, and development of, control technologies for energy
systems; and integrated assessments of a wide range of energy-related environ-
mental issues.
This document is available to the public through the National Technical Informa-
tion Service. Springfield, Virginia 22161.
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€hergy from the
A Progress Report of a
Technology Assessment of
Western Energy Resource Development
Volume III
Preliminary Policy Analysis
By
Science and Public Policy Program
University of Oklahoma
Irvin L White
Michael A. Chartock
R. Leon Leonard
Steven C. Ballard
Martha W. Gilliiand
Radian Corporation
F. Scott LaGrone
C. Patrick Bartosh
David B. Cabe
B. Russ Eppright
David C. Grossman
A. Hall
Ecvvard. J. Malecki
Edward B. Rappqport
Rctfney £. fraed
Gary D.
Julia C. Lacy
Tommy 0. Raye
Joe O. Stuart
M. Lee Wilson
Contract Number 68-01-1916
Prepared for:
Office of Research and Development
U.S. Environmental Protection Agency
Washington, D.C. 20460
Project Officer
Steven E. Plotkin
Office of Energy, Minerals, and Industry
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DISCLAIMER
This report has been reviewed by the Office of Energy,
Minerals and Industry, U.S. Environmental Protection Agency,
and approved for publication. Approval does not signify that
the contents necessarily reflect the views and policies of
the U.S. Environmental Protection Agency, nor does mention of
trade names or commercial products constitute endorsement or
recommendation for use.
ii
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FOREWORD
The production of electricity and fossil fuels inevitably
creates adverse impacts on Man and his environment. The nature
of these impacts must be thoroughly understood if balanced
judgements concerning future energy development in the United
States are to be made. The Office of Energy, Minerals and
Industry (OEMI), in its role as coordinator of the Federal
Energy/Environment Research and Development Program, is
responsible for producing the information on health and
ecological effects - and methods for mitigating the adverse
effects - that is critical to developing the Nation's environ-
mental and energy policy. OEMI's Integrated Assessment Program
combines the results of research projects within the Energy/
Environment Program with research on the socioeconomic and
political/institutional aspects of energy development, and
conducts policy - oriented studies to identify the tradeoffs
among alternative energy technologies, development patterns, and
impact mitigation measures.
The Integrated Assessment Program has utilized the
methodology of Technology Assessment (TA) in fulfilling its
missio'n. The Program is currently sponsoring a number of TA's
which explore the impact of future energy development on both
a nationwide and a regional scale. For instance, the Program
is conducting national assessments of future development of the
electric utility industry and of advanced coal technologies
(such as fluidized bed combustion). Also, the Program is
conducting assessments concerned with multiple-resource develop-
ment in three "energy resource areas":
o Western coal states
o Lower Ohio River Basin
o Appalachia
This report describes the results of the first phase of
the Western assessment. This phase assessed the impacts
associated with three levels of energy development in the West.
The concluding phase of the assessment will attempt to identify
and evaluate ways of mitigating the adverse impacts and
enhancing the benefits of future development.
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The report is divided into an executive summary and four
volumes:
I Summary Report
II Detailed Analyses and Supporting
Materials
III Preliminary Policy Analysis
IV Appendices
>teph§/i J. "Gage
Deputy Assistant Administrator
for Energy, Minerals, and Industry
iv
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ABSTRACT
This is a progress report of a three year technology assessment of
the development of six energy resources (coal, geothermal, natural gas,
oil, oil shale, and uranium) in eight western states (Arizona, Colorado,
Montana, New Mexico, North Dakota, South Dakota, Utah, and Wyoming) during
the period from the present to the year 2000. Volume I describes the
purpose and conduct of the study, summarizes the results of the analyses
conducted during the first year, and outlines plans for the remainder of
the project. In Volume II, more detailed analytical results are presented.
Six chapters report on the analysis of the likely impacts of deploying
typical energy resource development technologies at sites representative
of the kinds of conditions likely to be encountered in the eight-state
study area. A seventh chapter focuses on the impacts likely to occur if
western energy resources are developed at three different levels from the
present to the year 2000. The two chapters in Volume III describe the
political and institutional context of policymaking for western energy
resource development and present a more detailed discussion of selected
problems and issues. The Fourth Volume presents two appendices, on air
quality modeling and energy transportation costs.
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READER'S GUIDE
This report is divided into four volumes. In addition,
an executive summary provides a brief description of the major
research results of this western assessment.
Readers interested in a general description of the assess-
ment results should read Volume I. Chapters I and II describe
the context and methodological framework of the assessment.
Chapter 3 provides a summary description of the impact analysis,
e.g., water and air impacts, population changes, etc. Chapter
4 summarizes some policy implications of these results,
although the assessment is still in the early stages of policy
analysis at this time. Chapter 5 briefly describes what the
reader can expect from the second phase of the project.
Readers interested in particular geographical areas might
be interested in one or more of the six site-specific chapters
(Chapters 6-11) of Volume II which describe in detail results
pertaining to the following areas: Kaiparowits/Escalante,
Utah; Navajo/Farmington, New Mexico; Rifle, Colorado; Gillette,
Wyoming; Colstrip, Montana; and Beulah, North Dakota. Readers
interested in site-specific air, water, socio-economic and
ecological impacts will find these discussed in subsections
2, 3, 4, and 5, respectively, of each chapter in this volume.
Chapter 12 in volume II describes the results of the regional
analyses. This chapter should be particularly valuable to
readers interested in transportation, health, noise and
aesthetic impacts, which are not discussed in the site-specific
chapters, and subjects (such as water availability) which tend
to be regional rather than site-specific in nature.
Volume III represents a first step in the identification,
evaluation and comparison of alternative policies and
implementation strategies. Chapter 13 presents a general over-
view of the energy policy system. Chapter 14 identifies and
defines some of the principal problems and issues that public
policymakers will probably be called on to resolve. The
categories of problems and issues discussed are: water
availability and quality, reclamation, air quality, growth
management, housing, community facilities and services, and
Indians.
vi
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Volume IV provides two technical appendices:
o a discussion of alternative approaches to modeling
air quality in areas with complex terrain
o cost comparisons of unit trains, slurry pipelines and
EHV transmission lines
Vii
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TABLE OF CONTENTS
VOLUME I
SUMMARY REPORT
Page
PART I: INTRODUCTION 1
CHAPTER 1: THE CONTEXT OF WESTERN ENERGY RESOURCE DEVELOPMENT 2
1.1 INTRODUCTION 2
1.2 NATIONAL ENERGY GOALS 3
1.3 WESTERN ENERGY RESOURCES 4
1.4 SELECTED FACTORS AFFECTING LEVEL OF DEVELOPMENT 8
1.5 PURPOSE AND OBJECTIVES 11
1.6 SCOPE 12
1.7 OVERALL ASSUMPTIONS 12
1.8 DATA SOURCES 12
CHAPTER 2: CONDUCT OF THE STUDY 13
2.1 INTRODUCTION 13
2.2 CONCEPTUAL FRAMEWORK 14
2.3 INTERDISCIPLINARY TEAM APPROACH 17
2.4 SUMMARY 21
CHAPTER 3: THE IMPACTS OF WESTERN ENERGY RESOURCE
DEVELOPMENT: SUMMARY AND CONCLUSIONS 22
3.1 INTRODUCTION 22
3.2 AIR QUALITY 30
3.3 WATER AVAILABILITY AND QUALITY 48
3.4 SOCIAL, ECONOMIC, AND POLITICAL 70
3.5 ECOLOGICAL 87
3.6 HEALTH EFFECTS 107
3.7 TRANSPORTATION 120
3.8 AESTHETICS AND NOISE 128
3.9 SUMMARY 133
viii
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Page
CHAPTER 4: POLICY PROBLEMS AND ISSUES 139
4.1 INTRODUCTION 139
4.2 WATER 140
4.3 AIR 143
4.4 PLANNING AND GROWTH MANAGEMENT 146
4.5 RECLAMATION 148
4.6 CONCLUSION 149
CHAPTER 5: PLANS FOR COMPLETING THE PROJECT 151
5.1 INTRODUCTION 151
5.2 BACKGROUND AND SUPPORTING MATERIALS 151
5.3 THE FINAL TECHNOLOGY ASSESSMENT REPORT 153
VOLUME II
DETAILED ANALYSES AND SUPPORTING MATERIALS
PART II: INTRODUCTION 154
CHAPTER 6: THE IMPACTS OF ENERGY RESOURCE DEVELOPMENT
AT THE KAIPAROWITS/ESCALANTE AREA 157
6.1 INTRODUCTION 157
6.2 AIR IMPACTS 162
6.3 WATER IMPACTS 179
6.4 SOCIAL, ECONOMIC, AND POLITICAL IMPACTS 198
6.5 ECOLOGICAL IMPACTS 230
6.6 OVERALL SUMMARY OF IMPACTS AT KAIPAROWITS/ESCALANTE 246
CHAPTER 7: THE IMPACTS OF ENERGY RESOURCE DEVELOPMENT
AT THE NAVAJO/FARMINGTON AREA 248
7.1 INTRODUCTION 248
7.2 AIR IMPACTS 254
7.3 WATER IMPACTS 275
7.4 SOCIAL, ECONOMIC, AND POLITICAL IMPACTS 296
7.5 ECOLOGICAL IMPACTS 326
7.6 OVERALL SUMMARY OF IMPACTS AT NAVAJO/FARMINGTON 347
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Page
CHAPTER 8: THE IMPACTS OF ENERGY RESOURCE DEVELOPMENT
AT THE RIFLE AREA 350
8.1 INTRODUCTION 350
8.2 AIR IMPACTS 354
8.3 WATER IMPACTS 375
8.4 SOCIAL, ECONOMIC, AND POLITICAL IMPACTS 396
8.5 ECOLOGICAL IMPACTS 425
8.6 OVERALL SUMMARY OF IMPACTS FROM RIFLE SCENARIO 440
CHAPTER 9: THE IMPACTS OF ENERGY DEVELOPMENT AT THE
GILLETTE AREA 443
9.1 INTRODUCTION 443
9.2 AIR IMPACTS 447
9.3 WATER IMPACTS 471
9.4 SOCIAL, ECONOMIC, AND POLITICAL IMPACTS 496
9.5 ECOLOGICAL IMPACTS 527
9.6 OVERALL SUMMARY OF IMPACTS AT GILLETTE 546
CHAPTER 10: THE IMPACTS OF ENERGY RESOURCE DEVELOPMENT
AT THE COLSTRIP AREA 549
10.1 INTRODUCTION 549
10.2 AIR IMPACTS 553
10.3 WATER IMPACTS 571
10.4 SOCIAL, ECONOMIC, AND POLITICAL IMPACTS 595
10.5 ECOLOGICAL IMPACTS 628
10.6 OVERALL SUMMARY OF IMPACTS AT COLSTRIP 647
CHAPTER 11: THE IMPACTS OF ENERGY RESOURCE DEVELOPMENT
AT THE BEULAH AREA 649
11.1 INTRODUCTION 649
11.2 AIR IMPACTS 654
11.3 WATER IMPACTS 671
11.4 SOCIAL, ECONOMIC, AND POLITICAL IMPACTS 694
11.5 ECOLOGICAL IMPACTS 721
11.6 OVERALL SUMMARY OF IMPACTS 735
CHAPTER 12: THE REGIONAL IMPACTS OF WESTERN ENERGY
RESOURCE DEVELOPMENT 739
12.1 INTRODUCTION 739
12.2 AIR IMPACTS 746
12.3 WATER IMPACTS 763
12.4 SOCIAL, ECONOMIC, AND POLITICAL IMPACTS 794
12.5 ECOLOGICAL IMPACTS 865
12.6 HEALTH EFFECTS 897
12.7 TRANSPORTATION IMPACTS 916
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Page
12.8 NOISE IMPACTS 935
12.9 AESTHETIC IMPACTS 952
12.10 SUMMARY OF SIGNIFICANT REGIONAL IMPACTS 956
VOLUME III
PRELIMINARY POLICY ANALYSIS
PART II: INTRODUCTION 961
CHAPTER 13: THE ENERGY POLICY SYSTEM 963
13.1 INTRODUCTION 96 3
13.2 HISTORY OF THE ENERGY POLICY SYSTEM 964
13.3 PARTICIPANTS IN THE ENERGY POLICY SYSTEM 966
13.3.1 Government Participants 967
13.3.2 Private Participants 980
13.4 ENERGY POLICY SUBSYSTEMS 983
13.4.1 The Coal Policy Subsystem 983
13.4.2 The Oil Policy Subsystem 986
13.4.3 The Gas Policy Subsystem 988
13.4.4 The Electricity Policy Subsystem 989
13.5 CONCLUSIONS 990
CHAPTER 14: SELECTED PROBLEMS AND ISSUES 993
14.1 INTRODUCTION 993
14.2 WATER 993
14.2.1 Introduction 993
14.2.2 Water Availability 994
14.2.3 Water Quality 1002
14.2.4 Conclusion 1011
14.3 RECLAMATION 1012
14.3.1 Introduction 1012
14.3.2 Western Ecosystems 1013
14.3.3 Regulation and Control of Reclamation by State
Governments 1019
14.3.4 State Control Over Reclamation on Federal Lands 1024
14.3.5 Summary 1028
14.4 AIR 1029
14.4.1 Introduction 1029
14.4.2 Legal and Jurisdictional Context 1029
14.4.3 Non-Significant Deterioration 1032
14.4.4 State-Federal Relationships 1035
14.4.5 Emission Control Systems 1037
14.5 GROWTH MANAGEMENT 1040
14.5.1 Introduction 1040
xi
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Page
14.5.2 intergovernmental Relations 1041
14.5.3 Planning 1044
14.5.4 Taxation Tools 1050
14.5.5 State and Federal Assistance 1056
14.6 HOUSING 1068
14.6.1 Introduction 1068
14.6.2 Housing Types and Construction 1069
14.6.3 Provision of Housing 1071
14.6.4 Summary of the Special Problems in Housing 1076
14.7 COMMUNITY FACILITIES AND SERVICES 1076
14.7.1 Introduction 1076
14.7.2 Water and Sewer Systems 1077
14.7.3 Health Care 1081
14.7.4 Schools 1083
14.7.5 Streets 1085
14.7.6 Public Safety 1087
14.7.7 Recreation 1090
14.7.8 Summary 1091
14.8 INDIANS 1091
14.8.1 Introduction 1093
14.8.2 The Status of Indian Lands 1093
14.8.3 Maintaining Local Indian Cultures and Life-Styles 1105
14.8.4 Communal Ownership 1106
14.9 REFINEMENT AND EXTENSION OF POLICY ANALYSIS 1106
Glossary 1109
Appendix A TECHNICAL NOTE: AN INVESTIGATION OF COMPLEX TERRAIN
MODELING APPROACHES USING THE STEADY-STATE
GAUSSIAN DISPERSION MODEL Vol. IV
Appendix B ROUTE SPECIFIC COST COMPARISONS: UNIT
TRAINS, COAL SLURRY PIPELINES AND EXTRA
HIGH VOLTAGE TRANSMISSION Vol. IV
xii
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LIST OF FIGURES
VOLUME III
Page
14-1 Western Rivers in Relation to Indian Reservations 999
LIST OF TABLES
VOLUME III
Page
14-1 interstate Compact Division of Waters in the
Tributaries of the Yellowstone River 996
14-2 Summary of Surface Mining and Reclamation Laws,
Regulations and Agencies in Eight Western
States 1020
14-3 Impacts on Non-Significant Deterioration on
Electric Utilities ' 1034
14-4 Pollutants for Which Western States Must Revise
Their Implementation Plans 1036
14-5 State Planning Agencies 1057
14-6 Federal Assistance Programs Available to Energy-
Impacted Communities 1059
14-7 Energy Resource Production on Indian Lands
During Fiscal Year 1974 1092
xiii
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PART III
PRELIMINARY POLICY ANALYSIS
INTRODUCTION
As stated in Chapter 1, the purposes of this technology
assessment of western energy resource development are: to
identify a broad range of consequences likely to result from the
development of western energy resources; and to identify, eval-
uate, and compare policies and implementation strategies for
dealing with these consequences. In short, our overall purpose
is to better inform policymakers about the likely consequences
of their actions. While this study cannot eliminate the uncer-
tainties inherent in policymaking for western energy resource
development, it is intended to help to reduce them.
During the first year, the research team's efforts have been
devoted primarily to developing a coherent, workable analytical
structure. This basic structure, which has now been established
and tested, is reflected in the results of the impact analyses
reported in Part II above. Although these impact analyses will
be refined and extended, the research team will concentrate pri-
marily on policy analyses during the remaining years of the
study.
The following two chapters represent a first step in the
identification, evaluation, and comparison of alternative poli-
cies and implementation strategies. Chapter 13 presents a gen-
eral overview of the energy policy system which sets the overall
context within which the problems and issues associated with
western energy development will be addressed. The history of the
energy policy system is briefly reviewed, some major public and
private sector participants are identified, and four energy
policy subsystems are discussed.
As the summary of impacts in Chapter 3 indicate, the impacts
of western energy resource development occur at local, state,
regional, and national levels. Public and private policymakers
at each of these levels are confronted by problems and issues
that arise as a consequence of these impacts. In Chapter 14, an
effort is made to identify and define some of the principal prob-
lems and issues that public policymakers will probably be called
on to resolve. In some of these discussions, selected alternative
961
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policies are described. However, no effort has been made during
the first year to carry out the kind of systematic identifica-
tion, evaluation, and comparison of alternative policies and
implementation strategies that will be conducted during the
remainder of the project.
The categories of problems and issues singled out for atten-
tion in Chapter 14 are: water availability and quality, commu-
nity services and facilities, air quality, Indians, and reclamation.
No attempt has been made to assign priorities to these problems
and issues; thus, neither the order nor length of presentation
should be viewed as reflecting the significance of the issues.
These problem and issue categories are identified to illustrate
the range of additional problems and issues that will receive
attention during the next two years. AS stressed above, the
analyses reported in this chapter should be viewed as being both
tentative and exploratory. They are intended to provide some of
the background knowledge that the Science and Public Policy-
Radian research team had to acquire before proceeding to the
systematic policy analyses that will now become the central focus
of the project.
962
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CHAPTER 13
THE ENERGY POLICY SYSTEM
13.1 INTRODUCTION
This chapter provides a general overview description of the
existing context for western energy policymaking.l important
evolutions in the energy policy system that have affected the
participants and the relationships among those participants are
identified, emphasizing existing uncertainties about institu-
tional rules and relationships. Public and private sector par-
ticipants are then identified and described.
Concern for the environment and the realization that energy
resources are scarce have resulted in a variety of new partic-
ipants demanding access to energy policymaking. In the public
sector, new participants include local and state governments
which had previously been content to remain largely outside the
energy policymaking system, and interstate organizations, some
of which have been formed to deal explicitly with energy prob-
lems. Resource scarcity and uncertainty about future supplies
have also led to an expansion of the role of the federal govern-
ment as an owner, producer, and consumer of energy and as an
overseer of national energy policy. This expansion has occurred
despite a continuing debate over appropriate roles of the public
and private sectors.
Significant changes are also developing within the private
sector, including the growth of energy conglomerates, active
participation by environmental interest groups (largely through
public hearings and the courts), and the emergence of groups
representing such special interests as those of consumers, agri-
culture, and Indian tribes.
This chapter also briefly describes four energy policy sub-
systems that have developed around coal, oil, gas, and electric-
ity. This description identifies some of the major professional
This chapter is a slightly modified version of Chapter 3 in
Kash, Don E., et al. Our Energy Future; The Role of Research,
Development, and Demonstration in Reaching a National Consensus
on Energy Supply. Norman, Okla.: university of Oklahoma Press,
1976, pp. 28-53.
963
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associations that represent those energy industries and examines
the relationship of the industries to outside interest groups
such as labor unions. Further, the internal structures, economic
resources, and relative access to the policy subsystem of each of
these industries are briefly examined.
13.2 HISTORY OF THE ENERGY POLICY SYSTEM
Energy policymaking in this country has evolved through
three distinct, but overlapping, periods. The first period, the
nineteenth century, was characterized by abundant resources and
little competition among private developers. In the second
period, which includes most of the twentieth century, the fed-
eral government began to allocate resources among the various
companies that were competing for development rights. The pres-
ent period, which began in the 1960's has been characterized by
the emergence of new policymaking participants who broaden the
range of viewpoints that must be considered in energy resource
development.
The present energy policy system represents a complex mix-
ture of the institutions and processes that evolved in each of
these three periods. For example, the General Mining Law of 1872
allows some federally owned resources, such as uranium, to be
extracted by private interests after a claim has been filed.
Conversely, the Outer Continental Shelf (OCS) Lands Act of 1953
requires competitive bidding for resource development on the OCS.
Also, the impact assessment requirement of the National Environ-
mental Policy Act of 19691 provides new participants an
opportunity to challenge and often overturn decisions made under
the terms of older legislation. In the following discussion,
the three historical periods are briefly outlined to characterize
the complexity of the present energy policy system.
Prior to the nineteenth century, a laissez-faire philosophy
dominated domestic resource allocation and development. Govern-
ment generally adopted a "hands-off" attitude toward private
sector energy activities, while a "pork barrel" process governed
development within the public sector. Central to both processes
was the assumption that resources were almost infinite in char-
acter.2 In accordance with this perception of the "free and
open" nature of both the public and private domain for resource
development, extraction processes were codified, energy prices
were subsidized, and energy consumption was encouraged without
National Environmental Policy Act of 1969, | 102(2)(c),
42 U.S.C.A. § 4332(2)(c) (1973).
2
Gilmour, Robert S. "Political Barriers to a National
Policy." Academy of Political Science Proceedings, Vol. 31
(December 1973), pp. 184-86.
964
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consideration for environmental costs.1 The federal government
used public land distribution as a source of revenue; public
resources rapidly passed into private hands through such programs
as homestead allowances and grants to the railroads. Perhaps
most significant, both government and industry treated each of
the abundant energy resources as a separate entity during this
period.
Succeeding, but not eliminating, the processes of this early
period, patterns of pluralism developed that resulted in the
representation of varied and competing interests in the policy-
making arena.2 with the growing realization that energy resources
were indeed finite, this political process came to dominate the
energy system around the close of the nineteenth century. Gov-
ernment could no longer pursue an energy policy that consisted
mainly of responses to individual private interests. Rather,
government was increasingly required to allocate resources and
effect compromises among multiple interests.3
Today, pluralism clearly continues to characterize energy
policymaking. In fact, since the 1960's, the representatives of
several potentially potent new interests have begun to partic-
ipate in energy policymaking. Many of these new interests have
been affected by shorter supplies, increased competition among
users, and increased concern about potential negative impacts
associated with domestic energy development. Thus, the energy
policy system is now both highly pluralistic and unstable.
Before the 1973 boycott, energy policy was made within
relatively self-contained policy subsystems organized around five
sources or types of energy: coal, oil, natural gas, electricity,
and nuclear power.4 Also, relationships between government and
industry varied greatly from one of these subsystems to another;
for instance, government played a rather small role in the coal
system but a major role in the nuclear system.
Krutilla, John V., and R. Talbot Page. "Towards a Respon-
sible Energy Policy." Policy Analysis, Vol. 1 (Winter 1975), p. 78.
2
Lord, William B., and Maurice L. Warner. "Aggregates and
Externalities: Information Needs for Public Natural Resource
Decision Making." Natural Resources Journal, Vol. 13 (January
1973), p. 108.
Gilmour, Robert S. "Political Barriers to a National
Policy." Academy of Political Science Proceedings, Vol. 31
(December 197 3), pp. 1B6-8B.
4
Davis, David H. Energy Politics. New York, N.Y.: St.
Martin's Press, 1974.
965
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Since the boycott, however, several actions have resulted
in a blurring of boundaries among the five subsystems. At the
federal level, the creation of the Federal Energy Administration
and the Energy Research and Development Administration reflect
efforts to address "energy" rather than particular energy
resources. The movement of the oil companies into coal
and uranium production reflects a similar trend toward an "energy"
perspective in the private sector. And this broader perspective
is also held by some of the new participants in energy policy-
making. While this new broader energy perspective has made it
increasingly difficult to continue the old patterns of policy-
making, there still are participants who maintain a narrow per-
spective and who participate in policymaking in only one or more
energy policy subsystems.
The difficulty is clearly reflected in the debate over a
redefinition of appropriate publie-private relationships. For
example, since 1973, government has: begun to underwrite large
scale coal research aimed at developing technologies for use in
the private sector; exercised the right to regulate oil prices;
and sought to transfer responsibility for uranium enrichment
from government to the private sector. While these actions may
appear uncoordinated, and, at times, contradictory, they are the
results of pressures generated by the new participants in energy
policymaking.
Overall then, the public role is clearly expanding, but the
full extent of government's role is yet to be determined. Until
a new consensus is evolved and policies are stabilized, the utj/-
lization of new technologies and sources for domestic energy
supply will be hindered by uncertainties about institutional
roles and relationships.
13.3 PARTICIPANTS IN THE ENERGY POLICY SYSTEM
When energy was still abundant, the energy policymaking
system, though fragmented, was characterized by both a high
degree of stability and a relatively clear differentiation
between the policy roles of the public and private sectors. Each
sector could predict with a fairly high level of certainty the
future actions of the other. Now, resource scarcities, spot-
lighted by the Arab oil boycott, have broken a quartercentury of
relative stability, and energy policymaking has become quite
uncertain.! Both governmental and industrial roles in the energy
system have become more complex and less clearly delineated.
Policies in both sectors have tended to be piecemeal and ad hoc.
Government agencies with major energy policy roles have prolif-
erated and administrative and political jurisdictional overlaps
Moulding, Kenneth E. "The Social System and the Energy
Crisis." Science., 184 (April 19, 1974), p. 255.
966
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have become more complex. Industry associations and energy
related interest groups have also proliferated.
This section describes some of the major public and private
participants in the contemporary energy policy system. For the
most part, the discussion focuses on policymaking at the national
level. However, in many respects, the western region is a micro-
cosm of the larger policy system. Owing to the vast quantities
of resources located in the West and the range of consequences
likely to be associated with their development, participants at
all levels of government and from other geographic regions will
obviously be affected by western energy policymaking.
13.3.1 Government Participants
At each level of government, institutions and processes have
been developed to respond to energy related issues. This section
briefly outlines the federal, state, local, and intergovernmental
participants in the energy policy system.
A. Federal Government
The federal government plays two primary roles in energy
development: external "overseer" and active participant.1 in
its oversight role, government, in principle, attempts to coor-
dinate energy decisions with decisions made in other relevant
policy areas (such as the development of environmental stan-
dards) , coordinate energy goals with broader national goals (for
example, national defense and foreign policy objectives), and
balance the social costs and benefits of energy policies (as it
does with the dual issues of inflation and unemployment).
Government is also an owner,, producer, and consumer of
energy. In this role, government is an "economic actor". Most
government participation of this type results from its extensive
energy resource holdings. For example, the federal government
owns more than half of the coal reserves in the eight-state
study area. For the most part, responsible federal officials
(such as the Secretary of the Interior) have wide discretionary
authority in managing these resources. And state officials have
virtually no control over development of federally owned resources
within their state.
Government has also become a major energy producer through
the creation of such electric power generation agencies and proj-
ects as the Bonneville Power Administration and the Colorado
River Basin Storage Project. Finally, the government is a large
consumer of energy, the largest federal consumer being the
Holloman, J. Herbert, et al. Energy Research and Develop-
ment, a report to the Energy Policy Project of the Ford Founda-
tion. Cambridge, Mass.: Ballinger, 1975.
967
-------
Department of Defense, for which special energy reserves are
maintained.
Prior to the energy crisis, an overall federal energy policy
e articulated. After the oil embargo, however, the
had not been articulated
a no ee .
executive and legislative branches began to focus their efforts
tne
on defining some desired energy policy outcomes
Administration defined an adequate and ^P^?9* __
energy as a general policy goal. According to former Secretary
If & Interior Roge?s Morton, the plan was "to meet the nation's
essential needs and assure its prosperity and security in ™ays
which are consistent with natural environmental and social ob 3 ec-
tives".l More specifically, Morton identifies Administration
energy policy objectives to include:
1. increasing domestic production of all forms of
energy .
2. conserving energy more effectively.
3. Striving to meet energy needs at the lowest cost
consistent with the protection of both the national
security and the natural environment.
4. Reducing excessive regulatory and administrative
impediments that have delayed or prevented con-
struction of energy-producing facilities.
5. Acting in concert with other nations to conduct
research in the energy field and to find ways to
prevent serious energy shortages.
6. Applying scientific and technological capabilities,
both public and private, toward utilization of our
current energy resources more wisely and developing
new forms of energy more rapidly. 2
Until Energy Research and Development Administration ' s (ERDA)
most recent plan, increased production was given the highest
priority; in the new plan, primary emphasis is focused on
conservation. Statements by the Nixon and Ford Administra-
tions have stressed the need for reducing energy imports,
ending "vulnerability to economic disruption" by foreign
Norton, Rogers C.B. "The Nixon Administration Energy
Policy." Annals of the American Academy of Political and Social
Sciences, Vol. 410 (November 1973), p. 66.
968
-------
energy suppliers, and providing a greater share of the energy
needs of the "Free World" from U.S. domestic supplies.1
Since the early 1970's the degree to which a "free market"
economy is capable of attaining national goals has been a cen-
tral point of disagreement between the Democratic-controlled
Congress and two Republican presidents. The Executive position
has essentially been that "the competitive pressures of the free
enterprise system could do a better job of ensuring sufficient
energy supplies at equitable prices than can the federal bureau-
cracy".2 On the other hand, the majority leadership in the Con-
gress has questioned whether such a free market system exists,
particularly in the oil and gas industries.
While the Congress has generally accepted the goals out-
lined by the Executive, it has seriously disagreed with many of
the means (public versus private) and methods (market versus
government intervention) by which the objectives should be
achieved. For example, the Congress has opposed outright dereg-
ulation of oil and gas as a means of increasing domestic energy
supply. Similarly, presidential plans to restrain energy demand
through increased prices have been countered by congressional
proposals for mandatory conservation measures and tax incentives
for specific conservation targets. Finally, Congress has dis-
agreed with the Administration on the priorities assigned to
energy goals. In general, the Democratic majority has attached
more importance to domestic economic recovery than to the Admin-
istration's desire to reduce dependence on foreign oil.3
The policy compromises that have resulted from these diver-
gent viewpoints have focused largely on the organizational modi-
fications necessary to deal effectively with energy policy goals.
Reorganization proposals since the early 1970's have had two
objectives: consolidation of institutions to increase domestic
production (primarily through better coordination or information-
gathering activities); and elimination of constraints on produc-
tion (usually focused on eliminating regulations).
Bureau of National Affairs. "Energy Reorganization Act of
1974." Energy Users Report, p. 71:7151 (September 23, 1976)-
2
Havemann, Joel. "Crisis Tightens Control of U.S. Energy
Production." National Journal Reports, Vol. 7 (April 26, 1975),
p. 619.
Gulick, Frances A. "Energy-Related Legislative Highlights
of the 93rd Congress and a Comparison of Three Energy Plans
Before the 94th Congress." Public Administration Review, Vol. 35
(July/August 1975), pp. 349-54.
969
-------
Even before the energy crisis, a concerted effort had been
made to consolidate energy functions. As early as 1971, the
President's Advisory Council on Executive Organization recom-
mended the establishment of a Department of Natural Resources as
a solution to the problems of administrative fragmentation. In
1973, the Administration proposed a reorganization plan that
would have created a Department of Energy and Natural Resources,
ERDA, and a Nuclear Energy Commission. These agencies were to
be formed from elements of the Interior Department, the Agriculture
Department, the Atomic Energy Commission (AEC), and other agencies.•"-
A major aim of this proposal was to break a Congressional dead-
lock by separating energy research, development, and demonstra-
tion (RD&D) functions for other governmental activities related
to energy. After the Congress refused to approve this plan, a
temporary Federal Energy Office was created by executive order
and the Congress was requested to enact legislation establishing
a more comprehensive Federal Energy Administration.2 congress
responded with the Federal Energy Administration Act in May 1974,
and the Energy Reorganization Act of October 1974 which dissolve
the AEC and create ERDA and the Nuclear Regulatory Commission.
ERDA was created at least in part because the RD&D policy
option proved to be the easiest area in which a reorganization
accommodation could be reached. Other policy changes have been
more difficult to effect. Proposals to legislate emergency
powers for the President were delayed, primarily because of con-
troversy over provisions added by the Democratic majority in
the Congress concerning windfall profits, environmental stan-
dards, and price-rollbacks. Similarly, impasses developed over
legislation that would alter industry tax structures, require
information disclosures by the private sector, and give govern-
ment a more direct role in energy exploration and development
activities. Conflict has also arisen between the Administration
and Congress regarding the federally guaranteed Energy Indepen-
dence Authority proposed by the President.3
U.S. foreign policy responses have also met with limited
success. The thrust of American efforts have been to press for
the cooperation of oil-importing nations in developing programs
to reduce consumption, generate new energy resources, and assure
international financial stability. The U.S. has taken the
Davis, David H. Energy Politics. New York, N.Y.: St.
Martin's Press, 1974, pp. 185-87.
2
Fowlkes, Frank J., and Joel Havemann. "President Forms
Federal Energy Body with Broad Regulation, Price Control Powers. "
National Journal Reports, Vol. 5 (Decembers, 1973), pp. 1830-38.
"Energy Corporation." Congressional Quarterly, Vol. 33
(September 27, 1975), p. 2045.
970
-------
position that only after consuming nations have agreed on such
programs can constructive negotiations with the Organization of
Petroleum Exporting Countries (OPEC) cartel begin. One concrete
result of this policy has been the creation of the International
Energy Agency (as an autonomous organization under the direction
of the Organization for Economic Cooperation and Development) to
coordinate responses to any future disruption of energy supplies
by exporting nations. Internationally as well as domestically,
however, the most promising area of action appears to be efforts
at securing cooperation in the RD&D responses of America' s allies. 1
B. State Governments
The range of state agencies participating in the energy
policy systems has been increasing, but their roles continue to
be limited. Prior to the 1973 energy crisis, energy was gener-
ally not a problem for most states. To the extent to which they
were involved state government participation was severely con-
strained by: the inability of state authorities to deal with
energy supply markets that were national or international in
scope; the inadequacy of traditional state regulatory agencies
to cope with complex, non-legal energy problems; and the absence
of effective energy policy coordination mechanisms between the
federal and state governments.2 Although the scope of energy
supply problems continues to defy easy solution, state govern-
ments have reacted to organizational shortcomings by creating
new energy councils, committees, and task forces to deal with
energy issues and to coordinate policy.
Each of the eight western states included in our study area
has such an energy agency in the executive branch of its govern-
ment, in addition, departments or offices of planning and devel-
opment, health, environmental protection, and natural resources
exist in most of the states. These departments also have a role
to play in energy development.
Historically, states have exercised extensive authority
over such things as the regulation of facility siting and licens-
ing, the availability of state-owned energy resources for devel-
opment, and the establishment of prices and rates of production
for intrastate energy resources. The opportunities for greater
Freeman, David S. Energy; The New Era. New York, N.Y.:
Random House, 1974, pp. 134-36.
2
Swindler, Joseph C. "The Challenge to State Regulation
Agencies: The Experience of New York State." Annals of the
American Academy of Political and Social Sciences, Vol. 410
(November 1973), pp. 106-19. However, the indirect role of
states in such areas as water, highways, taxes, reclamation, and
occupational health and safety should not be overlooked.
971
-------
state participation in the energy system, have, in many cases,
been enhanced by the energy crisis. Under general federal guide-
lines, states have been delegated important responsibilities for
formulating and adopting water and air quality criteria to meet
federal requirements, collecting data upon which to base petro-
leum allocation regulations, and enforcing conservation restric-
tions (such as the 55-mile-per-hour speed limit). Moreover, as
new energy facilities become larger, they often require special
siting procedures that may involve several states or even several
regions.1 However, a major factor constraining such cooperative
efforts is the diversity of state energy policy orientations.
For example, even within an area as seemingly homogeneous as the
Rocky Mountain area, states with similar cultural and political
histories may pursue different energy policy objectives.
States can be expected to continue to have substantial
authority in those areas within which federal legislation is
either inadequate or non-existent. Noise impacts of energy
development are a case in point. Noise impacts are affected
either directly or indirectly by several kinds of federal and
state statutes, including those dealing with land use, environ-
mental protection, and noise. The Noise Control Act of 19722
leaves substantial implementation authority to states, and its
applicability is restricted to noise impacts related to indus-
trial equipment, railroads, and autos. Since federal land-use
planning laws are non-existent, noise at a specific energy devel-
opment site is likely to be controlled by either state land-use
laws or local zoning, noise, or land-use rules and regulations.
Efforts to formulate national energy policies have also
resulted in major new federal-state conflicts, such as disputes
over the kind of controls that should be imposed when western
coal is strip mined. Potentially significant contributions to
domestic energy supplies have been delayed because energy-rich
states have perceived federal regulations as placing immediate
costs and risks (largely the hazards of environmental disruption)
on the states while reserving possible benefits for the longer
term, indefinite future. Legislation to provide compensation
for affected states has been one widely discussed solution to
this problem.3
Doub, William O. Federal Energy Regulation; An Organi-
zational Study. Washington, D.C.: Government Printing Office,
1974.
2Noise Control Act of 1972, 86 Stat. 1234, 42 U.S.C.A.
§§ 4901 et sea. (Supp. 1973).
Magida, Arthur J. "Coastal States Seek Changes in OCS
Leasing Policy." National Journal Reports, Vol. 7 (February 15,
1975), pp. 229-39.
972
-------
C. Local Governments
Local governments have generally paid little attention to
the need for developing institutions to cope with energy problems,
largely because energy has not been much of a local problem in
the past. While local administration of zoning ordinances,
building codes, and health and sanitation standards can have
major impacts on energy development, the importance of these
powers is often not fully appreciated. The limitations of local
governments often are a result of a lack of technical expertise,
inadequate data bases, and a long tradition of decisionmaking
which has stressed accommodation with and wide discretionary
authority for the private sector.1 In large part, these limi-
tations for local governments in the West can be attributed to
their size and the fact that most have never had to cope with
problems associated with rapid growth. At least 131 western
communities are expected to be impacted by energy development in
the next 25 years. Nearly 90 percent of these communities have
a present population of less than 5,000. Moreover, 45 percent
have population less than 1,500 and are more than 100 miles from
a metropolitan area.2 These communities have very limited capac-
ities for growth management: only 9 percent have professional
planners, 6 percent have full-time city engineers, and 3 percent
have city managers.3
Because many localities have continued to "deal only with
narrowly defined issues, play only a reactive role, and make
policy by default,"4 they have increasingly found themselves
following the leadership of federal or, at times, state officials
in implementing programs that are critical for the administration
of municipalities. (The fuels allocation program is an example.)
In fact, local governments have often favored federal leadership
as a means of circumventing state governments, viewed as unre-
sponsive to local needs.
Roberts, Marc. "Is There an Energy crisis?" The Public
Interest, Vol. 31 (Spring 1973), p. 27-
2
Mountain Plains Federal Regional Council, Socioeconomic
Impacts of Natural Resource Development Committee. Socioeconomic
Impacts and Federal Assistance in Energy Development Impacted
Communities in Federal Region VIII. Denver, Colo.: Mountain
Plains Federal Regional Council, 1975.
A
See Aron, Joan B. "Decisionmaking in Energy Supply at the
Metropolitan Level: A Study of the New York Area.: Public
Administration Review. Vol. 35 (July/August 1975), pp. 340-45.
973
-------
Examples of federal-local conflicts over energy policy are
easy to find. National energy policies that have provoked the
greatest local resistance include the mandatory fuel allocation
program, which has led city governments to press for increased
supplies by lobbying nationally through such organizations as
the League of Cities and the National Governors' Conference.
D. Intergovernmental Associations
A variety of intergovernmental associations also participate
in energy policymaking. These now include associations among
many of the eight western states and combinations of local gov-
ernment units, such as associations of county governments.
Institutional arrangements among states in the western U.S.
reflect the range of similar and/or common problems faced by
states within the region. In general, similarities include a
widespread concern about the regional costs of energy develop-
ment undertaken primarily for the benefit of other regions of
the country and the large amounts of federally owned lands over
which the states have little or no control. However, regional
institutional arrangements also reflect and are sometimes inhib-
ited by important differences and conflicts among the states,
including very different interests and priorities with regard
to energy resource development and occasionally intense competi-
tion for federal funds, industrial development opportunities,
and water resources. This complex set of shared and competing
problems and interests sets the context within which selected
regional parties-at-interest to energy resource development are
discussed below.
1. River Basin and Water Availability Agreements
One category of interstate parties-at-interest is river
basin and/or water availability agreements that have been nego-
tiated to deal with issues related to both the availability and
quality of western water supplies.
The Colorado and Missouri River Basins receive primary
emphasis in this study. Two interstate compacts deal with the
Colorado: the Colorado River compact of 1922, and the Upper
Colorado River Basin Compact of 1948. Two other compacts deal
exclusively with the Missouri: the Belle Fourche River Compact
of 1943, and the Yellowstone River Compact of 1951. The Colorado
River Basin is also affected by an international treaty with
Since this section was written, a new multi-state organi-
zation has been approved by western governors. This new organi-
zation, which will absorb many of the existing organizations,
will be described in a later report.
974
-------
Mexico. These compacts and the Mexican Water Treaty are discussed
in Section 14.2.
In addition to these agreements among states in the region,
intergovernmental relations concerning water are affected by the
Water Resources Planning Act of 1965.2 Title II of this act
established the authority for river basin commissions which bring
together the representatives of the states and of federal agen-
cies with an interest in river basin development. State members
are appointed by agency or department heads. Although headed by
a chairman appointed by the President, these commissions are
joint in the sense that the right of both the federal and state
governments are limited by the rights of the other.3
River basin commissions have no operating or management
authority. Thus, they serve primarily as forums to facilitate
planning for development of the river basins. Several commis-
sions have been established in the water resource regions, which
include all or part of one or more of the eight western states.
2. Economic Development Commissions
Title V of the Public Works and Economic Development Act of
1965 established five regional organizations, modeled after the
Colorado River Compact of 1922, 42 Stat. 171, 45 Stat. 1064
and declared effective by Presidential Proclamation, 46 Stat.
3000 (1928); Upper Colorado River Basin Compact of 1948, 63 Stat.
31 (1949) ; Belle Fourche River Compact of 1943, 58 Stat. 94 (1944) ;
Yellowstone River Compact of 1950, 65 Stat. 663 (1951); and Treaty
between the United States of America and Mexico Respecting Utili-
zation of Waters of the Colorado and Tijuana Rivers and of the
Rio Grande, February 3, 1944, 59 Stat. 1219 (1945), Treaty Series
No. 994. In the 1922 Compact, states in the "Upper Division" are
Colorado, New Mexico, Utah, and Wyoming; states in the "Lower
Division" are Arizona, California, and Nevada.
wfeter Resources Planning Act of 1965, 79 Stat. 244, 42
U.S.C.A. §§ 1962 et seg. (1974).
Derthick, Martha. Between State and Nation; Regional
Organizations of the United States. Washington, D.C.: Brcokings
Institution, 1974, pp. 138-41. Derthick's assessment of Title II
commissions suggests that state participation can be attributed
primarily to defensive reasons, specifically to be able to pre-
sent and define their interests. She also finds less gubernato-
rial participation here than in the Title V economic commissions,
largely because fewer federal funds are transferred to the states
through the river basin commissions.
975
-------
Appalachian Regional Commission.1 Their purpose is to increase
federal-state cooperation in eliminating interregional economic
disparities. The Four Corners Regional commission (comprised of
Arizona, Colorado, New Mexico, and Utah) was the first of these
to be established in the West. The second in the West, the Old
West Regional Commission (comprised of Montana, Nebraska, North
Dakota, South Dakota, and Wyoming), was established in 1972.
These commissions were initiated and are largely funded by
the federal government, although some matching funds come from
the states. The granting legislation provided for no state con-
trol over federal agencies; hence, activities are usually con-
fined to coordinated regional economic plans and related "action
programs". However, Title V Commission expenditures average
under $5 million per year for these programs.
The Four Corner Region is populated by less than two million
inhabitants, many of whom are Indian. Per-capita income is 30
percent below the national average. The Commission's development
plan identified employment and the elimination of "job gap" prob-
lems as its major goals. Specific programs have been undertaken
to: improve highways, health, and education facilities; promote
new agricultural development; increase exploitation of materials;
and improve the attractiveness of the area for industrial devel-
opment .
The Old West Regional Commission was formed to help allevi-
ate low per-capita income, increase what had been a low economic
growth rate, and reverse the out-migration of skilled and edu-
cated residents. Its development plan lists five areas of prin-
cipal concern: agriculture and natural resources, transportation,
human resources, industrial and capital resources, and energy
resources.
It has been suggested that Title V Commissions have not
developed as originally expected.2 A survey of state particir"
pants in Title V Commissions suggests that they have existed in
limbo with respect to other governmental and regional institu-
tions, significantly reducing any influence they might exert on
regional development. Moreover, their primary role now appears
HPublic Works and Economic Development Act of 1965, 79 Stat. 552,
42 U.S.C.A. §§ 3121 et sea. (1973).
Derthick, Martha. Between State and Nation; Regional
Organizations of the United States. Washington, D.C.: Brookings
Institution, 1974.
976
-------
to be to serve as a mechanism for channeling federal funds to
the states.!
2
3. Western Governors Regional Energy Policy Office
The Western Governors Regional Energy Policy Office (REPO)
was formally established in July 1975 for the purpose of repre-
senting 10 western states in their relationship with the federal
government in matters concerning energy resource development.3
In addition to providing liaison with federal agencies, the
governors proposed that the organization be used as an informa-
tion clearinghouse and an interstate coordination and communica-
tion mechanism.
Clear differences exist among REPO members regarding the
organization's role in regional-federal relations, its authority,
and the membership advantages accruing to individual states.
Members also disagree on the relative position to be taken by
REPO with respect to environmental versus developmental concerns.
Since both concerns are important to various member states, it
was agreed that both were to be represented in organizational
activities. This was considered an incentive for more states to
accept membership. Thus, REPO represents a loose coalition
among states whose interests are very diverse, ranging from the
preservation of the environment, land, or lifestyles to increasing
fuel supplies and/or gaining the economic benefits of energy
development.
REPO members have also disagreed over the scope of political
authority the organization should exert. REPO's activities sug-
gest that this issue has been resolved by its promotion of the
interests of individual states as well as common regional interests.
T)erthick, Martha. Between State and Nation: Regional
Organizations of the United States. Washington, B.C.: Brookings
Institution, 1974, p. 132. There are other regional organiza-
tions devoted either exclusively or primarily to economic devel-
opment. These will be introduced into the analysis during the
next 2 years when their role is important enough to warrant their
being considered.
2
REPO is one of the existing interstate organizations that
will be absorbed by the newly established multistate organiza-
tion mentioned earlier.
The 10 states are Arizona, Colorado, Montana, Nebraska,
Nevada, New Mexico, North Dakota, South Dakota, Utah, and Wyoming.
977
-------
In both cases, REPO is not intended to exercise authority
superseding that of its members.l
2
4. Federation of Rocky Mountain States
The Federation of Rocky Mountain States was chartered as a
private, non-profit corporation in 1966 by the governors of
Colorado, Montana, New Mexico, Utah, and Wyoming. (Arizona,
Idaho, Nevada, and North and South Dakota also participate in
some of the Federation's programs.) In addition to the governors
and their representatives, participants in the Federation include
many of the business, industry, education, and research leaders
of the region.
The purpose of the Federation is to provide a forum for
coordinating regional planning, primarily with respect to poli-
cies for maintaining the quality of life for residents of the
region while improving their social, cultural, and economic
well-being. Two-thirds of the organization's funding has come
from the federal grants; the other third has come from state
contributions and private member dues. The Federation's activ-
ities are organized and administered by councils composed of
representatives from government, business, education, and
regional interest groups. The councils' activities are directed
toward natural resource development, market development, trans-
portation, human resources, telecommunications, housing and com-
munity development, and the arts and humanities.
To date, the most significant product of the Federation
related to western energy development is a report produced by
its Natural Resources Council entitled Energy Development in the
Rocky Mountain Region; Goals and Concerns.3This report con-
tains two "proposed regional energy policy statements". The
first statement strongly emphasizes conservation as a foundation,
not an alternative, to both long- and short-term national energy
policies, and the second statement calls for substantive roles
for state and local governments (as opposed to the Federation)
in the development of national energy policies.
For an elaboration of these issues related to the formation
of REPO see: Hayes, Lynton. Energy Policy in the American West.
Ph.D. Dissertation, University of Indiana, 1975, pp. 94-150.
2
The Federation will also be absorbed by the new multi-
state organization. In fact, the Federation and its Executive
Director, Phillip M. Burgess, will have the lead role in estab-
lishing this new organization.
3
Federation of Rocky Mountain States. Energy Development
in the Rocky Mountain Region; Goals and Concerns. Denver,
Colo.: Federation of Rocky Mountain States, 1975.
978
-------
The Federation appears to have been successful in investigating
and developing regional positions on a wide variety of issues
that are important to meniber states. In doing so, it has served
primarily as a link between governors and private industries.
It also has been financially successful, having received over
$11 million in non-member funds since 1972.1
With respect to regionalism and interstate energy relations,
the Federation has, with the concurrence of the governors of its
member states, taken strong stands on some issues. Federation
policy positions reflect a strong commitment to promote the
interests and extend the authority of member states rather than
enlarge its own role. Thus, the Federation represents one forum
by which states of the region may coordinate activities and
represent their interests to other interested parties, such as
the federal government.
5. Conclusions About Intergovernmental Associations
This review of regional institutions has necessarily been
highly selective. Those discussed represent only a few of the
more than 130 western multi-state groups now in existence.2
However, some tentative conclusions can be drawn from the activ-
ities of the selected organizations discussed above. Clearly,
they are not designated or constituted to create a supra-state
organization with regulatory or administrative powers over the
states. Indeed, these organizations have no formal authority
over member states. The basis for most of the regional associ-
ations is a recognition by the members of common problems, a
common adversary (normally the federal government), and/or common
values. The associations are generally designed to further
mutual interests by facilitating the exchange of information,
coordinating actions and reactions, and providing planning ser-
vices. In some cases, regional organizations serve as conduits
for the dispersion of federal grant funds to the states and play
little or no role in regional planning for energy development.
Strong state individualism, variations in state priorities
related to energy development and environmental concerns, and
competition for natural resources and federal funds strongly
influence the character of interstate relations. Hence, orga-
nizations designed to further mutual interests characteristically
are concerned primarily with increasing the power of individual
member states. Acting as a collective voice for the general
This $11 million includes the major federal funding sup-
port mentioned earlier.
2
This is a preliminary finding of a 10-state task force of
the Western Governors' Conference, Teton Village, Wyoming, Sep-
tember 16, 1976.
979
-------
interests of western states is seen as a secondary or tertiary
objective for most of the parties to the various agreements.
13.3.2 Private Participants
The organizational and policy changes in the public sector
have been paralleled by modifications in the energy industry and
by increased participation of other private parties-at-interest.
This section examines the role of private sector participants,
emphasizing energy companies and major environmental interest
groups.
A. The Energy Industry
The most significant change in the energy industry in recent
years has been the growth of conglomerates which develop multiple
resources. Especially important have been the acquisitions in
the last decade by the oil industry of coal and uranium resources.
Entry by these new "energy companies" into multiple fuel areas
has generally been accomplished by acquiring energy reserves or
production facilities, or through joint-venture agreements.J-
These tendencies toward integration,'coupled with recent
(1973-74) increases in energy prices and industry profits (par-
ticularly in some sectors of the petroleum industry), have cre-
ated a political issue over the role of energy firms in public
policy. Questions have been raised as to competitiveness, atten-
tiveness to the "public interest", and the type and degree of
government control over the energy industry. One view of the
industry argues that "present market structures are not monop-
olistic" 2 and that assuming they could become monopolistic is a
"naive exaggeration" of the industry's effectiveness as a polit-
ical pressure group.3 However, another view is that the industry
wields "exceptional political power" in the pursuit of goals
which often are not congruent with the "public interest".4
T)uchesneau, Thomas D. Competition in the U.S. Energy
Industry, a report to the Energy Policy Project of the Ford
Foundation. Cambridge, Mass.: Ballinger, 1975.
2
Ibid., p. 178.
3
Gordon, Richard. "Mythology and Reality in Energy Policy."
Energy Policy, Vol. 2 (September 1974), p. 195.
4
Ford Foundation, Energy Policy Project. A Time to Choose:
America's Energy Future. Cambridge, Mass.: Ballinger, 1974,
p. 230. Given industry's importance as a participant in western
energy resource development, considerable attention will be
devoted to identifying industry's role in the policy analyses
which are to be the central focus during the remainder of this study.
980
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B. Environmental Interest Groups
Environmental interest groups represent the best known of
the new participants in the energy system. In terms of organi-
zation these groups often do not have professional staffing or
large memberships, of the more than 3,000 organizations in the
U.S. concerned with the environment/energy interface, only a few
of the 250 national and regional groups have the resources to
undertake major policy initiatives. For example, only about 20
environmental protection groups maintain offices in Washington,1
and even fewer organizations have specifically focused their
activities on the environmental aspects of energy policy.
The most influential environmental groups are the general
public, or "citizens" groups, including the Sierra Club, Audubon
Society, Friends of the Earth, and Environmental Defense Fund,
which have dedicated themselves to the achievement of such broad
sociopolitical goals as the "restoration and preservation of the
earth's resources".2 These groups have, for the most part, moved
beyond a traditional emphasis on resource conservation to focus on
the more general problems associated with the environment, both
as a source of raw materials needed to generate energy and as a
depository of the pollution resulting from the production and use
of energy. Another group, the Center for Law and Social Policy,
has become active in energy affairs, often handling legal cases
on behalf of previously unrepresented groups. The center's
activities are broad-based, national in scope, and include oper-
ating a clinical law program and a coal mine safety project.
To date, the courts have proven the most viable alternative
for environmentalists when neither the economic market mechanisms
nor the legislative-administrative political system has responded
to their concerns. As Michael McCloskey, conservation director
of the Sierra Club, characterized this activist strategy, "We
will sue and sue and sue".3 Examples of legal actions by citi-
zens' groups are the suits against Consolidated Edison's planned
pump-storage electric generation plant at the Storm King Mountain
Freeman, David S. Energy; The New Era. New York, N.Y.:
Random House, 1974, pp. 134-36.
2
The Onyx Group. Environment U.S.A. New York, N.Y.: R.R.
Bowker, 1974, p. 80.
Garvey, Gerald. "Environmentalism Versus Energy Develop-
ment: The Constitutional Background to Environmental Administra-
tion." Public Administration Review, Vol. 35 (July/August 1975):
pp. 328-30.
981
-------
preservel and against Environmental Protection Agency (EPA) orders
to relax air quality standards . 2 In the later case, the li»«
s
. ti ,
forced EPA to develop specific guidelines for protecting the 'nation
clean air areas from significant deterioration of their air quality.
C. Other interest Groups
A variety of other interest groups are likely to become
participants in the energy policy system as they begin to be
indulged or deprived by development. For example, labor unions
(such as the United Mine Workers and the Oil, Chemical, and
Atomic Workers International) compose one category of partici-
pants likely to be interested in several energy-related issues.
(Section 13.4 discusses labor interests in energy policymaking.)
Both Indian tribes and other organized Indian groups are
beginning to develop as powerful parties-at-interest because
substantial energy resources are located on tribal reservations
and Indian water rights can significantly influence the alloca-
tion of limited water supplies for energy resource developments
in the West. Although the legal boundaries of Indian water
rights are still being determined, the reservation doctrine can
be interpreted as giving Indians substantial control over surface
waters that border on or pass through their reservations. (This
issue is discussed in more detail in Chapter 14.) Energy devel-
opment in the western U.S. is likely to affect many of the 75
reservations in the eight states. However, by virtue of their
proximity to critical water resources, the most heavily involved
tribes are likely to be the Coeur d'Alenes, Crow, Hualapai,
Navajos, and Northern Cheyenne. Groups such as the Council of
Energy Resource Tribes, National Congress of American Indians,
American Indians for Indian Opportunity, and Native American
Rights Fund are also likely participants in energy policymaking.
Agricultural interest groups have also begun to participate
in energy policymaking. A national level example is the Soil
Science Society of America which is concerned with the relation-
ship of energy to agriculture and agronomy. The Utah Association
of Soil Conservation Districts, concerned with planning and pro-
gramming conservation activities (particularly on private land) ,
is an example of a regional agricultural interest group.
Scenic Hudson v. Federal Power Commission, 354 F.2d 608
(2d Cir. 1965). cert, denied, 384 U.S. 941 (1966).
2Sierra Club v. Ruckelshaus, 344 F. Supp. 253 (D.D.C. 1972),
affirmed, 4 ERC 1815 (D.C. Cir. 1972), affirmed sub nom.. Fri v.
Sierra Club, 412 U.S. 541 (1973).
982
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D. Interstate Interest Groups
Just as public sector participants from associations on an
interstate or regional basis, groups from the private sector
form coalitions to further the interests of several states at
once. As noted above, t-Jie Federation of Rocky Mountain States
includes private sector members, largely affiliated with industry,
from several western states, other interstate, non-governmental
interest groups include the Western Systems Coordinating Council
(an association of utilities) and the National Association of
State Departments of Agriculture (whose energy interests are to
coordinate state agri-business energy needs with federal fuel
allocation policies).
13.4 ENERGY POLICY SUBSYSTEMS
The energy policy system participants discussed in the pre-
vious section are involved to varying degrees in a set of policy
subsystems that have developed around coal, gas, and electricity. 1
The section sketches the industry, labor, and government inter-
actions in each of these fuel subsystems.
13.4.1 The Coal Policy Subsystem
Historically, coal companies have had the reputation of
being the least efficiently organized, economically poorest, and
"worst functioning industry in the country".2 However, this has
not kept them from developing powerful industry organizations
such as the National Coal Association. Also, the industry has
recently been receiving large infusions of capital and expertise,
primarily as a consequence of the formation of energy conglom-
erates. Coal has generally been the energy resource least sub-
ject to federal government control, but this has also changed in
recent years with the passage of the 1969 Coal Mine Health and
Safety Act and the introduction of federal regulatory agencies
such as the Mining Enforcement and Safety Administration (MESA).
The most striking characteristic of the modern coal industry
is the degree to which production is increasingly owned by cor-
porations whose primary business is not coal. In 1973, two of
the three largest coal producers, five of the top ten, and seven
T?he nuclear energy industry has also developed a policy
subsystem important to overall energy policymaking. Since,
except for uranium mining and milling, nuclear energy is beyond
the scope of this technology assessment, the nuclear subsystem
is not discussed here.
2
Parker, Glen L. The Coal Industry; A Study in Social
Control. Washington, D.C.: American Council on Public Affairs,
1940, p. 15.
983
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of the top fifteen were owned by oil conglomerates.1 This trend
has meant that money and administrative skills have become avail-
able to large portions of the coal industry, long handicapped by
low worker productivity, disputes over the environmental conse-
quences of strip mining, and chronically poor relations with the
United Mine Workers (DMW) . As a result, advertising, lobbying, and
political campaign contributions, which the coal industry previ-
ously could not afford, are being increasingly used to promote
industry viewpoints.
Because the coal industry's political orientation and influ-
ence has, in the past, been directed primarily at state govern-
ments (until the late 1960's, most coal regulatory functions were
implemented at the state level), coal firms do not have the
extensive history of contact and interaction with federal regu-
lators that oil and gas producers do.2 In fact, coal has had
the fewest links to federal agencies and the least research,
development and demonstration (RD&D) at the national level.
The current major federal interests in the coal policy sub-
system are focused on environmental, health, and safety programs.
Environmental issues hinge on two problems: surface mining and
air pollution. Enforcement of strip mining and reclamation
regulations is divided between the Department of the Interior and
state governments. Air quality standards related to coal combustion
are promulgated by the Environmental Protection Agency and imple-
mented by the states. Federal control over health and safety aspects
of coal development has been more extensive; MESA and the Bureau of
Mines have pre-empted the enforcement of standards in this area.^
Among the professional associations that represent the coal
industry at the national level, the National Coal Association
(NCA) is the most important. The NCA is affiliated with the Coal
Exporters Association which is an important organization in U.S.
coke and coal trade. Other major industry organizations are the
Bituminous Coal Operators Association, composed of the major
operators (and industry representative in labor contract negoti-
ations) and the National Independent Coal Operators Association,
Ridgeway, James. The Last Play. New York, N.Y.: E.P-
Dutton, 1973, p. 18.
Ford Foundation, Energy Policy Project. A Time to choose;
America's Energy Future. Cambridge, Mass.: Ballinger, 1974,
p. 230.
University of Oklahoma, Science and Public Policy Program,
Fossil Fuel Research Team. The Coal and Oil Shale Resource
Development Systems: An Interim Report.Norman, Okla.:Univer-
sity of Oklahoma, Science and Public Policy Program, 1974,
pp. 202-204.
984
-------
which represents the smaller firms. Some coal interests are also
articulated by more general business organizations, such as the
American Mining Congress and the American Iron and Steel Institute.1
Of all the energy resources, coal has been most influenced
by labor union participation. The UMW has dominated the
history of coal labor since the 1870's, although its influ-
ence has fluctuated from a low point during the 1930's
(when membership fell from a 1920 peak of over 750,000 to only
75,000) to a high point during the period of union "autocracy"
and militancy in the 1940's.2 since 1945, the UMW has modified
what many view as its earlier radical stance and has negotiated
agreements with the Bituminous Coal Operators Association to con-
trol markets, production, and employment levels. However, as
the industry has become more mechanized and diversified, many
mining jobs have been lost to machines, to other unions, and to
non-union workers. Between 1947 and 1973, more than 300,000
coal-mining jobs ceased to exist, and the current workforce of
150,000 men includes over 35,000 non-union personnel.3 in addi-
tion, the UMW has entered an era of competition with the Inter-
national Union of Operating Engineers (IUOE), which operates the
strip-mining equipment used in most western coal operations.
About 90 percent of the UMW membership works in the underground
mines of the East, so any move away from underground coal extrac-
tion techniques to stripping in the West would enable operating
companies to contract with the IUOE on what some observers
believe would be more favorable terms than the UMW offers.4
Despite these threats to UMW control of coal labor, the union
continues to be the most significant labor force in the entire
energy policy system, as demonstrated by its ability to gain
passage of such important standards as the 1969 coal Mine Health
and Safety Act provisions establishing compensation for "black
lung" disease victims.
national Coal Association. Bituminous Coal Facts 1972.
Washington: National Coal Association, 1972, pp. 40-47; and
Ridgeway, James. The Last Play. New York, N.Y.: E.P. Dutton,
1973, p. 18.
velie, Lester. Labor U.S.A., New York, N.Y.: Harper and
Brothers, 1958, pp. 142-43.
Hoerr, John. "Coal and the Mine Workers." Atlantic, Vol.
235 (March 1974), p. 20.
4
Noone, James A. "Administration Joins Opposition to Strip
Mining Bill." National Journal Reports, Vol. 6 (June 15, 1974),
p. 888.
985
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13.4.2 The Oil Policy Subsystem
The oil industry is the preeminent industry in the energy
policy system. This industry probably has the most influence on
its policy subsystem because of the strength of its individual
companies, industry associations such as the American Petroleum
institute (API), and policy advisory bodies such as the National
Petroleum council (NPC).
As the energy industry with the greatest economic resources
at its disposal (in 1972, 23 oil companies each had revenues of
$250 million or more), the oil industry is easily able to afford
the costs associated with political involvement. •"• This economic
position has also allowed the industry to meet most labor union
demands, thus minimizing manpower problems.2
Other structural factors that have worked to the advantage
of the petroleum companies are their high degrees of vertical
and horizontal integration. At least 18 oil companies explore
for, produce, refine, transport, and market crude oil, and many
oil companies also own and produce natural gas, coal, and/or
uranium or influence the development of those resources.3
These factors (plus the fact that seven international oil
companies hold a dominant world leadership position in the
industry) have led to a significant community of interest among
oil firms on political matters, although differences between the
integrated "majors" and the more specialized "independents" have
somewhat weakened this consensus on such controversial matters
as the'removal of oil price controls. Finally, the oil industry
owes some of its success in influencing policy to the national
impact it can achieve as a result of a fairly broad geographical
dispersion of industry components.
A major avenue by which the petroleum firms exercise policy
influence is lobbying. Industry associations such as the API
(composed of 350 member companies) gather data, undertake
research, and present policy recommendations to public officials
at every level of government, as well as to the media. An esti-
mated $10 million per year is spent for lobbying payrolls by the
Gray. John E. Energy Policy; Industry Perspectives.
Cambridge, Mass.: Ballinger, 1975, p. 81.
Not all of the industry is unionized. Most unionized are
refining and petrochemicals; least unionized is offshore explo-
ration and production.
3 '
Gray. Energy Policy, pp. 15-16.
986
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60 oil and gas organizations in Washington alone.1 (API's 1974
budget was in excess of $15 million.) The "oil lobby" has, in
fact, expanded to such an extent that foreign governments have
begun to engage their own Washington lobbyists to "monitor"
petroleum policy developments.
Closely related to the lobbying function is the use of cam-
paign contributions as a policymaking tool by the oil industry.
For example, over $5 million was supplied to the 1972 election
campaign by oil industry officials and stockholders.2
Oil industry positions are advanced by the government-
sponsored NPC. Composed of members from industry associations
(such as API, the Independent Petroleum Association of America,
representatives of the major oil companies, and other private
oil interests), the NPC serves as an advisor to the Secretary of
the Interior and has access to the Congress and to a broad range
of energy regulatory agencies.3
Finally, the Interstate Oil Compact Commission performs a
coordinating role between these oil-producing states and the
industry.
These apparent advantages are balanced somewhat by the fact
that the oil subsystem is very complex, and petroleum and its
products are regulated at every level of government, in addi-
tion to the Interior Department's control of federal leasing and
disposal policies, oil resources are regulated at the national
level by the Federal Energy Administration, which: operates the
oil allocation, conservation, and imports programs; coordinates
planning and data-gathering activities; and develops executive-
branch policy alternatives. Also, each state that contains pro-
ducing oil fields within its boundaries has regulatory authority
over those operations.
Labor has not been a major factor in the oil policy subsys-
tem. The major labor organization in the oil and natural gas
subsystems is the Oil, Chemical and Atomic Workers international
Union (OCAW), which has approximately 200,000 members among the
Freeman, David S. Energy; The New Era. New York, N.Y.:
Random House, 1974, p. 179.
2
Smith, A. Robert. "No Shortage of Energy Lobbying."
Bulletin of the Atomic Scientists, Vol. 30 (May 1974), p. 12.
Davis, David H. Energy Politics. New York, N.Y.: St.
Martin's Press, 1974, p. 79.
987
-------
industry's blue-collar workers.1 Although limited in its impact
on the petroleum subsystem by the relative prosperity of the
entire industry and the traditionally weak unionization history
of many oil-producing states, the OCAW has sought to strengthen
its role since the energy crisis. In an attempt to gain more
political leverage by expanding its membership, the OCAW in 1973
launched an effort to organize the white-collar sectors(scien-
tists and engineers, for the most part) of the oil, chemical,
and atomic energy industries.2 The union has also taken a more
militant stand regarding industrial relations; strikes against
oil companies in 1973 sought union authority over such tradi-
tional management spheres as health and safety conditions for
workers.3
13.4.3 The Gas Policy Subsystem
The natural gas subsystem is closely related to the oil sub-
system because many gas producers are, in fact, oil companies.
But unlike the oil industry, most natural gas companies are not
characterized by vertical integration. They are frequently com-
plex organizations because most gas producers also produce oil
and many gas distribution companies also sell electricity. The
result is an intricate industry ownership pattern in which a few
large petroleum companies and a plethora of relatively small
independent gas producers make up the production sector, indepen-
dently owned companies control transmission, and both investor-
owned and publicly owned businesses link the transmission system
to consumers. Clearly, this diversity of ownership does not
encourage the community of interests that characterizes the oil
industry, nor does it simplify regulation.
At the apex of the governmental authority in the gas policy
system is the Federal Power Commission (FPC), which is responsi-
ble for the regulating of pipeline construction, the pricing of
interstate gas, and the allocation of gas supplies to utilities.
However, of the approximately 30,000 domestic oil and gas pro-
ducers, only one in ten is subject to the regulations of the FPC.
Federal law requires that separate firms transport and distribute
the product; the transmission companies are regulated much more
stringently than the production companies. There are over 100
regulated interstate gas pipeline companies (of which about 30
Environment .Information Center, Energy Reference Depart-
ment. Energy. Directory Update. New York, N.Y.: Environment
Information Center, 1976, Part 03, p. 103.
2
"A Union for Industrial Scientists?" Science, Vol. 181
(September 14, 1973), p. 1030.
Shapley, Deborah. "Shell Strikes: Ecologists Refine
Relations with Labor." Science, Vol. 180 (January 12, 1973), p. 166.
988
-------
are considered "major") and more than 1,500 gas distribution
firms.1 other governmental controls are exerted on gas companies
by the Department of the Interior, which has control of leasing,
and by state governments, which have control over their own pro-
ducing areas.
Foremost among the representatives of the natural gas indus-
try is the American Gas Association (AGA), an organization of
distributors and transporters. The AGA is the most important
natural gas industry association because it is a primary source
of data for the FPC on such topics as gas reserves. The AGA
also performs an important industry RD&D function. Normally
the consumer-oriented American Public Gas Association, which is
made up of city-owned utilities operates in opposition to the
AGA.2 The major gas pipeline companies are represented by the
Interstate Natural Gas Association. In addition, both the
API and the NPC often act as spokespersons for the gas
industry.
Labor participants in the gas subsystem closely parallel
those discussed in the oil subsystem.
13.4.4 The Electricity Policy Subsystem
The electric utility industry, perhaps the most complex and
diverse in the entire energy policy system, is composed of both
investor-owned and public companies. The approximately 275
investor-owned firms, which are generally large and integrated,
produce over 70 percent of the nation's electricity, while the
2,900 public utilities, which are mostly smaller and more spe-
cialized, account for slightly more than 20 percent of produc-
tion. 3 one result of the extreme diversity of the firms included
within these categories (the private sector includes both inde-
pendents and subsidiaries of holding companies, nonfederal sys-
tems, and rural -cooperatives) has been the absence of any
community of interest in the electric power industry. However,
the electric companies do have certain advantages as participants
in the energy systems. Electric utilities comprise the largest
American industry in terms of total assets, and require more
annual investment than any other industry.4 in addition,
Gray, John E. Energy Policy; Industry Perspectives, a
report to the Energy Policy Project of the Ford Foundation.
Cambridge, Mass.: Ballinger, 1975.
o
Davis, David H. Energy Politics. New York, N.Y.: St.
Martin's Press, 1974, p. 109.
Gray. Energy Policy, p. 20.
4
Ford Foundation, Energy Policy Project. A Time to Choose;
America' s Energy Future. Cambridge, Mass.: Ballinger, 1974, p. 255.
989
-------
electricity is produced everywhere in the nation; there are no ^
"electricity states" as there are "coal states" and "oil states .
Finally, as the electric utility industry's position is strength-
ened by .the politics of resource scarcity and a mushrooming
demand for electric power, electric companies are gradually
improving their lobbying activities, their interactions with
government, and their RD&D capabilities.
Although the electric utilities have developed few powerful
industry-wide associations that represent industry positions to
government, bodies such as the Edison Electric Institute (an
industry trade association) do exchange technical, operational,
and marketing data and coordinate electric power company views
with both public and private interests. Cooperation between the
industry and government in RD&D policy is promoted by the Elec-
tric Power Research Institute.
While electricity generation is regulated at the federal
level by the FPC, state governments have the primary regulatory
role in siting generation plants, setting the rate structures
for utilities, and initiating intrastate cooperative arrange-
ments. The FPC authorizes the licensing of hydroelectric facil-
ities and controls prices of interstate sales of electricity but
plays only a coordinating role in the encouragement of the forma-
tion of regional electric reliability councils and the develop-
ment of pooling arrangements.! There is no significant labor
union indigenous to the electric power industry.
13.5 CONCLUSIONS
Two conflicting conclusions may be drawn from this descrip-
tion of the energy policymaking system. First, pressure is
growing for the development of more rational and comprehensive
national energy policies. This pressure is reflected in the
recent efforts to establish national energy goals and objectives
and is based on the desires of political decisionmakers to appear
rational. In addition, a wide range of interest groups are
demanding that policymakers take a more comprehensive approach
to policymaking, including a recognition that a broad range of
interests are affected by policies made ostensibly to deal only
with energy.
Countering this drive, however, are a number of other fac-
tors that make such rational comprehensiveness difficult at best.
The two most important of these factors, as implied in the above
description of energy institutions, are resource scarcity and the
complexity of the energy policy system. This system, composed of
Breyer, Stephen G., and Paul W. MacAvoy. Energy Regulation
bv the Federal Power Commission. Washington, D.C.: Brookings
Institution, 1974, pp. 89-121.
990
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fuel subsystems organized around coal, oil, natural gas, and
electricity, suffers from all the problems associated with
pluralism and fragmentation. Pluralistic politics requires that
often difficult to achieve compromises be worked out among com-
peting interests, compromises which governmental institutions
with fragmented and overlapping responsibilities and ad hoc modes
of operation are often ill-equipped to handle. Resource scar-
city, resulting from the depletion of finite energy sources and
an artificially imposed oil embargo, has intensified each of
these difficulties by terminating the long history of stability
which had characterized the energy policy system or, perhaps more
accurately, the energy policy subsystems.
Until the 1973 embargo, the resource subsystems were rela-
tively self-contained decisionmaking communities, each with a
fairly stable set of participants and decisionmaking procedures.
This is not to say that decisions in these subsystems were at all
centralized or characterized by comprehensive planning. In fact,
each resource development subsystem had its own unique pattern of
problem solving that permitted it to cope with situations in
which goals, alternatives, consequences, and even the problems
were often undefined. Resource scarcity, and the resulting
instability it created in these already complex resource subsys-
tems, increased the problems of pluralism by adding uncertainty
to every energy decision. Groups whose interests were either
adversely affected or visibly threatened began immediately to
demand the right to participate in the policy process. Whether
the group represented farmers seeking larger fuel allocations or
East Coast states fearful of the consequences of offshore devel-
opment of oil, the usual group strategy was to seek governmental
intervention. These pressures on political institutions accus-
tomed to assuming only limited authority over energy sources
multiplied the problems of fragmentation.
After 1973, the federal government increasingly sought to
develop energy agencies better able to respond to interest groups
who either did not understand the established decisionmaking pro-
cedures or did not subscribe to them. The failures of such
bodies as the National Energy Office and the Energy Policy Office
in the early days of the energy crisis signaled the breakdown of
traditional incremental energy policymaking. Their early
attempts to maintain national energy policy as the sum of the
subsystems through small modifications in the modes of operation
gave way under the pressures of resource scarcity politics and
participation demands by new groups. The resulting system insta-
bility has produced uncertainty and conflict because the absence
of stable procedures have made distinctions between the roles of
the public and private sectors difficult to delineate and
explain.
One result of the interaction of institutional complexity
and resource scarcity has been that a broader range of issues are
991
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acting as constraints or obstacles to increasing domestic energy
supply. These constraints are essentially of two types: dis-
putes over the distribution of costs and benefits associated with
developing resources known to be available (as is the case in the
development of western energy resources); and uncertainty
regarding availability of resources because the technologies or
processes for producing them are unproven. Scarcity has added
the uncertainty of the second type to the political issues of the
first type; that is, before the energy crisis, each of the fuel
communities shared at least some minimal consensus concerning
what resources were available. For example, in the coal subsys-
tem the choices were understood to be between various coal
regions and mining techniques. The major factors on which to
base choices were who would enjoy the benefits and who would pay
the costs of such development. To this traditional focus on the
benefits and costs of alternatives for various participants (or
what has been termed the "rules of the game") has been added
substantive uncertainty as to the commercial feasibility of new
technological options, as well as concern as to their social and
environmental impacts. It is within this context of uncertainty,
scarcity, and constraints to domestic energy production that
several policy issues are discussed in Chapter 14.
992
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CHAPTER 14
SELECTED PROBLEMS AND ISSUES
14.1 INTRODUCTION
This chapter discusses several categories of problems and
issues arising as a consequence of western energy resource devel-
opment. Each of these discussions was prepared to provide mem-
bers of the Science and Public Policy-Radian interdisciplinary
research team with background information for the more extensive
policy analyses on which the study will now focus. Neither the
order nor the length of presentation should be viewed as reflecting the
relative importance of these problems and issues.
During the remainder of the project, policy analysis will be
extended to include the systematic identification and analysis of
problems and issues based on the results of our impact analyses.
The analysis of these problems and issues will include the iden-
tification of participants, institutional arrangements, and
existing laws and regulations, and the identification, evalu-
ation, and comparison of alternative policies and implementation
strategies. These analyses will be described in detail in the
work plan for completing the project. (See Chapter 5).
The following sections contain preliminary background infor-
mation on problems and issues in seven categories: water avail-
ability and quality, reclamation, air quality, growth management,
housing, community facilities and services, and Indians.
14.2 WATER
14.2.1 Introduction
Water concerns are among the most visible and politically
charged of all the problems and issues that have been identified
and discussed in connection with energy development in the west-
ern U.S. This is readily understandable because so much of the
energy-rich West is water-poor. Competition for water and a
concern for its quality are not new. In fact, the existing com-
plex mix of appropriated rights, interstate compacts, court deci-
sions, and unanswered questions (such as those concerning prior
rights and beneficial uses) are largely a product of competition
for a scarce and often inadequately defined resource. Thus, energy
993
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developments being proposed for the region do not create new
water problems so much as exacerbate existing ones.
In the past, policymakers have generally tried to resolve
western water problems by adding to the already complex legal
rights system or, in some cases, by promoting technological fixes.
The first approach is illustrated by various interstate compacts
and court cases; weather modification and desalinization projects
illustrate the second. These kinds of problems and issues affect
energy resource developments but are not peculiar to them. But
energy resource developments do directly result in several other
major problems and issues, some of which are discussed in the
following sections.
14.2.2 Water Availability
A. Surface Water
The two major rivers affected by the energy resource devel-
opments being considered in this study are the Colorado and Upper
Missouri, waters in the Colorado were divided between Upper and
Lower Basin states by the Colorado River Compact of 1922, which
guaranteed 7.5 million acre-feet per year (acre-ft/yr) to the
Lower Basin. * The Water for Energy Management Team of the Department
of the interior (DOI) estimates that a total of 8.25 million
acre-ft/yr must be released to the Lower Basin to satisfy the
Compact requirements and to meet the 1.5 million acre-ft/yr obli-
gated to Mexico in the Mexican Water Treaty of 1944.2 Given the
Colorado River Compact of 1922, 42 Stat. 171, 45 Stat. 1064,
declared effective by Presidential Proclamation, 46 Stat. 3000
(1928). The Boulder Canyon Project Act of 1928, 45 Stat. 1057,
43 U.S.C.A. §§ 617-617t (1964), authorized the division of
the water among Lower Basin states as follows: California, 4.4
million acre-ft/yr; Arizona, 2.8 million acre-ft/yr; and Nevada,
0.3 million acre-ft/yr. Although the Act was not adopted by the
states, the terms of the division were implemented by the U.S.
Supreme Court in Arizona v. California, 373 U.S. 546 (1963),
Decree 376 U.S. 340 (1964). The Colorado River Basin Project Act
of 1968, 82 Stat. 885, 43 U.S.C.A. §§ 616aa-l et sea. (Supp.
1976), provides that California is not to receive less than 4.4 mil-
lion acre-ft/yr because of the Central Arizona Project.
U.S., Department of the Interior, Water for Energy Manage-
ment Team. Report on Water for Energy in the Upper Colorado
River Basin. Denver, Colo.: Department of the Interior, 1974.
This assumes that 0.75 million acre-ft/yr of the treaty obliga-
tion is to come from each basin. See the Treaty between the
United States of America and Mexico Respecting Utilization of
Waters of the Colorado and Tijuana Rivers and of the Rio Grande,
February 3, 1944, 59 Stat. 1219 (1945), Treaty Series No. 994.
994
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estimated in-stream flow of the Colorado River, this leaves the
Upper Basin states an estimated 5.25-6.3 million acre-ft/yr1 to
apportion among themselves under the formula they established in
the Upper Colorado River Basin Compact of 1948.2 This formula
provides 50 thousand acre-ft/yr for Arizona (a Lower Basin state)
with the remainder being allocated on the basis of 51.75 percent
for Colorado, 11.25 percent for New Mexico, 23 percent for Utah,
and 14 percent for Wyoming. In 1974, total withdrawals in the
Upper Basin were approximately 3.2-3.7 million acre-ft/yr.3 In
short. Upper Basin states are entitled to some 1.5-2.6 million
acre-ft/yr that is currently going to the Lower Basin.4 This is
more than twice the 0.6-1.0 million acre-ft/yr requirements esti-
mated for the levels of energy development in our scenarios for
the Upper Colorado River Basin states in the year 2000 (see
Chapter 12).
The low estimate was made by the Lake Powell Research
Project. See Weatherford, Gary D., and Gordon C. Jacoby. "Impact of
Energy Development on the Law of the Colorado River." Natural
Resources Journal, Vol. 15 (January 1975), pp. 171-213. The high
estimate was made.by Tipton and Kaliriback, Inc. Water Supplies of
the Colorado River,*in U.S., Congress, House of Representatives,
Committee on Interior and Insular Affairs. Lower Colorado River
Basin Project. Hearings before the Subcommittee on Irrigation
and Reclamation, 89th Cong., 1st sess., 1965, p. 467. The most
frequently used estimate is the 5.8 million acre-ft/yr of the DOI
Water for Energy Management Team.
Upper Colorado River Basin Compact of 1948, 63 Stat. 31
(1949).
•s
This is the estimated total for all uses. Approximately 60
percent of this was for irrigation, 20 percent went to Denver via
an interbasin transfer, 14 percent was lost through evaporation,
and the remainder was consumed for energy, recreation, minerals
and mining, livestock ponds, and municipal and industrial uses in
approximately equal amounts. See U.S., Department of the Interior,
Water for Energy Management Team. Report on Water for Energy in
the Upper Colorado River. Denver, Colo.: U.S. Department of the
Interior, 1974.
At present, surplus water from the Upper Basin is being
used to fill reservoirs at Lake Powell and Lake Mead and by
California. When the Central Arizona Project (CAP) is completed
in 1985, the water will be used there. In fact, the CAP is
likely to withdraw water from the reservoirs that are now being
filled. Between the time the reservoirs are filled and the CAP
is completed, the surplus above California use will flow into
Mexico. When the CAP becomes a large user, California is sup-
posed to decrease its withdrawals to the 4.4 million acre-ft/yr to
which it is entitled.
995
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The Yellowstone River is the principal stream in the Upper
Missouri River Basin that will be affected by energy development
in our scenarios. In 1950, Montana, North Dakota, and Wyoming
became parties to the Yellowstone River Compact, which allocates
the water available in the Yellowstone.1 This compact recognized
appropriations for beneficial use that already had been made and
divided the water remaining in the tributaries of the Yellowstone
as shown in Table 14-1.2 The DOI Water for Energy Management
TABLE 14-1:
INTERSTATE COMPACT DIVISION
OF WATERS IN THE TRIBUTARIES
OF THE YELLOWSTONE RIVER
Tributary
C larks Fork River
Big Horn River
Tongue River
Powder River
Percentage to
Wyoming
60
80
40
42
Montana
40
20
60
58
Team estimates the collective average annual flow for these trib-
utaries to be approximately 4 million acre-ft/yr. An estimated
3.6 million acre-ft/yr of this flow is unappropriated at present.
^^Yellowstone River Compact of 1950, 65 Stat. 663 (1951).
2
"Beneficial use" is defined differently by different western
states. A typical definition is: the use of that amount of water that
is reasonable and appropriate under reasonably efficient practices to
accomplish without waste the purpose for which the water appro-
priation is lawfully made. (Colorado Revised Statutes § 37-92-
103(4) (1963).
U.S., Department of the Interior, Water for Energy Manage-
ment Team. Report on Water for Energy in the Northern Great
Plains Area with Emphasis on the Yellowstone River Basin. Denver,
Colo.: Department of the Interior, 1975.
996
-------
which is roughly three times the estimated 1.0-1.8 million
acre-ft/yr needed to support the levels of energy development in
the Upper Missouri River Basin called for in our scenarios for
20001 (see Chapter 12).
If these estimates of unappropriated surface water in the
Upper Colorado and Upper Missouri River Basins are even approxi-
mately accurate, water availability for energy resource develop-
ment should not be a significant problem, especially in the Upper
Missouri. However, the picture described above may be incomplete
and somewhat misleading because: the in-stream flows are aver-
ages and much lower flows may occur in some years;2 although,
with the possible exception of New Mexico, none of the states in
the Upper Colorado is actually using all the water it is entitled
to, several states have at least tentatively distributed their
total entitlement; if quantified, federal and Indian rights could
reduce the amount of water that states have available to dis-
tribute; and present users of the surplus water in both river
basins, but particularly in the Colorado may be reluctant to
relinquish their use of this water. All four of these factors
can possibly affect the availability of water for energy resource
development.
Most states in the study area are concerned that they might
lose water to which they are entitled but are not currently with-
drawing for a beneficial use. Their own intrastate water appro-
priation systems generally provide that not putting appropriated
water to a beneficial use is grounds for cancellation of a water
right and that a water right can be established by use. These
states fear that out-of-state user(s) might establish a right to
waters that have been appropriated by the state but are not
actually being put to a beneficial use at present. As a conse-
quence, some states are trying to put the water to a beneficial
use as soon as possible to guard against this happening.
Competition among water users is also likely to become more
of a problem if large-scale energy resource development takes
place. The current energy developments in the area have already
contributed to increased water costs, and large-scale operations
could help drive costs higher, even if water supplies ultimately
prove sufficient for both energy and other developments. Thus,
Although other areas of the Upper Missouri will be affected
by western energy development, enough water is available to meet
energy and other uses to the year 2000 and conflicts over poten-
tial scarcity have not yet emerged.
2Flows can be maintained for some time by the release of
impounded water; however, several successive dry years would
present a problem.
997
-------
unless the federal government intercedes, water costs may become
prohibitively high for irrigation and some other uses. However,
agricultural uses of water in the West have a long history of
being subsidized by the federal government, and agricultural
users are not likely to give up without at least attempting to
flex their political muscle.
As discussed below, energy resource development appears to
be less of a water quality problem than some other uses, partic-
ularly agricultural irrigation. Thus, Lower Colorado River Basin
states, such as California, and energy developers share a common
interest in the competition among users; that is. Lower Basin
states would be less affected if any increased consumption of
water in the Upper Basin is for energy rather than agricultural
development.
Unquantified federal and Indian water rights might also
create some rather significant water availability problems. In
large part this is because of the reservation or Winters doctrine
which provides that each time the federal government sets aside
land from the public domain for a federal purpose, including
Indian reservations, it implies a reservation of water resources
to meet the needs of that land. This doctrine was first applied
in 1908 in Winters v. United States.1 Since then, the doctrine
has been extended by the courts to hold that federal rights are
not subject to state appropriation laws and regulations and that
federal water rights are not lost if they are not used.2
Under the reservation doctrine, Indian tribes potentially
control large quantities of water in the West. Since most Indian
lands were set aside in the nineteenth century, Indian water
rights are sometimes referred to as "prior and paramount".3 AS
shown in Figure 14-1, many of the surface sources of water for
energy development flow through or border reservations. If
Indians are ultimately found to hold prior and paramount rights.
Winters v. U.S., 207 U.S. 564 (1908).
2
These two extensions of the reservation doctrine are the
product of over 50 years of refinement of the Winters ruling.
See Harris, Richard W.; William D. Jeffery; and Blair W.
Stewart, Jr. Interstate Environmental Problems. Stanford,
Calif.: Stanford Environmental Law Society, 1975, p. 51.
In U.S. v. Ahtanum Irrigation District, 236 P. 2d 321, 327
(9th Cir. 1956), cert, denied, 352 U.S. 988 (1957), the 9th
Circuit Court of Appeals held that Indians are entitled to the
total flow of a stream when the total stream flow is required to
meet their needs.
998
-------
Federal Indian Reservation
State Lines
Rivers/Streams
FIGURE 14-1: WESTERN RIVERS IN RELATION TO
INDIAN RESERVATIONS
999
-------
existing allocations and appropriations among and within western
states could be seriously affected.1
Since Federal rights are potentially quite large, not
subject to state appropriation laws and regulations, and possibly
reserved, their quantification could also seriously affect the
states and present water users. However, unlike some Indian
tribes, the federal government is not pressing for the quanti-
fication of its rights; in fact, federal agencies, particularly
the Bureau of Reclamation, are working with the states and within
the state water rights systems.2
In the past, a majority of states that would be affected
have advocated that Indian and federal water rights be quantified
as a means of lessening their uncertainty about their water
future. However, several states now oppose quantification. A
major reason for the change is that so long as these rights
remain ambiguous, states can continue to distribute the water.
Also, if and when their right to distribute the water is chal-
lenged, the states can claim that they have established a right
by virtue of their past use.3
In Arizona v. California, 373 U.S. 546 (1963), Decree 376 U.S.
340 (1964), the U.S. Supreme Court said that Indian water rights
were included in the interstate compacts. If this interpretation
is applied generally, states would have to absorb any changes
resulting from the quantification of Indian water rights. Since
Indians already exercise some of their water rights, primarily
for agricultural uses, any such increases may not be so large as
to create a separate problem.
2
About 4 years ago, a number of water quantification cases
in Colorado that included the federal government as a party were
consolidated. In his presentation at the Rocky Mountain Mineral
Law Foundation's Uranium Exploration and Development Institute
in Denver on November 19, 1976, Theordore E. Worcester stated
that a draft report by the Master Referee in the consolidated
cases was issued on November 5, 1976. According to Worcester, the
report is unfavorable as concerns federal water rights, finding
that (1) federal reserve rights are only those reasonably fore-
seeable at the time of the reservation, and (2) the federal gov-
ernment has only a reasonable time to quantify its rights. Of course,
this draft report must still pass through the Colorado state
courts and probably the U.S. Supreme Court.
Pelcyger, Robert S. "Indian Water Rights, Some Emerging
Frontiers," in Rocky Mountain Mineral Law Foundation. Rocky
Mountain Mineral Law Institute; Proceedings of the Twenty-First
Annual Institute, July 17-19, 1975. New York, N.Y.: Matthew
Bender, 1975, pp. 752-754.
1000
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Together, these water availability problems and issues
emphasize the potential importance of technologies to minimize
water use in meeting the requirements of energy resource and
other kinds of developments. As the summary of our water anal-
ysis results in Chapter 3 indicates, water requirements can vary
greatly among technologies producing the same fuel and for the
same technology at different sites. Deploying those technologies
configured and/or sited to use as little water as possible can
help to reduce the uncertainties of water availability.
B. Groundwater
Groundwater resources are even less well defined than are
surface waters. Even where estimates of total quantities of
groundwater are available, the recoverable portion of these
resources is usually not known because of a lack of knowledge
about location, depth, quality, and aquifer characteristics.^
However, despite this lack of knowledge, groundwater may become a
principal source of water for energy resource development in some
parts of the West (see Chapter 9). Also, groundwater is the
principal source of water for municipal water supplies in all our
scenarios.
Although surface and groundwater systems are interrelated,2
the potential problems of groundwater availability and use have
not received as much attention as surface water problems. In
general, groundwater law appears to be developing in a pattern
parallel to the way surface water law developed. However, there
are no interstate compacts dividing interstate groundwater resources
among the states,3 it is not clear that the reservation doctrine
is also applicable to groundwater, and the effects of surface or
groundwater withdrawals on groundwater or surface water avail-
ability are just now beginning to be dealt with by the courts.4
U.S. Department of the Interior, Bureau of Reclamation.
Westwide Study Report on Critical Water Problems Facing the
Eleven Western States. Washington, D.C.: Government Printing
Office, 1975, p. 50.
, p. 42.
3The Madison Aquifer, for example, is found in three states:
Montana, North Dakota, and Wyoming.
4U.S. v. Cappaert, 426 U.S. 128 (1976) at 143. The U.S.
Supreme Court, in an unanimous decision, found that "...since the
implied reservation of water doctrine is based on the necessity
of water for the purpose of the federal reservation, we hold that
the United States can protect its water from subsequent diver-
sion, whether the diversion is of surface or groundwater."
1001
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The importance of groundwater resources can be expected to
increase, particularly if some of the potentially significant
surface water problems discussed above arise and if groundwater
is tapped as a principal water source for energy development in
some parts of our eight-state study area. In some parts of the
study area, groundwater is already being mined.1 This may occur
with increased frequency when (and if) large-scale energy devel-
opments take place.
14.2.3 Water Quality
A. Introduction
Although the water quality impacts of energy development
will be regulated by both the states and the federal government,
the federal government has taken the lead in this area, especially
with regard to surface waters. The federal objective has been to
protect and restore water quality, primarily by either estab-
lishing or requiring the states to establish water quality and
effluent standards. This section identifies and briefly describes
the major federal water quality programs, describes the states'
implementation role, and identifies and discusses some of the
water quality problems and issues that might arise as a conse-
quence of western energy resource development.
B. Federal Water Quality Programs
As developed since the original Federal Water Pollution
Control Act was enacted in 1948,2 federal efforts to reduce and
control water pollution include both regulatory and assistance
programs. Current programs include the regulation of: point
source discharges, nonpoint sources, oil spill and hazardous
substances, vessel sewage, and disposal of dredge and fill mate-
rials. Assistance programs presently provide grants for waste-
water treatment works, salinity control projects, program
development, technical assistance, and manpower development.3
s means it is being used faster than the underground
reservoir is being recharged.
2
Federal Water Pollution Control Act of 1948, Pub. L. No.
80-845, 62 Stat. 1155. The current act is the Federal Water
Pollution Control Act Amendments of 1972, Pub. L. No. 92-500, 86
Stat. 816, codified at 33 U.S.C.A.Si 1251, et seq. (Supp, 1976).
Assistance programs are not described in this section.
However, some of these programs are discussed in Section 14.7.
1002
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As articulated in the Federal Water Pollution Control Act
Amendments of 1972 (FWPCA),! the federal government's water qual-
ity program has set goals of: water clean enough for boating and
fishing by 1977; water clean enough for swimming by 1983;2 and
zero discharge of pollutants into navigable water by 1985.
1. Point Sources
The program to regulate point sources is known as the National
Pollutant Discharge Elimination System, under this pro-
gram, no effluent can be discharged by a point source (such as
municipal and industrial dischargers, including the energy facil-
ities deployed in our seven scenarios) without a permit that sets
the conditions under which the discharge may be made. These
conditions include insuring that all requirements of the FWPCA
are met. Permits are issued by Environmental Protection Agency
(EPA) or the state (if the state program has been approved by
EPA).3 However, even when EPA has approved a state program, it
still retains control since it can veto any individual permit
proposal and withdraw its approval of a state's entire permit
program.
In working toward the 1985 goal of zero discharge into nav-
igable waters, FWPCA established two interim levels of effluents
standards: by July 1, 1977, all point source dischargers except
publicly owned treatment works are required to meet an effluent
level defined by the "best practicable control technology cur-
rently available"? and by July 1, 1983, these dischargers must
meet a level defined by the "best available technology economically
Federal Water Pollution Control Act Amendments of 1972,
S 101(2), 33 U.S.C.A. § 1251(a) (Supp. 1976).
2
U.S., Environmental Protection Agency. Clean Water. Report
to Congress—1974. Washington, D.C.: Environmental Protection
Agency/ 1974.
To be approved by EPA, a state's laws must authorize the
state to: (1) issue permits that apply all FWPCA requirements;
(2) monitor permitees to the extent required by the FWPCA; (3)
notify the public when an application is made and provide an
opportunity for a public hearing; (4) give EPA, downstream states
that would be affected, and the Corps of Engineers an opportunity
to object; and (5) impose requirements on publicly owned treat-
ment facilities. See Dolgin, Ernie L., and Thomas G.P- Guilbert,
eds. Federal Environmental Law. St. Paul, Minn.: West, 1974,
p. 735. Four of the eight states in our study area have EPA
approved programs: Colorado, Montana, North Dakota, and Wyoming.
The regional EPA office issues permits in those states that do
not have EPA-approved permit programs.
1003
-------
achievable".1 The reference point for the 1983 levels for all
point sources is the 1985 goal of zero discharge.2 Both the 1977
and 1983 technology-based standards are defined when EPA issues
discharge permits and establishes effluent standards for each
category of discharges.
The FWPCA requires the Administrator of EPA to set effluent
standards for new point sources to provide:
...the greatest degree of effluent reduction
...achievable through application of the best
demonstrated control technology, processes,
operating methods, or other alternatives,
including, where practicable, a standard per-
mitting no discharge of pollutants.3
Subsequent to these standards being established, they must be met
by all new point sources in each category. Point sources that
existed prior to the establishment of new source standards in
their categories must meet the conditions contained in their dis-
charge permit. New source standards have been established for
the 27 major industrial categories listed in the FWPCA as well as
a number of others. Those standards affecting western energy
resource development include: coal mining, ore mining and dressing
(uranium), steam electric power plants, and petroleum refining.
The FWPCA also requires the Administrator of EPA to set
effluent standards for toxic pollutants.4 These standards are to
provide for "ample safety" and can prohibit the discharge of a
toxic pollutant altogether. Several pesticides, benzidene,
and polychlorinated biphenyls were subsequently designated
as toxic pollutants and standards established regulating their
discharge. In 1976 Congress enacted the Toxic Substances
1977, publicly owned treatment works are required to
meet levels achievable using "secondary treatment", and by 1983,
the "best practicable waste treatment technology over the life of
the works."
2
Dolgin, Erica L., and Thomas G.P. Guilbert, eds. Federal
Environmental Law. St. Paul, Minn.: West, 1974, p. 695.
Federal Water Pollution Control Act Amendments of 1972,
§ 306, 33 U.S.C.A. § 1316 (Supp. 1976).
4
Toxic pollutants are defined to include any pollutant that
is toxic to any organism and that might cause death, disease,
behavioral abnormalities, cancer, genetic mutations, physiol-
ogical malfunctions, or physical deformations.
1004
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Control Act,1 thereby placing greater emphasis on the control of
such substances and greatly expanding EPA's responsibility for
identifing and controlling them.
Effluent standards also apply to thermal discharges . However ,
if the point source discharger can show that the limitation on
the thermal component of his discharge is "more stringent than
necessary to assure the protection and propagation of a balanced,
indigenous population of shellfish, fish, and wildlife in and on
the body of water into which the discharge is made", EPA or the
state issuing the discharge permit may make an exception for the
thermal component.2
Prior to 1972, the major federal water quality program
required the states to adopt water quality standards that met the
approval of the Secretary of the Interior (the Administrator of
EPA after EPA was created).3 Under the FWPCA, existing water
quality standards for interstate waters continue in effect and
new standards require federal approval. These standards are
enforced under the FWPCA requirement that all dischargers meet
the technology-based effluent standards discussed above or more
stringent limitations if such limitations are necessary to imple-
ment water quality standards established under the FWPCA. *
Streams or segments of streams can be designated as being either
"effluent limited" or "water quality limited";5 discharges into
a "water quality limited" stream are subject to more stringent
limitations .
All these point source requirements affect energy resource
development in the western U.S. The effluent standard limita-
tions have the effect of requiring discharges to be treated or
cooled. For example, water used for processing and flue gas
desulfurization would have to be treated and thermal discharges
Substances Control Act of 1976, Pub. L. 94-469, 90
Stat. 2003 (to be codified at 15 U.S.C.A. §§ 2601 et see.) (1976) .
2
Dolgin, Erica L. , and Thomas G.P. Guilbert, eds. Federal
Environmental Law. St. Paul, Minn.: West, 1974, p. 712. The
authority to make this exception is explicitly stated in the
statute (Section 307) .
3Water Quality Act of 1965, Pub. L. No. 89-234, 79 Stat. 903
(1965) .
Federal Water Pollution Control Act Amendments of 1972,
§. 303, 33 U.S.C.A. § 1313 (Supp. 1976).
5U.S . , Environmental Protection Agency. Clean Water . Report
to Congress — 1974. Washington, D.C.: Environmental Protection
Agency, 1974, p. 8.
1005
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cooled (unless the developer can show that the facilxty qualifies
for the thermal discharge exception described earlier). However,
the costs of supplying water may make it more economical for the
developer to continue to treat and recycle the water as long as
possible. Whether because of the economics or the FWPCA require-
ments, the decision to treat and recycle is often coupled with a
decision to discharge effluents into evaporative ponds rather
than to discharge treated effluents into navigable waters. As
discussed in Chapter 12, solid wastes (including wastes from pro-
cessing and flue gas desulfurization) will accumulate in these
ponds and can create potentially significant surface and ground-
water quality problems. The policy point here is that the FWPCA
requirements aimed at protecting surface water quality may con-
tribute to the decision to use water and effluent disposal alter-
natives that can lead to other potentially serious water quality
problems.1 Specifically, the pollutants can be accidently released
into surface waters, leach into groundwaters, and constitute a
long-term waste accumulation problem after the energy development
has been shut down.
One aspect of accumulating wastes in evaporative ponds that
may be particularly significant is the presence of trace mate-
rials. As indicated in Chapters 6-12, the quantities of trace
materials that may accumulate in such ponds is not known, but
even small concentrations of the more toxic materials could pro-
duce acute effects and thus must be viewed as potentially signif-
icant problems. In effect, discharging such waste materials into
evaporative ponds creates a potential nonpoint source of pol-
lutants similar to some nonpoint sources discussed in the fol-
lowing section.
2. Nonpoint sources
The federal government's water quality program also deals
with nonpoint sources such as those that result in "...runoff,
seepage, and percolation of pollutants to surface and ground-
waters through diffuse and undefined routes."2 Irrigated and
non-irrigated farming, mining, urban runoff, and rural sanitation
are examples of nonpoint sources.
material stated above about the role of economics in
the decision to treat and recycle water and pond effluents should
not be ignored. What we have found at this early stage is our
analysis is not that the FWPCA is the sole cause but that it may
be a contributing cause. It should also be noted that if efflu-
ents are ponded rather than discharged into a navigible stream,
no environmental impact statement is required.
U.S., Environmental Protection Agency . Clean Water . Report
to congress — 1974. Washington, D.C.: Environmental Protection
Agency, 1974, p. 14.
1006
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Section 208 of the FWPCA establishes procedures under which
states or regional agencies are required to establish nonpoint
source regulatory programs.1 These procedures require the gov-
ernor of each state to designate areas within their states that
have "substantial water quality problems'^ and "a single repre-
sentative organization including elected officials from local
governments or their designees" as the 208 areawide planning
agency. The designated planning agency is required to operate
"a continuing areawide waste treatment management planning pro-
cess. "3 EPA must approve the plans prepared by the designated
planning agency.4
Areawide plans must address nonpoint source pollution prob-
lems that are related to: agriculture and silviculture; mining,
including "new, current, and abandoned surface and underground
mine runoff";5 construction; and "salt water intrusion into
rivers, lakes, and estuaries resulting from reduction of fresh
water flow from any cause, including irrigation, obstruction,
groundwater extraction, and diversion."6 Solid waste disposal
problems that might affect surface or groundwater quality must
also be addressed in these plans.
When the plan is submitted for EPA approval, the governor
must designate "one or more waste treatment management agencies,
which may be an existing or newly created local, regional, or
state agency or political subdivision" to carry out the plan.7
No permit may be issued that violates any of the plan's provi-
sions.
See Section 14.7 for a discussion of the assistance aspects
of the section 208 program.
2
Federal Water Pollution Control Act Amendments of 1972, §
208, 33 U.S.C.A. § 1288 (Supp. 1976).
3FWPCA, § 208, 33 U.S.C.A. § 1288 (Supp. 1976).
Dolgin, Erica L., and Thomas G.P. Guilbert, eds. Federal
Environmental Law. St. Paul, Minn.: West, 1974, p. 767.
5FWPCA, § 208(b)(2)(G), 33 U.S.C.A. § 1288(b)(2)(G) (Supp.
1976).
6FWPCA, § 208(b)(2) (I), 33 U.S.C.A.
7FWPCA, § 208(C), 33 U.S.C.A. § 1288(c) (Supp. 1976).
1007
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As of early 1976, all eight states in our study area had
designated areas having substantial water quality problems, and
22 areawide organizations had been designated.1
The report on the Colorado River Basin prepared for the
National Commission on Water Quality by Utah State University's
Utah Water Research Laboratory indicates that the salinity of the
Colorado "...generally increases from the headwaters to the
mouth".2 This salinity increase is attributed to salt loading
(i.e., adding salts to the river) and salt concentrating (i.e.,
consuming water from the river). Both nature and people con-
tribute to salinity through both processes. The Utah Water
Research Laboratory estimates that about two-thirds of the salt
loading in the Colorado is due to natural sources and about one-
third to "man-manipulated sources".3 That laboratory also esti-
mates that approximately 84 percent of the salt loading comes
from nonpoint sources and 16 percent from point sources such as
mineral springs (6 percent) and "artificial drainage of irriga-
tion return flows" (10 percent).*
Although water quality concerns about the Colorado were
expressed in federal legislation as early as 1956,5 until the
Water Quality Act of 19656 legislation generally did not estab-
lish standards but only provided for such things as studies of
water quality, estimates of the effect of additional developments,
and determination of the water's suitability for various uses.
As noted above, the Water Quality Act required water quality
standards to be established. This requirement led to a series of
water pollution conferences to negotiate water quality for the
Bureau of National Affairs. Environment Reporter, p. 91:
0121 (March 5, 1976).
Utah State University, Utah Water Research Laboratory.
Colorado River Regional Assessment Study, Part 1, Executive Sum-
mary, Basin Profile and Report Digest, for National Commission
on Water Quality. Logan, Utah: Utah State University, Utah
Water Research Laboratory, 1975, p. 2.
3,
See Ibid, pp. 97-98 for a description of this legislation.
6Water Quality Act of 1965, Pub. L. No. 89-234, 79 Stat.
903 (1965).
1008
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Colorado River system.1 At the Seventh Enforcement Conference
convened by EPA in early 1972, the seven Colorado River basin
states agreed that salinity levels should be held at 1972 levels,
that holding these levels should not prevent development in the
Upper Basin, and that salinity control projects were preferable to
salinity standards. During that same year, the FWPCA was enacted,
authorizing EPA to impose numeric standards on the Colorado (and
other rivers). In the following year, the U.S. entered into the
agreement with Mexico discussed above, the effect of which was to
limit the salinity of Colorado River water flowing into Mexico.
And in 1974, the Colorado River Salinity Control Act was enacted
to provide funding for construction of a large desalting complex
in the Lower Basin, construction of a number of salinity control
projects in the Upper Basin, and expedited planning for other
salinity control projects.
In December 1974, EPA, under the authority of Section 303 of
the FWPCA, published a regulation requiring that the average
salinity in the Lower Colorado River be maintained at or below
the 1972 level. To achieve this objective, Arizona, California,
Colorado, Nevada, New Mexico, Utah, and Wyoming were required to
adopt and submit to EPA for approval water quality standards
including numeric criteria for salinity at appropriate points in
the Colorado River system. These states were also required to:
adopt a plan to achieve compliance with these standards; identify
state and federal regulatory authorities and programs necessary
to achieve compliance; and treat salinity as a basinwide problem
of maintaining lower Colorado River salinity levels at or below
1972 averages as basin states continued to develop their compact-
allocated waters. The EPA regulation stated that the goal of the
plan should be to achieve compliance with the adopted standards
by July 1, 1983.2
To meet these requirements, the seven Colorado River Basin
states negotiated an agreement known as the "Proposed water Qual-
ity Standards for Salinity Including Numeric Criteria and Plan of
Implementation for Salinity Control, Colorado Rivej: System, June
1975" and "Supplement" thereto dated August 26, 1975.3 Together,
these two documents constitute the water quality standards required
"TJtah State University, Utah Water Research Laboratory.
Colorado River Regional Assessment Study, Part 1, Executive Sum-
mary. Basin Profile and Report Digest, for National commission on
Water Quality. Logan, Utah: Utah State University, Utah Water
Research Laboratory, 1975, p. 98.
241 Fed. Reg. 13, 656-57 (March 31, 1976).
The agreement was negotiated within the Colorado River
Basin Salinity Control Forum, which was formed to respond to
EPA1s salinity control regulations.
1009
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by Section 303 of the FWPCA and EPA's December 1974 salinity
control regulation. By November 1975, the appropriate state
agencies had adopted these two documents and had submitted them
to EPA.
The numeric salinity standards are 723 milligrams per liter
(mgA) below Hoover Dam, 747 mg/1 below Parker Dam, and 879 mg/A
below Imperial Dam. The principal components of the plan are:
(1) prompt construction and operation of the initial four desalting
units provided for in the Colorado River Basin Salinity control
Act; (2) construction of 12 other salinity control units provided
for in the Act (if the planning reports are favorable); (3) placing
effluent limitations on industrial discharges; (4) reformulating
authorized but unconstructed federal water projects to reduce the
salt loading effect; (5) use of saline water for industrial pur-
poses whenever practical; (6) programs by water users to cope
with the river's high salinity; (7) studies of means to minimize
salinity in municipal discharges; and (8) studies of future pos-
sible salinity control programs. 3-
Although at present, salinity problems in the Upper Missouri
are not comparable to those encountered in the Colorado River
Basin (see Chapter 12), energy resource developments will gener-
ally raise the same problems and issues in the basin. However,
these problems and issues may be dealt with differently by the
states in the two basins since salinity is already a serious
problem in the Colorado but not in the Upper Missouri. Of course,
energy resource development within the entire area will be reg-
ulated and controlled by the states and federal government, and
the point and nonpoint sources regulatory programs discussed
above will generally apply.
The impact analyses in Chapters 6-12 indicate that the water
quality impacts of western energy resource development could
include: runoff from mines, spoils piles, facilities, and urban
areas; a contribution to the concentration of salts in surface
waters due to the consumptive use of water; the accidental intro-
duction of pollutants from evaporative ponds into surface waters;
and the contamination of groundwaters, seeps, springs, and ponds.
As either point or nonpoint sources, energy resource devel-
opments apparently will not create as much of a salinity problem
See Ted. Reg:. 13,6 56-5 7 (March 31, 1976). Although salinity
standards have been agreed to, permit criteria have not been
established, and, as of February, 1977, the states and EPA have
been unable to agree on how the standards are to be achieved.
1010
-------
as would some other uses, particularly agricultural irrigation.1
In general, the amount of water consumed (withdrawn and not
returned) by such developments should not have much of a salt-
concentrating effect on area surface streams.2 These two tenta-
tive conclusions are important politically, particularly in the
Colorado River Basin states because of the salinity problem that
already exists there. For example, it is in California's inter-
est to have any increase in water consumption in the Upper Basin
be for energy or other non-agricultural uses because such uses
will create less of a salinity problem.
However, finding that energy development will generally
create less of a salinity problem does not solve all development-
associated water quality problems and issues. Present salinity
levels in the Colorado River Basin are so high that even the
various kinds of runoff from development sites can become a prob-
lem, particularly during construction. Also, the accidental
release of pollutants from holding ponds cannot be ruled out at
this stage in our analysis, nor can the possible contamination of
groundwaters by pollutants leaching from evaporation ponds and
seeping from septic tanks in rural areas be ignored.
14.2.4 Conclusion
Some of the water availability and water quality problems
that might arise as a consequence of energy resource development
in the western U.S. have been introduced and described in this
section. Although preliminary and incomplete, this introduction
makes it clear that these problems and issues will be significant
and that how they are dealt with will help to determine what
energy developments actually take place in the West. The piece-
meal approach to water problems used in the past will probably
be inadequate for dealing with the complex water availability and
water quality problems that can be anticipated for the future.
Competition among users, the possible effects of quantifying
Indian and federal water rights, the difficulty of dealing with
nonpoint dischargers such as agriculture, the large economic cost
See, for example, Holburt, M.B., and V.E. Valantine. "Pre-
sent and Future Salinity of the Colorado River." Journal of the
Hydraulics Division, Proceedings of the American Society of
Civil Engineers, Vol. 98 (March 1972), pp. 503-20.
2
This does not eliminate the possibility of excessive salt
concentrations occurring locally in some areas, and thebasinwide
effects must be examined in more detail than was possible during
the first year. From the analysis of alternative futures, the
Utah Water Research {laboratory concluded that taking water out of the
river will have more of a salt-concentrating effect than will
adding salts. This emphasizes the importance that finding ways
to minimize water consumption is likely to acquire.
1011
-------
of salinity control projects, the economic costs of minimizing
water use, and the myriad of other problems and issues that we
have just begun to identify and define seem likely to be beyond
the capabilities of existing institutional arrangements. Thus,
this complex of problems and issues will be a major component of
our policy analyses during the remainder of this study.
Many of the problems and issues discussed might well result
in conflicts between the states and the federal government,
between the states and Indian tribes, among the states, among a
variety of water users such as farmers and energy developers,
etc. If only some of these conflicts develop, they have the
potential for overwhelming existing mechanisms for resolving
conflicts. The primary mechanism at present is the court system,
which is probably inadequate, in part because resolving problems
this formidable in court is too time-consuming. However, a more
fundamental reason that the courts are likely to prove inadequate
is that these are really political problems, and the solution
needed is a mutually acceptable accommodation, not a winner and a
loser.
This brief examination underlines the critical importance of
this category of substantive problems and issues. It also empha-
sizes the importance of the kind of information being produced by
our impact analyses, particularly information on variations in
water use among energy development technologies.
14.3 RECLAMATION
14.3.1 Introduction
As Chapter 1 indicates, most coal produced in the West is
surface-mined. Thus, since coal production in the region is
expected to increase substantially over the next 30 years, the
amount of disturbed land will also greatly increase .1 in part, this
is a result of renewed national interest in coal, particularly
western coal.
In this section, several problems and issues associated with
surface mining and reclamation are discussed. Reclamation by
revegetation receives more attention than do other alternatives
for dealing with strip-mined lands. However, several alternatives
to revegetation are identified and will be considered in later
For instance, in the Stanford Research Institute's (SRI),
Nominal Case level of development, approximately 200-400 thousand
.acres of land may be disturbed by the year 2000 in the eight-
state study area, assuming all of the coal is surface-mined. See
Chapter 12 for a discussion of the SRI model and assumptions for
the Nominal Demand Case.
1012
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policy analyses. These may include the use of some surface-mined
land for recreational purposes, such as conversion to recre-
ational lakes, residential development, and building community
facilities (for example, shopping centers) as the land is refilled.1
14.3.2 Western Ecosystems
The extent to which disturbed lands can be reclaimed depends
on numerous site-specific factors, including the importance local
residents place on the aesthetic value of their area. In Part II
of this report, characteristics that make the West unique as a
mining area in the U.S. (e.g., shortage of rainfall and rela-
tively flat or rolling terrain) are discussed as they vary between
major coal provinces. The following is not intended to duplicate
those discussions but to identify how physical, geological, eco-
logical, and technological characteristics affect the reclamation
problems that must be dealt with by policymakers. In short, the
contour of the land effectively defines the type of surface
mining that occurs in the eight states (i.e., area mining), the
lack of water in most of the eight states makes relatively long-
term management a reclamation requirement, and the physical com-
position of soils is fundamentally important in terms of how
overburden is handled and mixed and how contours are graded.
The context within which reclamation goals, policies, and
practices are formulated is defined to a large degree by the
technology of surface mining.2 Area strip mining, as opposed to
contour mining, is generally limited to lands with slopes of 14
degrees or less and with coal seams that are nearly horizontal.
Except in a few areas in Colorado, western coal fields meet these
criteria.
The first step in strip mining is to cut a trench or box to
expose the resource. Each succeeding cut is made in a long,
narrow strip parallel to the previous one and the overburden from
Although the potential for developing areas for recreation
or residential development exists in the West, the isolated loca-
tion of most mines limits the possibilities. As a result, most
land will probably continue to be reclaimed for grazing, wild-
life, and cropland.
2
For additional discussions of coal resource development in
the West and the technologies of surface mining, see White, I.L.,
et al. Energy Resource Development Systems for a Technology
Assessment of Western Energy Resource Development. Washington,
D.C.: U.S., Environmental Protection Agency, forthcoming.
1013
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the cut (the material that must be removed to expose the coal
seam) is used to fill the previous trench. This is called back-
filling.1
Because some strata in the overburden are inimical to plant
growth, they may have to be buried so they do not contact plant
roots or subsurface aquifers. Other subsurface layers can be
placed on the surface to enhance growth. Depending on the com-
plexity and composition of the overburden, segregating layers and
respreading topsoil can be a simple or complex process that may
or may not be specified by state reclamation laws.
After the trench has been backfilled, two stages of the
reclamation process remain. First, the spoil banks (overburden)
are graded. Under most state laws, the land must be shaped to
conform with the contour of the surrounding area and thus reduce
peaks, ridges, and erosion. Water impoundments are sometimes
created and accessways provided to reclaimed areas. Second, some
kind of vegetation is planted on the spoil material.2 Although
each mine and area has its special characteristics, most mines
follow a process very similar to the one described here.
As noted earlier, most states require regrading to simulate
the original contour of the land. Generally, this results in
shaping the spoils to form a gently rolling surface. Regrading
not only improves the aesthetic value of the reclaimed area but
also increases the changes of successfully revegetating large
surface areas.
In general, maximum plant stability cannot be achieved on
slopes greater than 1:3 (a rise of 1 foot for each 3 horizontal
feet).3 Also, if the reclaimed land is intended for agricultural
use, even gentler slopes may be required. Likewise, spoils that
erode easily, such as those found in western North Dakota, may
need to be graded nearly flat to control topsoil losses.
As noted below, several states now require operators to
separate topsoil from the subsoil, stockpile the two separately
so that they will not be inverted, and replace soil on the graded
overburden.
U.S., Congress, Senate, Committee On Interior and Insular
Affairs. Coal Surface Mining and Reclamation; An Environmental
and Economic Assessment of Alternatives, by council on Environ-
mental Quality, Committee Print. Washington, D.C.: Government
Printing Office, 1973, pp. 12-14.
3
U.S., Environmental Protection Agency. Guidelines for
Erosion and Sediment Control Planning and Implementation. Envi-
ronmental Protection Technology Series No. EPA R2-72-015.
Washington, D.C.: Government Printing Office, 1972.
1014
-------
Even though regrading may optimize plant growth, it may
interfere with wildlife. Early experiments in revegetating spoil
banks that have not been regraded have often resulted in selec-
tive use of the spoils by various wildlife species.1 Wildlife
has actually diversified at some sites. When brush and range
grasses selected for their value to wildlife are planted, dense
thickets tend to grow in the valleys between the spoil ridges
because of the high moisture level in the silt that collects
there. Thus even if the sides of the ungraded spoil piles remain
bare, the valleys between ridges may be impassable on foot. This
combination of food and cover, inaccessibility by hunters, and
the ability of the spoils to provide shelter from winter storms
may make them a superior wildlife habitat.2
In the western U.S., the natural constraints of climate,
soil* overburden, and vegetation ecology pose substantial prob-
lems for the second stage of reclamation revegetation.3 In the
process of removing topsoil, most existing plant cover, is destroyed
and left to decay in the middle of the spoils. Because of the
conditions that exist in arid ecosystems, natural revegetation
cannot be relied on to return the disturbed lands to productive
uses in a time frame acceptable to some parties-at-interest.
Although a number of means are presently available to attempt to
cope with revegetation constraints in semiarid regions, such as
Colorado and the Northern Great Plains states, successful recla-
mation in the more arid areas is an unresolved issue.4 in fact,
many of the techniques being applied in semiarid locations are
largely experimental because they have not been applied at the
scale or rate at which they must be used if coal development in
the West reaches projected levels. Further, methods have not yet
been developed to a point where successful revegetation can always be
assured. The present state of the art permits mine operators to
improve the suitability of spoil material (e.g., by the placement
Gwynn, T.A. Rehabilitation of Lignite Areas of North Dakota
Following Surface Mining, for the Knife River Coal Company.
Bismarch, N.D.: Knife River Coal Company, 1965.
2
This should not be interpreted to be an argument against
reclamation.
These constraints are further discussed in Section 12.5.
Seeding is usually accomplished by seed drills or broadcast
seeding techniques. An alternative that might reduce the suscep-
tibility of revegetation attempts to drought during the first
growing season would be to transplant native seedlings rather
than use seeds per se (Personal Communication, Thadis W. Box,
Dean College of Natural Resources, Utah State University.)
1015
-------
of fertilizers, soil conditioners, and the use of mulches) as a
medium for inducing plant growth, but success also depends on
available moisture.
Available moisture is the most limiting and least control-
lable constraint on successful revegetation. Both the mean
annual precipitation and the seasonal and temporal distribution
of precipitation are important; generally, an annual minimum of
6-10 inches of precipitation is required for successful revege-
tation. 1 Annual precipitation levels on strippable land in
northeastern New Mexico, southwestern Wyoming, and south-central
Utah often fall below 10 inches. However, based on the results
of several years of investigation of revegetating mining spoils,
the U.S. Forest Service has found that when "mined and graded
with care, and planted properly to suitable species, areas
receiving as little as 6 inches average annual precipitation have
been revegetated".2 The timing of the precipitation appears to
be much more critical than mean annual precipitation.3 If most
of the moisture occurs during one part of the year, and practi-
cally none occurs during another part (or at the right time of
day to enhance seedling growth), reclamation practices may be
further constrained by the need for and cost of irrigation, by
wind erosion, and by other factors.4
See for example: National Academy of Sciences. Rehabil-
itation Potential of Western Coal Lands, a report to the Energy
Policy Project of the Ford Foundation. Cambridge, Mass.: Ballinger,
1974, p. 2.
2
Letter dated November 3, 1976 from Grant Davis, Associate
Program Manager for Research, Forest service Surface Environment
and Mining Program (SEAM), U.S. Department of Agriculture.
This is stated in the NAS study referred to earlier and is
noted in Grant Davis' letter. In his comments on the NAS report,
Robert R. Curry, Associate Professor of Environmental Geology
from the University of Montana, stated: "Both soil formation and
plant growth relies upon soil moisture, not rainfall, and in the
arid west rainfall bears relatively little relationship to soil
moisture. In addition to summer rainfall, concomitant summer
evaporation which reduces soil moisture must be considered".
Reviewer comments in National Academy of Sciences. Rehabilitation
Potential of Western Coal Lands, a report to the Energy Policy Project
of the Ford Foundation. Cambridge, Mass.: Ballinger, 1974, p. 16&.
A
The Forest Service has been working with supplementary
irrigation and finds that such equipment should be available for
use as insurance against long dry periods regardless of average
annual precipitation in the West. Letter dated November 3, 1976
from Grant Davis, Associate Program Manager for Research, Forest
Service (SEAM), U.S. Department of Agriculture.
1016
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Although the use of supplemental water enables seedlings to
grow more rapidly on most mine spoils, the reclamation of surface
mined lands in the past in the Northern Great Plains has usually
not included irrigation. In fact, the only large-scale commit-
ment to irrigation at western coal mines is the sprinkler system
installed at the Navajo Mine in New Mexico. 1 In part, this is
because phasing water supplements out on arid test sites raises
problems that still have not been solved. Even in semiarid
places, such as the coal mining areas of Decker, Montana and
Carbon County, Wyoming, there may be difficulty in withdrawing
irrigation and fertilizer supplements because of unfavorable
spoil and soil properties. 2
In addition to this uncertainty about being able to withdraw
supplemental water, irrigation also requires a long-term commit-
ment to land management on the part of the developer. However,
the more significant issue is likely to be that water used for
irrigation is taken away from other productive uses.
To summarize, present knowledge about revegetation indicates
that if semiarid locations have productive and stable soil, suitable
U.S. Environmental Protection Agency, Office of Energy
Activities, Region VTII. Surface Coal Mining in the Northern
Great Plains of the Western United States; An Introduction and
Inventory Utilizing Aerial Photography Collected in 1974 and
1975. Denver, Colo.: Environmental Protection Agency, 1976,
pp. 16-17. Annual precipitation rates at the Navajo Mine of
approximately 6 inches have called for the use of supplemental
water for at least 1.5 years. This underscores the point made
earlier regarding the significance of soil moisture compared to
mean annual precipitation.
2
See Farmer, E.E., et al. Re vegetation Research on the
Decker Coal Mine in Southeastern Montana, Research Paper INT- 162.
Ogden, Utah: U.S., Department of Agriculture, Forest Service,
Intermountain Forest and Range Experiment Station, 1974, p. 10.
Similarly, after studying all growing factors and the climate of
the Hanna Basin in Wyoming, it was the consensus of the Bureau of
Land Management, Bureau of Reclamation, and the Geological Survey
that supplemental irrigation should not be used in the revegeta-
tion plan "unless all other tested and proven dryland methods for
establishing native vegetation, common and adapted to this area,
fails". This recommendation was based principally on an assess-
ment of the "shock" to so-called "established stands" of vegeta-
tive cover when irrigation and fertilizer were removed after a
period of intensive use (e.g., 3 years). U.S., Department of the
Interior, Bureau of Land Management. Resource and Potential
Reclamation Evaluation; Hanna Basin Study Site, EMRlA Report
No. 2. Rawlins, Wyo. ; Bureau of Land Management, 1975, p. 172.
1017
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plant species, and adequate amounts of seasonally distributed
precipitation retained as soil moisture, surface-mined sites can
be successfully reclaimed. The sites with the highest potential
appear to be those in the northern Great Plains area, especially
west-central*North Dakota, southeastern Montana, and western
North Dakota.1 However, because of the close relationship between
moisture and growth, there may be many cases where reclamation
efforts will fail or be only marginally successful, especially if
poor spoil or topsoil characteristics are combined with more arid
climate. Also, erratic precipitation patterns over the lifetime
of a given mine can result in unavoidable seeding failure. Some
of the drier sites are especially uncertain with regard to reveg-
etation, and in view of the many adverse influences against them,
desert sites hold little promise for reclamation unless they are
well managed, irrigated, and strictly controlled.
Several policy implications can be derived from these con-
clusions. First, operators may not be able to adhere strictly to
inflexible legal requirements that require them to establish
revegetation within a specified period of time. On the other
hand, state reclamation programs that require a specific number
of seeding attempts regardless of the success of the vegetative
growth may be unrealistic. Second, plans for reclaiming surf ace-
mined lands in some areas in the West may need to allow for con-
sideration of alternatives to revegetation, such as recreation
facilities or residential -developments.2 Third, in some arid
areas, supplemental irrigation costs may be high enough to exclude
some sites from consideration for energy development. At a
minimum, it may be necessary to determine the water requirements
for strip mining and reclamation in the early planning stages of
an energy development and include these as a consideration in the
permitting process.
These implications also suggest that even in areas with the
highest potential for reclamation, states may have to acquire
baseline information for. enforcing reclamation laws over the life
of a mine. This will require the integration of land-use goals
and mine planning over longer time frames than are presently used, as
Packer, Paul E. Rehabilitation Potentials and Limitations
of Surface-Mined Land in the Northern Great Plains, General Tech-
nical Report INT-14. Ogden, Utah; U.S., Department of Agri-
culture, Forest Service, Intermountain Forest and Range Experi-
ment Station, 1974.
2
For a discussion of potential recreational or residential
uses for surface-mined land, see Carter, Ralph P.. et al. Surface
Mined Land in the Midwest; A Regional Perspective for Recla-
mation Planning, for the U.D. Department of the Interior. Argonne,
111.: Argonne National Laboratory, 1974, pp. 1-60 to 1-63.
These alternatives will be given further consideration when this
analysis is extended.
1018
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well as comprehensive reclamation planning programs. To develop
adequate programs for reclamation research, monitoring, and
assessment, most of eight states will have to increase their
reclamation funding, or the federal government will have to pro-
vide assistance.
14.3.3 Regulation and Control of Reclamation by State Governments
While technologies, economics, and ecological conditions
influence reclamation within the study areas (and to a great
degree help define the scope of each state's response at each
site), successful reclamation also depends on effective laws and
administrative programs. The locus of regulation and control
resides primarily with state governments. Both the federal and
local governments are involved, but neither federal nor local
regulations are explicitly written for surface mining and recla-
mation.
Before 1950, most surface mines in the West operated according
to the unwritten principle that the disturbed land would be
treated as a sacrifice area; that is, it would not be reclaimed.1
As shown in Table 14-2, reclamation requirements in western
states have been enacted relatively recently. The first mined-
land reclamation act in the West was passed in 1967 by Montana
(compared to the early-1900' s laws in the eastern U.S.). Colorado,
Montana, and Wyoming followed in 1969 (all three have since
passed new laws). North Dakota in 1970, South Dakota in 1971, New
Mexico in 1972, and Utah in 1975. Arizona has not enacted strip-
mine legislation, but the state does require standard reclamation
practices as a condition of mineral leases on state lands.
General regulatory powers and techniques are similar, although
by no means uniform across the eight states.^ Regulatory
Atwood, Genevieve. "The Strip-Mining of Western Coal."
Scientific American, Vol. 233 (December, 1975), p. 27.
2
For a more detailed description and analysis of state sur-
face mining and reclamation laws and regulations, see U.S., Con-
gress, Senate, Committee on interior and Insular Affairs. Coal
Surface Mining and Reclamation; An Environmental and Economic
Assessment of Alternatives, by Council on Environmental Quality,
Committee Print. Washington, D.C.: Government Printing Office,
1973, pp. 35-48; National Academy of Sciences. Rehabilitation
Potential of Western Coal Lands, a report to the Energy Policy
Project of the Ford Foundation. Cambridge, Mass.: Ballinger,
1974, pp. 95-99, 140-148; and Imhoff, Edgar A., Thomas O. Friz,
and James R. LaFevers. A Guide to State Programs for the Recla-
mation of Surface Mined Areas, Geological Survey Circular 731.
Washington, D.C.: Government Printing Office, 1976, pp. 7-29.
The summary presented in this section relies on information from
these three sources.
1019
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TABLE 14-2:
SUMMARY OF SURFACE MINING AND RECLAMATION LAWS,
REGULATIONS AND AGENCIES IN EIGHT WESTERN STATES
O
10
O
State
Arlcona*
Colorado
Montana
New Mexico
North Dakota
South Dakota
Utah
Wyoming
Title Legislative Act
Colorado Open Mining
Land Reclamation Act of
1973
Montana Strip and
Underground Mine
Reclamation Act (1975)
New Mexico Surface
Mining Act (1972)
North Dakota Century
code; Reclamation of
Strip-Mined Land (1970)
Surface Mining Land
Reclamation Act, as
amended (1971)
Mined Reclamation Act
of 1975
Wyoming Environmental
Quality Act of 1973
Rules and
Regulations
have been
Promulgated
X
X
X
X
X
X
Technical
Guidelines
have been
Promulgated
X
(partial)
Administering Agency
Department of Natural
Resources
Department of State
Lands
Bureau of Mlnea Coal
and Mineral Resources
Public Service
Commission
Department of
Agriculture
Department of Natural
Resources
Department of
Environmental Quality
X • denotes the existence of a program element
Source: Adapted from Imhoff, Edgar A., Thomas 0. Friz, and James R. LaFevers. A Guide to
State Programs for the Reclamation of Surface Mined Areas. Geological Survey Circular 731.
Washington, D.C.t Government Printing Office, 1976, pp.12-21.
*The state applies standard reclamation requirements to state lands as a condition of
mineral leases. Arizona also contains federal lands where reclamation requirements are a
condition of mineral leases. Some local units of government use land-use controls and
activity permits to encourage reclamation.
-------
responsibility in each of the eight states is vested in a state
agency. Permits costing from $50 to $200 per acre must be obtained
from the respective agencies to surface mine in their states. In
addition, miners must post a bond, the amount of which is based
on predicted reclamation costs. Most bond amounts are between
$100 and $600 per acre, with a $1,000-2,000 minimum. This bond
can be reclaimed on satisfactory reclamation of the surface-mined
land. (Several states permit a gradual releasing of the bond, as
various stages of reclamation are achieved. ) If mine operators
default, the state agencies are responsibile for completing the
reclamation process, using the money from the forfeited bond.
Several states permit the money to go into a general reclamation
fund that can be used for reclamation anywhere in the state.
State laws also define the time during which reclamation
must occur. The "standard" requirement allows reclamation activ-
ities to be delayed until after mining is completed (Colorado,
North Dakota, Wyoming, and Montana permit this) -1 This contrasts
with the requirement for concurrent reclamation in several east-
ern states.
State law generally defines the temporal limits of recla-
mation activity. For example, in Colorado, reclamation must be
completed "with all diligence" and within 3 years of the time the
operator says his reclamation work started. Where this amount of
time lag is allowed (and 2-3 years is not uncommon) , states must
rely on setting performance bonds at amounts that will pay the
actual cost of reclamation if operators fail to complete recla-
mation work.
All states require revegetation in the form of replanting
and reseeding to restore the land to its original range, forest,
or agricultural cropland conditions. While requirements vary
considerably, most of the states see revegetation as an objective
and specify the number of seeding attempts, timing, and/or
seeding rates per acre to achieve that goal. However, several
states require only a specified number of attempts at seeding
(e.g., two are required in Montana and Wyoming) and have no
criteria for defining successful revegetation. Under these laws,
a total failure can be legally acceptable.
As mentioned above, revegetation is closely related to efforts
to determine what constitutes the productive use of reclaimed
lands. Given characteristics of climate, topography, wildlife,
and water flow, various objectives can be set for the reclamation
process. Obviously, determination of goals depends mostly on
eastern states require reclamation concurrently with
the on-going mining process. This can greatly facilitate
enforcement since mining can be stopped if reclamation does not
meet requirements.
1021
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ownership of the land; that is, if the land to be surface-mined
is privately owned, the goals may be different than if it is
government-owned. When coal lands are privately owned and have
been used for ranching or farming, the typical obligation is to
restore the land to its previous productive use and value. In
this case, regulations usually stipulate that range lands must
be traversable by livestock and farm lands by agricultural equip-
ment. This entails regrading and shaping of highwalls and spoil
banks to specified contours, such as "rolling topography" or
"undulating skyline".
Regardless of the specific language used, most state pro-
grams are designed to return surface-mined land to productive
use.1 However, meeting the productive use criteria can lead to
special problems, particularly if operators are required to
restore land to its original contours. Such a standard may pre-
clude considerations like impounding water to help rebalance the
ecology of the restored site, or it may block the development of
recreation or residential lakes in particularly flat lands.
Likewise, stipulations for "restoration of native vegetation" and
"replacement of topsoil" can prove to be both inefficient and
costly where an alternative use of the land has been defined
(i.e., if the mined land is eventually to be submerged and a lake
created).
In addition to these common provisions, some states make
more specific reclamation requirements. For instance, Montana
and Wyoming consider compensation for loss of water due to strip
mining. Montana, North Dakota, and Wyoming will not grant per-
mits for mining land determined to have unique value (historical,
scenic, archeological, etc.) or which cannot be reclaimed according
to statutory and planning criteria. The authority to deny mining
permits in unique or otherwise irreplaceable areas has begun to
be exercised more frequently in the last 5 years in the western
states, and most of these states will probably become even more
careful about issuing mining permits for such lands in the future.
Other specific regulations include Wyoming's requirement
for a state agency to collect baseline data and monitor reclamation
For example, in Wyoming a mining permit may be issued only
after a reclamation plan has been submitted which provides for
rehabilitation of mined land "to a condition equal to or greater
than the highest previous use". The land, after reclamation,
must be suitable for the previous use which was of the greatest
economic or social value to the community or area, or must have
a use which is of more economic or social value than all other
previous uses. Wyoming Statutes § 35-502.32 (Cumulative Supple-
ment 1975). Wyoming Land Quality Rules and Regulations, Ch. 2,
Sec. l(b)(l). Department of Environmental Quality, Wyoming
(1975).
1022
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efforts. New Mexico, North Dakota, and South Dakota have aesthetic as
well as technical criteria for rehabilitating disturbed lands.1
Montana and Wyoming require frequent on-site inspection of both
mining and reclamation. Finally, Montana calls its permit a
"reclamation contract", which gives the state the additional
enforcement option of suing the operator for breach of contract
if reclamation is not adequate, or it allows action to be taken
by the public against the state if the state is remiss in its
enforcement responsibility.
Although the states in the study area have developed mea-
sures for regulating reclamation activities, it is difficult to
assess the long-range consequences of their efforts, particularly
since most of the laws were passed or substantially amended only
recently. None of the eight states has statutory authority
addressing all the requirements for adequate reclamation, and
discrepancies often exist between legal requirements and regula-
tions made to implement the law. Hence, to overcome existing
conditions of limited knowledge, lack of surface-mining experi-
ence (in some cases), and uncertainty, policymakers may pass an
intentionally general law which may result in weak regulations.
This situation is magnified when standards and criteria guide-
lines are to be developed from the regulations. In fact, the
eight states do not have standards and criteria for most recla-
mation activities. In a few cases, this lack of specificity
avoids unreasonable inflexibility, but in other cases, it could
result in detrimental environmental practices. Feasible stan-
dards, where they do not now exist, will probably be established
as each state learns more fully what reclamation conditions can
be attained at mining sites within their boundaries.
Regardless of the strength of a state's legal or regulatory
pronouncements, effectiveness depends on the adequacy of enforce-
ment procedures. Enforcement, in turn, depends on the manpower
and funding levels of the designated administrative agency's
reclamation program. In general, the western states have not
The aesthetics of shaping disturbed lands from coal sur-
face mining has been the subject of research for no more than
5-6 years. However, as principles are developed, such analyses
might be incorporated into the standards of other states. See
Proshansky, J.H., W.H. Ittelson, and L.G. Rivlin, eds. Environ-
mental Psychology; Man and His Physical Setting. New York:
Holt, Rinehart and Winston, 1970; Litton, R.B., Jr. "Aesthetic
Dimensions of the Landscape," pp. 262-291 in Krutilla, J.V., ed.
Natural Environment; Studies in Theoretical and Applied Analysis.
Baltimore, Md.: Johns Hopkins University Press, 1972; Craik,
K.H. "Appraising the Objectivity of Landscape Dimensions," pp.
292-346 in Krutilla, J.V., ed. Natural Environment; Studies in
Theoretical and Applied Analysis. Baltimore, Md.: John Hopkins
University Press, 1972.
1023
-------
been able to enforce their reclamation provisions, usually because
they lack the necessary personnel and funds. Most existing
manpower/funding levels seem to allow little more than admin-
istrative-clerical programs, rather than enforcement programs
with skilled field personnel.
Also, performance bond requirements are not based on actual
reclamation costs, which may extend over a longer period of time
than that stipulated in most mining plans. Similarly, states
have no provisions for training the needed research and inspec-
tion personnel to meet the specific requirements of reclamation
and mining control.
While differences in legal requirements are to be expected,
the range of variation noted above reflects the need for states
to strengthen their individual programs, especially in terms of
monitoring and enforcement, standards, and policy objectives.
To do so requires not only adequate laws effectively administered
but also coordinated efforts by local, county, state, and federal
governments. Local and county governments can assist in this
process by establishing adequate planning, zoning, and other land
use programs that indicate to the state the wishes and interests
of local residents, thereby integrating the role of local public
planning into the development of reclamation programs.
14.3.4. State Control Over Reclamation on Federal Lands
To date, no federal legislation has been adopted for the
express purpose of reclaiming lands disturbed by surface mining.
However, several federal statutes and regulations do control the
environmental impacts of surface mining on public lands or lands
owned by the federal government.! Since substantial quantities
of coal in the western states underlie federal lands, the extent
of states' rights and authority over these lands has become an
important jurisdictional issue.
Since 1940, 45 federal strip-mining bills have been intro-
duced into the Congress. Of these, only two were passed, and
both were subsequently killed by presidential veto.2 President
^Protection of land and water on federal lands are required by
25C.F.R. 177 (1976) > 30C.F.R. 211 and 231 (1976); 43C.F.R. 23 (1976).
2Hagida, Arthur J. "Environment Report/New Hove to Revive
Strip Mining Bill Advances." National Journal Reports, Vol. 7
(December 6, 1975), p. 1679. Senate Bill 425 was designed to
establish standards for reclamation of surface-mined lands,
create a reclamation fund for abandoned lands, protect the rights of
surface owners, and prohibit certain forms of strip mining. The
veto was opposed by both the Department of the Interior and the
Environmental Protection Agency. President Carter has announced
that he plans to promote passage of a similar bill.
1024
-------
Ford said that he vetoed the 1974 bill because it would have
severely hindered coal production, raised the price of coal, and
been inflationary.
Because of this legal vacuum at the national level, states
have, for the most part, enforced their own reclamation laws on
federal lands, or reclamation requirements have been enforced
under the terms of federal coal leases. Consequently, while mine
operators might be required to obtain mining permits from both
the state agency and the federal government, they were subject
only to state reclamation laws, regulations, standards, and
enforcement. Indeed, all the reclamation statutes passed by the
western states either expressly or implicitly stipulate that the
law applies to all mining activities within their boundaries,
regardless of land ownership (federal, state, or private).!
Although the Mineral Leasing Act of 1920 permits the Department
of the Interior (DOI) to make regulations to fulfill the purposes
of the Act,2 reclamation regulations were not proposed until
1975.3
These proposed new regulations, governing both mine oper-
ations and post-mining reclamation, raised concern in the western
states over the status of their regulatory role on federal coal
lands. The language of the regulations, and subsequent discus-
sions between state officials and DOI, revealed a federal view
that federal reclamation provisions should prevail over state law
on federal lands. Further, DOI held that the authority for
designating federal lands suitable or unsuitable for mining was a
federal responsibility. Though some progress has been made
toward resolving the issue of which reclamation requirements will
prevail, the question of development authority on federal lands
is still open.
The first question regarding federal reclamation regulations
was whether state standards would be adopted on federal lands if
Barry, Hamlet J. Legal Study; Extent of State Control
Over Reclamation on Federal Land. Denver, Colo.: Western Gov-
ernors' Regional Energy Policy Office, 1976, p. 1.
National Mineral Lands Leasing Act of 1920, as amended, 41
Stat. 437, 30 U.S.C.A. §§ 184 et sea. (1971). For a discussion
of federal pre-emption and the Mineral Leasing Act, see Shapiro,
Michael E. "Energy Development on the Public Domain: Federal/
State Cooperation and Conflict Regarding Environmental Land Use
Control." Natural Resources Lawyer, Vol. 9 (No. 3, 1976), pp.
397-439.
U.S., Department of the Interior, Geological Survey. "Coal
Mining Operating Regulations." 40 Fed. Reg. 4428-38 (January
30, 1975) (to be codified in 30 C.F.R. 211 and 216).
1025
-------
they were more stringent than federal regulations. The Federation
of Rocky Mountain states summarized its members' position as
follows:
The federal government has the right and respon-
sibility to promulgate rules and regulations with
respect to surface mining reclamation operations on
federal lands. These rules and regulations should be
minimum standards, which are defined on performance
based criteria and are as objective, clear, and con-
cise as possible. Where state standards exceed fed-
eral guidelines the state's laws and regulations
should be followed. Detailed regulations, or process
designations of mining techniques, should not be a
part of the federal rules and regulations because
highly defined procedures impede the development of
new and more sophisticated technologies. Also, the
techniques required to accommodate the variable
environmental, economic, and social conditions among
the individual states demand flexibility in national
guidelines.1
The Western Governors' Regional Policy Office also commented
on the draft regulations:
We recommend that in every instance where state
reclamation standards are as stringent, or more
stringent than, federal standards, the Secretary
enter into a memorandum of agreement or understanding
between that state and the appropriate federal agen-
cies. Such agreement will specify the state shall
have responsibilities for administration and enforce-
ment of the applicable reclamation laws, unless that
state shall specifically request other administration
and enforcement procedures.2
Federation of Rocky Mountain States. Proposed Federal
Surface Mining Reclamation Requirements: A Report on the Work-
shop Held July 30, 1975, Denver, Colorado, Regional Background
Paper. Denver, Colo.: Federation of Rocky Mountain States,
1976, p. 4.
2
Letter from William L. Guy, Western Governors' Regional
Energy Policy Office, Staff Director to Secretary of Interior
Thomas Kleppe, December 22, 1975, p. 2, as cited in Barry,
Hamlet J. Legal Study; Extent of State Control Over Reclamation
on Federal Land. Denver, Colo.: Western Governors' Regional
Energy Policy Office, 1976, pp. 5-6.
1026
-------
The revised regulations* made significant changes in this
matter of state standards. According to the final draft, DOI
was to begin an immediate review of state reclamation statues
and regulations to determine those that afforded the general pro-
tection of environmental quality and values which would otherwise
exist under application of federal rules. Where such provisions
were at least as stringent, the states would be permitted as much
control as is constitutionally possible, and specific agreements
by memorandum would be entered into for purposes of joint enforcement
and administration of reclamation programs.2
The regulations issued by DOI left the question of federal
pre-emption largely unresolved. DOI subsequently found that
Wyoming's reclamation standards and requirements would apply to
four mining plans on federal coal leases in the western Powder
River Basin and to the Rosebud preference-right lease in Sweetwater
County. Despite these expressions of seeming "good faith" on the
part of DOI, Wyoming charged that the federal government's
recently issued regulations were unconstitutional in that they
violated the state's police power authority. A suit was filed in
U.S. District Court in Wyoming in June 1976,3 in which the state
argued that Secretary of the Interior Kleppe must recognize
Wyoming's jurisdiction regarding mined land reclamation control
and is required to exclude any lease provisions which might con-
flict with state law. Six months later, Kleppe consented to an
agreement with the state of Wyoming allowing state standards for
reclamation of coal mining on federal lands to take precedence
over any conflicting federal standards.4 Further, Kleppe said
that DOI was ready to negotiate settlements with any other states
having reclamation laws as stringent or more stringent than
Wyoming's. Under provisions of the agreement, DOI agreed that a
federal coal lessee must comply with "state laws and regulations
regarding reclamation, regardless of what action Interior has
taken in approving the lessee's mining plan".5 Federal coal
mining permits thus will be processed first by the state of Wyoming
U.S., Department of the Interior, Bureau of Land Management
and Geological Survey. "Coal Mining Operating Regulations." 41
Fed. Reg. 20251-20273 (May 17, 1976) (to be codified at 30 C.F.R.
211.75(a)(b)).
2Ibid., p. 20273.
3Herschler v. Kleppe. Docket No. C-76-108 (D. Wyo., filed
June 9, 1976).
"Wyoming Coal-Law Dispute Ends." Denver Post (December 4,
1976), p. 37L.
5Ibid.
1027
-------
and, after gaining state support, will be submitted to the
Secretary of the Interior.
Another issue is the question of who decides whether energy
development should or should not occur on specific federal lands.
New federal leasing regulations imply that pre-emptive authority
belongs to federal government. The posture of the states is that
the responsibility of designating land suitable or unsuitable for
mining must rest with the states (once state standards and per-
formance criteria have been determined acceptable under the reg-
ulations) "because the state has a better knowledge of the areas
within its boundaries than the federal government"1 and the state
is also responsible for the protection, health, and welfare of
its citizens. This problem may not be resolved without further
litigation if and/or when specific federal-state disputes occur.
As it presently stands, the situation underscores the interjuris-
dictional conflicts that energy development is causing in the
West. It also indicates the need for continuing coordination of
state and federal guidelines for reclamation where land ownership
patterns are mixed.
14.3.5 Summary
Negative environmental impacts of surface mining on land
uses, water flow and quality, wildlife habitats, and aesthetic
values raise a number of policy problems and issues. Attempts
to recondition strip-mined land are particularly problematic
because of the natural constraints of climate/ soil, and vege-
tation ecology of the western states. Of particular significance
are the semiarid and arid conditions that exist in the states and
the erratic seasonal distribution of precipitation that can
impair efforts to revegetate surface-mine spoils. Thus, water
management is a critical policy component in the reclamation pro-
cess. Further, reclamation efforts take place in a legal, regu-
latory, and enforcement framework defined primarily by states but
including federal and local input. Neither the federal govern-
ment nor the states have completely adequate laws and regulations
to control surface-mine reclamation.
This introductory analysis identified three categories of
problems and issues which may constrain western reclamation pro-
grams: problems caused by the uniqueness of western ecosystems,
problems related to state reclamation programs, and issues
regarding state control over reclamation on federal lands. Each
of these categories (and others as they are identified) will be
Federation of Rocky Mountain States. Proposed Federal Sur-
face Mining Reclamation Requirements; A Report on the Workshop
Held July 30, 1975, Denver, Colorado, Regional Background Paper.
Denver, Colo.: Federation of Rocky Mountain States, 1976,
p. 33.
1028
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expanded to include consideration of alternative policies and
implementation strategies in the remaining years of this study.
14.4 AIR
14.4.1 Introduction
This preliminary policy analysis identifies the existing
legal and jurisdictional context of air quality controls and
discusses three kinds of air quality problems and issues: non-
significant deterioration requirements, inter-governmental rela-
tionships, and emission controls technologies. Several potentially
significant problems and issues are not discussed, including the
federal government's pre-emption of control over mobile sources
(which contribute significantly to air quality problems in some
areas) and problems faced by municipalities affected by sta-
tionary sources located in another jurisdiction (e.g., when an
electric power generating plant is located in the county just
outside city limits) . These and other problems and issues not
discussed in this section will be analyzed during the remainder
of the project.
14.4.2 Legal and Jurisdictional Context
The Clean Air Act (CAA) of 1970 grants substantial authority
and discretion to states for setting standards, developing plans
for regulating standards, and enforcing those plans. 1 However,
the extent of state authority depends on the kind of pollution
being regulated; final control over air quality control programs
remains with the Administrator of the Environmental Protection
Agency (EPA) .
The following section outlines the relative roles of the
states and federal government in five categories of pollution
control: ambient air quality, non- significant deterioration, new
source performance standards, hazardous pollutants, and mobile
sources. States have more control and responsibility over
ambient air quality and non-significant deterioration than they
do over the other three areas. However, except for mobile
sources, states are required to submit State Implementation Plans
(SIP's) to EPA for all five areas. The primary purpose of SIP's
is to indicate how states will meet pollution standards and
enforce applicable laws within the powers granted by the CAA.
These powers include, for example, the authority to: abate pol-
lution emissions on an emergency basis; prevent the construction
Air Act of 1970, Pub. L. No. 91-604, 84 Stat. 1676
(codified at 42 U.S.C.A. S§ 1857 et sea.) (Supp. 1976). Techni-
cally, the 1970 laws are amendments to the Clean Air Act. However,
these amendments are so substantial that the 1970 enactment is
generally referred to as the Clean Air Act.
1029
-------
of any facility that would prevent the attainment of standards;
and monitor the performance of facilities. EPA retains super-
visory authority to approve or disapprove states' plans, to take
over state plans if necessary, and to allocate federal funds
based on these plans.
In addition to supervising state plans, EPA can penalize
violators by assessing fines of up to $25 thousand or 1 year in
prison per day of violation. The EPA Administrator may also go
directly to court to enforce standards if other enforcement pro-
cedures have failed. However, EPA can also be sued to compel
enforcement of air quality standards.1
A. Ambient Air Quality
Ambient air quality standards are set by EPA to limit the
atmospheric concentrations of six "criteria" pollutants regard-
less of their source: carbon monoxide, sulfur dioxide (SO2),
particulates, nitrogen dioxide, photochemical oxidants, and
hydrocarbons.2 Two levels of standards are set for each of
these pollutants. "Primary standards" set maximum concentrations
that would not endanger public health. "Secondary standards",
which are more restrictive for SO2 and particulate levels, are
set to protect public welfare.
Although EPA sets national ambient air standards, states
have the initial burden of developing plans specifying how the
national standards would be achieved* maintained, and enforced.
For example, a primary measure of state control is to prescribe
specific emissions limitations for types of polluters. Addi-
tionally, states may develop stricter standards than those devel-
oped by EPA.
B. Non-Significant Deterioration
The non-significant deterioration (NSD) clause of the CAA
is designed to limit the concentrations of pollutants that can
be added to areas where the air is relatively clean (i.e., areas
where the air quality is better than that allowed by ambient air
standards). In 1974, EPA developed regulations to define NSD
The CAA provides for strong citizen suit actions. Any
citizen can either sue EPA to compel enforcement or go directly
to court if EPA has not already brought suit.
Concentrations of criteria pollutants are measured at
ground level for specified time periods: 3-hour, 24-hour, and
annual average.
1030
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according to an area classification system. 1 Three classifications
for clean air areas were created which provide for progressively
larger incremental additions to existing concentrations of SO2
and particulates to be considered insignificant.2 (These two
pollutants were the only ones covered by the system.) Class I
increments allow the lowest level of incremental increases and
are intended to protect the cleanest areas in the nation, such
as national parks and wildlife sanctuaries. Class II areas allow
larger increments but ones that are still well below national
ambient air standards. Class III areas allow the largest incre-
mental increases and are essentially special exception zones
where deterioration to national primary standards is allowed.3
As is true for ambient standards, states have the initial burden
of developing plans to meet and maintain NSD allowable increments.
The allowable increments of particulates and S02 to Class I
and Class II areas apply to all new sources whether located
within or outside the areas. This effectively establishes a
buffer zone around Class I and II areas within which new facil-
ities cannot be sited since pollutants from the facility must be
diluted by atmospheric mixing to the allowable concentrations.
The distance required for dilution determines the size of the
buffer zone. This zone varies by facility type, size, and effec-
tiveness of emission controls. Impact analyses for our site-
specific scenarios show buffer zone requirements ranging from 5
to 75 miles.4 The size of buffer zones may become a critical
siting and emission control consideration, especially if more
clean air areas become mandatory Class I or class II.
C. New Source Performance Standards
New Source Performance Standards are designed to insure
that ambient standards are met, and limit the amount of a
given pollutant a stationary source may emit over a given time.
The development of this system was precipitated by law
suits which challenged that ambient air standards by themselves
were insufficient to meet the letter and spirit of the CAA. See
Sierra Club v. Ruckelshaus. 344 F. Supp. 253 (D.D.C. 1972),
affirmed, 4 ERG 1815 (D.C. Cir. 1972), affirmed sub nom., Fri v.
Sierra Club, 412 U.S. 541 (1973).
o
Although three classes were established, all clean air
areas were initially designated as Class II. States may redes-
ignate Class II areas as either Class I or Class III only after a
formal process requiring public hearings.
Refer to the air sections of Chapters 6-11 for the actual
increments allowed under NSD.
See Section 3.2 for a summary of findings related to NSD.
1031
-------
"New" in this context applies to facilities built since August 17,
1971 and to significant modifications of old facilities. New
source standards are for the same six criteria pollutants as
ambient air standards but are applied differently to various
categories of sources.!
EPA has complete responsibility for identifying categories
of new sources, developing standards for each source, and initial
responsibility for developing plans to abate new source popula-
tion. States must develop plans for implementing and enforcing
the plans and standards; however, they do have the option to set
stricter standards.
D. Hazardous Air Pollutants
The "hazardous air pollutants" category allows even stricter
standards than ambient air quality for pollutants that are con-
sidered to cause or contribute to increased mortality or serious
illness.2 Asbestos, beryllium, and mercury are currently con-
sidered hazardous, and separate emissions levels and/or uniformly
applicable control equipment requirements have been established
for these materials. The initial burden for controlling hazardous
pollutants rests with EPA, although states implement and enforce
these plans.
E. Mobile Sources
Mobile source pollutants, most notably automobile emissions,
are a third area left primarily to EPA regulation. This category
of pollution control is designed to reduce emissions of hydro-
carbons and carbon monoxide by 90 percent from 1970 levels.
14.4.3 Non-Significant Deterioration
EPA's classification system has apparently spurred, rather
than quieted, the debate over protection of the nation's clean
air. Many environmentalists claim that the classification system
is still inadequate, and many energy producers claim that it
restricts the development of new energy resources. In part,
New source categories are portland cement, municipal incin-
erators, fossil-fuel generators, asphalt concrete plants, petro-
leum refineries, petroleum storage vessels, secondary lead
smelters, secondary brass and bronze ingot plants, iron and steel
plants, and sewage treatment plants. See U.S., Environmental
Protection Agency. "Standards of Performance for New Stationary
Sources: Additions and Miscellaneous Amendments." 39 Fed. Reg.
9308-23 (March 8, 1974).
2Clean Air Act of 1970, § 112(d)(1), 42 U.S.C.A. § 1857c-
7(d)(l) (Supp. 1976).
1032
-------
these disagreements have increased the probability of Congressional
intervention. In 1976, both the House and Senate considered, but
did not pass, bills to amend current NSD regulations. Both bills
provided for a stronger federal role in the protection of certain
kinds of lands by requiring some areas to be designated Class I
at the outset, rather than initially designating all areas Class
II as EPA did.
Several studies have estimated the effects of NSD on energy
development and economic growth. The most extensive of these
have examined impacts on electric utilities, particularly the
construction of coal-fired electric generating plants. Both EPA
and the Federal Energy Administration (PEA) have undertaken
studies in this area.1 In addition, the utility industry has
undertaken studies of its own through the National Economic
Research Associates (NERA).2
Each of these studies have assumed a national energy growth
rate of 5-6 percent in demand for electricity between 1975 and
1990. Interpretation of Congressional requirements for "best
available control technology" (BACT) vary with each study. In
the most extreme interpretation, stack gas scrubbers would be
required for all new power plants. Both EPA- and FEA-sponsored
analyses assume this strict, universal scrubber requirement.
NERA presents two cases: a "strict BACT" that assumes that both
scrubbers and low-sulfur coal will be required, and a "most prob-
able" case that corresponds to current EPA New Source Performance
Standards. None of the studies incorporates the potential effects of
buffer zones.
Table 14-3 summarizes some of the preliminary findings of
these three studies of likely NSD impacts on electric utilities.
As shown, the findings of EPA and NERA are more similar than
those of FEA with respect to increased consumer costs and increased
capital costs for utility companies. FEA's projected impacts for
these two categories are minimal, especially given the 1990 time
frame. The studies show very different estimates of reduced SO2
emissions resulting from NSD, with the largest reduction (46 per-
cent) projected by the NERA "strict" case. This is about twice
the reduction projected by EPA (18 percent) and over three times
that projected by FEA (10 percent). Although EPA and FEA studies
are based on similar assumptions, they show dramatic differences
The analysis of projected impacts of NSD on energy devel-
opment is largely extracted from a working paper prepared for the
Science and Public Policy Program-Radian Research Team by Pamela
Baldwin entitled "Non-Significant Deterioration and Western
Energy Development" (June 7, 1976).
2
'These studies were unpublished as of December 1, 1976,
1033
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TABLE 14-3: IMPACTS OF NON-SIGNIFICANT DETERIORATION ON ELECTRIC UTILITIES
O
U)
Study a
EPA
FEA
NERA
"Strict"
NERA
"Most Probable"
Impacts: 1975-1990
Increased
Capital Costs
for Utilities
2.6%
($11.4 billion)
1.4%
($6.5 billion)
2.2%
($10.7 billion)
2.1%
($10.4 billion)
Increased
Consumer Costs
2.3%
( $ 28 /household/year)
0.7%
($8/household/year)
3.7%
($47 . 87 /household/year)
2.7%
($34. 82 /household/year)
Demands for
Low-Sulfur
Western Coal
5%
(35 MMtpy)
25%
(175 MMtpy)
34%
(146 MMtpy)
17%
(+73 MMtpy)
Reduced
Sulfur Dioxide
Emissions0
18%
10%
46%
35%
EPA » Environmental Protection Agency MMtpy = million tons per year
FEA • Federal Energy Administration NERA = National Economic Research Associates
&These studies are: (1) U.S., Environmental Protection Agency. A Preliminary Analysis of the
Economic Impact on the Electric Utility Industry of Alternative Approaches to Significant
Deterioration. 1976. Unpublished; (2) ICF, Inc. Impact of Proposed Non-Significant Deterio-
ration Provisions, draft Interim Report for U.S. Federal Energy Administration. 1976. Unpub-
lished; and (3) National Economic Research Associates, Inc. Estimated Costs for the Electric
Utility Industry of Non-Significant Deterioration Amendments Currently Considered by the U.S.
Senate. New York, N.Y.: National Economic Research Associates, Inc., 1976.
These projected reductions are calculated compared to New Source Performance Standards, not
to the case of no controls.
-------
in projected demands for low-sulfur coal; that is, a 5-percent
decrease (EPA) compared to 25-percent decrease (FEA).
Note that these are preliminary findings, based on several
assumptions about possible Congressional action on NSD legisla-
tion. They suggest that proposed NSD legislation and/or strict
enforcement of NSD requirements would not, by themselves, intro-
duce major impediments to western energy development, nor would
they burden the economy or consumer with significant cost increases.
The NSD issue raises many related problems, the most funda-
mental of which appears to be whether or not strict air pollution
control is compatible with growth and energy development. If the
two are assumed to be compatible, or at least reconcilable, NSD
may raise further questions about incentives for pollution con-
trol technology over the short term, interstate cooperation to
cope with regional pollution, and whether or not government
should further subsidize the costs of developing new air quality
control technologies. Moreover, disagreement continues over
specific issues in the definition of NSD, such as the incorpora-
tion of pollutants other than SO2 and particulate matter.
14.4.4 State-Federal Relationships
The implementation and enforcement of air pollution standards
raise the potential for conflict between EPA and the states.
For nearly all categories of air pollution control, states imple-
ment and enforce either their own regulations or those developed
by EPA. EPA retains ultimate responsibility for insuring that
national standards are met and for supervising state implementa-
tion plans and enforcement programs. This dual system raises
questions of how much coordination exists between the states and
EPA and how much control EPA may exert over the states. These
questions are raised largely because of the explicit desire by
the Congress to delegate authority and discretion to the states
to address the peculiarities of their own air pollution problems.
EPA appears to have three enforcement options in dealing
with states that the administrator feels are inadequately imple-
menting or enforcing air quality regulations. One option is to
disapprove state plans and ask for revisions. In July 1976, EPA
notified 45 states to revise their implementation plans and
incorporate more stringent regulations for one or more pollu-
tants. States were asked to revise their plans by July 1, 1977
for "all achievable emissions limitations" (i.e., those which
require reasonable technological additions). The eight states
in this study and the pollutants for which they must revise their
plans are listed in Table 14-4. Of the eight states, only North
Dakota's plan was accepted, although South Dakota, Utah, and
Wyoming were required to revise their plan only for particulate
emissions.
1035
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TABLE 14-4:
POLLUTANTS FOR WHICH WESTERN STATES
MUST REVISE THEIR IMPLEMENTATION PLANS
State
Arizona
Colorado
Montana
New Mexico
North Dakota
South Dakota
Utah
Wyoming
Pollutants
TSP
X
X
X
X
X
X
SO2
X
X
CO
X
X
X
Ox
X
X
NO2
X
CO = carbon monoxide
NO2 = nitrogen dioxide
Ox = photochemical oxidants
SO2 = sulfur dioxide
TSP = total suspended particulates
Source: Bureau of National Affairs. Envi-
ronment Reporter, Current Developments,
Vol. 7, No. 10 (July 9, 1976), p. 435.
With respect to enforcement programs, EPA is more constrained
in seeking state revisions. In 1975, the Supreme Court ruled
that as long as a state plan and regulatory activities maintain
national ambient air standards, EPA may not interfere in the
enforcement program.*
A second option for EPA under the CAA is to take
over state plans if it determines that those plans are inadequate
to meet the objectives of the CAA or the standards developed to
enforce those objectives. In August 1976, after having disap-
proved several plans submitted by Ohio to control SO2 emissions,
EPA exercised its option to develop a plan for the state.2
However, assumption of state plans is probably a very limited
XTrain v. NRDC, 421 U.S. 60 (1975).
241 Fed. Reg. 36324-40 (August 27, 1976).
1036
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option because EPA's resources are too limited to allow them to
assume development control for more than a few states.1
A third enforcement lever is EPA's administration of program
grants, which can be used to create positive incentives for states to
develop plans that meet EPA approval. In practice, this monetary
sanction and/or incentive is given to EPA regional administrators
who allocate funds to state or local governments in their region.
Program grants can be as much as three-fourths federal.
An example of problems that can be created by the current
system of air pollution control emerged from the impact analyses.
We found that, in sparsely populated areas, ambient ground-level
concentrations of particulates, nitrogen oxides, and hydrocarbons
produced by urban development can be as high or higher than those
produced by energy facilities themselves.2 These high concentra-
tions result from the release of pollutants at low levels in
urban areas by such sources as automobiles and home heating.
These concentrations do not increase consistently as urban popu-
lation increases but rather increase rapidly as the total urban
population increases to 15-20 thousand and at a progressively
slower rate thereafter. Thus, small or new towns in the West are
likely to experience a large increase in ambient pollutant levels
as population increases, while larger towns will experience rela-
tively little change.3
Also, the more labor intensive a technology, the larger the
population increase that can be expected. For small towns, this
becomes an important air quality consideration. Moreover, it
highlights a weakness in the current system of pollution control;
that is, state and local governments have virtually no control
over mobile sources of pollutants and yet are responsible for
meeting ambient air standards that can be violated largely because of
the effects of automobile pollution.
14.4.5 Emission Control Systems
Conflicts over the application of different technologies to
meet pollution standards constitute a third air quality policy
For an elaboration of this point, see: Thomas, Robert D.
"Intergovernmental Coordination in the Implementation of Natural
Air and Water Pollution Policies." Paper delivered at the 1974
annual meeting of the American Political science Association,
Chicago, 111., August 29-September 2, 1974.
2This was the case for most of site-specific scenarios.
Refer to Section 3.2 for a summary of these findings.
3See Section 3.2 for an explanation of how these conclusions
were reached.
1037
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issue. Controversies about emission control technologies are
directly related to energy demand, economic costs of production,
and interpretation of the CAA. However, they also influence
other important air quality problems, including plume visibility,
regional pollution, and NSD. Hence, determining which techniques
must be applied for emissions control is likely to influence and
depend on other air quality issues.
One controversy related to controlling power plant emissions
concerns whether or not flue gas desulfurization equipment (stack
gas scrubbers) should be a required technology for new facilities.
This issue has assumed increased importance as the alternative of
burning fuels with lower sulfur content has become less viable
because of diminishing supplies of natural gas and more costly
oil. Thus, attention has focused on methods enabling the energy
industry to burn dirtier fuels while still meeting ambient air
standards. The choices have been narrowed principally to the use
of scrubbers capable of removing approximately 90 percent of SO2
emissions (as well as significant portions of particulate matter)
and a combination of dispersive and intermittent techniques.1
"Dispersive techniques" characteristically means the use of very
tall stacks which spread pollutants over a much wider area than
do shorter stacks.2 Although tall stacks do not reduce the
quantity of pollutants emitted, they do reduce the concentrations
measured at ground level. Used in coordination with "intermit-
tent techniques" that regulate emissions when meteorological
conditions dictate, tall stacks can help a facility to meet
ambient air standards.
The advantages and disadvantages of the choices are fairly
straightforward. Scrubbers reduce total emissions as well as
See Nannen, L.W., R.E. West, and F. Kreith. "Removal of
SO2 from Low-Sulfur Coal Combustion Gases by Limestone Scrub-
bing." Journal of the Air Pollution Control Association, Vol. 29
(January 1974). pp. 29-39.
o
For example, a Georgia state plan called for stacks 800 and
1,000 feet high. See: Ayers, Richard E. "Enforcement of Air
Pollution controls on Stationary Sources Under the Clean Air
Amendments of 1970." Ecology Law Quarterly, Vol. 4 (No. 3,
1975), p. 452, footnote 28.
1038
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emission concentrations. Tall stacks, generally favored by
industry* offer substantial economic savings in comparison with
scrubbers . L
EPA's position is that dispersion from tall stacks over
large areas cannot be substituted for control techniques that
reduce S02 emissions. EPA maintains that sulfates which cause
health and visibility impacts may be produced from SO2; conse-
quently, the total emissions (not emissions density or level of
dispersion) must be controlled.
The significance of this choice is underscored by the vast
amount of available coal reserves located in the western U.S.
Developing these resources is important to both industry and
national energy policy. While dispersive techniques may allow
this fuel to be used within the limits of ambient air standards,
they do not facilitate adherence to NSD requirements. Of course,
if NSD requirements are substantially reduced by legislation, the
feasibility of tall stacks may be increased, especially for
short-term or emergency use.
In spite of a strong industry preference for disperions
rather than scrubbers, recent trends suggest that the issue will
be resolved in favor of technologies that reduce total emissions.
The Fifth Circuit Court of Appeals ruled against a Georgia State
Plan that allowed tall stacks. The court's ruling was that
stacks would be permitted only if best available control technol-
ogies had been adopted and federal air standards could still not
be met. 2 EPA has adopted similar guidelines which also limit the
estimate is that stacks cost $1,000 per foot for the
first 600 feet and $2,500 per foot each additional foot. Using
these figures, 1,600-foot stack would cost $600 thousand, an 800-
foot stack would cost $1 million, and a 1,000-foot stack would
cost $1.6 million. See Doyle, F.J., H.G. Bhatt, and J.R. Rapp.
Analysis of Pollution Control Costs. Washington, B.C.: U.S.,
Environmental Protection Agency, 1974, p. 364. The cost of
scrubbers depends on such factors as plant size, type of scrub-
ber, and coal characteristics. For a limestone scrubber on a
3,000-MWe plant, total capital costs will probably range from $51
million to $195 million, and annual operating costs from $15.8
million to $57.8 million. Thus, operating costs for 15 years may
range from $237 million to $867 million. See: University of
Oklahoma, Science and Public Policy Program. Energy Alterna-
tives; A Comparative Analysis. Washington, D.C.: Government
Printing Office, 1975, pp. 12-23.
2NRDC v. EPA (Georgia), 489 F. 2d 390 (5th Cir. 1974).
Although this case was reversed on appeal, the issue of tall
stacks was not reversed. The Supreme Court implied, in effect,
that tall stacks are not responsive to the Clean Air Act. See
Train v. NRDC, 421 U.S. 60 (1975).
1039
-------
use of tall stacks. In effect, tall stacks cannot be used in
place of scrubbers but can be used to meet NSD requirements as
long as best achievable technologies are being used.l
The scrubber issue highlights the interdependence of several
issues associated with air quality. Hence, resolution of the
"scrubber controversy" probably depends on the larger problems of
energy development and environmental protection. The commitment
to environmental protection, the availability and costs of imported
oil, and resolution of the sulfates and scrubber maintenance
questions are likely to determine the extent to which tall stacks
are used in the future.
14.5 GROWTH MANAGEMENT
14.5.1 Introduction
Many of the likely impacts of western energy development
will initially occur at the local level. On the one hand,
small towns and rural communities can be expected to benefit from
such development in several respects; for example, employment
will increase, local workers may be trained for skilled labor,
and the local economic base will be expanded. On the other hand,
negative local impacts will occur almost immediately when either
large-scale new energy projects are initiated or existing energy
facilities are greatly expanded. As discussed in Chapters 6-12,
many of these problems arise as a consequence of population
growth which, even if anticipated, is almost always uncertain as
to length, rate, and magnitude.
Problems associated with the efforts of public institutions
in western communities to manage growth are discussed in this
section. Experience has shown that when growth is gradual, many
communities are able to keep up with demands for increased ser-
vices; that is, sufficient time and resources exist for deter-
mining priorities among needs, planning and response systems can
be developed, and sources of assistance can be identified
and accessed.1 However, when growth and development are rapid,
several problems arise that may impede a community's reactions to
X41 Fed. Reg. 7450-52 (February 18, 1976).
2
For example, because of a moderate growth rate followed by
a stable permanent population, the quality of life in Idaho Falls,
Idaho (with development of the National Reactor Testing Station)
appears to have been "enhanced". See University of Denver, Research
Institute. The Social, Economic, and Land Use impacts of a Fort
Union Coal Processing Complex, Draft Copy, Appendix A, for the
U.S. Energy Research and Development Administration, Fossil
Fuels. Springfield, Va.: National Technical Information Ser-
vice, 1975. FE-1526.
1040
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increased service needs. This section discusses four categories
of such problems and some of the responses available to communities
for coping with them: intergovernmental relations, institutional
capabilities, taxation, and assistance programs.
14.5.2 Intergovernmental Relations
A. Problems and Constraints
Local and county governments must deal with problems and
issues within the legal powers granted and limits imposed by
their states. In many cases, controls and regulations that local
governments need to deal with energy development-related changes
are constitutionally prohibited. For instance, existing tax laws
(debt ceilings and limits on tax rates) often limit the ability
of localities to finance needed community facilities.1 The Utah
constitution prohibits the transfer of state revenues, including
impact aid, to cities, counties, or Indian tribes. Some states
also restrict the freedom of local governments to require a
developer to provide some kinds of public facilities, thus
limiting the alternatives available to a community when it
attempts to solve its growth-related problems.2
Another problem is the fragmentation of authority and
responsibility for natural resource development. In most states,
authority and responsibility are shared by cities, counties,
councils of governments, special districts, and state agencies.
In turn, each of these governmental units distributes adminis-
trative authority among its own various agencies and departments.
Occasionally, these institutions may pursue conflicting goals or
have overlapping authority. In such a fragmented system, the
capacity of any one governmental unit to respond effectively to
As noted in Chapter 11, existing debt ceilings in Beulah
and Hazen, North Dakota are not adequate if these localities are
to cope with projected fiscal demands. Increasing the debt limit
for public projects generally requires a constitutional amendment
and a majority vote of the people of the local jurisdiction. And
in some cases, the additional allowable increment is small (e.g.,
the indebtedness limit in Beulah and Hazen can only be raised an
additional 3 percent by referendum).
2
Kutak, Rock, Cohen, Campbell, Garfinkle & Woodward. A
Legal Study Relating to Coal Development—Population Issues, Vol.
I: Responding to Rapid Population Growth, for the Old West
Regional Commission. Omaha, Neb.: Kutak, Rock, Cohen, Campbell,
Garfinkle & Woodward, 1974, pp. 77-78.
1041
-------
problems and issues is often constrained or weakened to the point
that no adequate response can be implemented.^
A third problem among governmental units is that the costs
and benefits of energy development are often unequally distrib-
uted. For example, employees associated with the Decker mine in
southern Montana live in nearby Sheridan, Wyoming where their
impact is felt in terms of housing, water, sewers, and schooling
needs. However, none of the tax revenues normally generated by
the mine through property or severance tax receipts accrue to
Sheridan. Conversely, because of their size, many school dis-
tricts and county governments are expected to experience imme-
diate revenue surpluses from energy development, as is the case
for Campbell County in the Gillette scenario (see Section 9.4).
B. Responses
Several alternatives to characteristic patterns of inter-
governmental relationships have been suggested or tried in the
eight-state study area, city-county consolidation is one option
for more efficient government for situations in which revenue
surpluses occur in one jurisdiction (e.g., a county) while expen-
ditures for services and facilities are needed in another (e.g.,
a city). However, consolidation appears to have little support
in the West, largely because of the pervasive split in local
leadership attitudes between county commissioners, who are pre-
dominantly ranchers, and town officials, whose primary concern is
local economic growth. Rural leaders generally believe that
consolidation will lend additional weight and leverage to urban
needs and thus hasten the shift to rural industrialization.^
Special districts that finance, construct, and operate a
particular service (e.g., sewage treatment) are a form of city-
county cooperation which stops short of consolidation.3 The
advantage of special districts is that they can be used to
Task Force on Institutional Arrangements, Final Report, for
Rocky Mountain Environmental Research, Quest for a Future. Logan,
Utah: Utah State University, RMER-Quest, 1974, p. II-C-1.
o
Allen, Edward H. Growth Management in Western Energy Devel-
opment Areas; The Uses of State and Local Taxation Tools, pre-
pared as a background paper for the Science and Public Policy
Program-Radian Corporation research team. Norman, Okla.: Univer-
sity of Oklahoma, Science and Public Policy Program, 1976, p. 13.
For example, the Wyoming Joint Power Act allows special
districts for sewage treatment, recreation, and public school
facilities. See Wyoming, State Legislature. Interim Report and
Recommendations, Legislative Select Committee on Industrial
Development Impact. 1974.
1042
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side-step constitutional prohibitions on debt ceilings and limits
on revenue transfers. Their disadvantage is that they offer no
guarantees regarding the extent of cooperation between the city
and county. For example, the city may back a special district
financially while the county assumes no liability for the debts
of the special district.! This is the situation that exists with
the Gillette-Campbell County Joint Powers Board, a speical water
supply district for Gillette, Wyoming.
A third approach to improved intergovernmental relationships
is coordinated planning units such as councils of governments
(COG's).^ While many states have developed COG's or similar
planning units, Utah has advanced the concept by combining this
level of planning unit with other institutional mechanisms.3
Utah's seven associations of government (AOG's), composed of
multi-county planning districts, are primarily concerned with
identifying significant local issues, appropriate funding sources,
and the feasibility of programmatic responses. However, each AOG
also sends representatives to the Governors' Advisory Council on
Local Affairs to coordinate local involvement in the state
government planning process. The AOG and Governors' State
Planning Advisory Committee serve additionally as state and area
clearinghouses under the federal Office of Management and Budget
A-95 review procedures.4
Allen, Edward H. Growth Management in Western Energy
Development Areas; The Uses of State and Local Taxation Tools,
prepared as a background paper for the Science and Public Policy
Program-Radian Corporation research team. Norman, Okla.: Univer-
sity of Oklahoma, Science and Public Policy Program, 1976, p. 13.
2
Much of the impetus for COG's came from federal legislation
which required such processes as "areawide review" and A-95
"review and comment" as part of the granting process.
Information on the Utah intergovernmental planning struc-
ture is summarized mainly from Utah, State Planning Coordinator
and Department of Community Affairs. Intergovernmental Planning
Coordination; The Utah Experience. Salt Lake City, Utah: State
of Utah, 1975.
A-95 review procedures derive from Section 7 of Office of
Management and Budget Circular No. A-95 (January 2, 1976; 41 CFR
2052). A-95 requires states to provide the opportunity for
governors and local officials to comment on applications for
federal funds to undertake a variety of categorical programs, and
requires agencies of the federal government to consider the com-
ments of the general public in approving specific applications
for funds.
1043
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14.5.3 Planning
A. Problems and Constraints
Many communities and most state governments in the eight-
state study area have begun to respond to the problems associated
with rapid growth in such ways as upgrading existing mechanisms
for coordinating state-county-community planning. However, the
effort to develop planning capacities commensurate with the chal-
lenges of rapid growth faces several barriers. As indicated in
Chapters 6-12, most western communities impacted by energy devel-
opment have only part-time governmental units, little or no tech-
nical or administrative staff, and only a limited planning capacity or
experience. Of 131 communities in Federal Region VIII expected
to be impacted by energy development by the year 2000, 9 percent
have professional planners, 6 percent have full-time city engi-
neers, and only 3 percent have city managers.1
Uncertainty associated with energy development also impedes
planned responses. Some uncertainty arises from lack of infor-
mation about the community; more can be attributed to the incon-
sistent nature of lack of information regarding the plans and
policies of energy industries, surrounding towns and states, and
the federal government.2 The indefiniteness of energy develop-
ment has been exacerbated by the delay or cancellation of many
energy projects during the past few years. Even if a town and/or
a developer anticipates probable impacts and potential remedies,
concrete action often depends on several uncertainties inherent
in the process, including approval of Environmental Impact State-
ments, permits, and leases. For example, the least time neces-
sary to acquire land from the Bureau of Land Management (BLM) is
18 months. Even if a developer is willing to gamble on acquiring
land prior to final approval, he is prevented by law from doing
so. For example, if BLM released the land, even through Private
Exchange, this would still be a "federal action" and prohibited
before final approval of the Environmental Impact Statements.
Mountain Plains Federal Regional Council, Socioeconomic
Impacts of Natural Resource Development Committee. Socioeconomic
Impacts and Federal Assistance in Energy Development Impacted
Communities in Federal Region VIII. Denver, Colo.: Mountain
Plains Federal Regional Council, 1975.
For a discussion of community information needs to enhance
planning, see White, Gilbert, and Gottfried Lang. "Community
Mobilization for Adaptation to Change in Rapid Growth Areas,"
pp. 76-81 in Federation of Rocky Mountain States. Energy Devel-
opment in the Rocky Mountain Region: Goals and Concerns. Denver,
Colo.: Federation of Rocky Mountain States, 1975.
1044
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Planning difficulties can also be attributed to national and
international uncertainties. These include questions about the
future of the energy industry in the U.S., such as the relative
prices of energy minerals, energy extraction and processing tech-
nologies, federal energy policy, and international influences
affecting the industry.
A third barrier to adequate planning is the widespread
attitude that planning represents "governmental control" and,
hence, threatens many important values, including the right of
people to do what they want with their own land and to live an
independent life. Indeed, the traditional rural attitude toward
planning is one of antipathy.1 However, as the impacts of rapid
energy development are actually experienced, the need for govern-
mental response may be increasingly recognized.
B. Responses in Land-Use Planning
Although land-use planning is only one component of the
planning needs faced by local communities, measures available to
control land use are in many respects typical of the opportunities and
problems communities have for dealing with rapid growth. Histor-
ically, wide-ranging authority has been delegated by states to
localities to deal with land-use problems. In addition to local
responses to land-use control, additional state land-use policies
and federal assistance programs are outlined below.
1. Traditional Local Responses
Zoning has been the primary tool for localities to control
land-use development for most of this century.2 zoning can be
used to control development, ranging in degree from preventing
any development to promoting maximum development, and to direct
the nature of development. For example, some lands may be used
for only residential purposes, while others may be designated for
commerical, agricultural, or industrial purposes.
Local governmental units traditionally have discretionary
authority well beyond mere land classification. They also may
legislate against public nuisances, adopt subdivision regulations
and building codes, institute solid waste management plans and
regulations, acquire open space, apply floodplain management
regulations and environmental controls, and establish housing or
See Christiansen, Bill, and Theodore H. Clack, Jr. "A Western
Perspective on Energy: A Plea for Rational Energy Planning."
Science, Vol. 194 (November 5, 1976), pp. 578-84.
2This trend dates to the 1920's and the Department of Com-
merce 's Standard City Planning Act and the Standard Zoning
Enabling Act.
1045
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redevelopment commissions or authorities.1 Separately or in
combination, these powers serve as the mechanisms to control the
timing and mitigate the social costs of municipal growth.
However, in the western states, land-use controls have been
applied unevenly, and the inadequacy of traditional zoning con-
cepts to deal with energy development is becoming increasingly
obvious to many communities. Primary problems include: no or
inadequate zoning ordinances at the outset of a growth situation;^
use zoning which creates economic incentives against the suc-
cessful implementation of the desired development patterns;3 and
amendments and "spot zoning" which occur when communities are
faced with pressures from a tremendous population influx. For
example, if two similar parcels of land are zoned for different
purposes, one for multi-family and the other for single-family
dwelling units, and if the price of the land zoned for multi-family
dwellings is substantially higher because multi-family devel-
opment is more profitable, a prospective developer of multi-
family units has an incentive to buy the land zoned for single-family
dwellings and use his influence to get the zoning designation
changed.4 This kind of rezoning can lead to immediate and long-
term impacts on a locality's development. Hence, variances orig-
inally intended to serve as emergency safety valves in unique
situations often become the rule.
2. Alternative Zoning Techniques
Planned unit development (PUD) and special purpose districts
are two zoning techniques that can help planners deal more effec-
tively with energy-related growth. The PUD technique, which is
characteristically used for suburban development, combines
Relevant state statutes for these examples are given in
White, Michael D. "Constitutional Derivation and Statutory
Exercise of Land Use Control Powers," in Rocky Mountain Mineral
Law Foundation. Rocky Mountain Mineral Law Institute; Pro-
ceedings of the Twenty-First Annual Institute, July 17-19, 1975.
Albany, N.Y.: Matthew Bender, 1975, pp. 695-97.
Kutak, Rock, Cohen, Campbell, Garfinkle & Woodward. A
Legal Study Relating to Coal Development—Population Issues, Vol. I:
Responding to Rapid Population Growth, for the Old West Regional
Commission. Omaha, Neb.: Kutak, Rock, Cohen, Campbell,
Garfinkle & Woodward, 1974, pp. 77-78.
U.S., Council on Environmental Quality. Environmental
Quality, Fifth Annual Report. Washington, D.C.: Government
Printing Office, 1974.
4
McCahill, Ed. "Stealing: A Primer on zoning Corruption."
Planning. Vol. 39 (December 1973), pp. 6-8.
1046
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compatible uses into a unit while relaxing standard restrictions
according to a development plan. Within the total density limits
imposed by local zoning ordinances, a builder is permitted to
vary densities throughout a unit. Thus, the builder operates
within an overall limitation rather than being required to dis-
tribute development evenly over the whole unit as would usually
be the case.-"- This approach can reduce sprawl, as well as
building and housing costs, and can preserve larger areas of open
space for recreational and other service uses. Since both space
and capital can be problems in western energy development areas,
especially during the project construction phase, PUD may be an
attractive alternative to traditional patterns of housing subde-
velopment.
A second alternative is the special-purpose district. Like
PUD, special districting is designed to permit departures from
the one-use, single-lot approach to zoning and to be more respon-
sive to public opinion. In general, special districts are formed
to protect desirable uses in a specific area of social, cultural,
or historical importance that are threatened by redevelopment.
3. State-Level Responses
Even though the PUD and the special service district may
facilitate community control over rapid development, local land-
use efforts are seldom adequate to cope with statewide (and
ultimately regional or national) impacts. Thus, many western
states have further regulated the planning process.2 Wyoming and
North Dakota now require local governments to adopt subdivision
regulations, appoint planning commissions, and engage in compre-
hensive planning. Colorado and Wyoming have state land-use com-
missions. Colorado's Land Use commission provides a technical
See Huntoon, Maxwell C., Jr. PUD; A Better way for the
Suburbs. Washington, D.C.: Urban Land Institute, 1971. When
PUD is used, the developer and local planning board work out a
mutually agreeable plan for each development.
o
Efforts by states to deal with land-use problems on a
statewide or regional basis generally recognize the important
role played by local governments closest to the problem; that is,
they are not intended to usurp local responsibility or participa-
tion. Rather, they result from the increasing awareness, on the
part of all parties concerned, that many of the problems facing
communities are simply beyond the scope and capacity of limited
local staff and jurisdictions. The 1972 Montana constitution
mandated a 3-year study (1975-77) to determine how local govern-
mental units or combinations of units can become more effective.
The study is also to analyze and make recommendations about the
responsibilities various levels of government should assume
regarding planning and land-use controls.
1047
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assessment of the adequacy of environmental impact statements and
compliance with state standards. The Wyoming Land Use Adminis-
tration is responsible for planning in geographic areas that have
been identified as critical in terms of large-scale development.
Although not identical in function, neither agency has much
enforcement power.^
With the exception of one or two states in the western U.S.,
considerable fragmentation and competition still exist among the
state agencies that make planning decisions. Cases of coordi-
nation and integration of state efforts with local level planning
have been rare. This is likely to assume increased importance as
localities are forced to accept both state and federal agency
controls which are usually tied to funding and/or technical sup-
port. Even when communities oppose the planning philosophy,
state and federal legislation regulating pollution and environ-
mental protection is causing them to consider different alterna-
tives .
4. Federal Programs
The federal government exercises substantial land-use con-
trol powers, largely through Section 701 of the Housing Act of
1954 which provides assistance to local governments for planning
purposes.2 The principal source of federal financial support for
countywide land-use programs is the Department of Housing and
Urban Development's (HUD) 701 grants program.3 One important
purpose of the program has been to include the input of urban
planners in the effort to shape new and existing communities,
which until the mid-1950's had been left mostly to the designers
of roads, sewers, and airports.^
Rapp, Donald A. western Boomtowns, Part I, Amended: A
Comparative Analysis of State Actions, Special Report to the
Governors. Denver, Colo.: Western Governors' Regional Energy
Policy Office, 1976, p. 43.
Housing Act of 1954, 68 Stat. 590, 40 U.S.C.A. § 461 (Supp.
1976).
1975 funding levels from the 701 program ranged from $270
thousand (Wyoming) to $1.5 million (Colorado) among the six
states of Federal Region VIII.
4Reilly, William K. "National Land Use Policy," pp. 1415-
1465 in Dolgin, Erica L., and Thomas G.P- Guilbert, eds. Federal
Environmental Law. St. Paul, Minn.: West, 1974.
1048
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HUD established interim regulations in 1974 for recipients
of 701 funds after August 22, 1977. 1 It has been suggested that
these regulations represent an attempt on the part of HUD to
"corner the market" in federal land-use matters.2 Since Congress
has yet to agree on national land-use legislation, the HUD 701
provisions to some extent fill a statutory void.
Section 701 requires grant recipients to carry out an on-
going "comprehensive planning process" that contains mutually
consistent housing and land-use elements in line with national
growth policy objectives. The housing element objective is to
promote the goal of a decent home and suitable living environment
for every American family? the land-use element is intended to
coordinate governmental land-use policies and plans so that they
serve as a guide to decisionmaking on all related matters. The
regulations are also designed to facilitate coordinated land-use
policies among the various levels of government. The meaning of
these provisions to states that do not have land-use commissions
is not clear. However, if states are to continue receiving 701
funds/ they must, as a minimum, develop stronger planning pro-
grams with more efficient integration among levels of government.
The Flood Disaster Protection Act of 1973 similarly estab-
lishes national interests with regard to land use.3 This act
denies any federal assistance for construction in flood-prone
areas unless communities implement HUD- approved land-use plans
for such areas. As of July 1, 1975, federally licensed, regu-
lated, or insured banks and savings and loan institutions were to
cut off all assistance (mortgage loans) to communities identified
by HUD as having special flood hazards but which had not entered
HUD's insurance program. To enter the program, communities must
agree to develop land-use control measures which are consistent
with HUD's floodplain management criteria. These criteria
require the enactment of floodplain ordinances, including zoning
and building code provisions in hazardous areas. More restric-
tive controls may be demanded pursuant to more specific infor-
mation about the potential flood problems in a given area.
., Department of Housing and Urban Development, Office
of Community Planning and Development. "Comprehensive Planning
Assistance, Interim Regulations." 39 Fed. Reg. 43378-87
(December 12, 1974). (Revised regulations promulgated at 40 Fed.
Reg. 36856-65) (August 22, 1975).
2Bureau of National Affairs. Environment Reporter, Current
Developments, Vol. 5, No. 35 (December 27, 1974), p. 1327.
3Flood Disaster Protection Act of 1973, Pub. L. No. 93-234,
87 Stat. 975 (codified at 12 U.S.C.A. §§ 24, 1709-1; 42 tT.S.C.A.
4001-3, 4012a, 4013-4016, 4026, 4054, 4056, 4101, 4104-4107,
4121, 4128) (Supp. 1976) .
1049
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Thus, with respect to land use, the trend appears to be
clearly toward increased assertion of federal interests in land-
use control, even though no national land-use legislation has
been enacted. Moreover, this trend is likely to continue as
particular land-use conflicts become irreconcilable at lower
levels of government.1
14.5.4 Taxation Tools
The power to levy taxes gives western state and local
governments a tool for both raising revenues and controlling
growth. Some tax programs are more appropriate for one of these
purposes than the other; if any tax controls grow to the point of
discouraging development, revenues will eventually decline.
Increased public revenues in energy-impacted areas can be
used in a number of ways, including providing the governmental
facilities and services needed by an expanded population, catching up
on a backlog of public projects,2 reducing tax rates, and diver-
sifying growth from the energy industry into other, longer-lived
industries. Generally, the first of these goals presents local
government with the most urgent challenges. As shown by the fis-
cal analyses reported in Part II, energy-impacted areas gain sub-
stantial long-term financial benefits from development, but tax
needs are frequently out of phase with revenue flows. In some
instances, tax monies are needed before they would become avail-
able, while in others the jurisdiction benefiting from the
increase (e.g., a county) in tax revenues will not be the one
facing .greatly increased expenditures (e.g., a city). In some
cases, both timing and distribution are problems.
The lead-time problem arises because traditional fiscal
measures, such as ad valorem property taxes, often have built-in
collection lags. Hence, during the first few years of construc-
tion, the value of a new development is not included in the local
tax base. Public revenues may not adequately expand for as much
as 3 years after the arrival of new workers and their families.
Operational activities of local government then claim the bulk of
1Reilly, William K. "National Land Use Policy," pp. 1415-
1465 in Dolgin, Erica L., and Thomas G.P- Guilbert, eds. Federal
Environmental Law. St. Paul, Minn.: West, 1974.
o
The City of Glenrock, Wyoming paved their streets, put in
a storm sewer, and built a new town hall. See Allen, Edward H.
Growth Management in Western Energy Development Areas: The Uses
of State and Local Taxation Tools, prepared as a background paper
for the Science and Public Policy Program-Radian Corporation
research team. Norman, Okla.: University of Oklahoma, Science
and Public Policy Program, 1976, p. 16.
1050
-------
revenues, leaving little, if any, for construction of new facilities,
even though construction of some should have been started before
the arrival of new people.
The most viable options for communities facing a construc-
tion boom are new or increased tax rates, new public debt, or
"muddling through" the short-term until revenues catch up with
expenditure needs. However, elected officials often face polit-
ical constraints which may inhibit or block attempts to increase
taxes.
Indeed, some policymakers exhibit a compulsion to avoid
general tax increases to the point of bypassing urgent public
needs.1 As a result, communities often adopt short-term strat-
egies to cope; that is, they try to suffer through the lean
years, looking toward the time when new revenues will be avail-
able. Although this strategy may appear simply to deny the
existence of a problem, it may well have merit if a construction
boom is expected to be short-lived or if the level of development
is too uncertain to begin remedial action. In such a case, the
community will not need permanent facilities to match the boom-
period population. Building to meet boom needs would leave
excess capacity later.
Local governments may seek immediate relief by placing much
of the additional tax burden on newcomers. Such taxes are
usually justified on the grounds that the newcomers are the ones
imposing new costs for expanded capacity. Sewer and water line
connection fees are the ones most easily levied directly on new-
comers, but the revenues that can be raised from these sources
are clearly limited. Thus, old-timers must share in some of the
increased costs, at least indirectly. However, developing a
taxation system that is equitable for both new and old residents
is difficult.
Municipal bond markets may be tapped to temporarily supple-
ment tax revenues if future budget surpluses are anticipated.
The principal limitations are legal, political, and financial:
state constitutions and statutes often specify debt limitations
(see Section 14.5.2); long-term bonds for capital expansion are
not readily approved by long-time residents who may prefer
things as they are; and buyers in a national bond market may
For a discussion of the political barriers that local
elected and appointed officials confront regarding taxation, see
Ecker-Racz, L.L. The Politics and Economics of State-Local
Finance. EnglewoodCliffs,N.J.:Prentice Hall,1970,
pp. 15-27.
1051
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distrust the credit status of small communities.1 Municipalities
have sometimes responded to these limitations by creating special
financing districts: however, this trend often adds to problems
of intragovernmental fragmentation, lack of cooperation, and
accountability.2 Special service districts, county service dis-
tricts, and joint city-county districts may in fact generate the
necessary capital for front-end financing, but in creating numer-
ous political subdivisions, local officials may actually further
impede efforts to coordinate overall community planning.
Despite these problems, the analysis of hypothetical energy
developments in Part II has shown that the facilities can be
expected to generate revenue surpluses sometime during the life-
time of the project. For example, the developments at both
Forsyth, Montana and Gillette, Wyoming are expected to produce
substantial surpluses within 5-10 years after development begins.
Taxable investments in a mine and minerals production will more
than make up the overall tax needs if allocations from higher
levels of government are returned to the impacted areas. The
strategy here is to move the center for tax collection and dis-
tribution to the state. Then the state can redistribute funds
from those communities that are well into the energy production
phase to those communities that are just beginning to feel
construction-phase impacts.
Along with new state-level taxes, both Montana and Wyoming
have created special legislative programs for local fiscal imbal-
ances caused by coal development. Although these programs are
the exception in the study area, they provide options that other
states facing rapid energy development may wish to consider. The
major objectives of these programs are to provide for the prepay-
ment on request of property taxes before a new facility is con-
structed (Montana),3 to give local governing bodies the
ability to borrow against anticipated future tax revenues, and
to grant extensions for repaying borrowed monies (Wyoming).4
lu.S., Department of Housing and Urban Development, Office
of Community Planning and Development. Rapid Growth from Energy
Projects; Ideas for State and Local Action, A Program Guide.
Washington, D.C.: Government Printing Office, 1976, p. 30.
2
Council of State Governments. State Growth Management,
prepared under the direction of the Office of Community Planning
and Development, U.S. Department of Housing and Urban Development.
Washington, D.C.: Government Printing Office, 1976, p. 28.
Montana Revised Codes Annotated, § 84-301 (Cumulative
Supplement 1975).
Wyoming, state Legislature. Interim Report and Recommen-
dations, Legislative Select Committee on Industrial Development
Impact. 1974.
1052
-------
The principal state-level minerals taxes are the ad valorem
property tax, severance and conversion taxes, and the performance
guarantee. •"• Ad valorem taxes were historically the first taxes
levied on mines and mineral properties, and continue to serve as
major revenue producers for most local governments.2 They treat
mining activities the same as other industries; a value is placed
on a mineral deposit either by a county or state assessor and the
local millage rate is applied to the assessed value. Inherent
problems in valuation led Montana and Wyoming to use the annual
gross proceeds of a mineral enterprise as the basis of property
value, rather than assessing the value of the mineral in place.3
When the mines are located outside a town's jurisdiction, special
programs are needed to distribute funds to the point of social
impact.
Severance and conversion taxes can be levied at a set amount
per unit of production (such as cents per ton of coal per year)
or as a set percentage of the gross value of production. Sever-
ance taxes are simpler to administer than ad valorem taxes
because they do not involve the inherent assessment problems.
Since the tax is based on the physical output of the mining
activity, revenues during the early development stages (3-5
years) will probably be well below those needed to finance new
service demands. As noted in Chapter 10, unless the available
state impact funds generated in that scenario are channeled back
to the localities, the fiscal imbalance in the energy development
areas could persist for some time. Thus, redistribution actions
The performance guarantee is not, legally, a tax. That
feature gives it certain advantages, as described below.
2
Three sources inadequately tapped during the first year
will be used to improve the analysis of taxes during the remain-
der of the project: Bronder, Leonard D. Taxation of Coal
Mining; Review with Recommendations. Denver, Colo.: Western
Governors' Regional Energy Policy Office, 1976. Bronder, Leonardo.
Taxation of Surface and Underground Coal Mining in Western
States. Denver, Colo.: Western Governors' Regional Energy
Policy Office, 1976; and a study currently under way in the
Economic Research Service of the Department of Agriculture on
state taxation of mineral deposits and production.
^Estimating the value of a mineral deposit requires esti-
mating the amount of mineral reserves, quality of the mineral,
depth of overburden, accessibility of markets, and future market
prices. It also requires understanding the capital investment
in the mine as it relates to the amount of extractable ore.
Bronder, Leonard D. Taxation of Coal Mining; Review with Recom-
mendations . Denver, Colo.: Western Governors' Regional Energy
Policy Office, 1976, p. 17.
1053
-------
by the state will be instrumental in determining whether finan-
cial problems of communities outside the immediate vicinity of an
energy project will be handled adequately.
The Wyoming experience provides an example of special sever-
ance taxation. In 1974, the Select Committee on Industrial
Development Impact of the Wyoming State Legislature determined
that an additional $65 million was needed over a span of 5 years
to cope with increased highway, road, water, and sewer needs in
various parts of the state. The committee also concluded that
the burden of paying for needed improvements should be assumed by
the coal industry. As a result, the state passed a severance tax
that increases from 0.5 percent initially to 2.0 percent of value
by 1978. This tax will remain in effect until the state has
collected a total of $120 million. At least 60 percent of the
monies derived from the tax are dedicated to either local govern-
ments or the State Highway Department to be spent on highways and
roads in impacted areas. The remaining funds will be made avail-
able through a state review board for municipal water and sewer
improvements. In addition, the money can be used to match
federal grants and can be dedicated to back borrowed funds.
From the state's point of view, one of the obvious advan-
tages of direct mineral taxation is that much of the burden will
be shifted out of state, to the mining company and/or its cus-
tomers. For that reason, developers and their customers may be
expected to react both economically and politically. Economi-
cally, industry will have an incentive to locate in low-tax
states. Conversion taxes in particular may induce companies to
opt for strip-and-ship. Politically, consuming states have
argued that when almost all of a commodity is exported from a
state, the state has no authority under the federal constitution
to tax it. Arizona has already challenged New Mexico's electrical
generation tax in court on such grounds. Producing states can
argue that growth should' pay its own way, especially when that
growth results from a national policy of promoting domestic pro-
duction. These questions will have to be resolved before western
states can plan on substantial revenues from direct minerals
taxation.1
Some of the issues are discussed in Chapter IV, of Nehring,
Richard, and Benjamin Zycher. Coal Development and Government
Regulation in the Northern Great Plains. Santa Monica, Calif.:
The Rand Corporation, 1976. R-19B1-NSF/RC. Also see Magida,
Arthur J., and Richard Corrigan. "Energy Report: Trying to Pull
the Plug on Uncle Sam's Energy Plans." National Journal, vol. 8
(May 8, 1976), pp. 618-25; Corrigan, Richard, and Arthur J.
Magida. "Energy Report: The West Readies Itself for the 20th
Century 'Boom or Bust'." National Journal, Vol. 8 (May 15,
1976), pp. 666-70.
1054
-------
Several recently enacted mineral tax packages* are responsive to
the need to dedicate specified percentages of the revenues to
state and community service needs. The Montana and Wyoming
mineral tax legislation also creates the institutional elements
to administer these programs. At present, these organizational
devices and taxation schemes remain largely untested. However,
our western Dakota scenario (Section 11.4.6) indicates that local
revenue shortfalls may still exist. Only 1.5 percent of the con-
version tax and none of the severance tax is guaranteed to towns.
This is probably not enough to meet their increased service
demands. Ample funds will go to the county governments and the
state s Coal Development Impact Office, so the needs could be met
with the cooperation of those agencies.
As an alternative to traditional taxation methods, Wyoming
has established an Industrial Siting Council that can attach
extensive conditions to its construction permits. For example,
in the recent Laramie River power station case, the developer
agreed to provide housing facilities and a recreation center, to
contract with the county sheriff for plant security guards, and
to initiate a socioeconomic monitoring program. The permit pro-
cedure sets up a negotiating framework under which the state (on
behalf of the locality) can induce the private sector to under-
write quasi-public facilities and services. In effect, the
transfer is a tax, but it has several advantages over formal
taxes: the burden is focused on the developer, specific needs
can be addressed directly, and responses are negotiated and
flexible.2 The agreement on plant security retained a unified
police system in the county, while requiring the developer to pay
his incremental costs.
As a growth management tool, formal taxation must play a
supporting rather than leading role for a number of reasons.
First, taxation alone is too unwieldy for dealing with the more
specific challenges presented by rapid growth. Second, conflicts
often arise over the use of taxes to control growth and their use
to raise revenues. Third, the regulation of growth has histor-
ically been dealt with locally, while taxation has been con-
trolled by the state.
Finally, the financial innovations used to solve impact
problems add to the complexity of the growth management effort by
increasing the number of participants in the planning process.
Those of Montana, North Dakota, and Wyoming.
2
Allen, Edward H. Growth Management in Western Energy Devel-
opment Areas; The Uses of State and Local Taxation Tools, pre-
pared as a background paper for the Science and Public Policy
Program-Radian Corporation research team. Norman, Ok la.: Univer-
sity of Oklahoma, Science and Public Policy Program, 1976, pp. 18-21.
1055
-------
Hence, growth management in energy-impacted communities will
demand uncommon initiative, cooperation, and coordination among
all levels of government.
14.5.5 State and Federal Assistance
Faced with pressing service demands, a shortage of local
financial resources, and often lacking growth management planning
capacities, communities necessarily seek state and federal assis-
tance. Financial assistance to such communities from state and
federal jurisdictions is logical because both are already involved
with local government revenues through income taxation, revenue
sharing, and other policies and programs. Further, many of the
needed construction programs for capital-intensive improvements
are mandated by federal law; for instance, the Federal Water
Pollution Control Act Amendments1 of 1972 require stricter pol-
lution control and upgrading treatment facilities to meet new
water quality standards. However, application for an access to
and can be as problematical for communities as the impacts
themselves.
A. State Assistance
Most of the western energy states already have revenue-
producing measures relating to the extraction, processing, and
conversion of their resources. As noted in Section 14.5.2, each
state's constitution and statutes establish the sources of finan-
cial aid available to local governments and the limits on their
uses. These funds can be generally classified as either locally
shared, annually distributed funds or discretionary funds such as
grants and long-term loans. Some discretionary funds require
matching contributions of money or services, while others simply
require an application from a qualified governmental agency. All
eight states in this study have a department of local or commu-
nity affairs which coordinates state services to local govern-
ments and administers various programs, including technical
assistance and advisory services, assistance on state and federal
aid, planning services, and community and resource development.
State planning agencies in the study area are listed in Table
14-5.
Several western states have enacted new legislation specifi-
cally for energy-impacted communities. For example, Wyoming's
Community Development Authority can issue as much as $100 million
in tax-free general-purpose revenue bonds to finance ^housing and
other public facilities. South Dakota's Coal Impact Office has
the power to offer direct grants-in-aid, and Utah has made pro-
visions for energy industries to prepay sales and use taxes into
Federal Water Pollution Control Act Amendments of 1972, §
301, 33 U.S.C.A. § 1311 (Supp. 1976).
1056
-------
TABLE 14-5: STATE PLANNING AGENCIES
o
-------
a fund dedicated tc state-related public improvements. In spite
of these programs, many local communities still lack the expertise to
process applications, to push stalled applications out of state
or federal agencies, to apply programs once they are granted, or
to provide follow-up documentation. Thus, the provision of
adequate state technical assistance to local staffs is of crit-
ical concern.
Recommendations for increased technical assistance usually
include the need for close interaction among state policies, pro-
grams, and regulations; however, there may be few structural
mechanisms for coordination among state planning agencies and
local planners. As noted in Section 14.5.2., Utah has taken
several major steps to remedy this problem by assisting local
officials in their use of both state and federal granting pro-
cesses and procedures. Another possibility is the use of "mobile"
state teams of experts (e.g., planners, administrators, etc.) who
would be "loaned" to energy-impacted communities to assist local
officials in their efforts.1
B. Federal Assistance
Localities can seek federal as well as state assistance.
Several national programs are available, although not specif-
ically directed to areas impacted by energy development. More-
over, since all communities compete for existing funds, small
energy-impacted communities often find it difficult to qualify,
complete all application requirements, or otherwise compete.
The two primary mechanisms for federal assistance are:
general revenue sharing funds, distributed on the basis of popu-
lation, local tax effort, and per capita income; and grants-in-
aid, distributed for specific public welfare projects, usually
according to need. Grants often require matching contributions
and set strict performance standards for the recipient. Since
grant formulas are usually based on population, land area, or
matching contributions, they often discriminate against small
communities or sparsely populated rural areas. Further, because
they are based on 1970 census estimates, they usually fail to
account for recent rapid growth situations.
Table 14-6 lists federal grant and loan sources available
through categorical programs in six functional areas: housing;
water supply and sewage treatment; hospitals, health facilities,
and social services; roads; law enforcement and fire protection;
The idea of a Technical Assistance Team for local govern-
ment is explored in Rapp, Donald A. Western Boomtowns, Part I,
Amended: A Comparative Analysis of State Actions, Special Report
to the Governors. Denver, Colo.: Western Governors' Regional
Energy Policy Office, 1976.
1058
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TABLE 14-6: FEDERAL ASSISTANCE PROGRAMS AVAILABLE TO ENERGY-IMPACTED COMMUNITIES
Comunity Facility
or
Service Category
Source of Funds
Title of Program
Usest Restrictions and
Eligibility Requirements
Housing
Economic Development
Administration
Farmers Bonn
Adminiatratlon
O
Ul
VD
Housing and Urban
Davalopnant (BUD)
Othar Assistance
Economic Development -
Tachnical Aaalatanca
Rural Bousing Site Loans
Rural Rantal Housing Loan*
Rural Self-He Ip Homing
Tachnieal Aasistanea
Business and Industrial
Development Loans
Industrial Development Grants
Ccnnunlty Development
Block Orants/Diacrationary
Grants
Referred to aa "Title 3". Flexible*
Uaes. A-95' review required. Requires
state plan.
A-9S review required.
Occupants must be low- to moderate-
income families or senior citizens.
A-95 review required.
Project grants. To help peple build
homes. Limited to low-income rural
families.
To improve economic and environmental
climate. Flexible. Preference for
projects benefiting people living in
rural areas next to cities of less than
25.000 in population. A-9S review
required.
To improve economy of rural areaa. Very
flexible. A-95 review required.
Does not include community facilities.
Flexible.
Contact HUD for information on mortgage
insurance programs.
-------
TABLE 14-6: (Continued)
Community facility
or
Service Category
Source of Fund*
Title of Program
Us**, Restrictions and
Eligibility Requirements
Water Supply and
Sewage Treatment
Beonoaio Development
Administration
Farmers Home
Administration
O
O\
O
Economic Devolopment-
Teohnical Assistance
Economic Development -
Special Economic
Development and
Adjustment Assistance
Program.
Irrigation, Drainage, and
Other Soil and Mater
Conservation Loans
Rural Rousing Site Loans
Resource Conservation
and Development Loans
Hater and Haste Disposal
Systems for Rural
Comnunitlee
Community Facility Loans
Industrial Development
Grants
Referred to as Title 3". Flexible
Uses. A-95 review required. Requires
state plan.
Profit-making organisations are not
eligible. Very Flexible. Referred to
as "Title 9V
Limited to Helping organisations
serving residents of open country
and rural communities up to 5.500
population. A-95 review required.
A-9S review required.
To increase economic opportunities
for local people. Public agencies
and local non-profit corporations in
authorised Resource Conservation and
Development areas. A-95 review
required.
Guaranteed/insured loans and project
granta. Service area must not exceed
population of 10.000. A-95 review
required.
Very flexible. Must serve rural people
and communities less than 10.000 in
population. A-95 review required.
To improve economy of rural areas. Very
flexible. A-95 review required.
-------
TABLE 14-6: (Continued)
Community Facility
or
Service Category
Source of Fund*
Title of Program
Uses. Restrictions and
Eligibility Requirements
Water Supply and
Sewage Treatment
Hospitals. Health
Facilities and
Social Services
Environmental Protection
Agency
Four Corners Regional
Commission
Housing and urban
Development
Old West Regional
Commission
Other Assistance
Economic Development
Administration
Farmers Home
Administration
Construction Grouts for Waste-
water Treatment Works
Four Corners Regional Economic
Development
Community Development Block
Grants/Discretionary Grants
Old West Regional Economic
Development
Economic Development -
Technical Assistance
Economic Development -
Special Economic Development
and Adjustment Assistance
Program
Business and Industrial
Development Loans
Community must be high on state's
Priority list. A-9S review required.
Only available to communities in
Arizona, Colorado. New Mexico, and
Utah. A-95 review required.
Does not include community facilities.
Flexible.
Only available to communities in
Montana, Nebraska. North Dakota.
South Dakota, and Wyoming.
Contact Federal Disaster Assistance
Administration at HUD; Soil Con-
servation Service and EPA for
technical assistance.
Referred to as "Title 3". flexible.
A-95 review required. Requires state
plan.
Profit-making organizations are not
eligible. Very flexible. Referred
to as "Title 9".
To improve economic and environmental
climate. Flexible. Preference for
projects benefiting people living in
rural areas next to cities of less
than 25,000 in population. A-95
review required.
-------
TABLE 14-6: (Continued)
comunity Facility
or
Service Category
Source of Funds
Title of Program
Uses. Restrictions and
Eligibility Requirements
Hospitals. Health
Facilities and
Social Services
Four Corners Regional
Commission
Health. Education and
Welfare (HEW)
O
O\
to
Conninity Facilities Loans
Four Corners Regional
Economic Development
Family Planning Projects
Drug Abuse community
Service Programs
Mental Health - Community
Health Center
National Health Services
corps
Family Health Center
Emergency Medical Services
Alcohol and Drug Abuse
Prevention
Child Development -
Head Start
Child Development - Child
Abuse and Neglect Pre-
vention and Treatment
Very flexible. Must serve rural
people and communities less than
10.000 in population. A-95 review
required.
Only available to communities in
Montana. Nebraska, North Dakota.
South Dakota, and Wyoming.
Any public or non-profit private
entity is eligible.
Project grants and research
contracts.
Project grants for construction.
Federal share from 1/3 to 2/3 costs.
Provides for the assignment of
health personnel in communities.
Very flexible.
Very flexible.
A-95 review required.
Project grants for alcohol and drug
abuse education.
Designed-for children of low la
families.
Project grants. Flexible.
-------
TABLE 14-6: (Continued)
Coonunity Facility
Of
Service Category
Source of Fund*
Title of Program
Uses, Restriction* and
Eligibility Requirement*
Hospitals. Health
Facilities and
Social Services
Roads
O
U>
General Services
Administration
Other Assistance
Economic Development
Administration
Farmers Home
Administration
Four Corners
Regional Commission
Housing'and Orban
Development
Old Nest Regional
Commission
Disposal of Federal
Surplus, Real Property
Economic Development -
Technical Assistance
Economic Development -
Special Economic
Development and
Adjustment Assistance
Program
Rural Housing Site Loans
Community Facilities
Loans
Four Corners Regional
Economic Development
Community Development
Block Grants/
Discretionary Grants
Old West Regional
Economic Development
Flexible.
Contact State Health Department for
Assistance and Grants
Referred to as 'Title 3*. Flexible.
A-9S review required. Requires state
plan.
Profit-making organisations are not
eligible. Very flexible. Referred
to as 'Title 9".
A-9S review required.
Very flexible. Must serve rural
people and connunities less than
10,000 in population. A-95 review
required.
Only available to connunities in
Arizona, Colorado, Hew Mexico, and
Utah. A-95 review required.
Does not include community facilities.
Flexible.
Only available to communities in
Montana, Hebraska. North Dakota,
South Dakota, and Wyoming.
-------
TABLE 14-6: (Continued)
Community Facility
or
Service Category
Source of Funds
Title of Program
Dies. Restriction* and
Eligibility Requirements
ROkds
Law Enforcement
•nd Fire
Protection
O
o>
Recreation
Other Assistance
Farmers Home
Administration
Forest Service
Other Assistance
Bureau of Land
Management
Economic Development
Administration
Farmers Home
Administration
Community Facility Loans
Cooperative Law
Enforcement
Cooperative Forest Fire
Control
Public Land for Recreation,
Public Purposes and
Historic Purposes.
Small Reclamation Projects
Economic Development -
Technical Assistance
Economic Development -
Special Economic Development
and Adjustment Assistance
Program
Recreation Facility Loans
Contact Federal Disaster Assistance
Administration at HUD.
Very flexible. Must serve rural
people and communities less than
10,000 in population. A-9S review
required.
Local law enforcement unit must be
able to enforce state and local laws
on lands within the national forests.
Assistance is available indirectly
through state.
Contact Law Enforcement Assistance
Agency for technical assistance.
Contact Bureau of Mines -for mine
fires. CFDA Ho. 15,301.5
Flexible.
Limited to 17 western-most states.
Very flexible.
Referred to as "Title 3". Flexible.
A-95 review required. Requires state
plan.
Profit-making organisations are not
eligible. Very flexible. Referred
to as "Title 9."
To help farmers and ranchers to
convert land into recreational
facility. Must seek other loans
first.
-------
TABLE 14-6: (Continued)
Community Facility
or
Service Category
Source of Fund*
Title of Program
Uses, Restriction* and
Eligibility Requirement*
Recreation
Farmer* Hone
Administration
O
O»
Ui
Reiource Conservation and
Development Loans
Rural Rental Housing Loan*
Watershed Protection and
Flood Prevention Loan*
Business and Industrial
Development loans
Community Facility Loan*
Four Corner* Regional
Commission
Old West Regional
Camiss ion
Old We*t Regional Economic
Development
To increase economic opportunities
for local people. Public agencies
and local non-profit corporations in
authorised resource conservation and
development area*. A-95 review
required.
Occupante muet be low- to moderate-
income families or senior citizens.
A-9S review required.
Cannot exceed $5,000 in one watershed.
Very flexible. A-95 review required.
To Improve economic and environmental
climate. Flexible, preference for
project* benefiting people living in
rural area* next to cities of lee*
than 25.000 in population. A-95
review required.
Very flexible. Must serve rural
people and coonunltle* le** than
10,000 in population. A-95 review
required.
Only available to communities in
Arizona, Colorado. Hew Mexico, and
Utah. A-95 review required.
Only available to communities in
Montana, Nebraska. North Dakota,
south Dakota, and Wyoming.
-------
TABLE 14-6: (Continued)
o
a\
o\
Community Facility
or
Service Category
Recreation
Source of Fund*
Old Heat Regional
Commission
Other Assietance
Title of Program
Assistance
Uses. Reatrictiona and
Eligibility Requiramanta
Only available to conraunitiaa in
Montana, Nebraska, North Dakota,
South Dakota, and Wyoming.
Contact Soil Conservation Service, CPDA
Ho. 10.901 and 10.904.b Contact National
$ark Service for Surplus Wildlife.
Sourcei information adapted from Rapp, Donald A. Western Boomtowna. Part I, Amendedi A Comparative Analysis of State
Actions. Special Report to the Governors. Denver, Colo.t Western Governors' Regional Energy Policy Office, 1976. pp. 58-
68 and U.S.. Department of Housing and Urban Development, office of Community Planning and Development. Rapid growth from
Energy Projectst Ideas for State and Local Action. A Program Guide. Washington, D.C.i Government Printing Office, 1976,
pp. 35-45.
*Term "flexible" indicataa the application of the program ia broad with cagard to what kinds of projects can be funded,
who can apply, and/or the financial requirements placed on the applicant.
^Program coda number from U.S.. Office of Management and Budget, catalogue of Federal Domestic Assistance. Washington, D.C.i
Government Printing Office, printed annually.
-------
and recreation.1 Although a variety of programs exist, many seem
5S? ™he scope of energy-impacted communities. For example,
HUD s block grants for community development require detailed 3-
year community development plans, needs assessments, specifica-
tion of goals and programatic responses,, and housing assistance
plans for low- or moderate-income people. In effect, these
requirements go beyond the capacities of most small communities,
as discussed in Section 14.5.3.
The "In Lieu of Tax Payments Act" of 1976 and the "Federal
Coal Leasing Act" of 1975 provide an exception to the assistance
provided by revenue sharing and grants-in-aid. Both laws could
provide substantial planning funds for states and small commu-
nities. Under the In Lieu of Tax Payment Act, the federal
government will pay each local government an amount equal to the
tax which would have been due if the federal land in the juris-
diction was privately owned. This may be a significant source
for many western counties and school districts simply because so
much of the land is federally owned.
The Federal Coal Leasing Act2 is another source of new
money. The act establishes a minimum 12.5-percent coal royalty
rate (except for underground mining) and increases the state's
share of money from the sale and rental of public lands by 12.5
percent. The act also stipulates that, in the use of these
funds, states give priority to the planning, construction of
facilities, and public service needs of areas impacted by min-
erals development.
Many problems with the role of state and federal assistance
can be ameliorated through closer cooperation among governmental
units. One response to closer cooperation is the Rural Devel-
opment Service (RDS), which is responsible for coordinating a
nationwide development program among executive departments and
state and local rural development programs.3 Towns of less than
10 thousand are defined as rural and towns up to 50 thousand are
eligible for some form of assistance. One service provided by
RDS. is a computer-based catalogue of federal domestic assistance
programs. For a minimal cost, communities can receive a printed
For a detailed description of the more than 1,200 federal
aid programs, see U.S., Office of Management and Budget. Cata-
logue of Federal Domestic Assistance. Washington, D.C.: Govern-
ment Printing Office, printed annually.
^Federal Coal Leasing Amendments Act of 1975, § 9, amending
30 U.S.C.A. § 191, (Supp. 1976).
Established under section 603 of the Rural Development Act
of 1972, § 603, 7 U.S.C.A. § 2204a (Supp. 1976) .
1067
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list of information on programs, given specific needs or
eligibility criteria. The information base is updated monthly
and, for many communities, may expedite the application process.
During the remainder of this study, more attention will be
given to the issue of federal impact laws. Still uncertain is
whether or nor energy-impacted areas can be legally interpreted
as resulting from national policies and objectives.1 Direct
discretionary funds for energy-impacted communities have not been
appropriated by Congress, although the 1976 revision of the
Mineral Leasing Act does make federal funds available to many
western states, provided they be used to ameliorate the impact of
energy development. The critical role that aid plays in almost
every energy-impacted community is discussed further in the
sections on housing (14.6) and specific facilities and services
(14.7).
14.6 HOUSING
14.6.1 Introduction
The lack of sufficient housing to accommodate increased
population is perhaps the most widespread problem encountered by
energy development-impacted communities. This section includes
a discussion of factors influencing housing type and construc-
tion technique, temporary and permanent housing options, the
choice of public or private provision of housing, and sources of
financing.
The problem of housing in energy-impacted communities is
compounded by market constraints and the need concurrently to
provide other local facilities and services. Except for some
fairly recent federal programs for low- and moderate-income
families, housing has been provided almost exclusively by the
private sector. The housing industry's desire to recover a
reasonable return on investment is often at odds with the timing
and level of housing demand in energy-impacted communities.
Specifically, higher demand during the construction phase will
generally not be met by local developments of permanent housing.
Other local facilities necessary for housing developments, such
as streets, sewers, and water, will also tend to be deemphasized
during a temporary boom.
In short, public as well as private sector decisions are
involved in local housing. Uncertainty regarding tl\e timing and
magnitude of.future development of energy resources is among the pri-
mary reasons for housing needs not being met during boom situations.
Energy impact fund legislation for $1 billion worth of
loans and local guarantees is pending in Congress (S 3007; HR
11792). However, states are seeking direct funds as well.
1068
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14.6.2 Housing Types and Construction1
A more specific analysis of housing questions requires
examination of the type of housing supplied (i.e., single-family
or multi-family units) and of the type of construction technique
(i.e., stick, modular, or mobile home units). Decisions on ways
to meet local housing needs must take these alternatives into
account.
in the past 20 years, an important national trend in housing
has been a shift from single-family to multi-family units. For
example, multi-family units have increased their share of all new
housing units from 22 percent in 1960 to 45 percent in 1970.2
Several factors have led to this growth. First, the changing age
distribution of the population has resulted in the formation of
new families that are typically renters rather than home buyers.
Second, apartment rental rates have risen much less in recent
years than the cost of home ownership, because the latter reflect
substantial increases in land and construction costs. Finally,
lending considerations have encouraged some lenders to undertake
apartment construction. Many lenders are much more willing to
finance multi-family units if they can share in the profits
through "kicker clauses".
The nature of the housing construction industry largely
determines its response to demand. It is generally an industry
of small operators tied to local markets where construction deci-
sions must be made months in advance.3 The local characteristics
of the housing market, building codes, zoning ordinances, local
labor market, and union work rules all serve to reinforce the
localization of the industry. Perhaps even more important, mort-
gage financing is restricted to the lending bank's marketing
area, the area for which lending information is available.
Because of the difficulties in moving from one market to another,
even the largest builders tend to build in only a few market
areas.
Three alternative construction techniques for housing are
conventional stick-built, modular construction, and mobile home
This section draws heavily from a paper prepared by Arn
Henderson and Daniel B. Kohlhepp for the Science and Public Policy
Program. Henderson is in the School of Architecture and Kohlhepp in
the College of Business Administration at the University of Oklahoma.
2U.S., Department of Commerce. Construction Review, Vol. 18
(April 1972), p. 17.
3As recently as 1972, 50 percent of the single-family homes
in America were built by firms with a total annual volume of less
than 75 units.
1069
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construction. Conventional or "stick-built" housing involves
on-site construction by skilled craftsmen and laborers. Building
materials are brought to the site and assembled.
Mobile homes and modular units are both constructed using
assembly line techniques. Basically, modular housing consists of
a number of self-contained house sections that are mass-produced
in a plant. Even plumbing and wiring are installed at the
"factory". The modules are transported to a site where a crane
is usually needed to lift the modules from a truck onto a con-
crete slab or foundation. The sections are then attached and the
wiring and plumbing connected, using on-site labor.
The mobile home is factory built on a rigid platform attached to
several pairs of tandem wheels equipped with pneumatic tires.
Wood-stud walls, which are usually used, are sheeted with alumi-
num siding and entirely pre-finished on the interior. Mobile
homes are most often sold as furnished units and include major
appliances, such as range and refrigerator. A unit is towed to
the site, leveled, and connected to utilities. The size of both
mobile homes and modular units is limited by state highway regu-
lations. The maximum allowable width for transporting either
type is 14 feet or, in a few states, only 12 feet.1
Public approvals required for planned housing tend to favor
conventional construction methods and single-family homes. In
particular, zoning ordinances limit or prohibit multi-family and
mobile home units in some areas, primarily on the basis of den-
sity. Building codes are generally geared toward conventional
stick .construction of either single- or multi-family units, and
it is often difficult for modular and mobile homes to meet these
code requirements. These considerations apply in all eight
western states in this study.
Labor requirements, materials, and construction time for the
three types of construction also vary. Whereas conventional
housing requires a local pool of skilled laborers, modular and
mobile homes do not because of factory assembly. Mobile homes
frequently use cheaper, lighter-weight materials than either con-
ventional or modular housing. In fact, modular homes will
usually require a great amount of reinforcement material to with-
stand structural stresses in loading, transportation, and unloading.
Finally, the construction time of the three methods appears
to greatly influence the choice among housing types. Clearly,
factory-produced homes can be built much faster than conventional
housing, where bad weather, late deliveries of materials, and
problems with subcontractors cause delays. A modular home can
Davidson, Harold A. Housing Demand; Mobile, Modular or Con-
ventional? NewYork, N.Y.: VanNostrand Reinhold, 1973, pp. 4-5.
1070
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usually be built, delivered, and set up within 30 days from
receipt of order.J- However, delivery time and costs prohibit
delivery of modular and mobile homes beyond about 300 miles. In
response to this, mobile home manufacturing has become quite dis-
persed throughout the nation, allowing short delivery times even
in isolated western areas. The large capital investment required
for modular home construction effectively restricts it to high-
density urban markets, making it a less attractive alternative in
the West.2
14.6.3 Provision of Housing
A. Short-Term Housing
The choice of housing type and construction type ultimately
is made by what is available and the possible source(s) of
financing. More fundamentally, housing choices vary from con-
struction to operation phase. There is little incentive for
private developers to try to build permanent (conventional or
modular) housing for a temporary construction boom. Some private
sector and virtually all public sector financing requires a high
likelihood of long-term occupancy to repay mortgage loans. The
solution during construction, then, appears to be mobile homes.3
Other arrangements, such as employee barracks, are usually much
less satisfactory for the residents.4
However, unplanned mobile home parks and subdivisions create
major difficulties for local and county governments, especially
with regard to their ability to control land use, regulate activ-
ities, and provide service. Once existing spaces in developed
mobile home parks have all been taken, newcomers will tend to
scatter on any available land. Sites outside municipal limits
may lack adequate electricity, water, sewer, and telephone ser-
vice. Provision of public services may be a problem, even within
city limits, if population growth is too rapid.
Kreis, Robert. "A Challenge to Efficiency," in Modules and
Mobiles Conference Proceedings. Anaheim, Calif., February 1970,
p. 69.
o
Biderman, Charles. "Blueprint for Disaster." Barron's.
Vol. 52 (July 3, 1972), p. 12.
As a result, 53 percent of construction workers at five
surveyed communities in the West were living in mobile homes.
Mountain West Research. Construction Worker Profile, Final
Report. Washington, D.C.: Old West Regional Commission, 1976,
p. 103.
Denver Post, November 1 and 25, 1976.
1071
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At that time, the mobile homes must be removed; the developer
intends to build permanent housing.^
Although mobile homes may be the only way to provide enough
temporary housing, they may also contribute to worker (or spouse)
dissatisfaction with housing and, ultimately, to high labor turn-
over and lower productivity.2 Moreover, the social environment
of many projects is directly related to existing state statutes
and the degree of enforcement.3 One means of improving condi-
tions, especially of unplanned mobile home parks, would be the
improvement of state mobile home park codes and design standards,
and state and local subdivision regulations. Currently, only
Montana and North Dakota have guidelines for mobile home park
design, and only Montana has a mobile park code that is enforced
at the local level by a representative of the state government.4
Federal actions on housing appropriate for construction
periods are rather limited.^ Model mobile home ordinances can be
financed under the Department of Housing and Urban Development's
(HUD) 701 Planning Program. The Federal Housing Administration
within HUD has developed planning and construction criteria for
mobile home projects.** The more common federal housing programs for
elderly and low-income families appear to be suitable in many
communities, where competition for housing among construction
workers has resulted in inflation in local housing markets and
displacement of families.7
U.S., Department of Housing and Urban Development, Office
of Community Planning and Development. Rapid Growth from Energy
Projects; Ideas for State and Local Action, A Program Guide.
Washington, D.C.: Government Printing Office, 1976, p. 22.
2
Jacobson, L.G. "Coping with Growth in the Modern Boom
Town." Personnel Journal, Vol. 55 (June 1976), pp. 288-89, 303.
Rapp, Donald A. Western Boomtowns, Part I, Amended: A
Comparative Analysis of State Actions, Special Report to the
Governors. Denver, Colo.: Western Governors' Regional Energy
Policy Office, 1976, p 19.
Refer to Section 14.5 for an elaboration of federal assis-
tance programs.
HUD. Rapid Growth from Energy Projects, pp. 19-23.
Rapp. Western Boomtowns, p. 20.
1072
-------
B. Long-Term Housing
The housing situation for long-term workers is not easy to
separate from short-term shortages when several energy develop-
ments are getting underway in a community at the same time. In
an unplanned case where different energy developers are involved,
employees from both developments compete for the same housing.
In this case, even long-term workers and their families of ten must
live in mobile homes, especially when very little new permanent
housing is being built. Considerable social distance can sepa-
rate those fortunate enough to live in permanent homes and those
in mobile homes on the edges of towns.1
Planned, landscaped mobile home parks help to reduce the
worst conditions, but permanent single-family homes are by far
the type preferred by most workers.2 The housing mix at Colstrip was
intended to meet most of these demands. However, an over-planned
situation can lead to claims of residential segregation on the
basis of employment status.3 Also, fully planned company towns
are quite expensive and are generally unlikely in the West.4
The market for housing financing is a major contributor to
the lack of permanent housing. High down payments and monthly
costs can prohibit even fairly well-paid employees from buying
modular or conventional homes. Local inflation and salary
levels often effectively preclude the possibility of federal
Federal Interagency Team. The Energy Boom in Southwest
Wyoming. Washington, D.C.: U.S., Department of Housing and
Urban Development, 1976, pp. 3-4.
2
Gilmore, J.S., and M.K. Duff. Boom Town Growth Management.
Boulder, Colo.: Westview Press, 1975, pp. 133-144; Jacobson,
L.G. "Coping with Growth in the Modern Boom Town." Personnel
Journal, Vol. 55 (June 1976), pp. 288-89, 303; Mountain West
Research. Construction Worker Profile, Final Report. Washington,
D.C.: Old West Regional Commission, 1976, p. 103.
University of Montana, Institute for Social Science Research.
A Comparative Case Study of the Impact of Coal Development on the
Way of Life of People in the Coal Areas of Eastern Montana and
Northeastern Wyoming. Missoula, Mont.: University of Montana,
Institute for Social Science Research, 1974, pp. 16-18.
Arthur Young and Company. Problems of Financing Services
and Facilities in Communities impacted by Energy Resource Devel-
opment. Washington, D.C.: Arthur Young and Company, 1976.
1073
-------
programs intended for low- and middle-income housing.! &s a
result, local builders are reluctant to build housing at current
prices, even where local lenders are willing to finance home
mortgages. Lending institutions do not have an incentive to
promote permanent housing since mobile homes are financed on
consumer loans at much higher rates of interest than mortgage
loans. Further, local lending institutions would have greater
lending capacity if major companies could be persuaded to deposit
more of their capital in western rather than in eastern financial
centers.2
Partially in response to these problems, most of the western
states have created separate housing finance agencies or corpo-
rations to administer bonds and other fiscal tools to assist in
housing development in sparsely populated areas.3 Only Colorado
has exercised the housing financing options to generate money to
be passed through normal lending institutions in rural areas.
Limits on the amount of bonds that can be sold range from $30
million in New Mexico to $75 million in Montana, $100 million in
Wyoming, and $200 million in Colorado. Utah has no dollar limit
on its bond sales. However, all the states except Colorado are
awaiting legal review before implementing their programs.4
The least common housing alternative, modular construction,
has only begun to receive adequate consideration as a solution to
housing needs. "Operation Breakthrough", a HUD program estab-
lished in 1969, was designed to modernize the housing industry by
facilitating volume production of quality housing for people of
all incomes.5 Before this program was initiated, a major
0
Federal Interagency Team. The Energy Boom in Southwest
Wyoming. Washington, D.C.: U.S., Department of Housing and
Urban Development, 1976, pp. 3-9; Rapp, Donald A. Western Boom-
towns, Part I, Amended: A Comparative Analysis of State Actions,
Special Report to the Governors. Denver, Colo.: Western Gover-
nors' Regional Energy Policy Office, 1976, p. 20.
2
Rapp, Donald A. Western Boomtowns, Part I, Amended: A
Comparative Analysis of State Actions, Special Report to the
Governors. Denver, Colo.: Western Governors'Regional Energy
Policy Office, 1976, p. 20.
Arizona and North Dakota are the exceptions, but the state-
owned Bank of North Dakota can act readily in such areas without
a separate entity.
4
Rapp. Western Boomtowns, p. 19.
U.S., Department of Housing and urban Development. "Oper-
ation Breakthrough." HUD Challenge, Vol. 6 (June 1972), entire
issue, p. 4.
1074
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Planned mobile home areas within town limits can alleviate
some of the above problems, if only by public approval of their
development. Utilities and other services are provided as part
of the development, and community planning, zoning, and subdivi-
sion regulations can be expected to be followed. However, a no-
growth attitude on the part of a community can easily result in
the unplanned scatter of mobile homes now common in many western
towns.
Housing projects financed and planned by energy developers
are becoming a common alternative to unplanned and often scat-
tered mobile homes. Although most such projects include perma-
nent housing for long-term workers, provision of equipped mobile
home spaces for construction workers are the short-term action.
For example. Western Energy Company, the coal mining subsidiary
of Montana Power Company, has built three residential areas to
house employees in the company town of Colstrip. In addition to
modernizing 62 older homes in the town, 226 single-family homes
and 60 multi-family units have been built. More than 160 perma-
nent mobile home spaces have been provided, along with a temporary
trailer court primarily for construction workers. A commercial
district, bike paths, and other amenities are also part of the
"modern company town" plan.1
Company ownership of a town eases the problems of land-use
planning and development timing. However, most company housing
projects are not as all-inclusive and tend to include only mobile
home spaces and planned street patterns. Atlantic Richfield's
housing at the site of Wright, Wyoming is a less comprehensive
example of housing provision for coal miners and their families.
Other temporary mobile home parks provided by industry include a
site near Page, Arizona for construction workers for the Navajo
Generating Station. The land was leased from the Bureau of
Reclamation on a 5-year, no-extension lease, after which period
the park must be closed and the area returned to its natural
state. Finally, the city of Green River, Wyoming is permitting
Upland Industries to provide two mobile home spaces on each of
250 lots of a permanent subdivision for a maximum of 3 years.
Myhra, David. "Colstrip, Montana—the Modern Company Town. "
Coal Age. Vol. 80 (May 1975), pp. 54-57; Schmechel, W.P. "Devel-
opments at Western Energy Company's Rosebud Mine, " W.F. Clark, ed.
Proceedings of the Fort Union Coal Field Symposium, Vol. 1. Billings,
Mont.: Eastern Montana College, Montana Academy of Sciences,
1975, pp. 60-66. University of Montana, Institute for Social
Science Research. Comparative Case Study of the Impact of Coal
Development on the Way of Life of People in the Coal Areas of
Eastern Montana and Northeastern Wyoming. Missoula, Mont.:
University of Montana, Institute for Social Science Research,
1974V p. 16.
1075
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drawback for modular housing was the proliferation of restrictive
building and zoning codes. Although most states have passed
industrialized housing laws and state building codes, differences
among the state codes still cause problems for housing producers.1
Experience with modular housing in western towns has been
mixed. In one case, three companies jointly loaned front-end
development money to a small manufacturer of modular houses.
This loan enabled the developer to construct a small subdivision
of quality single-family houses that were readily accepted and,
thus, enabled the builder to repay the loan with interest.2 In
the same area of southwest Wyoming, the selling price for some
modular houses prohibits widespread acceptance by otherwise
willing home buyers.3
14.6.4 Summary of the Special Problems in Housing
The causes of housing shortages in boomtown situations have
received a great deal of attention. Less common is a consider-
ation of the decisions involved in the choice of the type of
housing and the type of construction. Mobile homes, a logical
response to temporary housing needs, can become a more attractive
answer if state and local regulations can control and enforce
mobile home park codes, design standards, and subdivision design
and operation. Permanent housing options suffer primarily from
financial constraints that state housing authorities may be able
to loosen in the near future. Federal housing programs devised
specifically for energy-impacted communities in the West could
eliminate the restrictions of current income-based programs.
Industry's role in housing provision can either be indirect
through loan guarantees or direct through actual development of
subdivisions in rural areas.
14.7 COMMUNITY FACILITIES AND SERVICES
14.7.1 Introduction
The public sector in energy-impacted communities faces two
substantial difficulties in providing adequate facilities and
services. The first is that workers, their families, and others
"TBureau of National Affairs. "Operation Breakthrough and
Manufactured Housing: A Special HDR Status Report." Housing and
Development Reporter (1973).
2
Jacobson, L.6. "Coping with Growth in the Modern Boom
Town." Personnel Journal, Vol. 55 (June 1976), pp. 288-89, 303.
Federal Interagency Team. The Energy Boom in Southwest
Wyoming. Washington, D.C.: U.S., Department of Housing and
Urban Development, 1976, pp. 3-4.
1076
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attracted by the development often move into an area before
facilities and services have been expanded to meet new demands.
The second is that revenues for the first several years of an
energy project seldom balance expenditure needs.1 Consequently,
energy-impacted communities can be hard pressed to provide water
and sewer systems, health care, schools, streets, public safety
services, and recreation. This section discusses each of these
potential problem areas and identifies some alternative responses
for coping with them. Although these discussions mention the
role of federal assistance programs available for these services
and facilities, a fuller identification and discussion can be
found in Section 14.5 (Growth Management).
14.7.2 Water and Sewer Systems
Rapid but often unstable population increases usually asso-
ciated with energy development can cause substantial problems for
community water and sewer systems. In part, these problems
depend on the adequacy of existing services, in terms of both
their capacity to serve all the new residents and their ability
to cope with water quality problems. While the capacities of
some communities will be adequate to deal with increased demands,
many systems will quickly become overloaded, which may also
affect other local problems such as housing and health.
A. Service Needs
Nearly all energy-impacted communities can anticipate a need
for increased water supplies. As shown in our six site-specific
scenarios, towns experiencing the largest population increases
are likely to require 1-3 thousand additional acre-feet of water
per year (acre-ft/yr) by 1980 and 4-9 thousand additional acre-
ft/yr by 2000.2
Service needs are also likely to arise for sewage systems
and water treatment facilities. In some communities, designed
capacities are already exceeded, and many others do not have the
excess capacity to handle the expected influx of new residents.
This was a consistent finding of the impact analyses reported in
Documentation and elaboration of these impacts can be
found in the Social, Economic, and Political Impacts sections of
Chapters 6-11.
2These ranges reflect projected needs for Escalante,
Farmington, Gillette, and Bismark-Mandon. Refer to Chapters 6,
7, 9, and 11, respectively.
1077
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Chapters 6-11. Nearly all urban areas experiencing large
population increases are expected to require new waste treatment
facilities by 1980.1
These communities' problems are compounded by the Federal
Water Pollution Control Act Amendments (FWPCA) of 1972.2 This
law requires that existing public treatment works install sec-
ondary waste treatment by 1977 and "best practicable" waste
treatment technologies by 1983.3 The best practicable techniques
by 1983 requirement also applies to new public waste treatment
works. In addition, the goal of the FWPCA is to prevent the
discharge of pollutants into local streams after 1985.
Based on existing conditions in those areas where energy
development is hypothesized, the 1977 deadline for secondary
treatment in public works will probably not be met. However,
several studies suggest this violation will be a national phenom-
ena owing to overly complicated administrative procedures and to
long delays in processing grant applications.4 In addition,
current trends in grants for municipal sewage systems suggest
that the original $18 billion authorized by the FWPCA will be
spent by September 1977.5 Thus, growth in urban areas impacted
by energy development will come at a time when funding uncer-
tainties appear to be great.6
Existing treatment practices for major communities in the
scenarios is discussed in the water effluents sections of Chap-
ters 6-11.
2
Federal Water Pollution Control Act Amendments of 1972, 86
Stat. 816, 33 U.S.C.A. $§ 1251 et seq. (Supp. 1976).
For a discussion of the FWPCA's requirements for private
works and for energy facilities, refer to Section 14.2.
4
Studies were conducted by EPA, the National Commission on
Water Quality, and National Utility Contractors Association, as
reported in U.S., Council on Environmental Quality. Environ-
mental Quality, Sixth Annual Report. Washington, D.C.: Govern-
ment Printing Office, 1975, pp. 71-72.
U.S., Environmental Protection Agency. Review of the
Municipal Waste Water Treatment Works Program. Washington, D.C.:
Government Printing Office, 1974, p. 54.
Other particularly significant issues for the western
states concern the use of federal funds to build excess capacity
in anticipation of population growth and additional legislative
requirements to ensure against negative direct or secondary
environmental impacts as a result of wastewater treatment facil-
ity construction or expansion.
1078
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Existing treatment problems may be exacerbated by urban
runoff as population and the amount of total paved area increases. As
the impact analyses reported in Part II suggest, untreated storm
water runoff may contact effluents or inorganic materials not
previously present in the waters in large amounts. In many
cases, these contaminants could possibly go directly into water
systems.
Financial constraints often complicate community problems,
especially when septic tank systems cannot be used. This is
often the case in areas with highly permeable soil.1 Secondary
treatment is a poor alternative to septic tanks for most energy-
impacted communities because the costs for serving a few thousand
people may total millions of dollars. Further, many western
communities face large but temporary population increases. In
these situations, the high capital costs of sewer and water
treatment systems can seldom be amortized within short demand
periods. Hence, the only feasible choice for some communities is
to allow short-term violations of water pollution regulations
and/or health standards. Moreover, it is not uncommon for
western state governments to lack the funds and personnel required to
enforce standards and regulations, especially in rural areas.2
The lack of sufficient water and sewer systems affects other
local problems and issues. Unless septic tanks or individual
wells can be used, new housing must often be delayed until new
sewers or water mains are built.3 Likewise, mobile home subdivi-
sions that depend on septic tanks encourage scattered development
on the fringe of established towns. Therefore, the population is
dispersed into small groups, often creating land-use and public
service problems that are even more difficult to control than
those associated with water and sewer systems.
B. Responses
Assistance for planning and constructing water and sewer
systems comes almost entirely from federal programs. The largest
'''As reported in Chapter 9, septic tanks are probably not a
viable option for the Gillette area because of the expansive clay
soil.
2Rapp, Donald A. Western Boomtowns, Part I, Amended: A
Comparative Analysis of state Actions, Special Report to the
Governors. Denver, Colo.: Western Governors' Regional Energy
Policy Office, 1976.
3One problem is a lack of knowledge about the existing
system; for example, maps which show where it goes. This proved
to be a problem in Gillette, Wyoming when the city was planning
an expansion of its water system.
1079
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single source is Section 208 of the FWPCA which created a planning and
management program for areawide wastewater treatment incorpo-
rating local communities, states, and the Environmental Protec-
tion Agency (EPA) regional agency.1 Several western regions have
received EPA 208 planning grants such as the Colorado West Coun-
cil of Governments for the area impacted by oil shale develop-
ment, the Five County Association of Governments in Southwest
Utah, and the Powder River Area of Wyoming, including Campbell
County.2
Assistance on water and sewage problems can also be obtained
from other sources.3 Green River, Wyoming has allowed the devel-
oper of a 640-acre project to put in a package sewer treatment
plant until the city's new plant is completed under present EPA
funding. At the time the city plant is completed, the sewer line
of the subdevelopment is to be connected. In this case, the cost
is being carried entirely by the developer.4 Grants from federal
regional commissions are also an alternative. Because of its
special problems, Appalachia has been singled out for a combined
federal-state-local effort to improve economic and social con-
ditions. The Appalachia Regional Commission has put additional
aid on top of the basic federal assistance through the Appala-
chian Regional Development Act. Supplementary grants for basic
water and sewer facility construction increase the federal con-
tribution to 80 percent of costs, rather than the usual 75 per-
cent.5 Although they do not now have such assistance programs,
the Four Corners and Old West Regional Commissions have the
structure for handling such supplemental aid.
Federal assistance for water and sewer systems is discussed
in more detail in Section 14.5.5.
2
As noted in Section 14.2, Indian tribes can participate in
the 208 program.
For a comprehensive listing of these programs, see Table
14-6.
4
U.S., Department of Housing and Urban Development, Office
of Community Planning and Development. Rapid Growth from Energy
Projects; Ideas for State and Local Action, A Program Guide.
Washington, D.C.: Government Printing Office, 1976, p. 28.
Berlin, Harriet G. "Federal Aids for Pollution Control,"
in Bureau of National Affairs. Environment Reporter, Monograph
No. 4 (October 1973), p. 28.
1080
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14.7.3 Health Care
A. Service Needs
•11 i8 the Case with raost social services, additional stress
will be placed on community health services and delivery systems
by energy development, m addition to increased service needs,
specialized medical services will be required to deal with par-
ticular types of injuries associated with energy industries.1
Also, the demand for mental health services will grow accordingly.
Caseloads have increased more than four times as fast as the pop-
ulation in previous boomtown situations.2
Western boomtowns characteristically face increased service
demands with inadequate supplies of doctors. As reported in
Chapter 9, only eight doctors (a ratio of one doctor per 900
residents) served Gillette, Wyoming in 1974. By comparison,
Sheridan, Wyoming has 17 doctors, a ratio of one per 675 people,
which is close to the national average. Because of the inade-
quate supply in Sweetwater County, Wyoming, approximately 40
percent of the county residents must travel elsewhere to receive
health services. Indeed, people who live in areas where devel-
opment is already under-way commonly travel to larger neighboring
communities for medical services. 3 Moreover, small towns often
face considerable difficulties in recruiting physicians or allied
health professionals (such as nurses and hospital staff) because
of remote locations and wage competition from urban areas.
B. Responses
Energy-impacted communities may look to both the state and
federal government for assistance in providing health care ser-
vices. Most of the western states have Public Health Nursing
Real Estate Research Corporation. Excess Cost Burden,
Problems and Future Development in Three Energy Impacted Com-
munities of the West, for U.S., Dept. of the Interior, Office of
Minerals Policy Development. 1975, p. IV-1.
This was the case in Rock Springs, Wyoming. See: Rapp,
Donald A. Western Boomtowns, Part I, Amended; A Comparative Anal-
ysis of State Actions, Special Report to the Governors. Denver,
Colo.: Western Governors' Regional Energy Policy Office, 1976.
o
Mountain Plains Federal Regional Council, Socioeconomic
Impacts of Natural Resource Development Committee. Socioeconomic
Impacts and Federal Assistance in Energy Development Impacted
Communities in Federal Region VIII. Denver, Colo.: Mountain
Plains Federal Regional Council, 1975, p. 5.
1081
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services and health planning agencies.1 States also may make use
of programs provided by the Western Interstate Commission on
Higher Education such as training in premedical school, public
health, mental health, nursing, and health research interns.
Many states provide funds for: alcohol, drug abuse, and mental
health programs; licensed practical nurse training; and family
practice residency training to encourage doctors to locate in
rural areas.
Alternative ways of providing health personnel and physi-
cians have surfaced in energy-impacted areas. The Wyoming Human
Services Project is a good example (see Chapter 9). This program
trains students in their last year of coursework at the Univer-
sity of Wyoming to work in multidisciplinary teams in Wyoming
communities for 1 year after graduation. After this service,
some of the participants find positions in such fields as mental
health, public health services, and public administration. The
training part of the program is supported by a 5-year, $478-
thousand grant from the National Institute of Mental Health.
Gillette is presently taking advantage of the program.
Although recruiting physicians is more difficult, the South-
west Wyoming Industrial Association (SWIA) is helping both Green
River and Rock Springs with this problem. SWIA guaranteed a $75-
thousand loan to Green River to establish an interest in private
practice and to bring in two general practitioners being provided
by the National Health Service Corps (NHSC). A grant has been
given to the Wyoming Health Maintenance Organization (HMO) for
recruiting physicians to Rock Springs, and a loan guarantee is
providing a modular clinic and front-end money for the HMO.2
Federal assistance programs have played a significant role
in shaping state responses to health service needs.3 For
example, federal assistance helps the Wyoming HMO to offer pre-
paid health care (a set monthly fee provides every medical
According to the National Health Planning and Resources
Development Act of 1974, 88 Stat. 2225, 42 U.S.C.A. §§ 300k et
seq. (Supp. 1976), federal programs to develop and implement com-
prehensive health planning services at the state level are being
phased out and will be replaced by new policies and programs that
encourage private corporations to function as substate "Health
Service Agencies".
U.S., Department of Housing and Urban Development, Office
of Community Planning and Development. Rapid Growth from Energy
Projects; Ideas for State and Local Action, A Program Guide.
Washington, D.C.: Government Printing Office, 1976, pp. 25-27.
For a more comprehensive discussion of federal assistance,
refer to Section 14.5.5.
1082
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S,
-------
Schooling usually represents the largest single expense
faced by local governments. Indeed, schools may account for 40
percent of per-capita expenditures, regardless of whether the
population is increasing, stable, or declining.1 The burden of
these expenditures on communities is even greater where temporary
increases in school size are financed by issuing long-term munic-
ipal bonds. Unless some mechanism other than typical tax pro-
grams is used to pay for school expansion, school taxes will
often have to increase to cover capital and operating expendi-
tures, at least until the energy project is in its operational
phase and on the local tax rolls.
There are exceptions to this trend. The findings from our
site scenarios (Chapter 6-11) suggest that school districts may
benefit more from energy-related revenues than do local govern-
ments. In situations where school-age populations do not begin
rapid expansion until the operation phase, school districts may
have revenue surpluses. For example, in Rosebud County, Montana,
school districts are expected to enjoy substantial surpluses if
current tax rates are maintained.2
B. Responses
The study-area states can respond to the potential problems
of providing adequate schools in several ways. 3 Many western states
have an Education Foundation Program which administers state aid
to public schools. In almost all cases, these programs use funds
from mineral royalties provided by the National Mineral Lands
Leasing Act.4 In addition, North Dakota and Montana have desig-
nated a percentage of their coal severance taxes (30 and 10 per-
cent, respectively) to a perpetual trust fund for their state's
education program.
Kutak, Rock, Cohen, Campbell, Garfinkle & Woodward. A
Legal Study Relating to Coal Development—Population Issues, Vol.
I: Responding to Rapid Population Growth, for the Old West
Regional Commission. Omaha, Neb.: Kutak, Rock, Cohen, Campbell,
Garfinkle & Woodward, 1974, pp. 77-78.
Refer to Chapter 10.4.6.
Examples and discussion of state programs rely heavily on
Rapp, Donald A. Western Boomtowns, Part I, Amended: A Compara-
tive Analysis of State Actions, Special Report to the Governors.
Denver, Colo.: Western Governors' Regional Energy Policy Office,
1976, pp. 33-39.
4
Under National Mineral Lands Leasing Act of 1920, as
amended, 41 Stat. 437, 30 U.S.C.A. §§ 184 et sea. (1971), a state
receives 37.5 percent of bid, rental, and royalty income to be
used for public school and highway expenses.
1084
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In 1974, the New Mexico State Legislature devised a means of
financing public elementary and secondary schools through a
broad-based equalization plan and comprehensive weighting system.
The new law has been cited by the Education Commission of the
U.S. as one of the most innovative in the U.S. In particular,
proponents of the equalization plan believe that it provides a
way of responding in a timely manner to school impacts caused by
energy development.
Colorado provides grants from oil shale lease monies for
emergency classrooms, capital construction programs, and other
facility needs in impacted communities as a line item authorized
by the legislature. Wyoming makes available impact grants^ from
its coal tax revenue account (administered by the Farm Loan
Board), and Utah's Resource Development Act of 19752 (which
allows the prepayment of taxes) provides for funds that can be
loaned by the State Board of Education.
However, all these states need a bonding authority to pro-
vide funds for school construction. In the past year, Wyoming
has implemented such a program through its Community Development
Authority, and North Dakota has provided a bond service to school
districts through the Bank of North Dakota.
Until adequate state and federal assistance programs are in
place, communities may need help from energy companies, such as
grants or loans, to provide for their public school system.3
For example, in Colstrip, Montana, the Western Energy Company has
responded to school needs by loaning buildings, temporary class-
room structures, and other space. The company has also provided,
at no cost, land for a new building and for the construction and
maintenance of a football field.
14.7.5 Streets
A. Service Needs
Rising street maintenance costs and traffic control are the
most immediate transportation-related problems faced by
^Wyoming Statutes §§ 21.1-245, 21.1-250 (Cumulative Supple-
ment 1975).
2Utah Code Annotated § 63-51-6 (Cumulative Supplement 1975).
3At present, the concept of federally impacted school dis-
tricts does not include districts in primary energy development
areas. Some grants are available from the normal programs of the
Office of Education of the Department of Health, Education and
Welfare.
1085
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energy-impacted communities.! Traffic control problems are
largely those of intersection control and the need for more
local police, police cars, and communication equipment to restrain
violators. As the population becomes more permanent, local and
regional transportation components, such as taxi service, bus,
rail, or air systems, may also need expansion. However, these
needs are often beyond the capacity of the local government
because they are usually very costly, their funding system is
located outside of local jurisdiction, and state and federal aid
may be insufficient to help in financing improvements.2
More specific to coal towns are problems created by coal-
carrying unit trains that may block railway crossings.3 Waiting
periods for crossings may become as much as 20-45 minutes. If
the road in question is a state responsibility, the problem can
be alleviated if enough pressure is brought to bear on the state
to build an overpass. However, if it is a local road and the
railroad will not assume responsibility, most small local govern-
ments lack the funds to construct and maintain an overpass.
B. Responses
An alternative to automobile traffic for energy facility
workers is to run shuttle buses from the facility to the nearby
town or towns. However, to be economical for the employee, this
response would probably require the proprietor of the facility
to subsidize a substantial portion of the costs.4
Funding for improvements to highways serving major employ-
ment centers could come from the state highway fund, the energy
"These problems affect streets in two major places: the
roads to the energy project from the neighboring communities
(which may involve both state and county roads) and streets
within the localities themselves.
Real Estate Research Corporation. Excess Cost Burden,
Problems and Future Development in Three Energy Impacted Commun-
ities of the West, for U.S., Dept. of the Interior, Office of
Minerals Policy Development. 1975, p. VI-3.
See Chapter 12 for a more detailed discussion of this
problem.
4
A model for this system exists for the National Reactor
Testing Station in Idaho. Over 100 buses are used to commute
employees to and from work to nearby cities such as Idaho Falls
and Pocatello.
1086
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company, and local street funds.1 some counties are using their
limited revenue sharing money to upgrade their highways.2 At
least 60 percent of the revenues derived from Wyoming's coal tax
are earmarked for local or state roads. In addition, the money
can be used to match federal grants and can be used to support
borrowed funds.J Similarly, Utah's Resource Development Act*
allows energy companies to prepay their taxes. The State Road
Commission may then spend its money on state highways in the
energy development area or can make special grants to the county
for county improvements.
14.7.6 Public Safety
A. Service Needs
Rapid population growth is usually accompanied by an increase in
area crime.5 Although the seriousness of increased crime appears
to be related to many geographical and social factors, most
energy-impacted communities will face increased service demands
associated with real or perceived threats to community safety.6
Refer to Section 14.5 for a listing of traditional federal
funding programs available for road maintenance and improvement.
7
Tworoey, James P., and Peter G. Kuh. Governmental Programs,
Resources and Regulatory Powers Available to Assist Localities
During Coal Development. Denver, Colo.: Northern Great Plains
Resources Program, 1974, p. 15.
U.S., Department of Housing and Urban Development, Office
of Community Planning and Development. Rapid Growth from Energy
Projects; Ideas for State and Local Action, A Program Guide.
Washington, D.C.: Government Printing Office, 1976, p. 32.
4Utah Code Annotated § 63-51-3 (Cumulative Supplement 1975).
Gilmore and Duff have argued that serious crime increases
can be expected with growth rates above 5 percent. See Gilmore,
J.S., and M.K. Duff. Boom Town Growth Management. Boulder,
Colo.: Westview Press, 1975.
Perceived threats create demands for additional protective
services just as real threats do. Thus, the expectation of sub-
stantial development-related increases in area crime by many
residents will have significant impacts on the public safety
budgets of small communities. As an example of the extent of
these perceived threats, 70 percent of the residents of Carbon
and Emery Counties (Utah) expected an increase in crime and drug
use with new coal development. See Albrecht, Stan L. The
Impacts Associated with Energy Development in Carbon and Emery
Counties, Utah. Provo, Utah: Brigham Young University, 1975.
1087
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For example. Rosebud County, Montana experienced a 547-percent
increase in total felony and misdemeanor arrests between 1972 and
1973.1 Delinquency and alcoholism are among the most common
problems.^ In Farmington, New Mexico, approximately 80 percent
of reported minor crimes in 1975 were related to alcoholism,
particularly juveniles driving while intoxicated. Juvenile
delinquency is regarded as the leading law enforcement problem in
San Juan County, New Mexico where juveniles accounted for about
30 percent of all major and minor crimes in 1972-73.3
If similar crime increases occur in energy-impacted commu-
nities, most existing service systems will probably be incapable
of meeting the community needs. Improvements will probably be
required in facilities (especially jails), equipment (especially
communications and information storage/retrieval capabilities),
and staff size and training. Another problem may be the adapta-
tion of long-term police officers to the rapidly changing circum-
stances. Where such officers have become accustomed to a
peaceful community, rural crime patterns, and informal relations
with personal acquaintances, they may have problems in dealing
with newcomers who commit urban-type crimes or demand urban-type
police behavior.4
Public safety service needs also include fire protection.
Because most small, rural communities have volunteer fire depart-
ments, they may be especially hard-pressed to provide adequate
services. Even in cases which personnel are paid for this work,
higher rates associated with energy-related jobs may attract
Felonies increased from 7 to 13. Misdeameanors increased
from 122 to 835. See: Montana Energy Advisory Council. Coal
Development Information Packet, Supplement I. Helena, Mont.:
State of Montana, Office of the Lieutenant Governor, 1975, p. 5.
2
Kohrs, E.V. Paper presented at the meeting of the Rocky
Mountain Division, American Association for the Advancement of
Science, Laramie, Wyoming, July 24-26, 1974, as cited in
Christiansen, Bill, and Theodore H. Clark, Jr. "A Western Per-
spective on Energy: A Plea for Rational Energy Planning."
Science, Vol. 194 (November 5, 1976), p. 581.
Data for San Juan County and Farmington from Real Estate
Research Corporation. Excess Cost Burden, Problems and Future
Development in Three Energy Impacted Communities of the West, for
U.S., Dept. of the Interior, Office of Minerals Policy Develop-
ment. 1975, p. VI-10.
4
Twomey, James P., and Peter G. Kuh. Governmental Programs,
Resources and Regulatory Powers Available to Assist Localities
During Coal Development. Denver, Colo.: Northern Great Plains
Resources Program, 1974, p. 15.
1088
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persons away from their service employment. Further, dispersed
housing and scattered mobile home locations present volunteer
fire departments special problems of response time; these prob-
lems are even more critical in very remote areas where water
availability or pressure may not be adequate.
B. Responses
To begin to cope with these issues, rural communities can
apply for federal comprehensive law enforcement planning grants
to finance jail construction and other facilities, and comprehen-
sive service grants to improve their criminal justice systems.
Federal assistance for acquisition and renovation of correctional
institutions and the prevention of juvenile delinquency is avail-
able through formula grants from the Law Enforcement Assistance
Administration and from discretionary funds. However, the empha-
sis of these programs has been to reduce crime in major cities
and develop state criminal justice standards. Hence, competition
is strong.i
Federal assistance programs to upgrade local fire prevention
and delivery services are not as extensive as for other categories.
Loans from the Farm Home Administration (FHA) may be used for
fire systems or facilities that serve open country or communities
of less than 10 thousand population. FHA also provides grants-
in-aid for fire-fighting equipment of up to 50 percent of the
cost. This program is explicitly directed toward volunteer fire
departments in communities of less than two thousand. Under its
Cooperative Forest Fire control program, the U.S. Forest Service
also provides financial and technical assistance grants to rural
communities to operate and equip fire departments.
Many local, county, and state governments in the West have
difficulty planning and implementing coordinated efforts to deal
with law enforcement problems. To alleviate such problems,
local authorities could "rent" the needed personnel and facili-
ties, rather than purchase them, during construction phases when
the extent of impacts are uncertain. For example, counties could
contract with the state for additional law enforcement officers
(e.g., highway patrol personnel) and could terminate the contract
when conditions stabilize.2
U.S., Department of Housing and Urban Development, Office
of Community Planning and Development. Rapid Growth from Energy
Projects; Ideas for State and Local Action, A Program Guide.
Washington, D.C.: Government Printing Office, 1976, p. 45.
1089
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14.7.7 Recreation
A. Service Needs
Many residents of the western states consider the "great
outdoors" to be sufficient for most recreational needs. However,
newcomers to the region may prefer the kind of services generally
provided in larger communities, such as city parks, golf courses,
or recreation centers with swimming pools and tennis courts.
Many small communities do not have such facilities and thus
cannot meet even minimal recreation or leisure time demands in
these areas. Also, these communities generally do not have pro-
grams for elderly persons or day-care services for working
mothers. Since local communities will be facing many new demands
for other facilities and services, permanent residents will prob-
ably be reluctant to support new taxes for such recreational
facilities.1
Even if the necessity of communitywide recreation facilities
is recognized, procuring the necessary space will still be a
problem, especially where other demands are viewed as being more
pressing. Consequently, lack of recreational programs can easily
lead to increased pressures for other services (e.g., law and
mental health) and can also interfere with local efforts to
recruit and retain professionals.
B. Responses
Matching grants to state and local governments for acquisi-
tion and development of public outdoor recreation areas and
facilities are provided by the Land and Water Conservation fund.
Funds are granted to states on a project basis and may be trans-
ferred to counties or towns for approved projects. However,
competition of this type for locally sponsored projects is very
severe in most states. Additional federal assistance in the form
of loans and grants, including relevant use restrictions and
eligibility requirements, is discussed in Section 14.5.
As noted at the outset, permanent residents are more accus-
tomed to using the "great outdoors" for recreational purposes,
or since they have lived in a town for years without certain
amenities related to urban lifestyles, they may not immediately
see the need for them.
Under the Land and Water Conservation Act of 1965, as
amended, 78 Stat. 897, 16 U.S.C.A. §§ 460d, 4601-4 through 4601-
11(1974), each state receives an annual apportionment based on
statutory formula.
1090
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14.7.8 Summary
«„ all energy-impacted communities will experience rapid
population growth which will affect their ability to provide
essential public services and facilities. Water and sewer
systems, health care services, schooling, street maintenance,
public safety services, and recreational services will all need
to be expanded. Of these, water and sewer systems will normally
require the most immediate attention because they will be needed
shortly after construction begins and they may have a direct
impact on housing patterns and health problems. The need for
most other services, especially health care, is also likely to
be immediate. The one exception to this trend is probably school
facilities, which frequently expand much more during operation
than construction. Moreover, school systems often face less
severe financial constraints than do other service categories.
Federal assistance is available to communities in each of
the service areas. However, few federal grant or loan programs
are explicitly directed towards small, predominantly rural towns
which typically are hardest hit by energy development. Since
competition is so keen for federal dollars and most small com-
munities lack experience in applying for assistance, they usually
will need other assistance to meet new service demands. Most
western states have partially responded through such mechanisms
as community development agencies, training programs, and tax
funds earmarked to impacted communities. Further, some communi-
ties have received aid from developers. In spite of these forms
of assistance, many impacted communities are likely to be unable
to adequately respond to new demands for services and facilities
at least during the first few years of an energy project.
14.8 INDIANS
14 . 8 . 1 Introduction
Indian lands currently produce significant amounts of
energy resources, as sliown by the fiscal year 1974 summary in
Table 14-7. Further, most of these resources were produced in
the eight-state study area: the coal was produced in Arizona,
Montana, and New Mexico; the uranium was produced in New Mexico;
and the oil and natural gas were produced in Arizona, California,
Colorado, New Mexico, and Oklahoma. 1 Additionally, the 271
Indian reservations in the U.S. are estimated to contain up to
See Appendices A, B, and C: U.S., Federal Trade Commis-
sion, Bureau of Competition. Report to the Federal Trade Com-
mission on Mineral Leasing on Indian Lands. Washington, B.C.:
Federal Trade Commission, 1975. Arizona is listed for both ura-
nium and oil and natural gas apparently because Window Rock,
Arizona is the capital of the Navajo Reservation.
1091
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TABLE 14-7:
ENERGY RESOURCE PRODUCTION ON INDIAN LANDS
DURING FISCAL YEAR 1974
Resource
Coal
Oil
Natural Gas
Uranium Ore
Production
11,508,000 tons
30,685,000 bbl
125,080,000 mcf
1,136,739 tons
% of All
Public and
Indian Lands
36.3
15.4
3.7
100.0
% Of
Total U.S.
1.9
1.0
0.6
19.0
bbl = barrel(s)
mcf = thousand cubic feet
Source: U.S., Federal Trade Commission, Bureau of Competi-
tion. Report to the Federal Trade Commission on Mineral
Leasing on Indian Lands. Washington, D.C.: Federal Trade
Commission, 1975, pp. 8-21.
one-tenth of the nation's coal reserves.and one-sixth of all
uranium recoverable at $8.00 per pound.1 Most of these resources
are contained on a few of the approximately fifty Indian reser-
vations located in the eight states included in this study.*
The energy resources possessed by Indians create several
problems and opportunities which warrant special attention. A
pervasive issue is the status of Indian lands. By giving up
their status as sovereign nations and entering into a trust
relationship with the federal government, Indians assumed a
unique position in the federal system; that is, they are immune
"TJ.S., Federal Trade Commission, Bureau of Competition.
Report to the Federal Trade Commission on Mineral Leasing on
Indian Lands. Washington, D.C.: Federal Trade Commission, 1975,
pp. 8-17. According to the Bureau of Competition report, neither
the Bureau of Indian Affairs (BIA) nor U.S. Geological Survey
(USGS) have conducted a study of .potential oil and gas reserves or of
geothermal resources on Indian lands. The Navajos have had their
reservation surveyed and estimate that they have up to 100 mil-
lion barrels of oil and 25 trillion cubic feet of gas. USGS
was defining the known geothermal resource areas on the Navajo
Reservation at the time the Bureau of Competition report was
published.
This estimate of 50 reservations is based on a count made
using the Hammond Medallion World Atlas. Maplewood, N.J.: Ham-
mond, 1971, and 1:500,000 scale USGS maps of the eight states.
1092
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«™« n! ^J ?val contr°ls not expressly granted by the Con-
£?!£; ,De8Pxte.tne apparent simplicity and clarity of this
principle, considerable ambiguity exists concerning the juris-
diction of states in the implementation and enforcement of some
federal environmental legislation. The same situation exists
w^h regard to Indian water rights which will be affected by and
vail affect energy development within the eight-state study area.
These ambiguities and others discussed below are affected by the
changing relationship between Indians and the federal government.
Problems and issues in energy resource development, which arise
because of the status of Indian lands, the maintenance of local
cultures and lifestyles, and communal ownership, are discussed
in this section. Our limited purpose during the first year has
been to begin to identify and define these problems.
14.8.2 The Status of Indian Lands
Many of the problems and issues likely to arise when Indian-
owned resources are developed will result primarily from the
former status of Indian tribes as sovereign nations. When these
tribes were incorporated into the U.S., their external powers
were terminated and they were made subject to the legislative
power of the U.S. However, except as modified by treaty or the
express provisions of federal legislation, the tribes still
possess the powers of local self-government.1 In exchange for
giving up their status as separate nations, the tribes were given
federal aid, protection, and land grants. This led the U.S.
Supreme Court to conclude that reservations are unique legal
entities over which state governments have no powers not expressly
given to them by the Congress.2
Legal title to Indian lands is held by the federal govern-
ment as trustee for the Indians, who retain beneficiary rights
such as the right to use, occupy, and, within limits, manage
and dispose of these lands.3 The Secretary of the Interior has
See Price, Monroe E. Law and the American Indian. Indi-
anapolis, Ind.: Bobbs-Merrill, 1973.
nffilliam v. Lee, 358 U.S. 217 (1959). See U.S., Commission
on Civil Rights. The Navaio Nation; An American Colony. Wash-
ington, D.C.: Commission on Civil Rights, 1975.
The vesting of legal title to Indian lands in the U.S.
government was established by the U.S. Supreme Court decision
in Johnson and Graham's Lessee v. Mclntosh. 21 U.S. (8 Wheat.)
240 (1823). On the general status of Indian lands see: U.S.,
Federal Trade Commission, Bureau of Competition. Report to the
Federal Trade Commission on Mineral Leasing on Indian Lands.
Washington, D.C.: Federal Trade Commission, 1975, especially
Chapter 2; and Commission on Civil Rights. Nava-jo Nation.
1093
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been delegated the trusteeship responsibility; in turn, he has
delegated it to the Commissioner for Indian Affairs (who heads
the Bureau of Indian Affairs). By law, the discretion of the
Commissioner and the Secretary is limited by their trusteeship
role. In practice, their discretionary role is becoming even
more limited because Indians are increasingly pressing for self-
determination and the leaders of some tribes are becoming more
aggressive in managing their own affairs, including resource
development.
The status of Indian reservation as unique legal entities
and of Indian lands as a trust held by the federal government for
the benefit of Indians affects development of Indian-owned energy
resources beginning with the acquisition of rights to develop and
carrying through the various phases of the actual development.
A. Development Rights
The Omnibus Mineral Leasing Act of 1938 authorizes the
leasing of unallotted or tribal and ceded lands for mining purposes.1
Under this Act, the tribal council or other authorized spokesman
for the tribe may, with the approval of the Secretary of the
Interior, enter into a lease not to exceed 10 years "and so long
thereafter as minerals are produced in paying quantities".2
Current regulations require competitive bidding on oil and
gas leases and for other minerals unless the Commissioner of
Indian Affairs grants the tribe written permission to negotiate
for a lease.3 Lease size is limited to 2,560 acres unless the
Commissioner finds that a larger acreage is in the interest of
•"•Omnibus Mineral Leasing Act of 1938, 52 Stat. 347, 25
U.S.C.A. §§ 396a et seg. (1963).
Unallotted or tribal lands are held in trust by the federal
government for an entire tribe; allotted lands are held in trust
for individual Indians; and ceded lands are those which were
ceded to the federal government and settled by non-Indians while
the tribe retained the mineral rights. Authorization to lease
allotted lands was legislated in 1909 (Indian Department Appro-
priations Act of 1909, 35 Stat. 783, 25 U.S.C.A. § 396 (1963)).
While there are differences, because lands are held in common in
one case and by individuals in the other, the regulations and
procedures for allotted lands discussed here are essentially the
same. Regulations implementing the Act are contained in Title
25, Code of Federal Regulations, Part 171 (25 C.P.R. 171.2 and
171.3) (1976).
325 C.F.R. 171.2 and 171.3 (1976).
1094
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the tribe and required"... to permit the establishment or con-
of thermal electric power plants or other industrial
on or near the reservation".1
Rents and royalties are also established by regulation.
For oil and gas; the rent is $1.25 per acre per year, and the
minimum royalty is 12.5 percent of the value of all oil and gas
*° £,a 2% Produced. For other minerals, the minimum annual rental
is ?1.00 per acre per year, and the minimum royalty is 10 percent,
except for coal which is a minimum of $0.10 per ton.2
Regulations require diligent development. In the case of
oil and gas, the regulation simply states that lessees are to
exercise diligence in drilling and operating wells; for other
minerals, a minimum annual development expenditure of not less
than $10.00 per acre is required. 3 There is also a conservation
requirement for oil and gas but not for other minerals.4
Under the current system, leasing is the sole mechanism
emphasized in the regulations, and the initiative for minerals
development (e.g., in initiating a lease sale) rests with the
Secretary of the Interior. The theme throughout the regulations
is one of management by the federal trustee for the Indians. As
noted earlier, many individual Indians and Indian tribes wish to
have a more active role in managing their own affairs. Some
tribes have, in fact, departed from current regulations and
dealt directly with energy companies without the prior approval
of the Secretary of the Interior.5 While the reasons for
125 C.F.R. 171.9 (1976).
225 C.F.R. 171.14 and 171.15 (1976).
325 C.F.R. 171.14 (1976).
425 C.F.R. 171.19 and 171.21 (1976). Other regulations
cover assignment (transfer) of leases, penalties, prospecting
permits, inspection, prior approval for starting operations, and
cancellations. 25 C.F.R. 171.18, 171.19, 171.20, 171.25, and
171.27 (1976).
5For example, the Navajos dealt directly with Exxon in nego-
tiating an uranium lease in 1972. Although bypassing the Secre-
tary violates existing regulations, such an agreement would be
valid if he subsequently approved it. Although the purpose of
these so-called "joint ventures" is to secure a competitive
advantage in the leasing market, this one agreement seems to have
had little effect on competition for resources. See U.S., Fed-
eral Trade Commission, Bureau of Competition. Report to the
Federal Trade Commission on Mineral Leasing on Indian Lands.
Washington, B.C.: Federal Trade Commission, 1975, pp. 163-171.
1095
-------
bypassing the Secretary and the BIA vary, there seem to be at
least two common themes: a manifestation of independence in the
spirit of self-determination, and a general antipathy toward the
BIA because of what are perceived to be its past sins against
Indians. Rightly or wrongly, some individual Indians and some
tribes be«Lieve that they have been cheated in some of the agree-
ments entered into at the initiative or with the approval of the
trustee. Recent cases in point are the 1969 and 1971 Northern
Cheyenne coal lease sales which the tribe petitioned to have
rescinded because of alleged procedural irregularities and fail-
ure of the Secretary to uphold his trust responsibility.! In
another case, the Jicarilla Apaches have filed a class action
suit against the Secretary and about 20 lessees seeking cancella-
tion of 100 leases covering 250 thousand acres which were let
between 1970 and 1972. The suit alleges that the Secretary
failed to comply with the National Environmental Policy Act2 and
that the procedures prescribed by current regulations were not
followed.
In addition to wanting a more active role in the development
of their resources, some tribes have shown considerable interest
in alternatives to leasing. For example, the Jicarilla Apaches
are preparing a proposal for joint ventures in oil and gas
resource development.3 other alternatives being discussed are
modified leases (e.g., with variable rather than fixed royalty
rates). production sharing agreements, and service contracts.
Initially, the tribal council passed a resolution directing
the Secretary to withdraw his approval and to cancel the leases
and all prospecting permits because of failure to comply with 25
CFR Part 177. This was followed by a formal petition and a
"Summary of Points of Law Affecting the Validity of Coal Permits
and Leases on the Northern Cheyenne Reservation". Although the
Secretary declined to cancel the leases and permits, he refused
to approve any development plans, such as mining plans, new
leases, and permits until the tribe and coal companies reach
agreement on "the terms and conditions upon which development may
proceed on the Northern Cheyenne Reservation..." See further
Simonds, Jerome H. "The Acquisition of Rights to Prospect for
and Mine coal from Tribal and Allotted Indian Lands," pp. 125-162
in Rocky Mountain Mineral Law Foundation. Rocky Mountain Mineral
Law Institute; Proceedings of the Twenty-First Annual Institute,
July 17-19, 1975. New York, N.Y.: Matthew Bender,.1975. To
date, no joint agreement between the tribe and the coal companies
has been reached.
2National Environmental Policy Act of 1969, § 102(2)(c), 42
U.S.C.A. § 4332(2)(c) (1973).
3
The tribal council considers the standard lease to be
unacceptable and does not intend to use it in the future.
1096
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Beginning with a national conference in Reston, Virginia in
September 1974, the Americans for Indian Opportunity has either
sponsored or co-sponsored a series of regional conferences on
development of Indian-owned resources during the past two years.
Participants in these conferences, typically members of tribal
councils and directors of tribal development activities, have
been introduced to a range of alternatives to leasing.1
Through such conferences and a variety of other means,
Indians are learning more about the alternatives available to
them, and, as the actions of the Jicarilla Apaches illustrate,
they have been letting the Secretary of the Interior and the
Commissioner of Indian Affairs know that they are dissatisfied
with current procedures and regulations.2 In fact, new regula-
tions are in draft and, although not yet cleared by the Depart-
ment of Interior, they would introduce major changes responsive
to at least some of the expressed desires of Indians. These
changes include: eliminating the current emphasis on leasing and
adding provisions which will allow other alternatives, such as
joint ventures; assigning tribes the initiative as to when they
wish to develop their resources, with or without the Secretary's
(and Commissioner's) assistance as the tribe desires; eliminating
the requirement of having the Secretary1 s approval before entering
into negotiations; and requiring economic, environmental, and
social and cultural impact assessments prior to any agreement
being approved by the Secretary.3 However, even if all these
regulations are adopted, resource development agreements will
still need the Secretary's approval because this is a statutory
requirement (the Omnibus Mineral Leasing Act).
Americans for Indian Opportunity is a non-profit organiza-
tion now located in Albuquerque. The disadvantages of leasing
and the potential advantages of alternatives have been discussed
at their conference by Charles Lipton, an international lawyer
and advisor to developing nations in minerals resource develop-
ment, and Mr. A. David Lester, Director of the United Indian
Development Association. Indian tribes as developing nations is
another theme that has been introduced into these conferences.
This analogy has been discussed by Guy Erb, Senior Fellow with
the Overseas Development Council.
2Although the Jicarilla Apaches have not formally submitted
their proposal to the Secretary, the BIA has been made aware of
it and the AIO invited the Commissioner to each of its confer-
ences on the development of Indian-owned resources where the
participants let him know of their dissatisfactions.
3Proposed regulations appeared in 42 Fed. Reg. 18083-99
(April 5, 1977), too late to incorporate into the text of
this report.
1097
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Assuming that, when issued, the new regulations are similar
to the current draft, many Indians may generally be satisfied
with the provisions, which give them much greater control over
when and how tribal energy resources will be developed. Some
tribes are likely to take advantage of these changes and enter
into agreements which will let them retain control after a devel-
opment right has been given and receive a larger portion of the
benefits of resource development, not only in dollars but in
training and employment benefits as well. However, other tribes
will still need the help of the Secretary and the BIA. Some of
these tribes will probably prefer to continue to use either the
standard lease, or some modified version of it, even though they
realize that they might increase their income by entering into
other kinds of agreements. There are several reasons for this:
several of the alternatives to leasing can expose tribes to
liabilities and possible losses in a way that leases do not; some
tribes lack the required expertise to deal with the relative
complexity of most of the alternatives to leasing; and some
tribes will be concerned that developers might go elsewhere if
the cost of development on Indian reservations becomes too high.1
The major benefits of the new regulations will be the
flexibility, control, potentially greater income, and self-esteem
they provide to Indians. Thus, the trusteeship responsibility of
the Secretary of the Interior and the Commissioner of Indian
Affairs will probably be more difficult to meet, primarily
because, given the current level of Indian consciousness and
emphasis on self-determination, the Secretary will find it diffi-
cult to disapprove agreements he believes are not in the best
interest of Indians. Conversely, the greater freedom given
Indians to control their affairs may well make vigilance by the
Secretary and the Commissioner even more important than it is
now. The system will be predisposed toward approving what Indian
leaders want to do, perhaps to the point of not providing adequate
protection to Indians, particularly if the BIA does not receive
All three of these reasons were cited by Charles Lipton, an
international lawyer and advisor to developing nations in min-
erals resource development, at the AIO regional conference at
Sunrise Lodge at Fort Apache Reservation, June 21-23, 1976. The
exposure question is still being debated. Lipton apparently
believes that agreements acceptable to private developers can be
drafted which will not expose the tribe to legal liability and
minimize, if not eliminate, any financial risk. Some of the
tribal resource development managers at the Sunrise Lodge confer-
ence doubt that this will be possible for most resource-owning
tribes.
1098
-------
funding for additional professionally competent staff. 1 This is
just the reverse of what some critics argue has happened in the
past; that is, that the system was predisposed to approve what
the developers wanted to do. But this brief discussion merely
points up the tensions inherent in the trust arrangement. What
most Indians seem to want is self-determination but with the pro-
tection of the trust system. Providing them both may well prove
to be a practical impossibility.
B. Regulation and Control over Development
Basic regulations applicable to development on Indian lands
include specifying the measures to be taken during mining opera-
tions to avoid, minimize, or correct damage to the environment
and hazards to public health or safety. Implementation of these
regulations is the responsibility of the BIA superintendent. He
is responsible for a technical examination of the likely effects
of a proposed exploration or surface-mining operation, taking
into account:
the need for the preservation and protection of other
resources, including cultural, recreational, scenic,
and ecological values; and control of erosion, flooding,
and pollution of water; the isolation of toxic mate-
rials; the prevention of air pollution; the reclama-
tion by revegetation, replacement of soil, or by other
means, of lands affected by the exploration or mining
operations; the prevention of slides; and the protec-
tion of fish and wildlife and their habitat.2
Based on the results of this technical examination, the
superintendent establishes the general requirements which the
applicant must meet. When accepted by the developer, these
requirements are incorporated into the permit or lease.3 In
addition, the developer is required to file exploration and
mining plans with the U.S. Geological Survey mining supervisor,
which must be approved before operations can begin. Both plans
generally require the operator to describe the area to be explored or
BIA's critics already say that it lacks the requisite
expertise in development planning to meet its responsibilities.
Even if the critics are wrong, added requirements for impact
assessments, particularly social and cultural impacts, and the
evaluation of complex alternatives to leasing will likely be
beyond the BIA's capabilities.
225 C.F.R. 177.4 (1974).
325 C.P.R. 177.4 (1974). This provision implies negotia-
tions between the superintendent and the lessee. Failure to
agree would prevent development of the lease.
1099
-------
mined, state what exploratory or mining methods are to be used,
and describe the measures to be taken to prevent or control
damage to the environment and hazards to health and safety. In
addition, the mining plan must give an estimate of how much water
will be used, what pollutants are expected to enter into either
surface water or groundwater systems, and a description of the
reclamation plan.l
Operators are also required to post a performance bond in an
amount adequate to provide for reclamation.2 Periodic reports are
required in which operations are described, affected areas iden-
tified, the nature of the mining effects described, the number of
acres disturbed and reclaimed stated, and reclamation methods,
results, and work remaining to be accomplished are described.3
A report is also required when grading and backfilling has been
completed. Completion of this work has to be approved by the
mining supervisor.4
In addition to the legislation and regulations specifically
addressed to minerals development operations on Indian lands,
Indian tribes and developers on Indian lands must comply with
federal statutes of general applicability.5 These include such
statutes as the clean Air, Noise Control, Federal Water Pollution
Control, Solid Waste Disposal, and Safe Drinking Water Acts.6
Requirements established by such statutes are discussed in sec-
tions dealing with air, water, solid wastes, and other issues for
the site-specific scenarios. The discussion here is limited
125 C.F.R. 177.7 (1976).
225 C.F.R. 177.8 (1976). This bond must be at least $2
thousand; however, the amount may be reduced "where the circum-
stances are such as to warrant an exception".
325 C.F.R. 177.9 (1976).
4
Reclaimed areas must be inspected after the first full
growing season to determine whether a satisfactory growth has
been established.
General applicability means that the statute applies to
all persons.
6Clean Air Act of 1970, 84 Stat. 1676, 42 U.S.C.A. §§ 1857
et sea. (Supp. 1976); Noise Control Act of 1972, 86 Stat. 1234,
42 U.S.C.A. f§ 4901 et sea. (1973); Federal Water Pollution Con-
trol Act Amendments of 1972, 86 Stat. 816, 33 U.S.C.A. IS 1251
et sea. (Supp. 1976); Solid Waste Disposal Act of 1965, as
amended, 84 Stat. 1227, 42 U.S.C.A. 55 3251 et sea. (1973); Safe
Drinking Water Act of 1974,88 Stat. 1660, 42. U.S.C.A, &£ 300g
et seg. (Supp. 1976).
1100
-------
?nd?an t3S.S £1*™ and issues arise primarily in areas where
narti™?*S £ n?v 8pecifically mentioned in these statutes,
££i£££ Y ^S*" ^ statute «*!• for implementation by state
!?at^nS ? an? provides ^ funding assistance of some kind to
state and local governments.!
«.,?'1>Kte?pef.wi11' Assistant Regional Counsel in the Environ-
mental Protection Agency's (EPA's) Denver office, has attempted
to determine EPA1s authority regarding Indian tribes, including
a determination of which environmental protection statutes apply
to Indian lands, when Indian lands are subject to state imple-
menting legislation, and when Indian tribes are included in
funding assistance programs.2 His "Questions and Answers on
EPA s Authority Regarding Indian Tribes" is intended to provide
guidance on the applicability of EPA's enabling statutes to
Indian lands.•* According to Will, Indian tribes are required to
comply with federal pollution standards because all EPA' s enabling
statutes are of federal applicability and these statutes gener-
ally authorize EPA to establish environmental standards appli-
cable to Indian lands. In general, state implementing statutes
do not apply to Indian lands unless the enabling statute explic-
itly confers jurisdiction over Indians to the state. EPA does
not interpret its enabling statutes as conferring implementation
and enforcement jurisdiction over Indians to the states; however,
as Will indicates, there is considerable debate on this question
and he summarizes EPA's position by stating that:
Where there is a dispute over conflicting Tribal-State
jurisdiction, EPA will not attempt to alter or define
the present legal relationship. Thus, where States
have not assumed jurisdiction over reservations, EPA
will accept, within the constraints of EPA statutes,
the proposals by Indian governing bodies of their own
pollution standards.4
Several environmental statutes do call for state implemen-
tation and provide planning and other kinds of assistance to
state and local governments.
, J. Kemper. Questions and Answers on EPA's Authority
Regarding Indian Tribes. Denver, Colo. : Environmental Protec-
tion Agency, Region VIII, 1976.
Will's paper has not been adopted as official EPA policy.
4Will. EPA's Authority.
1101
-------
As this statement implies, Indian tribes possess independent
authority to establish their own pollution standards so long as
they are consistent with EPA authority.1
Will also comments on the applicability of specific statutes
and whether Indians are eligible for assistance programs. In
brief, he concludes that:
(1) The language in Sections 401 (a) (1), 402 (b) and
405 (c) of the Federal water Pollution Control Act
Amendments (FWPCAA) of 19722 is ambiguous as to
whether Indians are subject to state water
discharge permit programs. EPA treats Indian
reservations as it does federal facilities.
That is, "...the Administrator will provide
the certification except where the state has
other independent jurisdiction over the Indian
lands where the discharge will originate."3
(2) States have the authority to designate Indian
reservations as a FWPCA Section 208 area (for
areawide waste treatment management plans).4
(3) Indian tribes or designated tribal organizations
are authorized to receive EPA funds for FWPCA
pollution control activities, including Section
208 funding.
(4) Although Indians are not mentioned specifically
in the Clean Air Act of 1970, a broad reading of
the term "air pollution control agency" would
qualify Indian tribes to receive EPA contracts or
grants. In November 1975, EPA Administrator
Russell E. Train stated in a letter to Senator
Domenici of New Mexico that "EPA's basic regu-
lations for developing State Implementation
Plans under Section 110 of the Act, and for
v. Garland. 342 F. 2d 369 (2d Cir. 1965) .
2
Federal Water Pollution Control Act Amendments of 1972, 86
Stat. 816, 33 U.S.C.A. §§ 1251 et sea. (Supp. 1976).
Will, J. Kemper. Questions and Answers on EPA's Authority
Regarding Indian Tribes. Denver, Colo.: Environmental Protec-
tion Agency, Region VIII, 1976.
4
The 208 planning program is discussed in Section 14.5.
Will's interpretation may be in conflict with EPA General counsel
G. William Frock's opinion stated in the memorandum discussed in
footnote number three on the next page.
1102
-------
providing federal grant support for air pollution
control agency programs under Section 105 of the
Act, do not have provisions for Indian lands."1
(5) A broad interpretation of the term "local govern-
mefc ln et
ln Section 14 of the Noise Control Act of
1972 would authorize the Administrator to fund
research by Indian tribes on the effects and
control of noise.2
(6) Both the Solid Waste Disposal Act as amended in
1970 and the Safe Drinking Water Act of 1974
specifically include either Indian tribes and/or
tribal organizations in their definition of
municipality. This authorizes the Administrator
to enter into contracts with or make grants to
Indian tribes.3
(7) Government approval of an exploration permit or
a mining lease on Indian lands constitutes a
major federal action and an environmental impact
statement required. 4
(8) 25 C.F.R. Section 1.4 restricts the applicability
of any state or local land use controls such as
zoning to Indian lands held in trust. However,
the Secretary is authorized to make such laws
Quoted by Will, J. Kemper. Questions and Answers on EPA's
Authority Regarding Indian Tribes. Denver, Colo.: Environmental
Protection Agency, Region VIII, 1976, p. 8.
2Ibid.. p. 8.
3Ibid., p. 9. In a memorandum to EPA's Deputy Assistant
Administrator for Water Supply dated December 8, 1976, EPA Gen-
eral Counsel G. Williams Frock concluded that a state cannot
claim the authority to enforce state primary drinking water regu-
lations against reservation Indians on the basis of Public Law
280 as amended by Title IV of the Civil Rights Act of 1968.
4National Environmental Policy Act of 1969, § 102(2)(c), 42
U.S.C.A. § 4332(2)(c) (1973). It is the approval which consti-
tutes the major federal action. See Cady v. Morton, 527 F. 2d
786 (9th Cir. 1975) and David v. Morton, 469 F. 2d 593 (10th Cir.
1972).
1103
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applicable when that would be in the best interest
of the Indian land owners.1
As mentioned in the section on leasing, the current basic
regulations are being revised which would give Indians greater
control over development, including greater control over environ-
mental protection and public health and safety. In particular,
the changes incorporated into the draft are responsive to the
widespread desire among Indians to determine for themselves
whether, where, when, and how their resources are to be devel-
oped. Among the major changes will be a greater emphasis on
attempting to assess in advance likely social and cultural
impacts, specifically the impacts that can be expected to affect
local Indian populations, the local culture and religions, life-
style, "quality of life" (in such areas as the influx of non-
Indians and overloading social service delivery systems), and
aesthetics (in such areas as noise levels and visual impacts).
A major omission from the regulations in the current draft
is a provision dealing with those cases where a tribe has estab-
lished its own development rules and regulations. Some tribes,
particularly the larger resource-rich tribes, are likely to
develop a tribal code of regulations equivalent to 25 C.F.R. Part
177 and/or include development regulations and controls in the
agreements they negotiated with developers.
In most environmental legislation calling for state imple-
mentation of federal standards, as in air and water quality for
example, a provision is included which establishes federal
standards as minimums. While states can establish more stringent
standards, they cannot establish standards that are less strin-
gent. It is likely that such a provision will be added to the
revisions being considered for 25 C.F.R. part 177, and the pro-
vision will likely cover both the contingency when the tribe
enacts its own code of regulations and when the tribe incorpo-
rates development regulations into its agreements with the devel-
oper. Without such a provision, either in the controlling
legislation or in the revised 25 C.F.R. Part 177, it will be more
difficult for the Secretary and the Commissioner to fulfill their
responsibilities as trustees.
The most difficult issues to resolve in regulating and con-
trolling the development of energy resources on Indian reserva-
tions are likely to arise as a consequence of the unique legal
status of Indian lands and jurisdictional ambiguities raised by
federal statutes of general applicability that fail to specify
will, J. Kemper. Questions and Answers on EPA's Authority
Regarding Indian Tribes. Denver, Colo.: Environmental Protec-
tion Agency, Region VIII, 1976, p. 4. To date, only the zoning
laws of the state of California are applied to reservations.
1104
-------
whether and/or how they apply to Indians and Indian lands.
These, of course, are not new questions, but they are now being
raised within the context of a greatly increased emphasis on
self-determination for Indians and, as was discussed in Chapter
13, expanding policymaking roles for state governments which
often include primary responsibility for implementation and
enforcement.
14.8.3 Maintaining Local Indian Cultures and Life-Styles
The effects of energy development on local Indian cultures
and lifestyles are a major concern of many Indians. In fact,
some tribes have decided not to develop their resources rather
than accept what they consider to be the likely negative cul-
tural and lifestyle impacts. For example, as indicated in the
analysis of the impacts at Navajo/Parmington, some Navajos are
questioning the development decisions made by the Navajo Tribal
Council, in part because they question the desirability of having
large numbers of non-Indians on the Reservation.
Lifestyle and cultural impacts of energy resource develop-
ment on the Navajo Reservation were examined briefly in chapter
7, and, as indicated earlier, field research is being conducted
on the Navajo reservation as a part of this study. This field
work includes surveying Navajo attitudes toward development,
especially concerning lifestyle and cultural impacts.1
Social and cultural problems and issues are often as diffi-
cult to assess as are the impacts which give rise to them. The
more difficult of these, such as lifestyle and cultural problems
associated with energy development on Indian reservations, have
received only preliminary attention during the first year.
However, despite this limitation, development of energy resources
on Indian lands will almost certainly increase and intensify the
exposure of many reservation Indians to non-Indians and non-
Indian cultures and lifestyles. Exposure will almost certainly
have an impact on Indians, both as individuals and as tribes.
For example, to become effective as managers of their own resource
development, Indians must adapt to and become effective partici-
pants within the predominately white business system. Also, if
tribal councils require developers to train Indians and establish
employment quotas, increasing numbers of tribal members will
probably modify their lifestyles. In short, the effects will be
myriad, difficult to assess, and almost impossible to control
effectively.
work also includes collecting data relating to the
assessment of terrain types. Work completed during June 1976
indicates that published data by reservation vegetation types
and resources are seriously flawed.
1105
-------
For most if not all tribes, complete isolation is not an
option. Consequently, when faced with the question of whether to
develop their energy resources, the choice is not whether tribal
members will be exposed to different cultures and lifestyles but
whether to increase and intensify the existing exposure. Alter-
natives range from no development to the most extensive and rapid
development possible, and they include a variety of choices as to
the mix of Indians and non-Indians to carry out the development.
Given a right to determine for themselves, whether, when, and how
to develop their resources, tribal councils and tribes will have
to decide among these alternatives.
14.8.4 Communal Ownership
The research team's brief examination of the special prob-
lems associated with the development of energy resources on
Indian lands led to the identification of another set of issues
of obvious concern to many Indians. These are the issues that
arise from communal ownership of tribal resources. Most tribes
manage tribal enterprises either through a committee of the
tribal council or through a separate board of directors. Appar-
ently neither choice insures against the sometimes undesirable
intrusion of tribal politics. When the separation of politics
and business is minimal, tribes not only experience the discon-
tinuities associated with periodic changes in leadership but also
find that financial institutions and would-be developers are
leery about making long-term loans or agreements. The role of
the tribal council with regard to the tribes' resources also
makes tribal leaders vulnerable to the charge that they have
approved lease sales, development contracts, etc., because of the
personal benefits that they have received. Since not enough is
known at this point to be able even to define the problem, this
situation should be examined in more detail, including the iden-
tification of alternative ways for tribes to manage their busi-
ness activities more effectively.
Some Indian leaders are becoming concerned about another
problem in this category, the role of individual Indian entrepre-
neurs in the development of tribal resources. Philosophically,
the basic question is whether there is an inherent tension
between communal ownership and opportunities for individual
entrepreneurs. Again, the research team's knowledge is too
limited to do more than pose a problem that should be examined in
more detail.
14.9 REFINEMENT AND EXTENSION OF POLICY ANALYSIS
In the preceding sections, an effort has been made to
identify and begin to define some of the principal problems and
issues in western energy resource development that policymakers
and administrators must attempt to resolve. The categories
singled out for preliminary discussion were water availability
1106
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and quality, reclamation, air quality, growth management, housing,
community facilities and services, and Indians. These problems
and issues are widely perceived to be significant, and, for the
most part, they were identified apart from the impact analyses
conducted during the first year. This focus is largely a conse-
quence of timing since the impact analyses for the site-specific
scenarios were not completed in time to be used in most of the
policy papers.
A major emphasis during the remainder of the project will be
to define these discussions and to extend the breadth of the
policy analysis to include identification and definition of prob-
lems and issues that surface as a result of the impact analyses.
For those categories already introduced, the primary effort will
be to refine definitions of the issues and problems, including an
elaboration of what can be done to eliminate, reduce, or enhance
an impact. Whereas the foregoing discussions concentrate mostly
on governmental parties-at-interest, non-governmental actors will
be identified to address the potential conflicts that may arise
as policymakers seek to accommodate a wide range of interests and
values. In addition/ more detailed attention will be given to
the functional relationships among policymaking structures and
institutions. This will necessarily include identifying, evalu-
ating, and comparing alternative policies and implementation
strategies. The costs, benefits, and risks of each will have to
be calculated employing a range of quantitative and qualitative
measures that will inform policymakers about trade-offs implicit
in the choices that are available to them. The work plan described in
Chapter 5 of this report discusses how these tasks will be
completed.
In addition to the categories of problems and issues dis-
cussed in this chapter, energy facility siting and transportation
are illustrative of the additional problems and issues that will
receive more attention during the next two years.
Siting energy facilities in the western states seems to
raise more controversy than does other types of industrial
siting. While manufacturing industries are generally perceived
as long-term ventures that can be used to promote continued
economic growth, new energy facilities often appear to be short
term. They are perceived as generally exploiting resources to
alleviate a short-term demand subject to substantial regional and
national fluctuations. As a result, states are increasingly
seeking to gain and exercise control over plant siting, location,
and pace of development decisions. These actions raise a number
of problems and issues with regard to federal-state relations
where the federal government owns the resource lands and leases
them to energy promoters. Moreover, they raise critical problems
and issues related to water availability and quality at partic-
ular locations.
1107
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A broad range of transportation problems and issues that
have now been surfaced by the impact analyses also warrant spe-
cial attention, including eminent domain for slurry pipelines*
subsidies to railroads to improve road beds, rate structures, and
local control over nuisances such as blocked crossings and noise
levels. Given the quantities of energy resources that are pro-
jected to be transported out of the West, these and other trans-
portation-related problems and issues assume major importance for
policymakers concerned with western energy resource development.
1108
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GLOSSARY
ACID MINE DRAINAGE—Acid water formed by oxidation of iron pyrite
(FeS) flowing from an area affected by mining.
ACID RAIN—The decrease in pH of rainfall linked to the presence
of nitrate, sulfate, and chloride ions in the atmosphere.
ACID SOIL—A soil that is acid in parts occupied by plant roots;
typically, a soil more acid than pH 6.6.
ACRE-FOOT~The quantity of water required to cover 1 acre to a
depth of 1 foot (approximately 325,000 gallons).
AD VALOREM TAX—A tax imposed at a fixed percentage of the value
of a commodity.
AEROSOL—Very fine solid or liquid particles dispersed in a gas.
AGE/SEX DISTRIBUTION—The proportions of a given population that
fit into specified age and sex categories.
AGGREGATE—Rock materials, such as gravel, used to form concrete.
AIR STAGNATION—A condition in which an air mass does not move or
disperse over a long period of time. Little mixing or ven-
tilation occurs to rid the air of pollutants (see Trapping).
ALDEHYDE—Any of various highly reactive organic compounds con-
taining a CHO group.
ALKALINE SOIL—A soil that is alkaline in parts occupied by plant
roots; typically, a soil having a pH value above 7.3.
ALLUVIAL—Associated with materials (sand, gravel, etc.) trans-
ported by and laid down by flowing water.
AMBIENT CONDITIONS—The normal physical environment conditions in
the vicinity of a reference point.
AMBIENT AIR QUALITY STANDARDS—See Primary ambient air quality
standards and Secondary ambient air quality standards.
1109
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AMINE—Any of various organic compounds containing the chemical
group NH2* NH. or N and a hydrocarbon group such as 013.
ANCILLARY ENERGY—That energy required from external sources to
accomplish an activity or process.
ANCILLARY FACILITIES—Those support facilities required to
accomplish an activity or process.
APPROPRIATION SYSTEM—One means by which surface water use is
regulated, granting a first user of water a continuing right
to that use. Hence, later users face greater risks for a
continued supply of water (see Beneficial Use).
AQUIFER—A water-bearing geological formation such as permeable
rock, sand, or gravel through which water moves more readily
than in adjacent formations with lower permeability.
AREA MINING—A surface-mining technique used in flat terrain.
ASH—The residue left when combustible material is burned or
otherwise oxidized (see slag).
ASSESSED VALUATION—The value of property for tax purposes, which
is usually derived from fair market value and may vary
between jurisdictions and types of property.
AVERAGING TIME—The time interval over which air pollutant con-
centrations are measured. The average of the measured
values taken in the time interval is the concentration for
an averaging time.
A-WEIGHTED SOUND LEVELS—Sound estimates approximating the
capability of the human ear to discern the relative noisi-
ness or annoyance of common sounds.
BACKFILLING—A reclamation technique which returns the spoils to
mined cuts or pits. This leaves the land in a configuration
similar to the original form.
BANK STORAGE—Water absorbed and stored in the bed or banks of a
stream or reservoir and returned in whole or part as the
water recedes.
BASELINE CONDITIONS—The state of such factors as air quality,
water quality and quantity, solid waste, noise, land use,
ecology, resource availability, economy, and social struc-
ture that may prevail in an area in the absence of the
developments being studied.
BASELINE INFORMATION—Data gathered about the characteristics of
a site prior to the development of an energy facility.
1110
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BASE LOAD—The normal minimum weekly output of electrical
generation stations, which is produced by base-load units
(q.v.).
BASE-LOAD UNITS—Large (e.g., 1,000-megawatt) electric power
generation units which are relatively efficient (32-40%),
are run almost continually at full load, and are used to
supply the majority of the demand for electricity (see
peaking unitsi.
BASIC EMPLOYMENT—See Economic Base Model.
BASIC STABILITY WINDROSE INFORMATION—The frequency of occurrence
of various wind speed/wind direction combinations as a func-
tion of one of the six Pasouill stability classes (q.v.).
The distribution contains 16 wind direction categories and 6
wind speed categories.
BASIN—A geologic or land-surface feature which is lower in the
center and higher at the sides. Geologic basins may be
filled with sediment and not visible from the surface.
BED--A stratum of coal or other sedimentary deposit.
BEDROCK—Any solid rock underlying soil, sand, clay, silt, or
other earthy materials.
BENCH—A flat excavation.
BENEFICIAL USE—A doctrine derived from the appropriation system
(q.v.) stipulating that water use must be made in accordance
with the public interest of the best utilization of the
water resource.
BENEFICIATION—Cleaning and minimal processing to remove major
impurities or otherwise improve properties of extracted
minerals.
BERM—A shelf or wall built to contain spills around a fuel
storage tank or to retain other liquids or semisolid mate-
rials as in waste stabilization ponds.
BIG GAME—Large mammals often hunted for sport.
BIOCHEMICAL OXYGEN DEMAND (BOD)—The amount of oxygen required by
bacteria to convert organic material into stable compounds
(see Chemical Oxygen Demand).
BIOLOGICAL OXYGEN DEMAND—See Biochemical Oxygen Demand.
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BIOLOGICAL COMMUNITY—The populations of plants and animals that
occur in and characterize a given area (see Ecosystem
Units).
BIOMASS—The amount of living matter in a unit area or volume;
i.e., the living weight.
BIOME—A major biological community (q.v.) type. Includes broad
categories such as desert, coniferous forest, and grassland
(see Ecosystem).
BITUMINOUS—An intermediate-rank (q.v.) coal with low to high
fixed carbon, intermediate to high heat content, a high
percentage of volatile matter, and a low percentage of
moisture.
SLOWDOWN—The release or cleaning out of water with high solids
content, the solids having accumulated each time water is
used or evaporates such as in a cooling tower (q.v.).
BONUS BIDDING—A method for making tracts of publicly owned land
available for private development. The company or indivi-
dual which submits the highest bid is awarded the tract.
The lessee then pays the government the amount bid (the
bonus) and a royalty on the resource extracted.
BOTTOM ASH—A waste product of coal combustion composed primarily
of silica, alumina, and ferrous oxides. Bottom ash is
heavier than fly ash and settles during combustion.
BRINE—Water saturated with large quantities of salt; i.e., a
strong saline solution.
BTU (BRITISH THERMAL UNIT)—A measure of energy equivalent to the
amount of heat required to raise the temperature of 1 pound
of water 1 degree Fahrenheit. One kilowatt hour of elec-
tricity equals 3,412 Btu's; 1 Btu equals 0.252 kilocalories
(q.v) .
CAKE—To form or harden in a cohesive mass; to form a hard or
brittle layer or deposit (see Caking Coal).
CAKING COAL—Coal which, when heated, passes through a plastic
stage and agglomerates.
CARCINOGENIC—Cancer producing.
CATALYSIS—Modifications or increases in the rate of a chemical
reaction induced by material unchanged chemically at the end
of the reaction; any reaction brought about by a separate
agent.
1112
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CATALYST—A substance which induces catalysis (q.v.).
CATALYTIC CONVERSION—A chemical reaction induced by a catalyst
CENTRIFUGAL SEPARATOR—A device which separates two fluids (or a
fluid and a solid) of different densities by rotating them
rapxdly and forcing the denser material to the outside.
CHAR—A mixture of ash and carbon which remains after partial
combustion or heating.
CHEMICAL OXYGEN DEMAND (COD)—The amount of oxygen required to
convert (oxidize) organic compounds into stable forms,
usually carbon dioxide and water. COD includes all com-
pounds requiring oxidation while Biochemical Oxygen Demand
(q.v.) includes only the biodegradable fraction.
CHINOOK WINDS—Warm, strong down-slope winds on the lee slopes of
the Rocky Mountains.
CHRISTMAS TREE—The assembly of valves, pipes, and fittings used
to control the flow of oil and/or gas from a well.
GLAUS RECOVERY PLANT—A facility that processes emission gas
streams containing 10 percent or more hydrogen sulfide,
oxidizes the hydrogen sulfide, and produces elemental sulfur
of high purity.
CLAY—A fine-grained soil that is plastic when moist (see Pond
Liner).
CLEAN AIR ACT AMENDMENTS (CAA)—The basis for much of the current
regulation of air quality. Passed in 1970, the Clean Air
Act mandates the Environmental Protection Agency to estab-
lish national ambient air standards and to protect the
nation's clean air areas from "significant deterioration".
COKE—The solid, combustible residue left after the destructive
distillation of coal, crude petroleum, or some other mate-
rial.
COLORADO RIVER BASIN SALINITY CONTROL ACT—1975 statutes which
enable the federal government and states of the basin to
develop programs to reduce salinity to the levels agreed
upon in a 1973 treaty with Mexico.
COLORADO RIVER COMPACT OF 1922—An agreement that provided for
division of the waters in the Colorado River between the
upper and lower basins, with approximately 7.5 million acre-
feet allocated to each basin (see Upper Colorado River Basin
Compact-1948).
1113
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CONTINUOUS MINING MACHINE—A single machine used in underground
mining which accomplishes all the excavating, loading, and
initial transportation operations.
CONTOUR MINING—A mining technique used in steeply sloped terrain
where a seam outcrops on a slope. The mine follows the
contour of the slope.
CONTROLLED CRUDE OIL—See Old Oil.
CONVECTION—A thermal process whereby atmospheric circulation is
maintained through the upward or downward transfer of air;
warm air tends to rise and cold air sinks.
COOLING POND—Usually a man-made body of water used in electrical
power generation systems for dissipating waste heat, largely
through evaporation.
COOLING TOWER—A large, normally cylindrical structure used for
dissipating waste heat. Water is circulated between a con-
denser where it absorbs heat and a tower where the warm
water is either cooled by evaporation (wet cooling tower) or
circulated in a closed system and cooled by air flow similar
to a car radiator (dry cooling tower)- In Forced Draft
Cooling Towers, air is moved by large motor-driven fans. In
Natural Draft Cooling Towers, outside air is naturally drawn
in at the base of the tower to replace the less dense, warm
air which is rising out of the tower due to convection
(q.v.).
COOLING TOWER DRIFT—Small water droplets contained in the
exhaust flow from a cooling tower. The dissolved salt
content of these droplets is the same as that in the circu-
lating water.
COOLING TOWER FOGGING AND ICING—Cooling towers add moisture to
the air (via cooling tower drift q.v.) which condenses and/
or freezes, thus creating fog, ice, or an ice-fog under the
proper weather conditions.
COOLING TOWER SALT DEPOSITION—The amount of salt deposited from
cooling tower drift (q.v.) onto a given section of terrain.
CORE DRILLING—The process by which a cylindrical sample of rock
or other strata is obtained through the use of a hollow
drilling bit which cuts and retains a section of the strata
penetrated.
COST/RISK/BENEFIT ANALYSIS—An assessment technique in which
values are assigned to such concerns as social impacts to
weigh the overall benefits and costs associated with recom-
mended policy alternatives.
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CRACKING — The process of breaking up large molecules in petroleum
refinery feedstock to form smaller molecules with higher
energy content (e.g., change crude oil into gasoline).
CRITERIA POLLUTANTS — Six air pollutants identified prior to pas-
sage of the Clean Air Act Amendments (q.v.) which now have
established Ambient Air Quality Standards (q.v.): i.e.,
sulfur dioxide, particulate matter, carbon monoxide, photo-
chemical oxidants, non-methane hydrocarbons, and nitrogen
oxides.
CUTTING FACE — In an underground mine, the exposed portion of a
coal seam where coal is removed.
CUTTINGS — Solid material removed from a drilled hole.
CYCLONE — A cleaning device which uses a circular flow to separate
the heavier particulates from stack gases.
DECIDUOUS — A term describing trees that shed all their leaves
every year at a certain season, typically winter.
DEDICATED RAILROAD — A system in which the right-of-way, rails,
and rolling stock are used exclusively to transport a single
resource.
DEMOGRAPHY — The statistical study of the characteristics of human
populations.
DIRECT HEAT — The heating of a substance through immediate contact
with a combustion zone.
DISPERSION MODEL— A set of mathematical formulations used to
describe the way in which airborne pollutants will be dis-
tributed around their source.
DISPERSIVE TECHNIQUES— A method of controlling ambient air qual-
ity around power plants by using tall stacks (q.v.) , which
spread pollutants over a much wider area than do shorter
stacks .
pended solids (q.V.).
— The process of heating a liquid mixture to drive
rss 2&£rsr«2 ass-
an area.
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DRAGLINE—An excavating machine used in open pit mines to remove
overburden; basically, a crane with a bucket suspended on
its line which is filled by dragging.
DRAINAGE BASIN—The area from which water is carried off by a
drainage system, a watershed (q.v.) or a catchment area.
DRILL PIPE—In rotary drilling, the heavy seamless tubing used to
rotate the bit and circulate the drilling fluid. Individual
pipe lengths are normally 30 feet and are coupled with tool
joints.
DRILL STRING—A column of pipe that connects to a bit used to
bore holes for wells.
DRY COOLING TOWERS—See Cooling Towers.
DRY (GEOTHERMAL) SITE—A geothermal well which produces dry
steam (q.v.).
DRY STEAM—Steam which is not mixed with a liquid water phase.
DYNAMIC METEOROLOGY—The study of atmospheric motions as solu-
tions of the fundamental equations of hydrodynamics or other
equations for special situations.
ECONOMIC BASE MODEL—A model which considers two employment
sectors (basic or production for export and non-basic or
production for local goods and services) to predict the
impacts of exogenous changes on urban and regional economies
(see Multiplier).
ECOSYSTEM—The interacting biological community (q.v.) and phys-
ical components that occur in a given area.
ECOSYSTEM UNITS—Vegetation units and their associated fauna
(q.v.) and physical components (see Ecosystem) .
EFFLUENT—Any water flowing out of an enclosure or source to a
surface water or groundwater flow network.
EFFLUENT STANDARDS—Those standards under the Federal Water Pol-
lution Control Act Amendments (q.v.) which limit the amount
of a pollutant that is allowed to be discharged in a time
period.
ELASTIC SUPPLY CURVE—The supply of a community which is very
responsive to its price.
ELECTROSTATIC PRECIPITATORS—Devices that use an electric field
to remove solid particles or droplets of liquid from plant
exhaust stack gases.
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ENDANGERED SPECIES—A species of fish or wildlife which is in
danger of extinction throughout all or a significant portion
of its range.
ENDOTHERMIC—Pertaining to, attended by, or produced from the
absorption of heat, the opposite of exothermic (q.v.).
ENERGY EFFICIENCY—The ratio between the energy value of the out-
put fuel and the energy value of the input fuel, usually
expressed as a percentage. Also called Primary Efficiency.
ENERGY INTENSIVENESS—In transportation, the relative amount of
energy required to move one unit (one passenger or 1 ton of
cargo) a distance of 1 mile. In industry, the ratio of
total energy consumed for each dollar of production goods
shipped.
ENERGY RESOURCE DEVELOPMENT SYSTEM (ERDS)—A resource, the tech-
nologies required to develop it, and the social controls
that are imposed when these technologies are deployed.
ENRICHMENT—A process by which the percentage of the fissionable
isotope, U-235, is increased above that contained in natural
uranium (q.v.).
ENVIRONMENTAL IMPACT STATEMENT (EIS)—The National Environmental
Policy Act requires that an EIS be filed with any proposed
federal action that will affect the environment. The EIS is
to contain: a description of the proposed action; the
relationship of the action to plans for the affected
area; the probable impact (both favorable and adverse);
alternatives to the proposed action; unavoidable adverse
environmental effects; and the relationship between short-
term uses and long-term productivity.
EQUITY—The net worth of a firm or corporation (total assets less
total debts).
EXOGENOUS—Determined by factors outside a given system or model.
EXOTHERMIC—Refers to a chemical reaction that gives off heat;
the opposite of endothermic (q.v.).
FAUNA—The animal life in a specified environment.
FEDERAL—Anything relating to or owned/controlled by the U.S.
(national) government.
FEDERALISM—The mix of formal authority and responsibility
shared by local, state, and national governmental units
(see New Federalism).
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FEDERAL WATER POLLUTION CONTROL ACT AMENDMENTS (FWPCAA)—1972
Statutes granting EPA authority to implement a National
Pollution Discharge Elimination System with permits and
effluent limitations, technological and planning require-
ments, assistance to municipalities, and a goal of elim-
inating the discharge of pollutants by 1985.
FEEDSTOCK—Raw materials supplied to a processing plant.
FERAL DOGS—Wild dogs.
FERROUS—Of, relating to, or containing iron.
FINE PARTICULATES—Particulates (q.v.) less than 2 microns in
diameter.
FISCHER ASSAY—A standardized laboratory procedure that removes
oil from oil shale, used as a basis for comparing oil shale
processing alternatives and shale feedstocks.
FISSION—The splitting of an atomic nucleus, resulting in the
release of energy.
FIXED BED—A coal combustion or gasification process in which the
coal is burned on a stationary platform.
FIXED CARBON—The solid, non-volatile, combustible portion of
coal.
FIXED CHARGE—Expenses that must be borne whether any business is
done or not. The chief items are the company's interest on
bonds or other external borrowings, some taxes levied by the
government, insurance payments, and depreciation due to
obsolescence.
FLORA—The plant life in a specified environment.
FLUE GASES—Gases (usually carbon dioxide, water vapor, oxides of
nitrogen, and other trace gases) that result from combustion
processes.
FLUIDIZED BED—A coal combustion or gasification process in which
solid particles are suspended by the forced injection of a
gas through the bottom of the vessel. The suspension
behaves like a fluid.
FLUIDIZED BED BOILER—A new type of boiler with gases suspending
a coal mixture (fluidized bed, q.v.) and designed to improve
efficiency and reduce pollutants and boiler size.
FLY ASH—A lightweight dust, which is a waste product of coal
combustion, carried by the stack gases (q.v.).
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FORAGE—Plant material which is used as food by animals.
FORB—An herb other than grass.
FORCED DRAFT COOLING TOWERS~See Cooling Towers.
FORMATION (geology)—Earth deposits, mineral deposits, or rock
masses having common physical characteristics or similar
origin.
FRAGMENTATION--(l) The blasting of coal, ore, or rock into pieces
small enough to load, handle, and transport; or (2) the
scattered removal of habitat, leaving disconnected remnants.
FRONT END LOADER—A tractor with a large bucket mounted on arms
that can scoop material and raise it for dumping into a
truck.
FUMIGATION—Abnormally high pollutant concentrations resulting
from the combination of an inversion layer (q.v.) and unsta-
ble atmospheric conditions below the layer which tend to
bring plant plumes (q.v.) directly to the ground.
GAME FOOD—Numerous grasses, legumes, shrubs, and trees that
typically provide sustenance and cover for wildlife.
GASIFICATION—The conversion of coal or organic waste to a
gaseous fuel.
GENERATOR—A mechanism which converts mechanical energy to
electrical energy.
GROUND-BASED INVERSION—An inversion layer (q.v.) at ground
level. Such a layer traps an air mass and pollutants close
to the earth.
GROUND COVER—Any living or dead vegetative matter on or just
above the soil surface.
GROUNDWATER—Subsurface water occupying the saturation zone from
which wells and springs are fed; in a strict sense, this
term applies only to water below the water table.
GROWING SEASON—The season which generally is warm enough for the
growth of many plants; the extreme limits from the date of
the last killing frost in spring to that of the first
killing frost in autumn.
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GROWTH MANAGEMENT—Public sector mechanisms designed to deal with
the rate, dispersion, and social effects of new or expanding
communities. Growth management may include planning, social
programs, legal guidelines, and fiscal management.
HAZARDOUS AIR POLLUTANTS—Those pollutants with no ambient air
quality standard (q.v.) but which contribute to an increase
in mortality or serious illness. These include asbestos,
beryllium, and mercury. Hazardous air pollutants are an
area of direct federal controls, beyond the control of State
Implementation Plans (q.v.).
HEAT EXCHANGER—A device in which heat energy is transferred from
one fluid to another due to a temperature difference between
the two fluids.
HEAVY METALS—Metals with an atomic weight greater than about 40.
Many occur in coal and some are toxic at higher than normal
concentrations.
HIGH-BTU GAS—An equivalent of natural gas, predominantly methane,
obtained by methanating synthesis gas which is provided from
coal; energy content is usually 950-1,000 Btu's per cubic
foot.
HIGHER ORDER GOODS AND SERVICES—Those goods and services that
are purchased less frequently and are generally more expen-
sive; they are available only in larger cities. The higher
the order of goods or service, the larger the city which
provides it (cf.. Lower Order Goods and Services).
HIGH-LEVEL SOURCES—Tall stack (q.v.) that emit air pollutants
several hundred feet above the ground.
HYDRATE—A compound of complex ion formed by the union of water
with some other substance.
HYDROCARBONS—Organic compounds containing only carbon and
hydrogen, characteristically occurring in petroleum, natural
gas, coal, and bitumens. When in an air quality context,
refers to non-methane (q.v.) hydrocarbons.
HYDROLOGY—A science dealing with the properties, distribution,
and circulation of water on the surface of the land, in the
soil and underlying rocks, and in the atmosphere.
HYDROSTATIC HEAD—The pressure created by the height of a column
of water.
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IMPROVED RECOVERY TECHNIQUES-Methods of increasing the amount of
oil extracted from a field by adding supplemental energy to
the reservoir through the injection of gases, fluids, or
INCREMENTALISM--A policy of political or social change in small
increments.
INFILTRATION—Water entering the groundwater system through the
land surface.
INFRASTRUCTURE— The set of capital facilities (roads, utilities,
etc.) and social services (law enforcement, medical care,
etc.) necessary to support the operation of a community.
INPUT-OUTPUT MODEL—A linear model which considers the flow of
goods and services between industries to describe an economy
and to predict the impacts from exogenous (q.v.) changes.
IN-SITU — In the natural or original position; applied to energy
resources when they are processed or converted in the
geologic strata where they were originally deposited.
INSOLATION — Solar radiation received on a given body or over a
given area.
INTEGRATED TECHNOLOGY ASSESSMENT — See Technology Assessment.
INTERMITTENT CONTROL SYSTEMS — The manipulation of emission rates
from electric power plants based on adjusting coal composi-
tion and plant operating levels to the existing or predicted
meteorological conditions to maintain a specified level of
ambient air quality.
INTERMITTENT STREAM — A stream that usually flows only in response
to precipitation. It receives little or no water from
perennial springs and is dry for a large part of the year.
INVERSION FREQUENCIES — The percentage of time that the ground
layer of the atmosphere has temperature increasing with
increasing height, thus inhibiting vertical mixing (q.v.) of
air.
INVERSION LAYER — A layer of the atmosphere through which tempera-
ture increases as altitude increases, thus inhibiting
vertical mixing (q.v.) of air (see Trapping) .
KATABATIC CIRCULATION — Any wind blowing down an incline. If the
wind is warm, it is called a foehn or Chinook; if cold, it
is usually a gravity wind in which cold, dense air drains to
lower elevations.
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KEROGEN—A solid, largely insoluble organic material occurring in
oil shale (q.v.) which yields oil when it is heated but not
oxidized.
KETONE—Any of various organic compounds containing a carbonyl
group (CO) attached to two carbon atoms (C) (The carbonyl
group is linked to hydrocarbon groups in the middle of the
chain resulting in at least one hydrocarbon group on each
side of the carbonyl group).
KILOCALORIE—1,000 calories; a unit of energy equal to 3.968
Btu's (q.v.) or the energy required to heat 1 kilogram of
water 1 degree centigrade.
KINETIC ENERGY—The energy that an object possesses because it is
moving; an object's Kinetic energy is determined by its mass
and speed.
Ld—Daytime equivalent sound level; i.e., Leg (q.v.) for daytime
(0700-2200 hours).
L
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LIMESTONE--A bedded sedimentary deposit consisting chiefly of
calcium carbonate (CaCO3) which yields lime (CaO) when
burned. A general term for that class of rocks which con-
tain at least 80 percent of the carbonates of calcium or
magnesium.
LIQUEFACTION—The conversion of a solid fuel, such as coal or
organic waste, into liquid hydrocarbons and related com-
pounds .
LOAD—In water quality use, the quantity of material carried by
flowing water. Generally expressed as pounds per day.
LOAD FACTOR—See Plant Factor.
LOCK HOPPER—A device for introducing solids, such as coal, into
a pressurized system.
LONG-RANGE VISIBILITY—The clarity of vision over a great dis-
tance. In general, the pollution factors affecting visibil-
ity are the amount of particles suspended in the atmosphere
and their size distribution. Fine particulates suspended in
the atmosphere scatter light. At long distances, this
scattered light reduces the contrast between objects to a
level below the contrast threshold of the human eye, thus
limiting the distance at which different objects may be
distinguished.
LONGWALL MINING—An underground method where a long (about 600
feet) mine cutting face (q.v.) is continuously sheared.
Roof support is provided by a hydraulically advanced steel
roof.
LOW-BTU GAS—Gas obtained by partial combustion of coal with air;
energy content is usually 100-200 Btu's per cubic foot.
LONER ORDER GOODS AND SERVICES—Those goods and services that are
purchased frequently and are generally inexpensive; they are
usually purchased near the consumer's place of residence
(cf., Higher Order Goods and Services).
LOW-LEVEL SOURCES—Sources such as towns, strip mines, and tank
farms that emit pollutants close to ground level (cf., high-
level sources).
LURGI MGH-BTU GASIFICATION—A process using a medium-pressure
reactor that adds steam and oxygen to coal supported by a
rotating grate to produce medium-Btu gas, which is then
upgraded in a methanation (q.v.) step.
MAGNETIC SURVEY—An exploration method based on distortions in
the normal magnetic field of the earth's crust.
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MANTLE—A layer of loose rock fragments overlying solid rock.
MEGAWATT—1 million watts or 1,000 kilowatts. This unit is used
to express the amount of power as electricity (megawatts-
electric) that can be produced by a facility at any one
time. One megawatt equals 1,340 horsepower.
MERCAPTAN—Any of various organic compounds containing a sulfur
and hydrogen group (SH) and a hydrocarbon (q.v.) group such
as CH3. The sulfur present in the compound often causes
disagreeable odors. Also known as Thiol.
METHANATION—The catalyzed (q.v.) reaction of CO and H2 to form
CH4 (methane, q.v.) and ^O.
METHANE—A colorless, odorless, poisonous, flammable gaseous
hydrocarbon, CB.A, that is a product of decomposition of
organic matter in marshes or mines or of the carbonization
of coal. It is used as a fuel and as a raw material in
chemical synthesis. It is the principal constituent of
natural gas (q.v.).
MICROWATERSHED—A very small area of a locality with one bush or
shrub as the center of a catchment basin.
MILLING—A process in the uranium fuel cycle where ore which
contains only .2 percent uranium oxide (q.v.) is converted
into a compound called yellowcake (q.v.) which contains
80- to 83-percent uranium oxide.
MILL LEVY—A tax rate by which the assessed valuation (q.v.) is
multiplied to determine the annual tax payment. It is
expressed in terms of dollars of tax per $1,000 of property.
MINE-MOUTH—The vicinity or area of a mine, usually within
several miles.
MINERAL CYCLES (BIOGEOCHEMICAL CYCLES)—The path which a sub-
stance (water, oxygen, nitrogen, etc.) follows as it is used
in the food chain, expelled as waste, and through reaction
in the environment, is returned to its original form to be
used again. For example, nitrogen is incorporated in soils
by bacteria, used by plants, consumed by animals* and
returned to the soil and atmosphere by death and bacterial
decay.
MIXING DEPTH—The height above the surface to which vertical
mixing (q.v.) and neutral lapse rate (adiabatic decrease in
air temperature with increasing height) occur because of
mechanical turbulence and/or surface heating.
1124
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MOBILE SOURCE POLLUTANTS—Pollutants from moving sources,
characteristically automobile emissions, which are generally
controlled by EPA rather than state regulations..
MULTIPLIER--* factor which shows the ratio of total economic
expansion to an exogenous (q.v.) increase in a local or
regional economy. A multipler may be applied to basic
employment (q.v.) to derive non-basic employment (q.v.).
NAPHTHA—Any of various volatile, often flammable liquid hydro-
carbon (q.v.) mixtures used chiefly as solvents and diluents.
NATURAL DRAFT COOLING TOWERS—See Cooling Towers.
NATURAL GAS—A mixture of lightweight hydrocarbons (q.v.) in
geologic deposits, with its predominant compound being
methane (q.v.).
NAVIGABLE WATERS—Those waters capable of being used for commerce
among the states and hence subject to federal control.
Under the Federal Water Pollution Control Act Amendments
(q.v.) of 1972 (FWPCA), the definition of navigable waters
has been expanded to make nearly all bodies of water subject
to federal pollution controls.
NET ENERGY—The amount of energy that remains after the energy
costs of finding, producing, upgrading, and delivering the
energy have been paid.
NET PRIMARY PRODUCTION—The amount of energy available from
plants; an indicator of ecosystem function and capacity (see
Production).
NEW FEDERALISM—A term coined by the Nixon administration to
refer to a shift in responsibility and authority away from
the federal government and toward state and local govern-
ments. New Federalism was implemented primarily by means
of revenue sharing, regionalization of federal agencies, and
dissolution of some federal administrative responsibilities.
NEW OIL—Domestic oil produced in excess of a property's 1972
production rate or from wells drilled since 1972 (see Old
oil) .
NITROGEN OXIDES (NOX)—A class of air pollutants which includes
several forms of the compound (NO, NO2» NO3» etc.). NOX is
produced during combustion and is one of the reactants
involved in the formation of photochemical smog.
NON-BASIC EMPLOYMENT—See Economic Base Model.
1125
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NONPOINT SOURCE WATER POLLUTION—Areawide water wastes, essentially
those which are transported to surface and groundwaters from
sources other than pipes and ditches. These include pesti-
cides, fertilizers, sediments, natural salts, animal wastes,
plant residues, and minerals (see Point Sources).
NON-SIGNIFICANT DETERIORATION—Air quality standards based on an
area classification system. EPA has established three
classifications for clean air areas which permit progres-
sively larger incremental additions of concentrations of SO2
and total suspended particulates: Class I, which permits
the smallest additions to protect the nation's cleanest
areas such as national parks; Class II, which permits
larger additions, but the allowed incremental additions are
below national ambient air standards; and Class III, which
permits deterioration to national secondary standards.
NUTRIENTS—Any chemical elements incorporated by a plant or
animal and essential for growth and maintenance.
OIL SHALE—Sedimentary rocks containing insoluble organic matter
(keroqen, q.v.) which can be converted into oil by heating.
OLD OIL—Domestic oil production that is equal to or lower than
a property's 1972 production rate and subject to a federal
ceiling price. Equivalent to "controlled crude oil".
OPERATING COSTS—Costs that vary with the level of output such as
labor costs, raw material costs, supplies, etc.
ORDER OF MAGNITUDE—A range of magnitude extending from some
value to 10 times that value; a 10-fold change.
OUTCROP—A place where a mineral formation is exposed to direct
observation from the land surface.
OVERBURDEN—The rock, soil, etc., covering a mineral to be mined.
OXIDANTS—A class of secondary pollutants (q.v.), some of which
are formed by photochemical processes and are capable of
corrosive and/or oxidative chemical reactions.
OZONE (03)—An oxidant formed in atmospheric photochemical
reactions.
PARENT MATERIAL—The unconsolidated mass of rock material from
which the soil profile develops.
1126
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PARTICULATES—Microscopic solids that emanate from a range of
sources and are widespread air pollutants. Those between 1
and 10 microns are most numerous in the atmosphere, stemming
from mechanical processes and including industrial dusts,
ash, etc.
PARTIES-AT-INTEREST—Individuals, groups, or organizations (such
as local residents, Indian tribes, industry, labor, or
various levels of government) whose interests or values are
likely to be affected by the development of western energy
resources.
PASQUILL STABILITY CLASSES—A system of classifying atmospheric
stability on an hourly basis for research in air pollution;
this system uses a matrix relating net radiation and surface
wind speed (the primary determinants of air stability near
the ground).
PEAK CONCENTRATION—The highest air pollutant density measured or
predicted. Always cited with respect to an averaging time
(q.v.).
PEAKING UNITS—Electric power generation units that are rela-
tively small, expensive to operate, and inefficient but that
are easily started or shut down. These units are used only
when the electrical demand exceeds the generating capacity
of the base load (q.v.) and intermediate load units.
PEAK LOAD—The highest point in consumer demand for electric
power; the maximum electrical demand during some time
period.
PERCHED AQUIFER—A small aquifer (q.v.) supported above the
general groundwater system as in a hill.
PERCOLATION—Downward movement of water through soils.
PERMEABILITY—The ability of a porous medium to conduct fluid.
PEROXYACYL NITRATES (PAN)—Organic compounds formed in smog
atmospheres that are believed to be one source of the
characteristic eye irritation accompanying smog.
—The symbol for a scale commonly used to express degrees of
acidity or alkalinity. On this scale, a pH of 1 is the
strongest acid, a pH of 14 is the strongest alkali, and a
pH of 7 is the point of neutrality at which there is neither
acidity or alkalinity.
1127
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PHENOL—Any of various organic compounds containing a hydroxide
group (OH) and a hydrocarbon (q.v.) group such as CH3.
Phenols are highly reactive compounds and are often toxic.
They occur in the wastewater of some energy—producing tech-
nologies.
PILLAR—A solid mass of coal, ore, or rock left standing to
support a mine roof (see Room-and-Pillar Mining).
PIT—A specific area of an open-cut mine which may refer only to
that part of the mine from which coal is being actively
removed or may refer to the entire contiguous mined area.
PLACER DEPOSIT—A deposit of clay, silt, sand, gravel, or similar
material deposited by running water which contains particles
of uranium, gold, or some other valuable mineral.
PLANT FACTOR—The ratio of the actual output of a generator over
a period of time to the potential output if the generator
were operating at 100 percent of capacity. Also called Load
Factor.
PLUME—The generally visible or otherwise diseernable column of
gases and other materials emanating from an exhaust stack
(q.v.).
PLUME LOOPING—Rising, falling, turning, and/or up-and-down flows
of a plume (q.v.) as it responds to convection currents,
eddies, and breezes due to unstable weather conditions.
PLUME OPACITY—The degree of opaqueness of a plume (q.v.) due
primarily to the size, distribution, concentration, and
optical properties of particles in the plume (See Lonq-
Ranqe Visibility). Federal New Source Performance Standards
require that plume opacity be less than 20 percent.
PLURALISM—Within the confines of a common political system, the
autonomous participation in and development of the special
interests of members of diverse groups.
POINT SOURCE—In water pollution, those sources of water pollu-
tion which are discrete conveyances "(pipes, channels, etc.)
and are controlled by the effluent standards of the Federal
Water Pollution Control Act Amendments (q.v.) of 1972
(FWPCA). These include effluents from municipal sewage
systems, storm water runoff, industrial wastes, and animal
wastes from commercial feedlots.
POND LINER—The bottom of a pond; typically, a specially prepared
layer of clay (q.v.), less permeable soils, or man-made
materials.
1128
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PRECURSOR—Something which precedes or suggests the course of
future events (as the presence of nitrogen oxides in the
atmosphere indicates or precedes the formation of nitrates).
PRIMARY AMBIENT AIR QUALITY STANDARDS—According to the Clean Air
Act (q.v.) of 1970, the air quality level which must be met
to protect the public health (see Secondary Air Quality
Standards).
PRIMARY ECONOMIC ACTIVITIES—Those activities (employment, con-
sumption, etc.) of man concerned with the direct use of a
resource; e.g., mining, fishing, agriculture, etc.
PRIMARY EFFICIENCY—See Energy Efficiency.
PRIMARY POLLUTANT—Chemical pollutants emitted or discharged
directly from facilities (cf., secondary pollutant).
PROCESS HEAT—Utilization of a fuel to produce heat for an
industrial or manufacturing operation.
PRODUCTION/PRODUCTIVITY—The capacity of biological or societal
organizations to produce or manufacture stored energy or
other outputs, typically measured in terms of calories,
Btu's, harvests or goods and services, etc. (see Net
Primary Productivity).
PROFIT MARGIN—Profit as a percentage of sales.
PROFIT SHARE BIDDING—A system for making natural resources
available for private development by those companies or
individuals which submit the highest bids on shares of
leases. Money paid for shares would be used to cover
exploration costs, with any money left reverting to the
government. Instead of a royalty, the federal government
would retain a fixed share of the profits.
PROVINCE—The largest unit used by the U.S. Geological Survey to
define the areal extent of coal resources.
PYROLYSIS—Decomposition of materials through the application of
heat with insufficient oxygen for complete oxidation.
RANGELAND—Land where the potential natural vegetation is predom-
inantly grasses, grasslike plants, forbs, or shrubs usable
by grazing animals.
RANK—A classification of coal according to percentage of fixed
carbon and heat content. High rank coal is presumed to have
undergone more geological and chemical change than lower
rank coal.
1129
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RARE SPECIES—A species limited in abundance or encountered
infrequently.
REGIONAL SCENARIO—The largest aggregated scenario, comprising
the eight-state Rocky Mountain and Northern Great Plains
region. The states are Montana, North Dakota, South Dakota,
Wyoming, Colorado, Utah, Arizona, and New Mexico.
RESERVATION DOCTRINE—One of many mechanisms regulating water use
stipulating that the federal government implied a reserva-
tion of sufficient water each time land was set aside for
federal purposes. This doctrine places Indian tribes or the
federal government in the position of potentially control-
ling vast quantities of western water.
RESERVES—Resources of known location, quantity, and quality,
which are economically recoverable using currently available
technologies.
RESIDUALS—The quantities of inputs to, and non-energy outputs
of, the technological processes involved in energy resource
development.
RESOURCES—Mineral or ore estimates that include reserves (q.v.),
identified deposits that can not be presently extracted due
to economical or technological reasons, and other deposits
that have not been discovered but are inferred to exist.
RETORT—A structure used for distillation of volatile materials;
for example, a closed heating facility used to process oil
shale (q.v.).
RIPARIAN—Related to or living/located on the bank of a river or
stream.
RIPARIAN WATER LAW—Common law under which the owner of land
alongside a body of water is allowed a "reasonable use" of
water as it passes by or through his property.
ROOM-AND-PILLAR MINING—An underground mining technique in which
volumes of a coal or oil shale seam are removed and columns
of the deposit are left in place to support the roof (cf.,
longwall mining) .
ROTARY DRILL—A machine which uses a revolving bit to bore holes.
ROTARY DRILLING—A drilling method that uses a rotating bit to
which a downward force is applied. The bit is fastened to
and rotated by the drill string (q.v.) through which the
drilling fluid is circulated.
1130
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ROTARY KILN—A heated, horizontal, rotating cylinder used to dry
COcLX *
SALINE SOIL—A soil containing enough soluble salts to impair its
productivity (q.v.) for plants but not containing an excess
of exchangeable sodium.
SANDSTONE—A cemented or otherwise compacted sediment composed
primarily of quartz grains of sand particle size.
SCENARIO—-A projected course of actions or events; a mechanism
for identifying and assessing the likely consequences of
hypothetical patterns of development (see regional scenario;
site specific scenario).
SCRUBBER—Equipment used to remove pollutants (such as sulfur
dioxides or particulate matter) from stack gas emissions,
usually by means of a liquid sorbent.
SECONDARY AMBIENT AIR QUALITY STANDARDS—According to the Clean
Air Act (q.v.) of 1970, these standards specify the level of
air quality that is necessary to protect the public welfare.
(Welfare, according to the Clean Air Act, includes, but is
not limited to: effects on soils, water, crops, vegetation,
man-made materials, animals, wildlife, weather, visibility
and climate, damage to and deterioration of property, and
hazards to transportation, as well as effects on economic
values and on personal comfort and well-being.) Secondary
standards are more stringent than Primary Ambient Air
Quality Standards (q.v.).
SECONDARY ECONOMIC ACTIVITIES—Those activities (employment,
consumption, etc.) related to the processing or manufac-
turing of goods (cf., Primary Economic Activities).
SECONDARY RECOVERY—Methods of obtaining oil and gas by the
augmentation of reservoir energy; often by the injection of
air, gas, or water into a production formation (see Tertiary
Recovery).
SECONDARY POLLUTANTS—Pollutants resulting from chemical changes
of substances directly discharged from facilities.
SHALE—Sedimentary or stratified rock structure generally formed
by the consolidation of clay (q.v.) or clay-like material.
SHEARING MACHINE—An excavating machine used in lonqwall mining
(q.v.) which has a rotating toothed drum that cuts parallel
to the coal face.
1131
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SHIFT CONVERSION—A step in the process of converting coal to
methane (q.v.); during this step, the ratio of H2 to CO is
altered to 3:1 through the use of a catalyst (q.v.).
SILT—Loose sedimentary material with rock particles usually 1/20
millimeter or less in diameter but coarser than clay (q.v.).
SILTATION—The deposition or accumulation of fine particles that
are suspended throughout a body of water or in some consid-
erable portion of it; especially the choking, filling, or
covering with stream-deposited silt behind a dam or other
place of retarded flow.
SITE-SPECIFIC SCENARIO—A scenario (q.v.) that postulates the
development of one or more energy resources at a particular
site over specified time periods using a particular combina-
tion of technologies.
SLAG—Molten or solidified ash (q.v.).
SLUDGE—A muddy or slushy deposit or sediment; the precipitate
resulting from chemical treatment of water or coagulation.
SLURRY—A mixture of a liquid and a solid. Slurries of oil and
coal or water and coal are used in coal processing and
transportation.
SLURRY PIPELINE—A pipeline through which coal (in the form of
a mixture of water and coal) is transported.
SOCIAL CONTROLS—Formal (such as administrative and regulatory)
and Informal (such as interest-group) sanctions relating to
the various phases of energy resource development.
SOCIOECONOMIC IMPACTS—Changes in population, economy, culture,
and other economic and social conditions resulting from an
exogenous (q.v.) change in an area.
SPENT SHALE—The material remaining after the keroqen (q.v.) is
removed from oil shale (q.v.) by retorting (q.v.). Its
volume is greater than that of the original oil shale.
SPOILS—The rock, soil, etc., of the overburden after it has been
broken and removed from above the coal seam.
SPOT-MARKET PRICE—The price of energy commodities sold for cash
or immediate delivery.
STABILITY CLASS DISTRIBUTION—The frequency of occurrence asso-
ciated with each of the six Pasquill stability classes
(q.v.) on a monthly, seasonal,' or annual basis at a particu-
lar location.
1132
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STACK—A tall pipe for the escape of the smoke or gases of
combustion (see high-level sources!.
STACK GAS—Combustion gases that result from the burning of a
fossil fuel.
STACK GAS CLEANING~The removal of pollutants from combustion
gases before those gases are emitted to the atmosphere.
STACK GAS SCRUBBER—See Scrubber.
STATE IMPLEMENTATION PLANS (SIP1 S)—Required by the Clean Air
Act (q.v.) of 1970, SIP's outline state procedures for
enforcing national ambient air standards and for monitoring
the performance of local programs.
STRIP MINING—A mining method that entails the complete removal
of all material from over the resource to be mined in a
series of rows or strips; also referred to as surface
mining.
STRIPPING—The removal of earth or non-ore rock materials as
required to gain access to the ore or mineral materials
wanted. The process of removing overburden (q.v.) or waste
material in a surface mining operation.
SUBBITUMINOUS—A low rank (q.v.) coal with low fixed carbon and
high percentages of volatile matter and moisture.
SUBSIDENCE—The sinking, descending, or lowering of the land
surface; the surface depression over an underground mine
that has been created by subsurface caving.
SULFATES—A class of secondary pollutants (q.v.) that includes
acid-sulfates and neutral metallic sulfates.
SURFACE WATER—Water occurring on the surface of the ground
whether in water courses or diffused in such forms as snow
and ice.
SUSPENDED SOLIDS—Sediment which is in suspension in water and
which will physically settle out under quiescent conditions
(cf.. Dissolved Solids).
SYNCRUDE—A liquid obtained by processing oil shale (q.v.) or
coal.
SYNOPTIC METEOROLOGY—The use of meteorological data obtained
simultaneously over a wide area for the purpose of pre-
senting a comprehensive and nearly instantaneous picture of
the state of the atmosphere (cf., dynamic meteorology).
1133
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SYNOPTIC-SCALE FLOW—Air circulations having the scale of the
migratory high and low pressure systems of the atmosphere,
with horizontal dimensions on the order of 1,000 to 2,500
kilometers.
SYNTHANE HIGH-BTU GASIFICATION—A fluidized bed (q.v.), high-
pressure reactor process using steam and oxygen, which is
distinguished by the high methane yield in the initial reac-
tion process.
SYNTHESIS GAS—Intermediate-Btu gas; almost always used as a
feedstock (q.v.) but can be used as a starting point for the
manufacture of high-Btu gas, methanol, or other products.
SYNTHETIC NATURAL GAS—Gas produced from a fossil fuel such as
coal, oil shale, or organic material and having a heat con-
tent of about 1,000 Btu's (q.v.) per cubic foot.
SYNTHOIL LIQUEFACTION—A high-pressure, high" temperature process
which makes a liquid hydrocarbon from coal by adding hydro-
gen to the coal using a catalyst (q.v.).
TAILINGS—Refuse material separated as residue in the preparation
of various products such as ores.
TECHNOLOGICAL FIX—The application of technology to resolve
social problems rather than seeking resolutions through
behavioral or attitudinal change.
TECHNOLOGY ASSESSMENT (INTEGRATED TECHNOLOGY ASSESSMENT)—An
examination (generally based on previously completed research
rather than initiating new primary research) of the second
and higher order consequences of technological innovation.
TA attempts to balance these consequences against first-
order benefits by identifying and analyzing alternative
policies and implementation strategies so that the process
of coping with scientific invention can occur in conjunction
with, rather than after, such invention.
TERRAIN IMPACTION—Contact between a stack-gas plume (q.v.) and
the surface of the earth, such as a mountain, plateau, etc.
TERTIARY RECOVERY—The use of heat and other methods other than
fluid injection to augment oil recovery (presumably occur-
ring after secondary recovery [q.v.]).
THREATENED SPECIES—Any species of fish or wildlife which is
likely to become an Endangered Species (q.v.) within the
foreseeable future throughout all or a significant part of
its range.
1134
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TOPOGRAPHY--The shape of the ground surface, such as hills,
mountains, or plains. Steep topography indicates steep
slopes or hilly land; flat topography indicates flat land
with minor undulations and gentle slopes.
TOSCO II PROCESS—A retort for prpducing a liquid hydrocarbon
from oil shale (q.v.) that uses externally heated solid
pellets to transfer heat to the shale in a reducing atmo-
sphere .
TOTAL DISSOLVED SOLIDS (TDS)—Dissolved mineral salts generally
consisting of sodium, calcium, magnesium, sulfate, chloride,
and bicarbonate ions (see Dissolved Solids).
"TRADE-OFF"—Any choice between desired goals which requires one
to be foregone in order to achieve the other.
TRAJECTORY—The overall sequence of individual technological
processes that comprise a system of resource development.
TRANSPORT MODELING—A method of predicting ambient concentra-
tions, both in air and water, of pollutants emitted from a
source or combination of sources (see dispersion model).
TRANSPORT WIND FIELD—The set of ambient wind directions and
speeds input to a transport model.
TRAPPING—The confinement of a layer of air (sometimes smog- or
pollutant-laden) at ground level due to an inversion layer
(q.v.) which prevents normal circulation.
TROMMEL SCREEN—A usually cylindrical or conical revolving screen
used for screening or sizing substances such as rock, ore,
or coal.
TURBINE—A rotary engine activated by the reaction and/or impulse
of a current of pressurized fluid (water, steam, liquid
metal, etc.) and usually made with a series of curved vanes
on a central rotating spindle.
ULTRA-HIGH VOLTAGE (UHV) TRANSMISSION—Transmission of electrical
power at 800 kilovolts or greater.
UNDERFLOW—A permeable (q.v.) deposit underlying a surface stream
channel.
UNIT TRAIN—A single train used for one commodity, one origin,
and one destination typically in a long-term contract (cf.,
dedicated railroad).
1135
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UPPER COLORADO RIVER BASIN COMPACT (1948)—An agreement that
provided for division of Upper Basin waters with 50,000
acre-feet to Arizona and the remainder allocated to Colorado
(51.75%), New Mexico (11.25%), Utah (23%), and Wyoming
(14%) .
URANIUM—A radioactive element of atomic number 92; naturally
occurring uranium consists of 99.29 percent uranium-238 and
.71 percent uranium-235. Uranium-235 will fission when
bombarded with fast or slow neutrons; uranium-238 will
fission on absorption of a fast neutron or can be converted
to plutonium-239.
URANIUM OXIDE (U3Os)—The most common compound of uranium; used
in the diffusion process of enrichment (q.v.).
VERTICAL MIXING—The movement of air through the layers of the
atmosphere and its interaction with air from other alti-
tudes. Vertical mixing is at a peak during unstable condi-
tions and lowest in stable air (cf., inversion layer).
VISCOSITY—The property of a fluid which indicates its ability to
resist flow.
VOLATILE—Readily turning to a gas (vaporizable) at relatively
low temperature.
WATERSHED AREA—Surface region or area contributing to the supply
of a stream or lake; drainage area, drainage basin (q.v.),
and catchment area are other names.
WELLBORE—The hole made by the drilling bit.
WINDROSE—See Basic Stability Windrose Information.
WELLHEAD—The equipment used to maintain surface control of a
well. It is formed of the casing head, tubing head, and
Christinas tree (q.v.). Also refers to various parameters as
they exist at the wellhead, such as wellhead pressure,
wellhead price of oil, etc.
WET COOLING TOWERS—See Cooling Towers.
WET STEAM—A two-phase steam consisting of steam and water (cf.,
dry steam).
WORKING FLUID—Fluid in a closed loop in an electrical generation
system that is heated by the energy source, expanded through
the turbine (q.v.), cooled, and returned to the heat source.
1136
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YELLOWCAKE—The product of the milling (q.v.) process in the
uranium fuel cycle. It contains 80- to 83-percent Uranium
Oxide (q.v.).
1137
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I. REPORT NO.
EPA-600/7-77-072c
fPleau r«*JE£HlyCAL IMPORT DATA
(Heou read Intouctiom on the reverse before completing)
3. RECIPIENT'S ACCESSION-NO.
4. TITLE AND SUBTITLE
Energy from the West: A Progress Report of a
Technology Assessment of Western Energy Resource
Development Volume III Preliminary Policy Analysis
5. REPORT DATE
June, 1977
i. PERFORMING ORGANIZATION CODE
Irvin L. White, et al
8. PERFORMING ORGANIZATION REPORT NO
9. PERFORMING ORGANIZATION NAME AND ADDRESS"
Science and Public Policy Program
University of Oklahoma
601 Elm Avenue, Room 432
Norman, Oklahoma 73019
10. PROGRAM ELEMENT NO.
EHE 624C
11. CONTRACT/GRANT NO.
68-01-1916
2. SPONSORING AGENCY NAME AND ADDRESS
U.S. Environmental Protection Agency
Office of Research and Development
Office of Energy, Minerals, and Industry
Washington, D.C. 20460
13. TYPE OF REPORT AND PERIOD COVERED
Final, July, 1975-March, 1977
14. SPONSORING AGENCY COOP
This project is part of the EPA-planned and coordinated Federal Interagency
Energy/Environment R&D Program
This is a progress report of a three year technology assessment of the
development of six energy resources (coal, geothermal, natural gas, oil, oil shale,
and uranium) in eight western states (Arizona, Colorado, Montana, New Mexico,
North Dakota, South Dakota, Utah, and Wyoming) during the period from the present
to the year 2000. Volume I describes the purpose and conduct of the study,
summarizes the results of the analyses conducted during the first year, and outlines
plans for the remainder of the project. In Volume II, more detailed analytical
results are presented. Six chapters report on the analysis of the likely impacts
of deploying typical energy resource development technologies at sites representative
of the kinds of conditions likely to be encountered in the eight-state study area.
A seventh chapter focuses on the impacts likely to occur if wester energy resources
are develped at three different levels from the present to they year 2000. The two
chapters in Volume III describe the political and institutional context of
policymaking for western energy resource development and present a more detailed
discussion of selected problems and issues. The Fourth Volume presents two
appendices, on air quality modeling and energy transportation costs.
7.
KEY WORDS AND DOCUMENT ANALYSIS
DESCRIPTORS
b. IDENTIFIERS/OPEN ENDED TERMS C. COS AT I Field/Group
Systems Analysis
Electrical Power
Fossil Fuels
Ecology
Government Policies
Technology Assessment
Western Energy
Resource Development
Impacts
0402
0503
0504
0511
0606
0701
0809
1001
1002
1202
1302
1401
2104
8. DISTRIBUTION STATEMENT
Unlimited
19. SECURITY CLASS (This Report)
21. NO. OF PAGES
191
20. SECURITY CLASS /Thispage)
Unclassified
22. PRICE
EPA Form 2220-1 (9-73)
9U.S. GOVERNMENT PRINTING OFFICEl IB77-241 - 037/51
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