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Resources of Rocky Mountain States and Coal Development

Natural Resource Economics Division and Economic Development Division, Economics, Statistics, and Cooperatives Service

No 329648, Economics Statistics and Cooperative Services (ESCS) Reports from United States Department of Agriculture, Economic Research Service

Abstract: Surface and underground mining of coal and coal-fired electric power generation in the Rocky Mountain States (RM) are developing rapidly. There is a need to analyze the cumulative effects of greatly expanded energy development in this region. USDA economists are undertaking an integrated assessment of how alternative patterns of coal development and use might affect agriculture, rural people and communities, and the availability and use of land and water. This report is one of a series and is primarily descriptive, laying groundwork for analysis to be reported subsequently. Fifteen RM sub-regions called Coal Production Areas (CPA) are delineated. These include all the RM areas containing commercially recoverable coal reserves, although significant coal mining is not yet occurring in all the CPA's. Coal-related activity in seven of these CPA's grew considerably starting in the early 1970 's. In these areas, employment and population expanded rapidly. Previous outmigration of population from these CPA's reversed, in general, in the early 1970 's to become a net inmigration. The greater employment opportunities associated with coal development are partly responsible. The RM contains only 5 percent of U.S. coal reserves, but this comes to about 23.7 billion tons. Of that amount, 3.7 billion tons are surface mineable, enough to allow major mining activity for a long time. Underground mining of deeply-buried reserves is also developing, however, particularly in some of the 14.5 billion-ton reserves of excellent quality, highly-ranked bituminous coal. The 5.4 billion ton deep-mineable reserves of lower-energy sub-bituminous coal are much less likely to be developed soon. About three-fourths of RM coal is relatively low in sulfur content, making it desirable for use by electric utilities in meeting air quality and emission standards of States and the Federal Government. Coal production in the RM has risen from about 9 million tons per year in 1960 to 19 million in 1970 and 37 million in 1976. Two-thirds of this amount is now mined by surface methods, whose share is increasing. About two-thirds of the coal is burned by electric power plants in the RM itself, although the proportion of coal which is being shipped outside the RM region has been rising. Only 1/10 of 1 percent of the RM land surface is underlain by surface mineable coal reserves, and less than one percent by all coal reserves. For all the CPA's, the Federal Government is the dominant owner of land, with 41 percent of total acreage. Private owners have 31 percent, Indians 22 percent, States 6 percent. Of the total land area, 53 percent is in farms and ranches, although almost all of this is pasture and range. There are 16,000 farms and ranches. Most of the small amount of cropland is irrigated, but almost all of the irrigated land is used to support livestock ranching in some way, such as by producing feedgrains or hay for irrigated pasture. Sales of livestock account for most of farm income. Irrigation accounts for 60 percent of surface water use in the Upper Colorado Basin, about the same in the Lower Colorado. Assessing the availability of water for future energy development in the RM is extremely complex, but, in general, there is very little Colorado River water available except through diversion from current uses, such as agriculture. Alternatives need to be explored for obtaining water for energy development from increased use of groundwater, as well as from more efficient water use in both farming and energy industries.

Keywords: Community/Rural/Urban Development; Crop Production/Industries; Environmental Economics and Policy; Labor and Human Capital; Land Economics/Use; Livestock Production/Industries; Research Methods/Statistical Methods; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 132
Date: 1978-04
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uerscs:329648

DOI: 10.22004/ag.econ.329648

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