BLM LIBRARY

88009582

SOCIOECONOMICS

TECHNICAL REPORT N0.9

MT. HOPE MOLYBDENUM PROJECT

View from tht south looking north

U.S. DEPARTMENT OF INTERIOR

BUREAU OF LAND MANAGEMENT

BATTLE MOUNTAIN, NEVADA

DECEMBER 1984

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SOCIOECONOMICS

.MS

TECHNICAL REPORT N0.9

MT HOPE MOLYBDENUM PROJECT

ML HOPE

View from th« south looking north

U.S. DEPARTMENT OF INTERIOR

BUREAU OF LAND MANAGEMENT

BATTLE MOUNTAIN, NEVADA

DECEMBER 1984

vO^

SOCIOECONOMICS

TECHNICAL REPORT NO. 9

TABLE OF CONTENTS

PAGE

Table of Contents i

List of Tables ill

List of Figures iv

CHAPTER 1.0- INTRODUCTION 1-1

1.1 Introduction 1-1

1.2 Project Description 1-1

1.3 Baseline Data Development 1-2

1.4 Impact Analyses Methodology 1-12

1.4.1 Project Sensitive Components 1-13

1.4.2 Fiscal Impact Analyses 1-14

CHAPTER 2.0 - BASELINE SOCIOECONOMIC DESCRIPTION 2-1

2.1 Introduction 2-1

2.2 Population 2-1

2.3 Employment and Income 2-11

2.3.1 Employment 2-11

2.3.2 Income 2-28

2.4 Selected Regional Economic Activities 2-35

2.4.1 Mining/Mineral Exploration 2-35

2.4.2 Agriculture, Government and Other Sectors 2-41

2.5 Local Government and Public Finance 2-43

2.5.1 County and City Government 2-43

2.5.2 Public Finance 2-51

2.6 Housing 2-7 0

2.7 Attitudes and Lifestyles 2-77

2.8 Community Services and Facilities 2-84

2.8.1 Schools 2-84

2.8.2 Health 2-87

2.8.3 Law Enforcement 2-92

2.8.4 Fire Protection 2-95

2.8.5 Public Utilities and Communications 2-97

2.8.6 Water and Wastewater 2-102

2.8.7 Solid Waste 2-104

2.8.8 Community Facilities and Recreation 2-104

CHAPTKR 3.0 - IMPACT ANALYSES 3-1

3. 1 Introduction 3-1

3.2 Assumptions and Analysis Guidelines 3-2

3.3 Methods of Analysis 3-9

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TABLE OF CONTENTS (cont.)

PAGE

3.3.1 Introduction

3.3.2 Assumptions

3.3.2.1 Population - Housing

3.3.2.2 Revenues - Expenditures

3.3.3 Methods of Fiscal Analysis

3.3.4 Sources of Forecasting Data Base

3.3.4.1 Introduction

3.3.4.2 Reference Sources - Published Data

3.3.4.3 Verbal Communication Sources

3.3.5 Perspective on Analysis and Forecasting

3.3.5.1 Introduction

3.3.5.2 Discussion

3.4 Proposed Action

3.4.1 Employment

3.4.1.1 Summary

3.4.1.2 Employment Calculations

3.4.2 Population Impact

3.4.2.1 Summary

3.4.2.2 Population Calculations

3.4.3 Housing

3.4.4 Local Government and Public Finance

3.4.4.1 Summary

3.4.4.2 Fiscal Impact Calculations Generated Tax Reve nue s

3.4.4.3. Fiscal Impact Calculations Distribution of Generated Tax Revenues and Anticipa- ted Expenditures

3.4.4.4. Budgetary Impacts of the Mt. Hope Pro- ject - Unadjusted

3.4.4.5 Budgetary Impact of the Mt. Hope

Project - Adjusted

3.4.5 Attitudes and Lifestyles

3.4.5.1 Summary

3.4.5.2 Review of Assessment Details

3.4.6 Community Services and Facilities

3.5 Alternatives

3.5.1 Employment

3.5.2 Population Impact

3.5.2.1 Summary

3.5.2.2 Population Calculations

3.5.3 Housing

3.5.3.1 Summary

3.5.3.2 Calculations

3.5.4 Local Government and Public Finance

3.5.4.1 Summary

3.5.4.2 Calculations

3. 5.4. '3 Budgetary Impacts of the Mt . Hope

Project - Unadjusted

3.5.4.4 Budgetary Impacts of the Mt . Hope Project - Adjusted

3-9

3-10

3-11

3-16

3-22

3-24

3-24

3-24

3-25

3-26

3-26

3-26

3-27

3-27

3-27

3-29

3-31

3-31

3-42

3-47

3-60

3-60

3-73

3-84

3-143

3-145 3-147 3-147 3-149 3-160 3-168 3-169 3-169 3-169 3-171 3-171 3-171 3-178 3-17 9 3-179 3-185

3-185

3-191

ii

TABLE OF CONTENTS (cont.)

PAGE

3.5.5 Attitudes and Lifestyles 3-194

3.5.6 Community Services and Facilities 3-195

3.6 No Action 3-198

3.6.1 Employment 3-199

3.6.2 Population 3-199

3.6.3 Housing 3-200

3.6.4 Local Government and Public Finance 3-200

3.6.5 Attitudes and Lifestyles 3-201

3.6.6 Community Services and Facilities 3-201

CHAPTER 4.0 - LIST OF PREPARERS 4-1

CHAPTER 5.0 - SOCIOECONOMICS GLOSSARY 5-1

CHAPTER 6.0 - BIBLIOGRAPHY 6-1

APPENDIX 9-A Redistribution of the State Sales Tax Components A-l

APPENDIX 9-B Information Pertinent to Power Line and State Route

278 Activity B-l

iii

LIST OF TABLES

TABLE NO. TITLE PAGE

1-1 Summary Details of the Proposed and Alternatives

Including the No Action Alternative 1-11

2-1 Population of Selected Nevada Counties:

1920-1980 2-2

2-2 Population Density of Selected Nevada Counties:

1920-1980 2-3

2-3 Population of Selected Incorporated and Census

Designated Places: 1950-1980 2-6

2-4 Urban and Rural Population of Nevada Counties:

1950, 1960, 1970 and 1980 2-7

2-5 Net Migration in Nevada By County: 1970-1980 2-8

2-6 Population Projections for Selected Counties

in Nevada 2-10

2-7 Percent Unemployment for Selected Years 2-13

2-8 Unemployment Rate (Percent) for Selected

Nevada Counties 2-14

2-9 Nevada Employment by Industry by County

1971 and 1980 2-15

2-10 1981 Employment by Major Economic Sector

Eureka County 2-1 7

2-11 1982 Employment by Major Economic Sector

Eureka County 2-1 8

2-12 1981 Employment by Major Economic Sector

Elko County 2-19

2-13 1982 Employment by Major Economic Sector

Elko County 2-20

2-14 1981 Employment by Major Economic Sector

Lander County 2-2 1

2-15 1982 Employment by Major Economic Sector

Lander County 2-22

2-16 1981 Employment by Major Economic Sector

Nye County 2-23

Iv

LIST OF TABLES (cont.)

TABLE NO. TITLE PAGE

2-17 1982 Employment by Major Economic Sector

Nye County 2-24

2-18 1981 Employment by Major Economic Sector

White Pine County 2-25

2-19 1981 Employment by Major Economic Sector

White Pine County 2-26

2-20 Employment Sector and Percent Share - Annual Review,

Eureka County 2-2 7

2-21 Estimated Per Capita Personal Income..... 2-29

2-22 Per Capita Personal Income by County:

Selected Years 1959-1979 2-30

2-23 Estimated Average Weekly Earnings, Average Hourly Earnings, and Average Hours for Selected Nevada Industries: 1970-1980 2-32

2-24 Value of Nonfuel Production in Nevada, By County 2-36

2-25 Selected Characteristics of Counties in Nevada:

1981 2-44

2-26 Selected Administrative Services, Special Districts

and Programs, Eureka County 2-45

2-27 Selected Characteristics of Nevada's Incorporated

Cities: 1981 2-47

2-28 Type of Government of Unincorporated Towns

in Nevada: 1981 2-48

2-29 Selected Administrative Services, Special

Districts and Programs 2-49

2-30 Selected Administrative Services for the Cities

of Elko, Carlin and Wells, Elko County 2-50

2-31 Federal Outlays by Federal Agency in Nevada

by County: Fiscal Year 1980 2-53

2-32 Sales Tax Revenue Collection for Eureka and

FJko Counties 2-59

2-33 Gasoline Tax Revenues for Eureka and Elko 2-60

LIST OF TABLES (cont.) TABLE NO. TITLE PAGE

2-34 Cigarette Tax Revenues for Eureka, Elko and

White Pine Counties 2-61

2-3 5 Distribution of Liquor Tax Revenues for Eureka

and Elko Counties... 2-62

2-36 Ad Valorem Tax (Property Tax) Revenue and Assessed Valuation of Property for Eureka and Elko Counties 2-63

2-37 Senior Citizen Programs - Property Tax Rebates for

Eureka and Elko Counties 2-64

2-38 Selected County Budgets 1979-80, 1980-81 2-65

2-39 Town of Eureka Budget Fiscal Year 1980-81

and 1982-83 2-67

2-4 0 Revenues and Expenditures of Local Jurisdictions 2-68

2-41 Number of Occupied Housing Units for Selected

Counties in Nevada 1950, 1960, 1970 and 1980 2-71

2-42 Value of Owner Occupied Housing and Contract Rent of Renter Occupied Housing in Nevada by County: 1970 and 1980 2-72

2-4 3 Housing Type - Historical Review Eureka County 2-74

2-44 Housing Type - Historical Review Elko County 2-76

2-45 Eureka County Health and Medical Expenses

Fiscal Year 1981-1982 2-90

2-46 Health and Human Services Utilized by Eureka

County Residents 2-91

2-47 Licensed Physicians, Dentists and Nurses by

County per 1,000 Population: 1981 2-93

2-48 Elko County Health and Medical Expenses (FY 1981-82) and Elko General Hospital Information (1980) 2-94

2-49 Elko Fire Protection 2-98

vi

LIST OF TABLES (cont.) TABLE NO. TITLE PAGE

2-50 Telephones in Use by County for Selected

Years: 1960-1981 2-99

2-51 Newspapers and Publications with Daily or Less

Than Daily Circulation: 1981 2-100

2-52 Federal/State Agencies and Community

Organizations in the Town of Eureka 2-106

2-53 Community Services, Outdoor Sport Facilities

and Parks in Elko County 2-108

3-1 Local and Non-Local Distribution of

Total Workforce 3-5

3-2 Estimated Skill Mix of Operational Labor Force 3-6

3-3 Local and Non-Local Employment and Populations 3-30

3-4 Construction Personnel: Characteristics 30-32

3-5 Direct-Hire Operations Personnel: Characteristics 3-33

3-6 Manpower Levels by Quarter and Corresponding

Family Characteristics Direct Project Personnel

Type (Includes Local Hire) 3-34

3-7 Summary Manpower Levels by Quarter: Total

Professional and Labor 3-35

3-8 Generated Employment Multipliers (By

Construction and Direct-Hire Personnel) 3-36

3-9 Generated Employment (Non-basic Jobs) 3-37

3-10 Manpower Levels by Quarter and Corresponding

Family Characteristics 3-38

3-11 Stable Annual Populations 3-41

3-12 Historic Populations and Current Projections 3-43

3-13 Employee Distribution - Stabilized 3-45

vii

LIST OF TABLES (cont.)

TABLE NO. TITLE PAGE

3-14 Stable Annual Populations and Distribution

Percentage Characteristics 3-46

3-15 Quarterly Forecasts of Project and Generated Population Effects on Communities: Case 5-A, Proposed Action 3-48

3-16 Summary of Project and Generated Populations

by Place by Quarter 3-49

3-17 Locational Distribution of Workforce by Quarter:

Direct Project Personnel 3-50

3-18 Summary of Workforce Population Distribution by

Quarter: Direct Project Personnel 3-52

3-19 Estimated Total Housing Units Needed for Peak

and Stabilized Project Influence Periods 3-54

3-20 Estimated Housing Type Preference of

Population Influx 3-55

3-21 Quarterly Estimation of Housing Unit Numbers,

Type and Property Tax Revenue: Operations Employment and Secondary Employment, Proposed Action... 3-56

3-22 Construction Crew Housing Demands, Market

Values and Ad Valorem Property Taxes 3-57

3-23 Combined Total Households Non-Local Operations

and Generated Secondary Employment 3-58

3-24 Annual Tax Revenues Generated by the Project and Distributed to Jurisdictions (1982 $) Subdivision Case 5-A 3-65

3-25 Net Project-Related Mid-Term Budgetary Shortfalls in Individual Accounts, Proposed Action 3-67

3-26 Expenditures per Student for Five Most

Directly Applicable Teaching Costs 3-68

3-27 Mine/Process Plant Personal Spending and Tax

Consequences (Estimated) 3-75

3-28 Sales Taxes Paid by Individuals, $66.95 Per

Capita/Year 3-78

viii

LIST OF TABLES (cont.)

TABLE NO. TITLE PAGE

3-29 Forecast Project Populations and Characteristics: Direct Hire and Generated, Subdivision Case 5-A (Constant Workforce) Local Hires Excluded 3-80

3-30 Distribution of Ad Valorem Residential Property Tax

Revenues Annually, Eureka and Elko Counties 3-81

3-31 Sales and Ad Valorem Mine/Process Plant Property Tax Base, Tax Revenues Collectible and Tax Revenues Distribution - Eureka County 3-83

3-32 Revenues and Expenditures of Local Jurisdictions

(Normal Annual Recurrent) 3-87

3-33 Annual Revenues and Expenditures Per Capita, Towns,

Counties, School Districts (in dollars) 3-88

3-34 Quarterly Revenues and Expenditures Per Capita, Towns,

Counties, School Districts (in dollars) 3-89

3-35 School District General Fund Expenditures Per School

(Per Average Number of Schools in Each District) 3-94

3-36 Total Expenditures and Per Student Costs of General

Fund Budgets Only Year End 1979, 1980 3-95

3-37 Breakdown of School District Expenditures - I

Out of General Fund Only Annual Totals: 1978-79,

1979-80 ( $000) 3-96

3-38 Breakdown of School District Expenditures - II

Out of General Fund Only Annual Totals: 1978-79,

1979-80 ( $000) 3-97

3-39 Breakdown of School District Expenditures - III

Out of General Fund Only Annual Totals: 1978-79,

1979-80 ( $000) 3-98

3-40 Breakdown of School District Expenditures - IV Out of General Fund Only Per Student Enrolled: 1978-79, 1979-80 ($000) 3-99

3-41 Breakdown of School District Expenditures - V

Out of General Fund Only Excluded Expenses: 1978-79,

1979-80 ( $000) 3-100

3-42 School District General Fund Expenditures in Percent

as Direct and Indirect Teaching Costs (Elko and Eureka

1978-79, 1979-80) 3-101

ix

LIST OF TABLES (cont.)

TABLE NO. TITLE PAGE

3-4 3 School District General Fund Expenditures in Percent as Direct and Indirect Teaching Costs (1978-79, 1979-80) 3-102

3-44 School District General Fund Expenditures in Percent as Direct and Indirect Teaching Costs (1978-79, 1979-80) 3-103

3-4 5 Data for Regression Analysis: Per Student Costs

Variation with Number of Students 3-106

3-46 Regression Model Predictions of Student Cost Variation With Change in Number of Students ( 1978-79, 1979-80 Base Year) 3-109

3-47 Regression Model Predictions of Student Cost Variation With Change in Number of Students (1978-79, 1979-80 Base Year) 3-111

3-48 Possible Application of School District Regression Analysis of Declining Expenditures Per Student ( 1978-79, 1979-80 Base Year) 3-114

3-49 Eureka School District Budget of 1982-83 and Adjust- ments to Entries 3-115

3-50 Application of Adjustments to Forecast of Eureka

School District Revenues and Expenditures 3-117

3-51 Costs Forecasts of School District Impacts

Adjusted, Unadjusted 3-118

3-52 County Auditor's Reports All Fund Sources, Year

Ending 6-30-82 3-120

3-53 Regression Analysis of County Expenditures Per Capita: Variation with Size of Population (Year Ending June 30, 1982) Audited Budgets 3-121

3-54 Linear Regression Models of County Cost

5-County Population Expenditures 3-123

3-55 Possible Application of County Regression Analysis of Declining Expenditures Per Capita (Audited Budget Data Comparisons) 3-125

3-56 Application of Adjustments to Forecast of Eureka

County Revenues and Expenditures 3-126

LIST OF TABLES (cont.)

TABLE NO. TITLE PAGE

3-57 County Cost Economies of Scale Unadjusted

and Adjusted 3-127

3-58 Net Quarterly Expenditures Generated by

Project as Year-End Totals 3-129

3-59 Annual Budget Balances: Years 4-15

1987-1998 3-130

3-60 Ad Valorem Residential Property Tax Revenues and

Distributions: Eureka, Elko Jurisdictions Derived

from Direct-Hire and Generated Employment 3-133

3-61 Tax Revenues Generated by Project Quarterly During

First Four Years 3-134

3-62 Quarterly Tax Revenues Generated by Project

as Year-End Totals 3-135

3-63 Tax Revenues Generated by Project

Annually (Rounded) 3-136

3-64 Net Quarterly Expenditures Generated by Project

at Year-End Totals and Project Generated Revenues 3-137

3-65 Annual Budget Balances: Year 4- Year 5 3-138

3-66 Extended Average Annual Budget Balances in

5 Year Intervals 3-139

3-67 Net Quarterly Revenues and Expenditures Generated

by Project as Year-End Totals 3-140

3-68 Annual Budget Balances: Years 4-15

1987-1998 3-141

3-69 Net Project-Related Mid-Term Budgetary Shortfalls in

Individual Accounts 3-142

3-70 School Age Children: Normal Populations (Without

Project) Quarterly First Four Years 3-161

3-71 School Age Children: E.M.C. and Generated Workers

- Quarterly First Four Years 3-162

3-72 School Age Children and Classrooms Year End Totals 3-163

3-73 Ideational Distribution of Manpower by Quarter: Direct

Project Personnel (Excludes Local Hire) 3-172

xi

LIST OF TABLES (cont.)

TABLE NO. TITLE PAGE

3-74 Locational Distribution of Generated Employment

X Place X Quarter X Alternative Case 3-173

3-75 Forecast Project Populations and Characteristics: Direct-Hire and Generated Dispersed Personnel Case (Constant Workforce) Local Hires Encluded 3-174

3-76 Population Effects on Communities of E.M.C. and Generated Populations, Dispersed Personnel Case, By Quarter 3-17 5

3-77 Mine/Process Plant Operations and Generated Housing

X Number and Type and Property Tax Revenue, Dispersed

Personnel Case 3-17 7

3—78 Annual Tax Revenue Generated by the Project and

Distributed to Jurisdiction (1982$) (Decentralized

Workers (Case 5-B) ) 3-180

3-79 Net Project-Related Mid-Term Budgetary Shortfalls

in Individual Accounts (Alternate 5-B) 3-182

3-80 Net Quarterly Revenues and Expenditures Generated by

Project as Year-End Totals 3-186

3-81 Tax Revenues Generated by Project Annually (Rounded)... 3-18 7

3-82 Annual Budget Balances: Year 5-15, Unadjusted 3-189

3-83 Extended Average Annual Budget Balances in 5-Year

Intervals, Unadjusted 3-192

xii

LIST OF FIGURES

FIGURE NO. TITLE PAGE

1-1 State Map of Nevada 1-3

1-2 Proposed Project and Land Acquisition Area Map,

Alternative 1-A 1-4

1-3 Regional Study Area Map Showing Proposed Action

Component s 1-5

1-4 Proposed Action 1-6

1-5 Regional Study Area Map Showing Alternative

Components 2 and 3 to the Proposed Action 1-7

1-6 Alternative Routing Corridors For Water Line

Right-of-Way 1-8

1-7 Regional Study Area Map Showing Alternative Component 4

to the Proposed Action 1-9

1-8 Alternative Land Acquisition Area 1-10

2-1 Historical Population of Eureka County, Nevada 2-5

3-1 Total Workforce Estimate 3-4

3-2 Historic and Projected Population

Growth in Eureka County 3-40

:■: i i i

CHAPTER 1.0 INTRODUCTION

1.1 Introduction

This technical report presents detailed information concerning the socioeconomic resource base and any significant potential impacts to that resource base upon implementation of the proposed action and/or alternatives.

1 .2 Project Description

Technical Report No.l and Chapter 2.0 of the Mt. Hope Molybdenum Project EIS detail the proposed action and alternatives. In brief, the Mt. Hope Molybdenum Project Environmental Impact Statement (EIS) (including Tech- nical Report Nos.l thru 9) have been prepared in response to an EXXON Minerals Company (EXXON) proposal submitted to the Bureau of Land Management (BLM) for the purchase of public lands under Section 203 of the Federal Land Policy and Management Act (FLPMA) of 1976. Although the land purchase proposal is the action which occasions the Environmental Impact Statement (EIS) process, there are other federal decisions which must be made before EXXON may proceed. Among these are the granting of power, water line and highway relocation rights-of-way and the approval of a Plan of Operation.

The primary purpose of the proposed sale of public lands involves the planned activities of EXXON which has for some time been conducting preliminary feasibility studies assessing the development of a molybdenum deposit in the vicinity of Mt. Hope near Eureka, Nevada. As part of the EIS process, EXXON has detailed its preliminary plans concerning project develop- ment. The Mt. Hope project includes the development of an open-pit mine, non-mineralized material storage areas (2), a process plant complex of approx- imately 100 acres and a tailings material disposal site. As support features to the project, a proposed water line and power line would also be necessary. The proposed tailings pond site would, if implemented, require an approximate six mile relocation of an existing state highway (State Route 278).

1-1

Figures 1-1 through 1-8 show project area location and depict the proposed action and alternatives (except the location of a subdivision plat). Table 1-1 outlines the components of the proposed action and alternatives, including the no action alternative.

1 .3 Baseline Data Development

Early in the EIS process, the BLM and EXXON agreed in a Memorandum of Understanding ( MOU) that the EIS process of data collection, analysis and documentation would be assisted by the involvement of an independent third party consultant, Wyatt Research and Consulting, Inc. (WRC). WRC initiated its involvement as an oversight quality assurance consultant in the development of a project source document for subsequent use in developing the Mt. Hope Molybdenum Project EIS. Entitled the Mt. Hope Molybdenum Project Environmental Impact Report (EIR) , the source document included two chapters of information concerning environmental resources (baseline data and impact analyses) prepared by WRC with assistance from the BLM and available study results of EXXON (e.g., cultural resources consultant report, geology, etc.). During the preparation of the source document and continuing throughout the EIS process, WRC has collected, reviewed and analyzed pertinent data in each of the neces- sary topical areas of environmental resources.

This technical report documents the majority of information gathered and analyzed that was pertinent to socioeconomic resources. The primary sources of published socioeconomic resource information included the following (Chapter 6.0, Bibliography, details individual source titles):

1) Bureau of Business and Economic Research, University of Nevada, Reno

2) State of Nevada, Nevada Employment Security Department

3) State of Nevada, Office of Community Services

4) State of Nevada, Nevada Statistical Abstract

5) State of Nevada, Nevada Department of Taxation

1-2

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6) U.S. Department of Commerce, Bureau of Economic Analysis

7) County of Eureka General Plan, Eureka County

Substantial personal communication was required in Eureka County to assure a data base of adequacy pertinent to specific Eureka Counties entity characteristics. Individual s) involved with the following entity groups were interviewed to obtain the necessary specific data and/or to provide supplemental unpublished data (particularly 1982-1983 unpublished data).

1 2 3 A 5 6 7 8 9 10

Eureka County School District

Eureka County Commissioners Office

Eureka County Sheriffs Department

Eureka County Volunteer Fire Department

Diamond Valley Volunteer Fire Department

Crescent Valley Volunteer Fire Department

Eureka County Public Works Department

Eureka County Tax Assessors Office

First Interstate Bank of Nevada, Eureka Branch

Eureka County Clerks Office

As necessary, the manner in which the data reported in the referenced sources was collected (i.e., facility tours, etc.) is discussed in appropropriate sections (e.g., details concerning collection of data regarding lifestyles and attitudes).

1 .A Impact Analyses Methodology

In the event of any discrepancies between this technical report and the EIS, the material presented in the EIS shall supercede that which is pre- sented in this technical report. Determination of potential impacts resultant of implementing the proposed action and/or alternatives emphasized analysis of: 1) project specific changes, in quantitative terms, in the baseline socioeconomic characteristics of population, employment and income, housing and local government; 2) qualitative effects upon community facilities and

1-12

services, as well as the indirect effect of such change upon community life- styles and attitudes; and, 3) fiscal impacts relative to project implementa- tion and the associated cost/revenue receipts anticipated to affect Eureka and Elko County.

1.4.1 Project Sensitive Components

The population influx associated with the employment opportunity provided by project implementation would result in significant effects on most, if not all, socioeconomic parameters of characterization. Whereas the employment requirements of the proposed action/alternatives would not necessarily result in such a comprehensive effect in more populous areas (inherently more capable of absorbing or masking the extent of change) the impacts associated with such an employment base in a scarcely populated area like Eureka County can be correctly assumed to encompass all parameters of socioeconomic infrastructure. The assumed population influx of more than 1,000 people, nearly equal to the county's present population basis, allowed the initial assumption of comprehensive impact effects, thereby establishing the mode or method of impact analysis scope.

Realizing the scope of socioeconomic impacts that would be associated with implementation of the project, analyses were conducted in sequential step processes, initiated by estimating annual population increases and then applying the population factors upon each parameter of socioeconomic influence; i.e., income generated and expended; housing selected and subject to income expenditure; governmental financing as affected by sales tax and property tax receipts; and, finally the manner in which public entities expended received monies to support the population communities. The analytical approach additionally incorporated multiple non-population sensitive factors, such as mining proceeds for monies distribution. For the most part, however, the non-population sensitive factors were evaluated as a component of the fiscal impact assessment conducted during latter analyses.

In short, the implementation of the proposed action and/or alterna- tives would result in the direct quantitative change of the area's socioeconomic infrastructure. As such, the analysis of impacts first determined the extent

1-13

of change and then, with a basis of quantitive characteristics, the impacts of the incurred changes were evaluated relative to fiscal impacts within the socioeconomic infrastructure. The evaluation of impact significance relative to fiscal effects was deemed appropriate in that the fiscal relationships within a socioeconomic