OCR Text |
Show • WMAs incur significant flooding between 4205- 4208 feet under all management options. However, even at high lake levels, GSL marshes continue to be an important destination for waterfowl hunters, even though visits are reduced. Therefore, the differences in revenues from wildlife- related activities among the various management options are not significant. • There is some ability for many entities to protect themselves up to lake levels of 4210 or 4212 feet. IMC Kalium, several local entities, UDOT and some of the utilities have spent significant amounts to protect their facilities from high lake levels. One limitation preventing greater protection is financial cost- for example from $ 12 million ( on top of $ 15 million already spent) by IMC Kalium to $ 150 million estimated by DWR to completely flood proof WMAs. A second limitation is the technical and engineering ability to raise dikes, especially those subject to continued subsidence and rotational failure over time. Finally, diking does not protect against some aspects of high lake level, such as salt water intrusion or reduced drainage capacity. ( See Table 1- 7.) Salinity Management Results of this section of the economic study are summarized below. • The cost curves for the minerals industry were confirmed or corrected by three of the six companies to whom surveys were sent. At lake level 4200 feet, minimum salinities at which companies can operate ( cost per ton = expected revenues per ton) are 13 percent for potash, 5 percent for salt ( Cargill is insulated from salinity changes because it gets its brines from Magcorp), and 5 percent for magnesium. For potash and magnesium in particular, this minimum salinity increases as lake level increases because of increased costs of production. Minimum salinity at 4212 feet ( assuming operations are not flooded) is estimated at 16 percent for potash and at 7 percent for magnesium. IMC operations are most sensitive to salinity changes because of the higher salinity necessary to extract potassium ions. ( See Table 2- 2.) • The economic study team estimated total revenues, payroll, employment, and taxes for the mineral and brine shrimp industries for seven different salinity management regimes at five different lake levels using the DWRe estimates of how they would affect salinity patterns at different lake levels. These alternatives are: 1) existing conditions, culverts open; 2) existing conditions, culverts closed; 3) breach four feet lower, culverts open; 4) breach four feet lower, culverts closed; 5) two breaches, culverts closed; 6) breach eight feet lower, culverts closed; and 7) no causeway ( pre- causeway). The lake levels analyzed were 4195, 4200, 4205, 4210, and 4212 feet. ( See Table 2- 1.) For all except two management scenarios ( base condition and pre causeway) projected revenues are highest at lake level 4200 feet. At this lake level, total annual revenues ranged from $ 244 million for existing conditions, culverts closed to $ 368 million for three management scenarios: breach 216 |