OCR Text |
Show alternative therefore encourages prudent development which respects natural lake fluctuations. Without establishing zones with specific actions, the state will continue to be called upon to provide public funds for protection and restoration of facilities damaged by a rising lake despite its limited ability to do so. From an economic perspective, alternative C appears to have greater benefits than the preferred alternative. Under the assumptions of the economic study, by investing an additional $ 11 million in the WDPP operation over alternative A expenditures, capital investments and losses are reduced by approximately $ 30 million while revenues for lake industries are increased by $ 20 million. However, there are several caveats to temper these findings. These are: • The economic analysis for lake level management is based upon several assumptions, as is appropriate. Changing any of these assumptions- to what elevation the lake rises, how quickly the lake rises, how effective pumping is, how various entities react with capital investments- will change the findings of the study. The extent that alternative C can mitigate economic losses in comparison with other pumping alternatives is therefore uncertain. Additionally, the CMP must provide a management regime that allows for flexibility and balance in the management of a natural system. Choosing alternatives based largely or solely on economic considerations does not permit this flexibility or may discount equally important criteria, such as biological resources or hydrology, for uncertain economic gains. • If the lake rises rapidly, the economic study finds that alternatives A and C may not be as effective in reducing losses as in cases with a more moderate lake rise since there may be no opportunity to begin pumping earlier ( for example, if the lake rises from 4205 to 4209 feet or 4210 feet as in the 1983- 1987 period). This depends in part on how entities around the lake invest in protective measures based on their judgment of what lake level will do in the coming years and to what extent pumping can mitigate lake rises. In the assumptions used for the economic study, there is no difference in annual capital expenditures among the pumping alternatives until the fourth year of lake levels above 4205 feet. • Alternative A allows a full pumping cycle each year, thereby assuring the return to the lake of salts contained in brines. Alternative C represents a scenario in which full- cycle pumping is not assured, thereby risking the loss of several hundred thousands tons of salts because of precipitation onto the West Desert. The economic study does not address the economic impacts of this loss. • The CMP must balance the investments necessary to change the configuration and frequency of pumping with the responsibility of each entity on the lake to make investments to protect its resources. The economic study includes both capital investments and operation and maintenance costs in its assessment of the four alternatives. The operation and maintenance costs of between $ 40 to $ 50 million for all pumping alternatives will be incurred no matter which pumping alternative is selected. The difference among pumping alternatives is in the amount of periodic 218 |