Capps Glacier-Beluga coal economic resource analysis

Technical Report · Fri Nov 28 04:00:00 EST 1975

OSTI ID:7333501

Dobey, P L; Welch, J; O'Connor, K M

An economic analysis of the direct monetary value to the state for coal resources in the Capps Glacier-Beluga State land trade area has been completed for the Division of Lands. This analysis uses a development model to show the possible royalty revenues the state would expect from the coal in the zone considered for trade. Conservative parameters were used and the economic analysis completed only on the measured and indicated coal reserves of the Capps Glacier area. It is very probable that the Beluga coal reserves to the southeast will be developed before any of the coal in the trade zone. This could create a much longer time to development than the model, resulting in an even lower net present value of the measured and indicated coals of the trade zone. Hypothetical coal resources could add another 500 million tons of potential reserves to the area, but their development lies so far in the future an economic analysis of their royalty value is meaningless. Because of the probable extremely low royalty revenues resulting under the present state contract and the long time delay for income under more favorable royalties, the present dollar value of the trade zone (with respect to royalty income) is very low per acre. The total present value of the theoretical royalty income discounted 10% would range from $12.22/acre in the pessimistic case, $32.79 in the medium case, and $80.05 in the optimistic case.

• Research Organization: Alaska State Dept. of Natural Resources, Anchorage (USA). Div. of Geological and Geophysical Survey
• OSTI ID: 7333501
• Report Number(s): NP-21265
• Country of Publication: United States
• Language: English

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