t ^ 



ASSUMPTIONS - ALL 

 ALTERNATIVES 



The following assumptions were used to 

 estimate the revenue and nonadministrative 

 costs for each alternative: 



• Costs, revenues, and returns are estimates 

 intended for relative comparison of 

 alternatives. They are not to be used as 

 absolute estimates of return. 



• The harvested volumes for the alternatives 

 and treatments are based on estimates 

 made by Stillwater Unit personnel. 



• The estimated stumpage price (winning 

 bid for a timber sale) was estimated using 

 the Transaction Evidence equation 

 developed in 1998 and is an average for 

 the 2 sales that DNRC is planning to offer 

 from this project. The estimated values 

 and costs related to timber management 

 for this project are the total for these 2 

 proposed timber sales. The estimated 

 stumpage price was reduced 25% to reflect 

 the current market (10/98). 



Stillwater Unit and Northwestern Land 

 Office personnel estimated development 

 costs for each alternative. Estimated 

 development costs for this project are 

 Alternative A = $307,374 and Alternative B 

 = $253,970; this includes the road 

 obliteration cost of approximately $26,300 

 for both alternatives. Development costs 

 for this proposal are the estimated costs of 

 road reconstruction, new road 

 construction, road obliteration, and 

 watershed improvements that would 

 provide access to the State trust lands 

 involved and improve water quality on 



State land. The purchaser would pay for 

 these costs. If South Beaver Road were 

 constructed to County standards, total 

 costs would increase by a minimum of, 

 approximately, $22,500. An adjacent 

 property owner requesting this higher f *^i| 

 standard of road would pay this amount. ' 



The FI cost is based on programwide costs and 

 the cost to maintain the ongoing staffing, treat 

 stands, maintain roads for the current year, 

 and acquisition rights-of-way. Money 

 collected under FI from a purchaser provides 

 the funding for the State to accomplish ,j 



projects such as tree planting, site preparation, 

 slash treatment, thinning, road maintenance, 

 rights-of-away acquisitions, and some timber- 

 sale-related activities. Thus, DNRC is able to 

 improve the long-term productivity of timber 

 stands on State trust lands and maintain or 

 acquire access for future revenue-producing 

 projects. 



The sale-specific foreSt-improvement (SSFI) 

 costs are the current cost estimates for the 

 amount and types of treatments (site 

 preparation, hazard reduction, planting, etc.) 

 planned for each of the alternatives being r "i 

 considered. Funding to complete these | 



projects would be collected from current or | 

 future timber sales, depending on the timing t 

 of the treatments. 



The estimated total timber dollar return to the 

 trust is the estimated stumpage price (winning 

 bid price $/MBF) multiplied by the estimated 

 harvest volume. 



The estimated total timber dollar amount 

 collected by the State (total revenue) is FI costs 

 plus the estimated stumpage price multiplied 

 by the estiniated harvest volume. f 



TABLE IV-8 - SALE-SPECIFIC FOREST-IMPROVEMENT COST BY ALTERNATIVE AND 

 METHOD 



ALTERNATIVE 



TREATMENT METHOD 



BROADCAST/ 

 JACKPOT 

 BURNING 



BROADCAST 

 BURNING 



EXCAVATOR 



SITE 



PREPARATION 



DOZER 



SITE 



PREPARATION 



PURCHASER- 

 DO 

 SLASHING 



FULL 

 PLANTING 



INTER- 

 PLANTING 



TOTALS 



No Action 























AandB 



$4,560 



$27,000 



$11,875 



$11,375 



$3,000 



$10,437 



$5,658 



$73,905 



Chapter IV: Environmental Consequences 



ilV-29) 



