Analysis of Bituminous-Coal Production Costs in the Warrior Coal Field: Economic Analysis of the 1977 Reclamation Law

摘要

The objectives of this study are: (1) to develop a model which can be used to simulate coal-mining and land-reclamation costs under a variety of geologic conditions; (2) to develop estimates of coal-mining and land-reclamation costs for the Warrior coal field and for Alabama mines in general; (3) to compare these estimates with estimates of coal-mining and land-reclamation costs in other regions of the US; (4) to identify the principal benefits of land-reclamation in the Warrior coal field; (5) to develop a methodology for evaluating these principal benefits; and (6) to develop initial estimates of the order of magnitude of these benefits. This can be regarded as one phase of a continuing cost-benefit study of land-reclamation practices in Alabama. A goal of this research is to investigate and identify areas in which variations in reclamation and mining procedures may be more cost-effective in protecting the environment and enhancing the productivity of reclaimed land. Land-reclamation cost estimates developed through the Surface Mine Simulation Model are in the neighborhood of $500 to $600 per acre (in spring 1980 dollars) for most dragline-excavated surface mines analyzed. Variations in costs per acre are attributable to equipment and labor indivisibilities and to scale economies which appear to be present in the various land-reclamation operations. Costs of removing and replacing topsoil appear to constitute approximately one-half of total land-reclamation costs in situations in which one foot of topsoil is segregated. Analysis of the significance of existing surface-mining erosion-control management yielded estimated damages of approximately $2000 per acre for a 40-year period following mining.