5 Colo. Code Regs. § 1002-33.18
The provisions of 25-8-202(1)(a),(b) and (2); 25-8-203; 25-8-204; and 25-8-207 C.R.S. provide the specific statutory authority for adoption of these regulatory amendments. The Commission also adopted, in compliance with 24-4-103(4), and 24-4-103(8)(d), C.R.S., the following statement of basis and purpose and fiscal impact.
BASIS AND PURPOSE:
The purpose of this rule is to remove the water supply classification from portions of Segment 13 in which there are no domestic users, and in which the classification is not necessary to protect downstream domestic uses. This result is accomplished by separating these portions of Segment 13 into a separate new segment and removing the water supply classification from the new segment.
The basis for the rulemaking follows:
These unreasonable costs are wholly out of proportion to any benefit provided by the current stringency of the standards. These costs, if CYCC were required to incur them, raise the question whether the mine can continue to operate. The impact on the area, socially and economically, of mine closure, including loss of jobs, salaries, tax revenues, and other economic benefits, would be severe, and is not justified by the negligible benefit (if any) to water quality effected by the current standard and use classification.
A study conducted from CYCC by the Center for Economic Analysis at the University of Colorado at Boulder concludes that closure of the mine, in addition to causing the loss of jobs of 43 CYCC employees, could also be expected to result in the loss of 58 additional jobs in the region and throughout the State. The lost wages would total $2,870,000. 70% of these impacts would be felt in the region where the mine is located.
FISCAL IMPACT:
The regulation will have no adverse fiscal impacts on the public sector. The proposed changes actually represent existing water usage patterns. There is no danger to aquatic life populations in the new segment or downstream. Additionally, the rule will not fiscally adversely affect downstream water users. However, the negative impact on CYCC would be great, including $1,670,000 of capital investment and approximately $596,000 a year in operation and maintenance cost.
The rule will have a fiscally positive impact both on CYCC and the area in which it operates. CYCC may continue to operate and need not expend prohibitive sums on treatment. In turn the area will continue to benefit from the economic effects on the community of continued operation, including jobs, salaries, disposable income for the local economy and tax revenues.
Parties to the hearing:
Colorado Yampa Coal Company
5 CCR 1002-33.18