Net value royalties : Practical tool or economist's illusion?

The petroleum industry has traditionally generated substantial revenues for governments. Where governmental power is divided, as in federations like Canada and Australia, a junior level of government normally collects royalties while the senior level levies a variety of imposts (income tax, export duties, excises on production). The combination of recent sharp reductions in prices, more price volatility and an era of freer markets has subjected existing tax and royalty systems to severe strain and has shifted attention to the design of fiscal systems that are more profit- sensitive. For the royalty element, interest focuses on net value royalties (NVRs). This paper deals with the nature and problems of NVRs. It proceeds by looking first at the application of resource rent royalties in Australia. It then focuses on recent megaproject royalty arrangements in Alberta and evaluates the degree to which Alberta's current royalty system is profit- sensitive. Problems associated with NVRs are discussed in the fourth section; concluding remarks are made in the last section.     

SUSPENDED SEDIMENT AND METALS REMOVAL FROM URBAN RUNOFF BY A SMALL LAKE1

ABSTRACT: A small lake in the Chicago Metropolitan Area was from 91 to 95 percent efficient in removing suspended sediment and from 76 to 94 percent efficient in removing copper, iron, lead, and zinc from urban runoff. Sediments accumulated in the lake in the form of an organic-rich mud at an average rate of 20 millimeters per year; this reduced lake storage and covered potential habitat for aquatic organisms. Copper, lead, and zinc concentrations were closely associated with suspended-sediment concentrations and with silt- and clay-sized fractions of lake sediment. Although concentrations of mercury and cadmium were near detection limits in runoff, measurable concentrations of these metals accumulated in the lake sediments.     

COST SHARING IN TRANSITION: THE CASE OF PLAN 6, CENTRAL ARIZONA PROJECT1

ABSTRACT: In the past, development of Federal water resource projects depended heavily or exclusively on Federal financing of construction costs. However, pressures on the Federal budget, environmental issues, and the notion that there are economic efficiency gains when beneficiaries of Federal water resource projects increase their cost share are causing changes. The case of the Central Arizona Project Plan 6 is a noteworthy example of the transition to more non-Federal participation in water resource development. This is because the non-Federal financing is to be provided for a project already under construction. The negotiation and terms of the Plan 6 financing agreement between the Department of the Interior and multiple interests in Arizona are used as an example of how Federal water project cost sharing is in a state of transition. The negotiation process is described, a financial analysis is provided, and the terms of the agreement and policy issues that were deliberated in the Executive Branch of the Federal Government are discussed.     

ASSESSING FLUSHING-FLOW REQUIREMENTS FOR BROWN TROUT SPAWNING GRAVELS IN STEEP STREAMS1

Flushing flows are re1eses from dams designed to remove fine sediment from downstream spawning habitat. We evaluated flushing flows on reaches proposed for hydroelectric diversions on seven streams in the eastern Sierra Nevada, California, with wild populations of brown trout (Salmo trutta). The stream reaches are steep (average map slopes range from 7 to 17 percent), are dominated by boulder cascades, and afford few opportunities for gravel deposition. Methods for estimating flushing flows from flow records, developed from studies in other localities, produced widely differing results when applied to the study streams, probably reflecting differences in the hydrologic and geomorphic characteristics of the streams on which the methods were developed. Tracer gravel experiments demonstrated that all sampled gravels were washed out by the flows of 1986, a wet year. Size analyses of gravel samples and hydraulic data from field surveys were used in tractive-force calculations in an attempt to specify the flow required to flush the gravels. However, these calculations produced some unrealistic results because the flows were nonuniform in the study reaches. This suggests that the tractive-force approach may not be generally applicable to small, steep streams where nonuniform flow conditions prevail.     

A THEORETICAL FRAMEWORK OF FLOOD INDUCED CHANGES IN URBAN LAND VALUES1

ABSTRACT: By integrating literature from flood hazard research and urban economics a theoretical structure is developed to explain changes in residential land values following flood events. The negative aspects of the flood hazard are shown to be capitalized in the value of the property. It is further suggested that land values (i.e., capitalization) will vary both spatially across the floodplain and temporally depending on the frequency, severity and spatial characteristics of the flood event. Previous work in this area has not addressed the capitalization process explicitly and has not specifically examined the ability of the land market to recover. This may account for the contradictory findings in the published literature.     

RUNOFF PREDICTION USING REMOTE SENSING IMAGERY1

ABSTRACT: Percent imperviousness is an important parameter in modeling the urban rainfall-runoff process and is usually determined using manual methods such as random sampling or conventional accounting methods. In this study two computerized methods are used for estimating the percent imperviousness of urban watersheds using high altitude remote sensing imagery. These methods include the Laser Image Processing Scanner and the Video-Tape Camera system. Imperviousness is directly estimated in the former method while in the latter it is estimated as a function of the statistics of the responses on emulsions of the imagery. The percent imperviousness computed by utilizing remote sensing imagery was used with the conceptual models of rainfall-runoff models. The models were applied to four urban watersheds and the runoff prediction results indicate that imperviousness determined by using remote sensing imagery was as accurate as that obtained by the manual methods, and that the use of remote sensing imagery requires significantly less time and money.     

Problems with using overlay mapping for planning and their implications for geographic information systems

As part of the planning process, maps of natural factors are often superimposed in order to identify areas which are suitable or unsuitable for a particular type of resource management. Overlay maps may also be used to identify analysis areas for predictive modeling of resource productivity and ecological response to management. Current interest in applying computer-assisted mapping technology to making overlay maps is drawing attention to geographic information systems for this purpose. The resultant maps, however, may be so inaccurate or unable to capture significant units of productivity and ecological response that they could lead to imperfect or false conclusions. Recommendations are made on how to proceed in light of these problems.     

MUNICIPAL RESPONSES TO VOLATILE ORGANIC COMPOUNDS IN WISCONSIN GROUND WATER1

ABSTRACT: Contamination of ground water supplies with volatile organic compounds is a new and significant problem. Municipalities and their community water systems are often the first to discover ground water contamination because of the monitoring programs they are required to carry out. When contamination exceeds standards, some action is required. The responses of Wisconsin municipalities to volatile organic compounds that exceed standards in their ground water sources is described. Actions to protect human health are prompt, but the survey results indicate plumes of contaminated ground water are usually not treated. They may continue to migrate and contaminate other private and public wells.     

An evaluation of resource inventory and monitoring program used in national forest planning

The National Forest Management Act (1976) specifies that multiresource inventories be conducted to provide baseline data for development and, later, monitoring of national forest management plans. This mandate entails the most ambitious and complex resource planning effort ever attempted. In this paper we evaluate the structure and use of current inventory-monitoring programs and recommend a framework for gathering data to improve national forest planning. Current national guidelines are general and provide only basic directions to forest-level planners. Forest inventories have traditionally concentrated on timber. Although these inventories are often well designed, the questions we are now asking about forest resources have outgrown these methods. Forest management is impeded by general confusion over definitions of resources and the interactions among them. We outline a simple classification scheme that centers on identification of basic ecosystem elements that can be readily measured. Furthermore, spatial and temporal scales must be considered in the design of inventory-monitoring programs. The concept of ecological indicators is reviewed, and caution is advised in their use. Inventory-monitoring programs should be goal-directed and based on as rigorous a statistical design as possible. We also review fundamental issues of variable selection, validation, and sampling bias. We conclude by developing a flexible inventory-monitoring program that is designed to provide information on individual characteristics of the environment, rather than being based on fixed definitions of resources.