Section 120. Economic impacts

A. Describe the potential impacts of the proposed operation on the economic characteristics of the affected locality and, as necessary, surrounding localities. The information should address how these economic characteristics will be affected during (i) the drilling and construction phases of the operation, and (ii) the production phases of the operation. In all projections constructed by the applicant, the methodology for constructing projections and the assumptions, calculations and computations used to formulate projections should also be presented and described.

B. The description should include information on the following conditions:

1. An analysis of the potential positive or negative effects of the proposed operation on the current population with regard to potential changes in the demographic structure of the locality according to age, income and employment characteristics;

2. An analysis of the projected employment levels including estimates of the variation in employment levels over time for (i) the drilling and construction phases of the operation, including the construction of pipeline systems, associated facilities and production facilities, and (ii) the production phases of the proposed operation. Indicate whether any new positions created by the proposed construction and operations activities may be or will be filled from the labor pool available in the affected locality or in neighboring localities;

3. The types of services that can be provided from businesses located in the affected locality or in surrounding localities. Include a general estimate of the amount of contract awards that will be or could be made available to service providers in the affected locality and neighboring localities and the projected duration of service contracts;

4. The existing land uses, including residential, forestal, agricultural, commercial, industrial, urban, suburban, open space, recreational or other land use characteristics within the locality that will be affected, changed or which may be subject to change as a result of the proposed operation. The discussion shall be supported with graphic information in the form of a plat or plats of existing land uses within 1320 feet of the well and within 100 feet of associated facilities and pipeline systems at a scale between 1:1000 and 1:4000; and

5. The locality's affected industrial and commercial bases and economic conditions with emphasis on dominant economic sectors (i.e., agriculture, forestry, fishing and aquaculture, service industries, and industrial activities). Special attention should be given to the tourism and recreation industries and how they may be affected by the operation. Describe how the proposed location of the operation may adversely affect or displace other natural resource-based commercial activities and enterprises in the affected locality or in neighboring localities such as agriculture, fishing, tourism, forestry, etc.

C. Describe the actions and measures that will be taken to avoid impacts, minimize impacts, and mitigate unavoidable impacts on economic characteristics identified in the assessment. The assessment should also discuss irreversible impacts on or commitments of local economic resources based upon impacts identified in the assessment.

Historical Notes

Derived from VR304-02-01 § 2.7, eff. November 3, 1993.

Statutory Authority

§§ 10.1-1188 et seq. and 62.1-195.1 of the Code of Virginia.