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Resorce Transportation Analysis Phase ll Yukon River Port 2004
AUN LALUN ALIVE HIS I. an RIVER PORT AND ROAD NETWORK Alaska Department of Transportation and Public Facilities prepared by CH2MHILL in association with Northern Economics, Inc. January 2004 a Section Abbreviations 1. Introduction 1.1 Purpose of the study. 1.2 Background .... 1.2.1 Purpose of the Northwest Alaska Transportation Plan............... 1-1 1.2.2 Resource Transportation Analysis Phase I—Potential Corridors Identification ............:.csccssessesesesesesesesesesesscscscssssaceeceeees 1.2.3 Resource Transportation Analysis Phase II team charter .. 1.2.4 Resource Transportation Analysis Phase II area of study 1.3 Elements of the Yukon River Port and Road Network study... 1-4 1.4 Study area description 1.4.1 Physical environment.. 1.4.2 Biological environment... 1.4.3 Topographic and geologic setting 1.4.4 Mineralization 1.5 Mineral potential in the study area ... 1.5.1 Donlin Creek Mine development 1.5.2 Other significant mineral prospects... 1.6 Existing transportation in the study area.... 2. POrts AnalySis ......s.sssssssssssssesssssensssesssesssssssscseacscscscscsessessssssorerecsensecasesatesesesess 2.1 Overview of study area rivers 2.1.1 Yukon River.......... 2.1.2 Kuskokwim River.. 2.2 Existing cargo movement in the study area... 2.2.1 Barge traffic on the Yukon and Kuskokwim rivers ..... 2.2.2 Companies providing barge and connecting freight services . 2.2.3 Equipment and physical constraints affecting barge service 2.3 Characteristics of port sites 2.3.1 Study area ports.... 2.3.2 Other regional ports with fuel facilities 2.4 Port design considerations 2.5 Other pertinent information 2.5.1 Environmental considerations 2.5.2 Construction considerations 3. Road Segment Analysis..... 3.1 Existing roads in the region and the study area. 3.2 Segment identification and analysis 3.2.1 Crooked Creek to Donlin Creek Mine 3.2.2 Stage |, Holy Cross to Donlin Creek Mine to Flat........ 3.2.3 Stage Il, Flat to Takotna to Ophir and McGrath to Takotna.. FINAL DRAFT ANC/030990015 YUKON RIVER PORT AND ROAD NETWORK Section Page 3.2.4 Stage Ill, Ophir to Cripple Creek Mountain to Poorman to Ruby and Takotna to Nixon Fork 3.3 Design standards... 3.3.1 Roadway 3.3.2 Drainage structures 3.4 Other pertinent information... 3.4.1 Environmental considerations. ..... we 3.4.2 Construction Consideration .............sssssssseseseseeseesesesessesesseeaees 4. Financial Analysis 4.2 Benefit-cost analysis .... 4.2.1 Assumptions 4.2.2 Selection of the base case and alternative scenarios 4.3 Evaluation of alternatives ...........cccsscscsesssseseseseseesseeseseseees 4.3.1 Effects of base case, a Crooked Creek port and road system to support Donlin Creek Mine and new mines in the Tintina Gold Belt4-... we 4.3.2 Effects of Alternative 1a, barges through the Yukon River mouth to near HOly Cross .........ssesesseeseseseseseeceseesseseeeseeeseseces 4-21 4.3.3 Effects of Alternative 1b, barges through the Yukon River MOUEN tO RUDY... eee cece eeeeeeeeeseeeeseeseeeeseseeaeseceeseesesscaseaseees 4-22 4.3.4 Effects of Alternative 2a, downriver barges from Nenana and the Dalton Highway Bridge 4.4 Modifications to base case and Alternative 1a.. 4.4.1 Staged road construction or 7 4.2.2 Pioneer road construction ............... -- 4-27 4.4.3 Reduction of road network length . A.B FINGINGS ........c.cscccesssesescscsesescsesesnseeseaeeesesescscseseacesseecenesesesnsesssecssscerscee 4-29 5. Funding Mechanisms...... 5.1 Financing alternatives .. 5.1.1 Public-sector funding for construction... 5.1.2 Private-sector funding for construction 5.2 Maintenance... 5.2.1 Roads...... 5.2.2 Ports and harbors............... 5.2.3 Federal funding.. 5.2.4 State funding ........... 5.2.5 Local government funding.. 5.2.6 Private-sector funding 6. Conclusions and Recommendations ...... 6-1 6.1 Conclusions............ 6.2 Recommendation ... FINAL DRAFT ANC/030990015 I YUKON RIVER PORT AND ROAD NETWORK Appendix A References B Summary of Aggregate Materials Availability and Mineral Resource ACTTOATMIO Figure 1-2 1-3 1-4 1-5 2-1 2-2 2-3 2-4 2-5 3-1 3-2 3-3 5-1 6-1 C-1 C-2 C-3 C-4 C-5 C-6 Potential Supplemental Figures and Photographs Field Trip Report Port and Road Cost Estimates Environmental and Regulatory Considerations General Geotechnical Considerations Community Profiles Transportation Cost Calculations Mineral Potential Calculations Transportation Demand Calculations for the Study Area Page (on or after) RTA Phase | Study area ........sesesssesesesssesesecesescsesescscsescscscacsescsvecereraveneescae 1-1 RTA Phase Il—Yukon River Port and Road Network study area.............. 1-3 Physiographic provinces..... Study area plutons and major faults... Locations of study area mineralization from Alaska Resource Data Files... eesessssesesesesessssesesteseseseseceesesecsessescsescsceacaraceee 1-11 Navigation characteristics of the Yukon River Yukon River Delta..........csccccsssseseseseseseseeeeseeeene Yukon River port near Holy Cross vicinity map Port conceptual layout...........ceccseeseesseeseeeeeeeeee Perspective view of the port conceptual layout Road segments and stages Minimum road widths for two-way, 35-mile-per-hour, rural, loc: oe Selected prospective material SiteS..............ccccscsessssscsesesssesesesescseseseseenees Alternative routes Federal, state, and local government share of expenditures on waterborne transportation (in millions of 1999 dollars), 1991 and 1999....5-3 Road segment conclusions Voting districts Native Regional Corporations Study area land ownership Example of pluton geology, Cripple Creek Mountains Yukon River port to Donlin to Flat Yukon River port to Donlin to Flat photo annotated Flat to Takotna FINAL DRAFT ANC/030990015 Ml YUKON RIVER PORT AND ROAD NETWORK C-8 Cc-9 C-10 G-1 G-2 G-3 Table 5-1 5-3 Sterling Landing to Takotna to Ophir and Takotna Road to McGrath Ophir to Cripple Creek Mountains and Takotna to Nixon Fork Cripple Creek Mountains to Poorman to Ruby Study area bedrock geology Study area surficial geology Schematic diagram of general locations suitable and not suitable for floodplain gravel mining Page (on or after) Summary of community information............cccccesesscsseseseseseseseseseseecseseseecnes 1-7 Summary of temperatures at Ruby Summary of temperatures at Holy Cross Environmental review summary for Yukon port alternatives ... -11 Bridge crossings and culvert drainage structures required DY SCEQMEMNL ........esessscseseesessteeseneesestecsesesesseseseesesesesaesessescseasscsecacacseeeeatateee 3-11 Environmental review summary for Stage | of the Yukon River TORO -NOWON ss cscccsaseanececccccsscassssscosecssaasevtonaeysearsesseavecscestesestevessevevessevareres 3-11 Environmental review summary for Stage II of the Yukon River TOA NETWOFK ou... eeesesesesesesseeescseseescseeseessensaesceeeeeseseesesesseseseeasaeeeeassesecaeaeeees 3-11 Environmental review summary for Stage III of the Yukon River road network we 311 Soil conditions and aggregate sources for potential roads + 3-13 Summary of benefits and transportation facility costs for new mines in the “Vittles Gold Belt oss vceesezzsceescaeacacoavsuctentocescssiviescinsizascctsacdiacesviutepestlenceeectinct 4-3 Years with extended periods of low water flows at Crooked Creek, O52 tO 2001... eeeecesccsesescseseesesesesesessesesesesseecscscasatsesacaceesasacseeaeaeseeeeeacees 4-13 Net present values of benefits and costs for transportation facilities for Yukon and Kuskokwim river ports and roads ...........scscscesesesseseeeseeeees 4-20 Net present value of mineral development benefits and transportation facility costs for Yukon and Kuskokwim river ports and road networks by stages Descriptions and net present value of benefits and transportation facility costs for Yukon and Kuskokwim river ports and road networks by Stage ...........csssssessseeseceseeesesceeeeeeeaceee 4-26 Net present value of benefits and costs for transportation facilities for Yukon and Kuskokwim river port and road networks with pioneer construction and shortened routes.............seseeseesesceseesesecseeeeeeeee 4-28 How other states operate and fund small and medium-sized ports........... 5-4 Alaska high-priority projects contained in TEA-21 Innovative finance techniques for transportation projects FINAL DRAFT ANC/030990015 lV ms ABBREVIATIONS AAC AASHTO ADNR ADOT&PF ADT ANCSA ARDF ATV BLM CFR COE DCED DMTS °F FHTF FHWA GIs LPG MP NEPA NPV NRCS PLAN PN&D ROW RTA USDOT USGS Alaska Administrative Code American Association of State Highway and Transportation Officials Alaska Department of Natural Resources Alaska Department of Transportation and Public Facilities average daily traffic Alaska Native Claims Settlement Act Alaska Resource Data Files all-terrain vehicle Bureau of Land Management Code of Federal Regulations U.S. Army Corps of Engineers Alaska Department of Community and Economic Development DeLong Mountains Transportation System degree Fahrenheit Federal Highway Trust Fund Federal Highway Administration geographical information system liquid propane gas Milepost National Environmental Policy Act net present value National Resources Conservation Service Northwest Alaska Transportation Plan Peratrovich, Nottingham, & Drage, Inc. right-of-way Resource Transportation Analysis U.S. Department of Transportation U.S. Geological Survey FINAL DRAFT ANC/030990015 YUKON RIVER PORT AND ROAD NETWORK USFWS USPS U.S. Fish and Wildlife Service U.S. Postal Service FINAL DRAFT ANC/030990015 vi INTRODUCTION BNP NUE CALLER RU Le MRO 1. INTRODUCTION 1.1 Purpose of the study . This planning-level study is part of the Resource Transportation Analysis (RTA), which is a component of the Northwest Alaska Transportation Plan (PLAN). This study consists of a comparative analysis of potential Yukon River port sites and associated road networks. It was conducted to identify the components of an integrated port and road network that would best meet the transportation needs associated with development of the mineralized zone between the Yukon and Kuskokwim rivers. This analysis will be used to assist the Alaska Department of Transportation and Public Facilities (ADOT&PF) and others in determining appropriate funding mechanisms and levels for such a project. 1.2 Background The following description of study background explains the evolution of the current analysis. 1.2.1 Purpose of the Northwest Alaska Transportation Plan The stated purpose of the PLAN, of which the RTA is a component, is to prepare a strategy that guides transportation infrastructure development in Northwest Alaska. The Community Transportation Analysis component of the PLAN was conducted by ADOT&PF staff and local subcontractors throughout the potentially affected region. The integrated components of the PLAN will guide the ADOT&PF capital and operational development plans for the region. The PLAN is envisioned to reflect the broad range of concerns, views, and considerations of the people who live and travel in Northwest Alaska. The RTA began with a Phase | study that resulted in the identification of potential corridors for resource development. The Phase | study led to Phase II tasks that address the Yukon River Port and Road Network project. 1.2.2 Resource Transportation Analysis Phase I—Potential Corridors Identification The RTA Phase | study area covered approximately 217,865 square miles of northern Alaska. It encompassed the entire North Slope Borough west of the Dalton Highway, the Northwest Arctic Borough, the Yukon River Basin west of the Dalton Highway and north of Nenana, and the Seward Peninsula and Norton Sound region (Figure 1-1). Resource districts in the study area included the DeLong Mountains District, Ambler Mining District, Seward Peninsula District, Ruby District, Wiseman and Chandalar districts, and North Slope District, which includes the Western Arctic District. The Phase | report (CH2M HILL, 2001b) summarized the known reserves of mineral resources, including oil and gas, lead, zinc, copper, coal, gold, platinum, and other hard minerals. FINAL DRAFT ANC/030990015 1-1 ANE LEGEND Study Area e Communities [_] Borough Boundaries Existing Transportation System Primary Roads Secondary Roads Light Duty Roads Existing Railroad Trans-Alaska Pipeline Lakes Major Rivers NETTIE EE Figure 1-1 RTA Phase | study area YUKON RIVER PORT AND ROAD NETWORK 1.2.2.1 Phase | major findings The following potential transportation corridors were identified: Rail = Western Arctic coal to Nenana = Nenana to Nome through Ambler Mining District = Western Arctic Coal to DeLong Mountains Terminal Highways = Northern Brooks Range to Dalton Highway (a component of the Dalton Highway to Nuiqsut and National Petroleum Reserve-Alaska Access) = Western Arctic Coal to Seward Peninsula (DeLong Mountains Transportation System [DMTS]) = Ambler Mining District to Dalton Highway » Ambler Mining District to DeLong Mountains Terminal or Port of Nome = Yukon River Port and Road Network Northwest Alaska has areas of high mineral potential; however, several factors limit Alaska’s current market position, including the following: » Distances separating Alaska from Asian markets are longer than those from equatorial and southern hemisphere mines. = Seasonal shipping is expensive and creates spikes in coal and other mineral supply chains. = Infrastructure costs for long overland routes and all-season ports make resource development unaffordable for mining firms. = Shipping costs are relatively high even where transportation infrastructure is in place. » Many arctic residents oppose overland access to mines. The Phase | study noted that many issues and concerns must be addressed during development of transportation and resource projects in Northwest Alaska (CH2M HILL, 2001b). Some of these issues and concerns are typical of transportation and mineral development projects in general; others are unique to the region. Native corporations in the study area have indicated that they are interested in development in Northwest Alaska. Among their concerns are subsistence resources and culturally sensitive areas. In addition, although the regional Native corporations may support resource and transportation development in the region, many villages are concerned about local impacts; in particular, the effects of linking rural areas to the population centers of the state (Fairbanks and Anchorage). The interests of resource development and transportation infrastructure need to be weighed against the impacts to the rural lifestyles of the people in the region. FINAL DRAFT ANC/030990015 1-2 YUKON RIVER PORT AND ROAD NETWORK 1.2.3 1.2.2.2 Proposals for Study in Phase II At the conclusion of Phase |, three proposals for resource development through transportation improvements appeared to deserve attention in RTA Phase II (RTA-II). One of these proposals, a port on the Yukon River and a road to the Donlin Creek area, is the subject of this study. Resource Transportation Analysis Phase II team charter The mission and vision statements for the RTA team were developed early in the Phase | process and were revisited and updated at the RTA-II project team chartering meeting held on August 7, 2002. 1.2.3.1 The RTA-II vision The vision for RTA-II was described as follows: To create a Resource Transportation Analysis that, when incorporated into the PLAN, enhances the following elements of the PLAN: * Creates efficient, reliable, and safe transportation systems = Supports viable opportunities for economic development while conserving the environment = Addresses stakeholder concerns = Communicates the message that economic development can be compatible with traditional lifestyles * Supports local and regional authorities in responsible management of subsistence resources and habitat 1.2.3.2 The RTA-II mission The RTA-II mission statement consists of the following components: = Maximize project success—create an RTA-II that is accepted as a component of the PLAN = Encourage cooperation—foster a spirit of cooperation among the affected parties: the client, the stakeholders, and the consultant team 1.2.4 Resource Transportation Analysis Phase II area of study The area being considered in the RTA-II Yukon River Port and Road Network study (referred to as the study area in this report) is shown in Figure 1-2. The following general work elements were addressed in the Yukon River Port and Road Network project tasks: * Collect inventory background data, compile existing information, and define the study area = Develop mapping based on geographical information system (GIS) input that will be used to identify details such as transportation network needs FINAL DRAFT ANC/030990015 13 Source: USGS, Statewide vegetationand cover, 1991 Fi gure 1-2 Nesta Reps man 17 — en —— ies RTA Phase II - Yukon River Port and Road Network study area YUKON RIVER PORT AND ROAD NETWORK (destinations) in the study area, land ownership, inventory of resources, material sites, and impacts = Identify maintenance and operation issues associated with the improvements studied * Identify jurisdictional boundaries of landowners and administrators, for use in helping to identify feasibility, environmental constraints, impacts, and opportunities : = Conduct a planning-level environmental analysis consisting of descriptions of affected environment and potential impacts of alternatives = Address the benefits and costs that may accrue to society and the potential funding programs that might be used to construct and maintain 1.3 Elements of the Yukon River Port and Road Network study One essential element of the investigation of the Yukon River Port and Road Network study is the evaluation of two port alternatives that were selected for study based on historical access routes: » Alternative 1—the Yukon River port near Holy Cross and the associated road network = Alternative 2—the Yukon River port at Ruby and associated road network The second element is the evaluation of a road network that meets needs of resource development. The roads associated with a port would transport fuel, equipment, and freight to likely mine sites. As part of the port evaluation, the costs of transporting fuel to each port were ‘examined. A benefit-cost analysis completed for the two port sites was intended to determine which port would best meet the transportation needs of the mineralized zone between the Yukon and Kuskokwim rivers that makes up the western portion of the Tintina Gold Belt. The goal of the analysis is to assess the feasibility of facilitating mineral development in this mineralized zone through a port and road network. The following topics were focuses of the study: geology and physical topographic conditions of the study area, engineering requirements for port and road infrastructure, benefits and costs of port development, potential segments for road development, the requirements for shipping on the Yukon River, and preliminary environmental and permitting considerations. For comparison purposes, tug and barge traffic on the Kuskokwim River and construction of a road from a port at or near Crooked Creek on the Kuskokwim River to the Donlin Creek Mine were also addressed. These components, which are being used by developers of the Donlin Creek Mine, are used in this study as the base case, for comparison of alternatives in the economic analysis. FINAL DRAFT ANC/030990015 14 YUKON RIVER PORT AND ROAD NETWORK The study of each alternative, consisting of a Yukon River port and its associated road network, incorporates the work elements identified below, which are grouped into general, port, road, and network considerations. = General Develop a preliminary draft purpose and need statement Conduct a feasibility analysis of ports and roads for each alternative Develop planning-level, itemized cost estimates for alternative port and road networks Develop a benefit-cost analysis that compares the port sites and their respective road networks = Port Compare the costs of transporting fuel for the following: ¢ Aport near Holy Cross e Aport near Ruby Compare port development feasibility for each port site and each alternative Compare the river depth, draft, and navigability issues Identify potential material sites = Road Outline road network needs, including key near-term mining sites, longer- term potential sites, and connection of communities within the study area Develop anticipated traffic makeup from each port site for each scenario Identify potential material sites Identify major structures required Compare feasibility of road construction, upgrading existing roads, and stage construction for all elements of the road networks = Network alternative comparison and selection Develop criteria for evaluating alternatives. The criteria selected must be consistent with and fulfill the purpose and need for the project. Evaluate alternatives on an equal basis, applying the evaluation criteria developed above Select the preferred network alternative to be advanced for possible funding and further development FINAL DRAFT ANC/030990015 15 YUKON RIVER PORT AND ROAD NETWORK Finally, this study addresses potential funding sources and discusses a financing package for the preferred port site and associated road network that includes private and public elements. To ascertain logical target destinations for road network segments that could support development within the study area, mining and geologic consultants were contracted to provide interpretation. Paul Glavinovich, a minerals consultant, was subcontracted by Northern Economics, Inc., as a mining consultant to assist in identifying development targets. Tom Bundtzen of Pacific Rim Geological Consulting, Inc., a geologist with extensive experience within the region, was contracted by CH2M HILL to assist the study with geologic interpretation and identification of aggregate resources along the routes studied. The Bundtzen report titled Annotated Summary of Aggregate Materials Availability and Mineral Resource Potential in Yukon Ports and Roads Project Area (2003) is provided in Appendix B. 1.4 Study area description 1.4.1 Physical environment The 50,000-square-mile study area is bounded by the Yukon River on the north and west, the Kuskokwim River on the south, and the Nixon Fork mining district on the east. Figure 1-2 shows the study area; additional figures of study area characteristics are included in Appendix C. The study area does not lie within an organized borough. Figures C-1, C-2, and C-3 in Appendix C show the boundaries of voting districts, the lands owned by Native Regional Corporations, and the general land ownership. Lands tentatively approved for conveyance under the Alaska Native Claims Settlement Act (ANCSA) lie along the outskirts of the study area. Other landowners include the Bureau of Land Management (BLM) and State of Alaska. Lands within the study area consist of four national wildlife refuges as well as federal, state, and private land (Figure C-3 in Appendix C). Tatalina Air Force Station, a Department of Defense radar site, is located at Takotna Mountain near McGrath. Table 1-1 summarizes general information about the following communities within the study area: Aniak, Crooked Creek, Flat, Galena, Holy Cross, Kaltag, McGrath, Ruby, and Takotna. These communities have high percentages of Alaska Natives who rely heavily on subsistence resources (Alaska Department of Community and Economic Development [DCED], 2003). The residents include Athabascan Indians and Yup’ik Eskimos. Many of these communities are not connected by road systems, but are served by local roads and trails. Many also rely on barges to receive goods and services. Ophir and Poorman, also in the study area, are no longer occupied year-round by permanent residents. Ophir is located in the middle of a small placer gold mining area, and few, if any, people spend the winters there. No longer a viable town, Poorman is visited now by occasional miners and hunters. FINAL DRAFT ANC/030990015 16 YUKON RIVER PORT AND ROAD NETWORK Table 1-1 Summary of community information Community and federally recognized tribe (FRT), if applicable Population, Native residents, and area Aniak 572 people; 73% Native or part Native (primarily Yup’ik Eskimos and Tanaina Athabascans; 6.5 square miles of land and 2.3 square miles of water Crooked Creek FRT: Native Village of Crooked Creek 137 people; 93% mixed Eskimo and Ingalik Natives; 101.1 square miles of land and 7.4 square miles of water Flat Unpopulated except seasonally; 4 people—one non-Native family—live in Flat part of the year; 161.1 square miles of land 713 people; mixed Athabascan and non- Native; 20 square miles of land and 6 square miles of water Galena 227 people; 96% Alaska Native (primarily Ingalik Indian) or part Native; 31.3 square miles of land and 6.2 square miles of water Holy Cross FRT: Holy Cross Village Economic base Government, transportation, retail, services for surrounding villages, 14 commercial fishing permits Employers include the Calista Corporation and Kuskokwim Corporation. Placer Dome U.S. signed an exploration and mining lease for the Donlin Creek Mine, north of Crooked Creek. Lies in the Iditarod Mining District Commercial fishing permits are held by 31 residents. The community serves as the transportation, government, and commercial center for the western portion of Interior Alaska and as a regional transport center for surrounding villages. Nine residents hold commercial fishing permits. Role of subsistence Subsistence supplements part-time jobs. Subsistence foods contribute largely to villagers’ diets. Many families travel to fish camps each summer. Subsistence activities are important. Salmon, moose, caribou, and waterfowl are consumed, Unknown Subsistence activities are important and include harvesting salmon, whitefish, moose, and berries. Subsistence and fishing- related activities are important. Subsistence hunting, fishing, trapping, and gardening supplement incomes. Transportation Access by air and water; regular commercial flights in and out via a 6,000-foot asphalt runway; floatplanes; fuel and goods brought in by barge The Kuskokwim River is the local highway for both summer and winter travel. All-terrain vehicles (ATVs) and snowmachines are used for transportation, and skiffs and barges move supplies during summer months. There are no public facilities or road access, but a gravel airstrip is available. River barges bring supplies from mid- May through mid-October. Local travel consists of pickups, cars, snowmachines, skiffs, and ATVs. During winter, the frozen rivers are used for travel to Ruby, Koyukuk, Kaltag, and Nulato. A winter trail is available to Huslia. Dependent on air and boat transportation, with barge service provided in the summer. Local roads extend for 7.5 miles and are used by ATVs, motorbikes, snowmachines, and dog teams. FINAL DRAFT ANC/030990015 17 YUKON RIVER PORT AND ROAD NETWORK Table 1-1 Summary of community information Community and federally recognized tribe (FRT), if applicable Kaltag FRT: Village of Kaltag Population, Native residents, and area 223 people; 87% Native or part Native (Koyukon Athabascans) Economic base The community lands provide a cemetery for surrounding villages. The Stick Dance Festival, a 1-week festival sponsored by relatives of the recently deceased, is held annually. Role of subsistence Subsistence activities are important. Salmon, whitefish, moose, bear, waterfowl, and berries are consumed. Transportation Kaltag is accessible by air year-round. Barges typically deliver heavy cargo three times per year. Local travel is by snowmachine, ATV, and riverboat. The frozen river, local trails, and the 90-mile Old Mail Trail to Unalakleet are used during the winter for wood cutting and trap lines. McGrath FRT: McGrath Native Village (Non-FRT: Medfra Traditional Council) Ruby FRT: Native Village of Ruby 401 people; almost half of the residents are Athabascan, Eskimo, or Aleut; 49 square miles of land 170 people; 86% Alaska Native or part Native (Koyukon Athabascans of the Nowitna-Koyutuk band); 7.4 square miles of land A regional center, the community employment includes in transportation, communications, and supply. Eight residents hold commercial fishing permits. Subsistence activities are important. Salmon, moose, caribou, bear, and rabbits are consumed. Subsistence practices provide most of the food for the community. Salmon, whitefish, moose, bear, ptarmigan, waterfowl, and berries are consumed. Ten families have dog teams that are entered in high-profile dog races. ATVs and trucks are used. Residents rely on air service and barges to deliver supplies. Dependent on air and boat transportation for travel outside the community. Local transportation consists of trucks, snowmachines, ATVs, floatplanes, and riverboats. There are no docking facilities, but a boat launch and barge off-loading area are available. Barges make several deliveries each summer. Takotna FRT: Takotna Village Source: DCED, 2003. 50 people; 48% non- Natives and-42% Natives (Ingalik Indians and Eskimos); 23.5 square miles of land Economic activities include subsistence and the Iditarod sled dog race. 80% of residents are involved in subsistence activities. Access is by air or water. There are 80 miles of roads and a winter trail that is marked to McGrath. Takotna is a checkpoint for the Iditarod sled dog race. FINAL DRAFT ANC/030990015 18 YUKON RIVER PORT AND ROAD NETWORK 1.4.2 Biological environment The middle Yukon River area is characterized by rolling hills and broad wetland plains through which the Yukon River flows. Predominant trees are spruce, birch, and aspen. Wetlands are vast areas with grasses and sedges made from a complex combination of systems, including rivers, streams, oxbows, thaw lakes, and sloughs. Many wetland areas are lined with willow, alder, spruce, and birch. Aquatic species found in the study area include salmon, Dolly Varden, sheefish, least cisco, burbot, northern pike, and humpback, broad, and round whitefish. Wetlands support an abundance of waterfowl for nesting as well as staging and resting stops during migrations. Terrestrial species important to subsistence include moose, caribou, grizzly, and black bear, as well as several species of furbearers such as marten, beaver, red fox, mink, river otter, muskrat, lynx, wolf, and wolverine. 1.4.3 Topographic and geologic setting According to Bundtzen (2003), the study area is “underlain by several distinct physiographic provinces,” including the Innoko Lowland, Kuskokwim Mountains, and Nowitna Lowland (named from south and west to north and east to match the convention used for this study) (Wahrhaftig, 1965; Pewe, 1975). Figure 1-3 illustrates the physiographic setting of the study area. The Innoko Lowland underlies a relative small portion of the study area from the Yukon River near Holy Cross to the western edge of the Kuskokwim Mountains in the vicinity of Fox Hills. Bundtzen (2003) described this province as follows: The Innoko Lowland underlies the southwest 8-10 percent of the project area from the Yukon River at Holy Cross eastward to the Kuskokwim Mountains in the general vicinity of the Fox Hills. The Innoko Lowland includes a group of flat river floodplains, dendritic in pattern, whose bounding slopes are generally steep banks cut into surrounding hills. In some areas, gentle silt-covered slopes merge with the surrounding hills. Abandoned oxbow and meander scroll lakes are very abundant east of Holy Cross, and thaw lakes abound in old flood plains on gentle silt-covered slopes. Most of the area is underlain by permafrost of unknown thickness. This part of the corridor is underlain by Middle Cretaceous and younger flysch [sedimentary] deposits of the Koyukuk Basin and pillow basalts and chert of the Yukon-Koyukuk terrane (Wilson and others, 1998). The Kuskokwim Mountains underlies the majority of the study area from the Fox Hills and includes Mosquito Mountain east to the Donlin Creek Mine, Flat east to the Ophir-Upper Innoko River area, and north to the Cripple Creek Mountains. Bundtzen (2003) described this province as follows: The Kuskokwim Mountains physiographic province underlies about 70 percent of the project area. It includes the portion of the transportation corridor from the general Cripple Creek Mountains near Poorman southward through the Ophir-Upper Innoko River FINAL DRAFT ANC/030990015 1-9 7 Nowitna a Lowland Legend |_|Plains and lowlands Plateaus and highlands of rolling topography and gentle slopes SS \ [7 Low mountains, generally rolling A. [Moderately high rugged mountains K — % oy figs Se a |_| Extremely high, rugged mountains B bany eats | “V Potential connecting roads - ae | % eo ene 0 1530 60 90 120. aioe Vicinity Map es Miles Source: U.S. Geological Survey EROS Alaska Field Office, "Physiographic Divisons of Alaska,” 1996 Figure 1-3 Alaska Department of Natural Resources, Land Records Information Section, 1990 Alaska Geograpic Alliance, Institute of the North, 2000 P hysiog raphic provi neces YUKON RIVER PORT AND ROAD NETWORK area, thence southwest to the Flat-Iditarod River basin, south to the Donlin Creek Mine and west to Mosquito Mountain and the Reindeer River drainage basin. The Kuskokwim Mountains are a succession of northeast-trending ridgelines having generally rounded summits from 1,500-2,000 feet in elevation and broad gentle slopes. Most of the gently rolling upland has never been glaciated and generally lacks eolian cover. Rather decomposed rock regolith [bedrock] can be found underneath vegetated slopes. The northeast-trending ridgelines are interrupted by 35-300 square miles circular-to-elongate, isolated rugged, glacially sculptured mountain ranges 2,800-4,500 feet in elevations (Kline and Bundizen, 1986). Such isolated mountain ranges in the project area include the Cripple Creek, Twin, Cloudy, Beaver, Horn, and Russian Mountains (Bundtzen and Miller, 1997). Classic U-shaped valley profiles typify streams that radiate drainage patterns on all sides of the glaciated mountain ranges. One important isolated mountain range along the potential road network at Chicken Mountain has not been glaciated, but otherwise exhibits many of the geomorphic characteristics of the former glaciated mountain ranges. Most of the rounded ridges in the Kuskokwim Mountains are underlain by Middle to Late Cretaceous sédimentary rocks. The isolated, sometimes glaciated mountain ranges are comprised of composite granitic plutons and associated volcanic fields. In the southwest portion of the Kuskokwim Mountains area, flat-lying basalt-to-rhyolite fields cap remnants of a mid-Tertiary erosion surface (Miller and Bundtzen, 1994; Bundtzen and Miller, 1997). Eolian silt buildups do occur on north-flanking portions of several glaciated mountain ranges and in hills adjacent to the Innoko Flats area west of the project area. These silt deposits are usually perennially frozen and laced with interstitial ice and ice wedges. The Nowitna Lowland underlies the terrain north of Poorman. Bundtzen (2003) described this province as follows: The Nowitna Lowland is a rolling silt-covered tableland ranging from 250-1,500 feet in elevation, which exhibits generally local relief of up to 500 feet and slopes of 100-150 feet per mile. The first 45 miles of the Ruby-Poorman road underlain by this physiographic region comprises about 20 percent of the total project corridor. A line of gentle bedrock hills in the center rises to 1,500 feet. The Nowitna Lowland has never been glaciated, but is underlain by a discontinuous permafrost except on recently abandoned floodplains. The entire Nowitna Lowland is drained by the Yukon River and third order tributaries. A part of the tableland to the south and east of the project area is covered by longitudinal dune sand up to 50 feet thick. The entire north-south-oriented hills system south of Ruby to the old mining camp of Poorman is buried by eolian [wind- deposited] silt deposits originating from the Yukon River floodplain. FINAL DRAFT ANC/030990015 1-10 YUKON RIVER PORT AND ROAD NETWORK 1.4.4 Mineralization The study area is the mineralized zone between the Yukon and Kuskokwim rivers, which lies within the western portion of the Tintina Gold Belt region. The study area represents a 125-mile-wide, 750-mile-long arc, bounded by the Tintina and Kaltag fault systems on the north and the Denali-Fairweather Fault system on the south. The area defined by these faults extends from northern British Columbia west to Southwest Alaska. As shown in Figure 1-4, the study area includes a portion of the Tintina Gold Belt that lies within the general contact zones of the Denali-Fairweather Fault system on the south and the Iditarod-Nixon Fork Fault system to the north. The contact zones are areas surrounding faults that are affected by the friction and breaking up of rock resulting from fault activity. In his description of the Kuskokwim Mountains province above, Bundtzen (2003) refers to “granitic plutons,” a geologic feature useful in identifying potential sources of mineralization. A pluton is a body of igneous rock that is formed when magma consisting of granitic mineral is injected into the parent bedrock, forming a solid granitic mass. (Figure C-4 in Appendix C shows an example of a pluton.) The study area is rich in plutons. Figure 1-4 shows some of the more prominent plutons in the study area. Depending on the minerals within the granitic intrusion, cooling characteristics of the mass, and complex geochemical processes, minerals may be concentrated in and around a pluton. The primary target mineral for development within the study area is gold, although other minerals do occur in the plutons of the area. Examples include the molybdenum of the Fox Hills pluton; tin, silver, and copper east of Colorado Creek and north of Nixon Fork; and the nearby reef ridge zinc deposits. 1.5 Mineral potential in the study area Within the past several years, the Tintina Gold Belt region of Alaska has experienced accelerated gold exploration, development, and mining activity. Examples include the Fort Knox and True North mines near Fairbanks, the Pogo Mine near Delta Junction, and the Donlin Creek Mine. Mineralization occurrence and known mining occurrence is tracked by the BLM (formerly Bureau of Mines) in its Alaska Resource Data Files (ARDF). The ARDF database is provided by the BLM in GIS format. Figure 1-5 shows locations from the database that lie within the study area. Each site shown on the map has an associated fact sheet that provides such data as historical activity, type of minerals, and known quantity of mined material. A few small-scale operators continue to mine in the study area. Until recently, depressed gold prices inhibited investment in mining exploration and development. 1.5.1 Donlin Creek Mine development Calista Corporation owns the Donlin Creek prospect in the Iditarod District, near Flat and Crooked Creek on the Kuskokwim River. NovaGold Resources Inc. (2003) recently announced a 27-million-ounce gold resource at the Donlin Creek prospect, FINAL DRAFT ANC/030990015 1-11 Saint Michael oo > Source: USGS, Statewide vegetationland cover, 1991 Legend Figure 1-4 USGS Alaska field office, 300m dem, 1997 0 125 25 50 75 1 Stud | les tudy area plutons Faults 2 7 Plutons [J stugy Area and major faults Source: USGS, Statewide vegetationand cover, 1991 USGS Alaska field office, 300m dem, 1997 Figure 1-5 Locations of study area mineralization Mineral occurences from Alaska Resource Data Files [[] Stuy Area 0.5 10 20 30 40 Miles YUKON RIVER PORT AND ROAD NETWORK of which 11 million ounces are drill measured and indicated and 16 million ounces are drill inferred. The prospect is under lease to Placer Dome Inc., which has committed to “spend a minimum of $30 million toward project development of the Donlin Creek Mine and to make a decision to construct a mine that produces not less than 600,000 ounces of gold per year by November, 2007” (Van Nieuwenhuyse, 2003). 1.5.2 Other significant mineral prospects A route from the Donlin Creek Mine area to Ruby would pass through areas rich in mineral deposits. In the early 1900s, the rivers and creeks of the area were subject to extensive prospecting and mining activity that peaked in the mid-1910s. The settlement of Ruby on the south bank of the Yukon River grew as a mining town and supply center to nearby gold fields through use of a network of overland trails. World-War | interrupted mining activity, which resumed after the war but never regained its former production levels. Today the region is dotted with ghost towns whose names (Iditarod, Ophir, Poorman, Flat, Ganes Creek, and Cripple) evoke a bygone mining era. The potential routes from the Donlin Creek Mine to Poorman cross a geologic mineral terrane identified as the Kuskokwim Mineral Belt (Bundtzen and Miller, 1997). The same geologic terrane is now commonly referred to as the western portion of the Tintina Gold Belt. Prospects of record located along or near the potential land routes from the Donlin Creek Mine north to Poorman cluster into three notable mining districts: Flat, Ophir, and the Cripple Creek Mountains. More than 2 million ounces of gold, primarily from placer deposits, have been produced from these districts. In addition to gold, the placers have produced limited platinum, mercury, and tungsten. Although the districts also include numerous lode prospects, none of the lode prospects has been developed into an operable mine. All three of the districts support active mining operations. The route north from the Donlin Creek Mine either passes through or close to the three largest-producing placer gold areas of the Kuskokwim area. Although placer mining has been ongoing since about 1900, additional placer deposits will probably be found. Given diligent exploration of this area, discovery of five or more moderately sized placer deposits capable of together producing more than 2 million ounces of gold during their productive lifetimes is a reasonable expectation. There are no reported mineral occurrences along the corridor containing potential routes east from a new port on the Yukon River across from Holy Cross to the Donlin Creek Mine. These routes would pass through the broad valley of the Iditarod River before reaching the Mosquito Mountain area. Construction materials are most likely to be available in the eastern portions of the corridor near the Mosquito Mountain area. Because a source of lime is needed for mining operations, the locations of limestone in the study area are of interest. Geologic mapping of routes considered has not identified any specific carbonate rock units that would be a source of limestone. In addition, a review of rock units mapped along the Kuskokwim River upstream from Bethel to Sleetmute also failed to disclose any carbonate units. FINAL DRAFT ANC/030990015 1-12 YUKON RIVER PORT AND ROAD NETWORK A significant limestone (marble) outcrop has been mapped in the Mount Hurst area. The outcrop area is approximately 8 miles west of the potential Innoko River route. Significant limestone outcrops exist along the Kuskokwim River approximately 10 miles (straight line) east of McGrath and also at Halfway Mountain, approximately 16 miles northeast of McGrath. Halfway Mountain is approximately 2 miles north of the Kuskokwim River. Other known limestone sources exist in or around the study area. Doyon, Ltd., owns several significant prospects in the study area, all in remote locations. The logistics challenges and costs—for delivery of fuels and other supplies and for shipping products out— are major impediments to development. The Doyon prospects include the following: = Extensive holdings with potential for placer gold production in the Ganes Creek and Ophir area, about 30 miles by road from Sterling Landing, which is just downriver from McGrath on the Kuskokwim River. Ophir is located roughly one- third of the distance between Ruby on the Yukon River and Sterling Landing on the Kuskokwim River. = Vinasale Mountain deposit, about 18 miles downriver from McGrath, with drill- indicated reserves of about 1 million ounces of gold = Reef Ridge deposit in the McGrath-Telida belt, about 25 miles northwest of McGrath, where drilling has indicated a 25-million-ton zinc oxide resource capable of yielding a high-quality ore concentrate = Mystery Mountains, a potentially mineralized area of 400,000 acres about 20 miles north of Medfra Real del Monte Mining Corporation began operation of the Nixon Fork Mine, an underground lode gold mine on federal claims about 30 miles northwest of McGrath, in 1995. The mine was shut down in 1999, partly because of low gold prices and limited reserves. Further exploration of nearby land and federal claims owned by Doyon may uncover additional reserves that, with higher gold prices, might warrant restarting this mine project. The remote Nixon Fork Mine operation was supplied by air. Other current mineral activity includes ongoing active placer mining in the Cripple Creek Mountains, in the Ganes Creek area, and at Flat. A new company has been reported to be moving a dredge into the lower section of Colorado Creek, and there is an active drilling program on Boob Creek north of Mount Hurst. 1.6 Existing transportation in the study area The 2002 Yukon-Kuskokwim Delta Transportation Plan (ADOT&PF, 2002c) identified several characteristics of Western Alaska that strongly influence the transportation system of the study area, including the following: = Remote geographical location » Relatively long distances between villages = The presence of wetlands and permafrost soils FINAL DRAFT ANC/030990015 1-13 YUKON RIVER PORT AND ROAD NETWORK » Harsh winter climate * Lack of good building materials for a transportation infrastructure « Village settlement patterns = Land management patterns = Relatively small cash economy = Declining population = Evolving transport technology = Government policies Transportation in the study area varies by season, with air travel providing the only year-round transportation access. In the winter, people use snowmachines on winter trails to access neighboring villages and hunting and fishing sites throughout the region. In the summer, skiffs and small boats provide basic transportation; barges supply fuel products and bring heavy freight into the region. The existing ports and roads in the study area are addressed in Sections 2.3 and 3.1, respectively. The air transportation infrastructure is described below. Seventeen state-owned airports in the study area are served by passenger airlines, cargo carriers, and air taxis. These businesses provide year-round passenger, freight, and mail service to the communities in the region. Only seven runways in the area are 3,300 feet or longer, which is the new minimum runway length for state-owned airports. Deficient airports in the region are scheduled for runway upgrades within 5 years (ADOT&PF, 2002a). Small hub airports at Aniak, Saint Marys, McGrath, and Emmonak are located in or serve the study area. Aniak receives some small jet service from Anchorage. McGrath and Saint Marys have had jet service in the past, but the airports lost certification in 1996, when air carriers discontinued passenger jet service, and the runways can no longer accommodate large passenger jets. The airports at both communities are used by large freight carriers for delivery of freight and fuel and by state fire services for fueling and servicing fire-retardant bombers. The U.S. Postal Service (USPS) plays an important role in the airport system in the study area, delivering fourth-class mail to the remote bush communities by air transport where no roads or alternative ground transport methods exist. The USPS “bypass” system for providing mail to the remote bush communities is unique. The goods are ordered, generally by a store, from a distributor in increments exceeding 1,000 pounds. (The average order is about 3,500 pounds.) The distributor consolidates the order onto pallets and delivers it to a mainline air carrier for transport under the authority of a postal inspector. The mainline air carrier delivers the pallets to a hub airport. At the hubs, pallets are broken down and the goods are transshipped by small aircraft to village stores or institutions that placed the orders. This service provides low-cost, year-round, regular delivery to villages at about 50 percent of barge costs and without the need for holding 9 months of inventory (ADOT&PF, 2002c). FINAL DRAFT ANC/030990015 1-14 PORT ANALYSIS Teron eth ed 2. PORTS ANALYSIS The purpose of the port component of the study is to determine (1) the economic benefit to regional development from shipping scenarios on the Yukon River with potential port sites at Holy Cross or at Ruby and (2) the most feasible port site for development within the study area. 2.1 Overview of study area rivers 2.1.1 Yukon River The Yukon River forms an arch parallel with the Alaska Range. The longest river in Alaska, its course covers approximately 1,400 miles within the state and an additional 600 miles in Canada. The Yukon River has an average annual discharge of more then 225,000 cubic feet per second. During winter, flow drops as rivers, lakes, and ground freeze. Thaw generally occurs in May. The Yukon River is navigable by barge on a seasonal basis from its mouth at the Bering Sea to the Alaska-Yukon border. The most notable tributaries of the Yukon River are the Tanana and the Koyukuk rivers, which are also navigable by barges (CH2M HILL, 2001a). (Subsection 2.2.3 provides more information about barge navigation.) Yukon River constraints are present both upstream and downstream of the potential port sites in the study area. The constraints consist of rapids, obstructions, and shallow areas. They limit the size of vessel that can safely navigate the river, thereby affecting the cost of shipping scenarios. Figure 2-1 depicts the constraints assumed when navigating the Yukon River with barge traffic. Additional detail is provided in Chapter 4, Financial Considerations. The 100-day barging season and the shallow, shifting nature of the approaches to the river are the major restrictions on fuel and freight traffic movement through the Yukon River mouth. The closest dock to the study area capable of handling ocean- going barges is Saint Michael on Norton Sound. The dock is 155 nautical miles by river from Holy Cross and an additional 100 nautical miles by ocean, totaling 355 nautical miles. (A nautical mile is equal to 1.15 miles.) From Saint Michael, deliveries are made with lightering barges that have drafts of not more than 4 feet. Light-loaded (8- to 10-foot draft), ocean-going freight barges sometimes enter the river through Kwikluak Pass to make deliveries at Saint Marys. Barge operators report that the lack of dock and fuel storage facilities at other villages make delivery by ocean-going barge uneconomical and that lighters are more cost-effective for these deliveries (Sweetsir and Hnilicka, 2003). 2.1.2 Kuskokwim River Kuskokwim Bay and Kuskokwim River open into the Bering Sea north of the entrance to Bristol Bay. The bay is filled with many flats and hard steep shoals, and channels through the bay are not always apparent. The 40-mile approach through Eek Channel to Kuskokwim River is a maze of shifting sandbars, both visible and FINAL DRAFT ANC/030990015 21 N s ~ ©Selawik © Shishmaref w E vs > s Fi X Deering f °Diomede _< f’ = ee eee “Buckland - Wales j _ vn o Candle . Huslia Brevig Mission °?<Teller oking Island - ~h Marys Igloo : Council Koyuk Sk ae White Mountain | _/ )|-Study Area Galena Solomon? __ ip LEON J a 2 ~ Golovino. 7 — zo oon ‘J Shaktoolik PB A ~ s o 6 v Py Pr % 3 ee ? Unalakleet x ie icti Pe Restriction x wae 40 miles Stebbins S y > d 12 ftdraft | — °-,Saint Michael feds aS 7 S ‘s ae Bill. Moores j i Ophir, / Of * . a. Hamilton { x Fea" a pV dp Emmonai Chuloonawick & Gaines’ Creek, Nunam Iqua NL i, | ! “ CP = ’ : , * yt. ‘. “ ‘® Alakanuk Pipe 255 | , a Se, ane, im ae y 4, “715" ? Holy.Cross" g 7 z . oa : Mountain Village’o—Saint’/Marys ""e_ vt ae NS “ ___Scammen\Bay Pilot Station “=== vb Nf dintin’Creek Mine ‘5 Paimiut 5 Marshall city \Crooke [ae Pitkas:Point: e &: Hooper Bay chevak Russian Mission Ohogamiut ‘ Upper Kalskag} | o Lo we ee g re eg “4 T \ aed od — Hira” ays ae Ruby p j ¥ Poorman: | Restriction Ailakaket s Restriction Hughes| Rapids! P 15 miles long aNm , a02N eS” fie Tanana Tae 3 4 ft at confluence vy “9 4Manley Hot.Springs Ester {Eairba Stevens Village ‘ Central Circle Hot Springs Livengood a? La y Chena.Hot Springs eo - OXF Rampart © Minto nks : (= "Oe North Pole Sy N LIT Big Deltaa\ } Delta Healy ; McKinley Park Cantwell \ Sa s ~ Nelc| + es Co ee Hope. » - me @ : % uluksak 0 ie * , we $2 Be Atmautluak ‘& Akiak, [A anding Gi Ge, as i ey re a ass a > te pote, SS FOR Meoearee g Nm = Nautical mile Legend Figure 2-1 0 12.5 25 50 75 101 Navigation characteristics of the Yukon River Mites \ Alternative Port Location —= Alternative Road Segment 7. Cataloged Anadromous YUKON RIVER PORT AND ROAD NETWORK submerged, and blind channels. The channels in the bay and river undergo constant change from year to year because of the action of the sea, currents, and ice; extreme caution and continuous soundings are necessary. The channel through Kuskokwim Bay and up Kuskokwim River to Bethel is marked by seasonal buoys. The deepest draft that should attempt to reach Bethel is about 15 feet (U.S. Department of Commerce, 2002b). Bethel, 65 miles up the Kuskokwim River, is considered the head of ocean navigation. From here river boats operate to points on the upper river. The diurnal range of tide is 4.0 feet, but the stage of the river influences the depth. Ocean vessels make several trips during the summer between Seattle, Washington, and Bethel, transporting freight and equipment that are distributed from Bethel over a large area (U.S. Department of Commerce, 2002b). A considerable amount of freight is shipped upriver on barges and river steamers to the many Native villages along the river. Barge operators report controlling drafts of 4.5 to 5 feet are common between Bethel and Crooked Creek ,with controlling drafts of 4 feet during especially dry summers (Sweetsir, 2003b; Tarter, 2003; and Ausdanhl, 2003). Aniak is located 125 miles upriver from Bethel by river steamer. McGrath, 400 miles above the mouth, is located at the head of navigation on the Kuskokwim River. 2.2 Existing cargo movement in the study area General cargo is moved to inland villages, primarily by river barges operated by a single common carrier, by a number of contract waterborne carriers, and by air. Air shipments of general cargo are part of the bypass mail program of the USPS and may account for as much as one-half of total general cargo shipments by weight. Mainline, coastal, and lightering barges that transfer cargo from ocean barges anchored in Hooper Bay also provide common carrier barge service to coastal villages and occasionally to villages on the lower Yukon River. General cargo and fuel shipments to the study area in 2002 are estimated to have totaled between 21,000 and 45,000 tons (Appendix kK). A 2001 study for the COE (Tetra Tech Inc., 2001) found that bypass mail rates for general cargo were less than one-half the barge rate. This low rate was possible because the federal government heavily subsidized bypass mail. The study also found that barge rates (costs) were primarily a function of local conditions (mooring and unloading), rather than distance. The study found a need to develop minimum mooring and unloading facilities for river barges at all coastal, Kuskokwim River, and Yukon River villages. Discussions with local barge companies (Sweetsir and Hnilicka, 2003) confirmed that, with the exception of Saint Marys, these conditions and conclusions apply to villages along the Yukon River. 2.2.1 Barge traffic on the Yukon and Kuskokwim rivers The 2001 COE study also found—and conversations with local barge operators confirm—that a single waterborne carrier transported essentially all of the fuel delivered to the region. Yukon River villages, including those near the coast, were served from Nenana. Coastal villages were served by lightering barges from a FINAL DRAFT ANC/030990015 22 YUKON RIVER PORT AND ROAD NETWORK regional fuel storage facility located at Saint Michael. Villages along the Kuskokwim River are served by barges from Bethel. Barging seasons, or the time available for safe navigation by barge, is limited to the summer period after breakup of river ice in the spring and before freezeup in the fall. Freezeup generally occurs in late October and breakup generally occurs in mid-May. Breakup on the Yukon River can take several weeks, resulting in a barging season of about 100 days. Breakup on the shorter and narrower Kuskokwim River takes only a few days, and the barging season on the Kuskokwim River lasts about 3 weeks longer than the barging season on the Yukon River (ADOT&PF, 2002c). Barging seasons of 100 days on the Yukon River and 122 days on the Kuskokwim River are assumed in this study. Beach landings are the norm both in river and coastal cargo transfer operations in and around the study area. With few exceptions, landing facilities at the villages are unimproved river bank or coastal sites. Many river landing sites vary from year to year and sometimes by season, depending on water level and sand bar movement. Saint Marys, about 104 nautical miles upriver from the south pass of the Yukon, has a small dock and small boat harbor. Transportation needs identified for Saint Marys include charting, navigation aids, weather forecasting, protected harbors (especially for small boats), and selective channel dredging (ADOT&PF, 2002c). 2.2.2 Companies providing barge and connecting freight services Northland Services provides common carrier and contract barge transportation services from Seattle to communities on the Yukon River as far as Russian Mission. Yutana Barge Lines, a subsidiary of Northland Services, serves communities on the Tanana River below Nenana and on the Yukon River. The company also provides regular commercial barge service on the Yukon River from Fort Yukon (the northern terminus) downstream to Ruby, Galena, and the Bering Sea communities of Emmonak and Alakanuk. Yutana also serves the village of Huslia on the Koyukuk River. Incoming barge freight is brought to the Yutana terminal in Nenana by truck and the Alaska Railroad. In 2000, about 7 million gallons of heating fuel and gasoline were hauled to Nenana by trucks from North Pole. Discussions with representatives of Yutana Barge Lines indicated that modernization of the tank farm system at Nenana would provide significant improvements to the transshipment of the fuels (CH2M HILL, 2001b). 2.2.3 Equipment and physical constraints affecting barge service The Yukon River Delta extends about 90 miles from Black River to Apoon Pass, and the river discharges through its delta into the Bering Sea. (See Figure 2-2). The region can be approached from the south, by traveling through the Gulf of Alaska around the end of the Alaska Peninsula, a journey of approximately 1,250 nautical miles from Anchorage or 1,950 nautical miles from the Pacific Northwest (calculated from U.S. Department of Commerce data [2002a]). Another major route to the region is east across the North Pacific, from Asia to the Bering Sea. Bars at the Yukon River entrances are shallow, and the channels through the flats are narrow, crooked, and bordered by shoals that are exposed at low water. These FINAL DRAFT ANC/030990015 2-3 S Pig or aS NW Kotlik 908° % q : & 6 SS @ ee oxo ° a pe o 5 t : 3 & 1 eocammon Bay LA, hb. 5 10 20 30 4 Figure 2-2 ees |Viles Yukon River Delta YUKON RIVER PORT AND ROAD NETWORK shoals are also subject to constant change. Apoon Pass in the north is the entrance historically used by shallow draft boats and barges. Kwikluak Pass is the main southern entrance to the Yukon River. Approaches to Kwikluak Pass in the south are generally very shallow. Accurate soundings are not available because of the shifting shoals near the entrance. The recommended approach is Acharon Channel; however, local knowledge is required to make the transit safely. Passage upriver from the river mouth should only be made with a pilot or with local knowledge. According to a local pilot, the limiting draft of the south entrance at high water is 15 feet (U.S. Department of Commerce, 2002b). Apoon Pass is the principal approach to the Yukon River from Saint Michael. The approach to Apoon Pass is across unmarked shallow flats where depths are only 1 to 2 feet at low tide. All but the shallowest draft vessels must cross the flats at or near high water. The tide in Apoon Pass is more or less diurnal (daily) with a range of about 4 feet at the mouth of the pass. There are no deepwater ports in the southern portion of the Yukon River Delta. Approaches to Kwikluak Pass, in the south, are generally very shallow but deeper than Apoon Pass. Accurate soundings are not available because of the shifting shoals near the entrance. The recommended approach is Acharon Channel (U.S. Department of Commerce, 2002b); however, local knowledge is required to make the transit safely. Once through the river mouth, passage upriver should only be made with a pilot or with local knowledge. According to a local pilot, the limiting draft of the south entrance at high water is 15 feet and the diurnal range of tide is 2.3 feet at the mouth of the pass (U.S. Department of Commerce, 2002b). Barge industry representatives recommend a planning depth of no more than 10 to 12 feet (Leonard, 2003; Tarter, 2003), however, and reported they would not try to take a 400-foot barge through the mouth (Hanson, 2003). Bringloe (2003) recommends transshipment from ocean-going barges to 300 foot x 80 foot x 15 foot barges loaded to an 8 foot draft for shipments beyond the mouth of the Yukon towards Holy Cross. A 1978 U.S. Army Corps of Engineers (COE) study reported that light-loaded, 8- foot draft, ocean-going barges could navigate from the ocean, upstream to Saint Marys. (The term “light load” describes a shipping practice in which a barge is loaded at less than capacity to control the depth of the draft. This practice is often required in rivers with shallow depths.) The same study estimated that passage of ocean-going barges with a 15-foot draft through the south pass would require dredging up to 5 feet from portions of a 200-foot-wide channel through about 1 mile of shoals. The projected costs for construction and annual maintenance were estimated to be $1,285,000 and $100,000 (both in 1977 dollars), respectively. The project was determined “to not be economically justified.” In August 2003, Bringloe of The Glosten Associates, Incorporated, a naval architecture and marine engineering firm, reviewed the National Oceanic and Atmospheric Administration Chart 16240 and contacted towing company managers FINAL DRAFT ANC/030990015 24 YUKON RIVER PORT AND ROAD NETWORK to determine limiting drafts for the mouth and lower portions of the Yukon River. Controlling drafts of 10 feet at mean lower low water or 11.5 feet at a typical high water were found at a few isolated locations inside the entrance to the Yukon River. Bringloe (2003) suggested that very limited dredging immediately inside the entrance might increase the controlling draft to 17 feet. Updated hydrographic surveys were recommended to support detailed planning activities. Bringloe found the controlling draft on the lower Yukon River up to Saint Marys to be about 10 feet and a safe draft from Saint Marys to Holy Cross to be about 8 feet. Bringloe also noted that, during some periods, barges traveling to Holy Cross are routinely loaded to 9 feet. In response to disagreement about controlling drafts on the Yukon River, shipments that used both 8- and 10-foot drafts were evaluated. Because increasing the draft to 10 feet did not change the economic viability of a port near Holy Cross relative to a Ruby or Crooked Creek port, the analysis reported in this study is based on the more conservative 8-foot draft. The major restriction on downriver barge traffic from Nenana occurs upriver of Tanana at the confluence of the Tanana and Yukon rivers where limiting drafts are about 4 feet (an area that is upriver of the study area). The major restriction on downriver barge traffic from the Dalton Highway Bridge is a series of rapids about 15 miles upriver from Tanana on the Yukon River. Barge owners expressed great concerns about trying to barge large quantities of fuel from either Nenana or the Dalton Highway Bridge (Sweetsir, 2003a). Fuel and freight barges operating in Norton Sound and the Bering Sea have significantly different costs and operational characteristics. The Oil Pollution Act of 1990 significantly increased the construction cost of fuel barges by requiring double hulls for new fuel barges, replacement of single-hull fuel barges by 2010, and replacement of double-bottom or double-side fuel barges by 2015. While traveling on the Bering Sea, only barges hauling freight are allowed to use tandem tows; barges carrying fuel are not (Sweetsir, 2003a). Because of these differences, barge transport of fuel and freight were evaluated separately. 2.3 Characteristics of port sites 2.3.1 Study area ports In this study, an evaluation of the engineering challenges and costs of a port at Crooked Creek on the Kuskokwim River was considered to be outside the scope of analysis. A port at Crooked Creek may be developed to support the Donlin Creek Mine and is being studied as a separate project This study does consider road access from a Kuskokwim River port at or near Crooked Creek to the Donlin Creek Mine as a base case for economic analysis. Information for the communities of Holy Cross and Ruby is summarized below. FINAL DRAFT ANC/030990015 25 YUKON RIVER PORT AND ROAD NETWORK 2.3.1.1 Holy Cross The study team considered a port site location along a stretch of the Yukon River from approximately 5 miles south of the southern entrance to Red Wing Slough to Lucky Point. (See Figure 2-3.) This stretch of river was selected for consideration because it includes the area for which it would be reasonable and feasible to provide road access to the nearest mining targets eastward, the Donlin Creek Mine and Flat. River port sites outside this area are not considered feasible because they would require long road connections, crossing of extensive wetlands, or both. The site of a former Holy Cross port, which was operated as a fuel and supply depot before World War II (Jarue, 2003), is located in Red Wing Slough, near the confluence of the Yukon River and the Innoko River. The port was used to supply mining operations at Flat and beyond. The fuel was barged down the Yukon River from Nenana, which was supplied by the Alaska Railroad. Six 20,000-gallon tanks were maintained for fuel storage at Railroad City. Barges were operated on the Innoko River from Railroad City to a landing that was the terminus of an 8-mile road to Flat. The barge journey reportedly took 4 to 5 days. The barges and fuel depot were apparently owned by the railroad, hence the name Railroad City. Because the size of barge that would likely be used to most economically deliver fuel through the Yukon River mouth would be in the 250-foot class, Red Wing Slough and Railroad City are considered to be very restricted (Sweetsir and Hnilicka, 2003). The even more restricted Innoko River was eliminated from consideration in this study for shipping fuel or supplies. The area north of Red Wing Slough was observed in the field and appears to have potential for a port site, pending further study. This area lies along the main channel of the Yukon River; therefore, it should have sufficient depth for large barges and tugs. The river banks are substantially higher above the river than the Red Wing Slough and southern area (15 feet estimated from the air), possibly offering some added freeboard against flooding. The current of the main channel appears to be enough to keep the channel flowing without deposition of silt and sand. The potential road corridor east from the area would be difficult, but appears to be as good or better than other locations (see Subsection 3.2.2.1 in the road segment description). The main potential concerns for a port site on the Yukon River in this location would be ice movement during breakup, excessive currents, bank erosion and potential floating debris (trees) from the upstream erosion by the Yukon River. Flooding potential would have to be analyzed at any site. Information gathered on area geology, climate, seismicity, soil, and ground thermal regime for the Holy Cross vicinity is presented below. Area geology The Yukon River valley near Holy Cross narrows to 12 miles wide, but widens to more than 20 miles wide north and south of the Holy Cross Hills. The river valley is characterized by low topographic relief, multiple meandering stream channels and oxbow lakes, and wetlands. The lowland soils consist of alluvium deposited by the FINAL DRAFT ANC/030990015 246 Ro IN ee iy NT ae be han Sy IS Lo F< wen nee VP Ee eae y Y ey 5 é v SJ ° nu 2 ] > ic a8 §& Se 9S rg — g ® ¢ tr Oo a o 2 oc S x ] > Recomended Corridor ffe|Photo No. Direction wate ‘a YUKON RIVER PORT AND ROAD NETWORK river during flooding and are predominantly silt with occasional thin sand seams. Walker Slough and the Yukon River channels are predominantly fine sand. (See Figure G-2 in Appendix G.) The entire area is within the Innoko Lowland and consists of silty soil transported by the Innoko and Yukon rivers. River banks were 5 to 15 feet in height at the river stage at the time of the April 2003 field trip by members of the study team. (The field trip report is provided in Appendix D.) The terrain is flat with the only relief being the banks and channels of the many active and abandoned river channels, lakes, and ponds. The land cover consists of grasses in very wet open areas and spruce tree forests near the Yukon River and along some river channels. On the east side of the river, the area across from Holy Cross is generally low-lying with many wet, marshy areas. The Innoko River and Red Wing Slough meet near the site of Railroad City. No boring logs in this area have been identified. Reviews of the surficial geology (Beikman, 1980; Wilson, et al 1998), statewide soils maps (Natural Resources Conservation Service, 1979), and the geomorphic location indicate that the soils generally consist of fine-grained, overbank deposits with fine sand seams. Deposits of peat may also be present. Abandoned stream channels may consist of channel fill that contains peat and clay. The area south of Red Wing Slough is typified by very low river banks, numerous old channels, and vast wetlands. The sand and silt spit that forms downstream of Red Wing Slough constricts the main river and forms the outlet to Red Wing Slough (the downstream entrance for barge traffic from the Yukon River mouth). Climate The climate in the area of Holy Cross is characterized as the continental zone of Interior Alaska, with extreme temperatures in both the summer and winter (Selkregg, 1975). Precipitation within this zone is generally light. Mean annual precipitation is 18.5 inches. Table 2-1 summarizes temperatures at Holy Cross. Table 2-1 Summary of temperatures at Holy Cross Temperature Indicator Measurement Mean annual air temperature 28.7°F Mean freezing index 4,000°F-days Mean thawing index 2,600°F-days Design freezing index 5,000°F-days Design thawing index 3,250°F-days Seismicity Peak horizontal ground (bedrock) acceleration for a 500-year return period seismic event in the Holy Cross area is approximately 0.07g (U.S. Geological Survey [USGS], 2003a). Facilities should be designed accordingly. FINAL DRAFT ANC/030990015 27 YUKON RIVER PORT AND ROAD NETWORK Soil Available soil borings from the ADOT&PF (1983) indicate that the subsurface profile in Holy Cross consists primarily of alluvial silt with occasional thin sand seams to the depth in excess of 11 feet (the maximum depth penetrated by available boring logs). Ground thermal regime The potential port location is located within a narrow band along the Yukon River that is underlain by discontinuous permafrost (Selkregg, 1975). Within this zone, permafrost is present in most areas, but can be locally absent, particularly near large water bodies. To the north and south of this narrow discontinuous permafrost zone along the Yukon, moderately thick to thin zones of discontinuous permafrost are present. 2.3.1.2 Ruby The study team assessed the economic feasibility of a port at Ruby and observed the existing and potential sites during the site visit (Appendix D). Ruby was developed as a supply point for gold prospectors. Gold strikes at Ruby in 1907 and Long in 1911 brought hundreds of prospectors to the area. The population declined quickly after the gold rush waned, falling to 139 residents in 1930. Today the 195 residents are mostly Koyukon Athabascans (DCED, 2003). Information gathered on area geology, climate, seismicity, soil, and ground thermal regime in the Ruby vicinity is presented below. Area geology Ruby is located on the south bank of the Yukon River in the Kilbuck-Kuskokwim Mountains in Interior Alaska. Rock types in the area have been mapped as metamorphic in origin, consisting of graphitic phyllite, schist, quartizite, and quartz- mica schist. Marble outcrops occur at Ruby and at locations east of the village. Most of the area is heavily vegetated and mantled with loess deposits (windblown silt) of varying thickness. Residual soils formed on the bedrock are also found below the silt in some areas. Figures G-1 and G-2 in Appendix G show the study area bedrock geology and surficial geology, respectively. Climate The climate in the Ruby area is characterized as the continental zone of Interior Alaska, with extreme temperatures in both the summer and winter (Selkregg, 1975). Precipitation within this zone is generally light. Mean annual precipitation is roughly 17 inches. Table 2-2 summarizes temperatures at Ruby. Seismicity Peak horizontal ground (bedrock) acceleration for a 500-year return-period seismic event in the Ruby area is 0.06g (USGS, 2003a). Facilities should be designed accordingly. The Kaltag Fault, located just north of Ruby and extending west toward Norton Sound, is the nearest active fault. FINAL DRAFT ANC/030990015 28 YUKON RIVER PORT AND ROAD NETWORK Table 2-2 Summary of temperatures at Ruby Temperature Indicator Measurement Mean annual air temperature 23°F Mean freezing index 5,600°F-days Mean thawing index 2,700°F-days Design freezing index 7,000°F-days Design thawing index 3,500°F-days Soil The subsurface profile in Ruby consists of deposits of loess and loess-derived colluvium varying from thin (less than 5 feet) to greater than 30 feet in thickness. These silt soils overlie residual soils and highly weathered bedrock. The average depth of the silt is approximately 6 feet in the airport area (ADOT&PF, 1980). The silt soils are susceptible to frost heaving and thaw settlement when undergoing freeze-thaw cycles. The silts soils are also very susceptible to disturbance when exposed to moisture and equipment traffic. Earthwork activities in the silt may be hampered during periods of precipitation or if the native silt soils have high moisture contents (close to the liquid limit), such as might occur in poorly drained areas or around the time of spring thaw. The upper 1 to 2 feet of the native silt deposit frequently contains significant organic materials. The residual soils below the silts, where present, consist of a mixture of particles ranging from boulder-sized to clay-size (ADOT&PF, 1980). Depending on the degree of weathering that has occurred, residual soil types have been classified as sandy silt to clayey silty sandy gravel. The transition from residual to weathered bedrock is often a subtle one and not always easily distinguishable. Residual soils and highly weathered bedrock should be able to be excavated relatively easily with a backhoe or by ripping. Ground thermal regime Ruby is located within a narrow band along the Yukon River that is underlain by discontinuous permafrost (Selkregg, 1975). Within this zone, permafrost is present in most areas, but can be locally absent, particularly near large water bodies. To the north and south of this narrow discontinuous permafrost zone along the Yukon River, moderately thick to thin zones of discontinuous permafrost are present. The discontinuous nature of the permafrost has been confirmed by the available explorations advanced in Ruby. 2.3.2 Other regional ports with fuel facilities Virtually all fuel in the study area is supplied by Yukon Fuel Company. Major fuel supply ports include Bethel on the Kuskokwim River, Saint Michael near the Yukon River mouth, and Nenana on the Tanana River. Bethel receives ocean barges of fuel. The fuel is stored and distributed throughout the Kuskokwim River area. Saint Michael also receives ocean barges and serves the lower Yukon River area. Fuel is FINAL DRAFT ANC/030990015 29 YUKON RIVER PORT AND ROAD NETWORK supplied to Yukon River locations within the study area from Nenana, which receives fuel delivered by rail and by trucks that travel the Parks Highway to Nenana. Photographs of the fuel storage facilities at the communities of Bethel, Saint Michael, and Nenana are included in Appendix C. 2.4 Port design considerations Figure 2-4 provides a conceptual layout of port components, and Figure 2-5 shows a perspective view of the conceptual layout. The components are described below: = Landings may consist of tie-off points to secure barges. They could include revetments, temporary structures, earthen bulkheads, and a variety of other features to assist in berthing and securing tugs and barges. = Docks are not presumed to be necessary or advisable for the locations studied. The seasonal ice breakup of the Yukon River would present a formidable destructive force that would have to be accounted for in design, construction, maintenance, and replacement costs. « Freight handling would consist of container cargo and bulk cargo. Unloading could consist of a bulkhead or bridge that would support roll-on lifting equipment. As an alternative, freight handling could be facilitated by on-barge equipment and a shore-based crane. Shore-side area would be required to accommodate sorting and temporary storage of cargo and equipment. = Fuel handling and storage would consist of piping and pumps from a loaded secured barge to an appropriately sized tank farm. A related consideration is provision of appropriate containment capability in case of a spill. = Land-side requirements include the cargo staging area and tank farm mentioned above, plus provisions for maintenance of equipment and vehicle fleets and maintenance and repair of tugs and barges. = Power generation would be required for mining operations in the region. Shipping, handling, and storage of fuel were considered in this study because these activities could directly affect the requirements for a road system. The power generation facility itself is outside the scope of this study; only basic generation requirements were addressed. 2.5 Other pertinent information 2.5.1 Environmental considerations 2.5.1.1 Affected environment This subsection provides a brief overview of the environmental considerations associated with port development in the study area. Conducted as a planning-level analysis, the review of environmental issues is intended to assist the ADOT&PF in determining the feasibility of a potential project and identifying topics for which technical analyses might be required for a future project. This analysis also provides a preliminary evaluation of the level of environmental documentation and permitting effort that might be required. The research was based primarily on FINAL DRAFT ANC/030990015 2-10 TO42003003ANC_fig2_4bwal 01/14/04 pp 100,000 barrel (4.5 million gallon) \ fuel tank in containment cell \ 80 megawatt Power Generation Facility O @ O O O [x 23.5 acre Fuel Storage Facility Fuel Line Raceway ~{ =| 10 acre Cargo Handling y and Maintenance Facility Storage Area for containers, bulk cargo, and equipment fleet To Donlin 000000000000000000 odooooooooNooLoID |. 100" x 200° Maintenance Bldg. and Office Access Road Marshalling Yard and Barge Layout A Fuel Barge Landing Yukon River > Existing Riverbank 5' to 15' +/- 250' Barge Staging Area for ee ee Cargo Transfer ee 250' Barge / 250' Barge Cargo Barge Landing No Scale Figure 2-4 Port conceptual layout TO42003003ANC_fig2_5.ai 01404 jb Figure 2-5 Perspective view of the port conceptual layout YUKON RIVER PORT AND ROAD NETWORK reviews of resource agency Web sites, Internet searches into relevant subject areas, review of readily available documents and information, and community and economic development information from the online community databases prepared by the DCED (2003). Appendix F contains the detailed information compiled during the evaluation of environmental topics. Table 2-3 summarizes current social, physical, and biotic environment topics for the Yukon River port options. It also presents the environmental considerations during development of a potential project. 2.5.2.2 Environmental regulatory compliance The National Environmental Policy Act (NEPA) process consists of a set of procedures used by a federal agency to analyze and document potential environmental impacts of a proposal and its alternatives. This process also establishes project components that will require federal, state, and local permitting. The two components of a potential Yukon River port project considered in this study are (1) development of a year-round port and (2) construction and operation of a fuel transfer and storage facility adjacent to that port. Appendix F describes a general environmental documentation process and lists the potential permits needed for advancement of the type of port project considered in this study. 2.5.2 Construction considerations 2.5.2.1 Material needs and availability A common denominator in all resource and industrial development is the need for granular material; gravel is used worldwide for construction projects and transportation routes. In the Alaska Interior, the presence of discontinuous permafrost creates special construction problems that place additional demands on the supply of gravel. Even slight alterations in the permafrost thermal regime caused by surface disturbances can cause increased thawing, thermokarst (the settling of the ground caused by melting of ground ice), subsidence, and erosional problems. Maintenance of the thermal regime is essential when building or operating in permafrost areas, but especially in regions characterized by fine-grained soils with high water content. These latter soils are highly susceptible to subsidence when surface disturbance alters the thermal regime. Because the study area encompasses discontinuous permafrost areas and numerous silty soils, frequent instances of ice-rich, non-thaw-stable soils can be anticipated. These occurrences often depend on the local microclimate, including factors of northern exposure, shade, and presence of an undisturbed moss mat. The permafrost temperature in Interior Alaska is typically at or near 30°F or higher. The active layer is often relatively thick; for example, 5 to 10 feet. Unlike on the North Slope, providing sufficient gravel overlay thickness to prevent progressive late-summer thawing of the subgrade is not generally feasible as a design approach. Instead, judicious siting is usually the best approach. FINAL DRAFT ANC/030990015 , 2-11 Table 2-3 Environmental considerations for Yukon River port alternatives Port alternatives Topics Holy Cross Ruby Environmental Considerations Land use Holy Cross has about 230 people and land area of 31.3 square miles. It has Ruby has about 170 people and land area of 7.4 square miles. It is Consistency with existing land use plans; assess if port facility could change land use within air and boat transportation, with barge service provided in the summer. accessible by air and water and has a boat launch and barge off- established communities along the Yukon River. loading area but no docking facilities. Land ownership Holy Cross is an Ingalik Indian village. Alaska Native patent or selected lands Determine land ownership and right of way / access requirements SocioEconomics Subsistence and fishing are important. Nine residents hold commercial Subsistence provides most of the food for the community. Salmon, Determine how the community views changes resulting from port development (positive or fishing permits, resulting in a seasonal economy. Subsistence hunting, whitefish, moose, bear, ptarmigan, waterfowl, and berries are negative). Assess subsistence practices, barging use, and other social and economic concerns. fishing, trapping, and gardening supplement incomes. consumed. Eight residents hold commercial fishing permits. Subsistence See above See above Determine current subsistence practices relative to the Yukon River; determine interaction possible between subsistence species and proposed port. Communicate with U.S. Fish and Wildlife Service (USFWS) and Alaska Department of Fish and Game (ADF&G) to determine species of concer or sensitive areas. Air quality Current air quality is assumed to be good Current air quality is assumed to be good. Comply with the requirements of the Clean Air Act. Noise receptors Current noise levels are assumed to be low. Current noise levels are assumed to be low. Determine if there are any sensitive noise receptors along river near proposed port facility. (Human and wildlife receptors may be possible as water and air are conduits for noise.) Water quality The water quality of the Yukon River is described in the 2000 USGS report. The water quality of the Yukon River is described in the 2000 USGS Design and construct to maintain water quality and aquatic habitats. Primarily, the water quality reflects the mineral characteristics of the various report. Primarily, the water quality reflects the mineral characteristics of smaller watersheds that feed into the Yukon. Man's influence is noted with the various smaller watersheds that feed into the Yukon. Man's contributions of chemicals from atmospheric dispersal, early unregulated _ influence is noted with contributions of chemicals from atmospheric mining, and some military activities. dispersal, early unregulated mining, and some military activities. Wetlands Wetlands are present. Wetlands are present. Use BMPs in design for work in wetlands. Communicate with the Corps of Engineers early on to discuss the expectation for mitigation if wetland impacts are unavoidable. Wildlife refuges Not applicable Uncertainty about whether a port facility at Ruby would be close enough Determine distance to National Wildlife Refuges. Communicate with USFWS to detemine to affect National Wildlife Refuges, which would be sensitive receptors sensitive areas. for noise. Wildlife - terrestrial Unknown _ Unknown Consider animal feeding, breeding, or migration areas in port design. Wildlife - avian Unknown Unknown Design and construct to avoid nesting and hatching periods. Assess habitat areas. Communicate with USFWS to discuss species of interest or concern. Wildlife - fish Anadromous and resident fish are present near port facilities. Anadromous and resident fish are present near port facilities. Design and construct to maintain water quality and stream bed habitat. Communicate with ADF&G to discuss species of interest or concern. Viewsheds Port facilities and power lines will create a noticeable change to landscape, Port facilities and power lines will create a noticeable change to Communicate with Native communities, State Historic Preservation Office, ADNR, and BLM to river views. landscape, river views. determine sensitive areas. Anadromous streams Port facility at Holy Cross is off a slough that is not marked as anadromous; Port facility at Ruby is on an anadromous stream. Design and construct to maintain water quality and stream bed habitat. Communicate with therefore, there may be no impact for anadromous streams. ADF&G to discuss species of interest or concern. Floodplains Floodplains are present. Floodplains are present. Port design by nature would likely be built in floodplains. Use BMPs in design for work in floodplains. Communicate with the Corps of Engineers to discuss expectations during construction. Coastal zones May be within Coastal Zone, depending on site selected. Not applicable Port design should provide special consideration for Yukon River anadromous fish species. Communicate with ADF&G to determine expectations for in-water work. Wild and Scenic Rivers _ Not applicable Not applicable Not Applicable Cultural resources Unknown Unknown Determine subsistence hunting, fishing, trapping, and gathering areas. Communicate with Native tribes, State Historic Preservation Office, and Doyon to determine sensitive areas. Construction Depending on the selected location, current barge activities may be Depending on the selected location, current barge activities may be Use BMPs during construction. Construction activities should minimize the effects of noise, dust affected. affected. and heavy activity in areas of human or wildlife presence. Energy Power plant requirements should be considered. Hazardous waste 2 closed sites Inactive site at the Teen Center Design and construct for safe use and transport of fuel and other hazardous materials. Communicate with mining industry to determine materials and usage. DRAFT ANC\033510011 YUKON RIVER PORT AND ROAD NETWORK Available data Limited material site investigations have been performed in the study area. Those identified are primarily associated with ADOT&PF activities at airports it maintains. The existing information about material sources near Holy cross and Ruby is described below. Holy Cross The 1983 ADOT&PF report on geology and soils at the Holy Cross airport described potential borrow sources in the Holy Cross area as follows: = Previous construction has used weathered loose material from the steep ridge west of the village airstrip. The partial metamorphosed graywacke and conglomerate rock is close jointed and has been excavated by heavy equipment. Blasting may be required in less weathered portions of the bedrock. = Sandy gravel material was identified in the bottom of Walker Slough, approximately 0.5 mile east of the airstrip. The deposit is on unknown thickness, but is estimated to be the width of Walker Slough and 200 yards long. The current status of these or other borrow sites in the Holy Cross area is unknown based on the available information. The locations identified above are on the west side of the river near the village of Holy Cross, opposite of the potential port and road network. No known material borrow sites have been identified on the east side of the river. Ruby The 1980 ADOT&PF report describing a materials investigation at the Ruby airport described three potential borrow sources in the Ruby area: = Borrow Site No. 1, Milepost (MP) 4.3, Long-Poorman Highway—The borrow material consists of weathered phyllite bedrock. = Borrow Site No. 2, MP 3.9, Long-Poorman Highway—The borrow material consists of highly weathered bedrock and residual soil. = Borrow Site No. 3, roughly 2 miles upriver of Ruby on a large river bar—The borrow material consists of clean sandy gravel. A gravel bar on the north side of the Yukon River has also been used as a borrow source (Clarke Engineering Company, 1994). The current status of these or other borrow sites in the Ruby area is unknown based on the available information. FINAL DRAFT ANC/030990015 2-12 Dera ley CALE PAL PELE 3. ROAD SEGMENT ANALYSIS 3.1 Existing roads in the region and the study area Roads within the Yukon-Kuskokwim region generally traverse difficult terrain consisting of tundra and permafrost wetlands and involve many stream crossings. Although some local material sources are available for local construction projects, such as airports, suitable material at many locations, especially for linear construction of long distance roads within river valleys, can be very costly because of a lack of suitable material that is economically accessible. As a result of these factors few roads exist within the general region that connect villages with each other or to destinations other than local. Instead, the transportation demands are met by air transportation with local village airports. River transportation is used where available, mostly limited to the Yukon, Tanana, and Kuskokwim rivers. © By contrast, the study area has a long history of surface transportation serving mining, military, and community interests. Most of the study area is within the Kuskokwim Mountains, with suitable terrain and readily available material for road construction. As a result, there has been a fairly extensive system of access roads built within the study area. Some of the existing roads are listed below. = A 17-mile road that circumnavigates the western side of Chicken Mountain is privately maintained and used for local access. Chicken Mountain Road can be seen in Photograph 41 in Appendix C. = Aroad extends 38 miles from Sterling Landing on the Kuskokwim River through Takotna to Ophir (Sterling Landing—Ophir). The existing Takotna Road can be seen in Photographs 47, 49, and 50 in Appendix C. = A 9-mile road connects McGrath and the Noir Hill quarry. = Twenty miles or more of road exists in and around Poorman. = Aroad extends 55 miles south from Ruby, the Ruby—Poorman Road. See Photographs 52 to 54 and 62 to 65 in Appendix C. = Numerous mining operations have privately built and maintained roads within the study area. Both the Ruby-Poorman Road and the Sterling Landing to Ophir Road act as collectors for many of these local roads. » In addition to the existing roads, trails between Flat and Takotna that were used by miners since the turn of the century still exist. The trails include winter trails that connect villages, mines, and other resources throughout the study area. The 38-mile Sterling Landing—Ophir Road serves active mines within the Innoko River drainage near the old mining town of Ophir. It also serves the village of Takotna and provides access to the Tatalina Air Force Station on Takotna Mountain. The road is privately maintained and is not listed in the state system (ADOT&PF, 2001). FINAL DRAFT ANC/030990015 341 YUKON RIVER PORT AND ROAD NETWORK The Ruby—Poorman Road is approximately 55 miles long; however, only the 42-mile Ruby to Monument Creek portion is passable by car or truck. Currently road maintenance ends just north of Monument Creek, and the bridges at Monument Creek and Susulatna Crossing are not serviceable at this time. The road is generally between 15 and 18 feet wide, traverses rolling terrain, and contains only short segments of grades steeper than 10 percent. 3.2 Segment identification and analysis Road network identification and refinement were conducted in three steps. Step 1 consisted of the following activities: * Gathering existing information = Conducting interviews with stakeholders such as Doyon Ltd., Calista Corporation, Placer Dome Inc., and NovaGold Resources Inc. = Developing a GIS mapping database » Identifying potential target destinations of a road network « — Identifying logical road segment routing "Conducting planning-level analysis to develop cost estimates for the road segments For preliminary study purposes, major road segments and alignment alternatives were identified within the region. Logical routes were laid out on USGS quadrangle mapping at a scale of 1 to 64,000 with AutoCAD and were later brought into the GIS mapping with a USGS 1-to-250,000-scale map background. A typical roadway section was chosen as well as preliminary design criteria for an industrial road. Generalized terrain types that could be identified within the mapping were defined, and earthwork quantities were calculated based on the terrain type length within each segment. These quantities were not used directly for estimating, but rather were used to compare the study area road segments to other similar roads where more thorough analysis has been performed (such as the 60-mile-long McCarthy Road). This information was then used, along with engineering judgment, to define simple cost values correlated to terrain type. Finally, the ADOT&PF developed a table with schedules and phases that further groups the segments into stages (shown in Figure 3-1). The stages, identified below, were created for evaluation purposes and do not represent proposed projects: Stage | Holy Cross to Donlin Creek to Flat Stage II Flat to Ophir and McGrath to Takotna Stage III Ophir to Ruby and Takotna to Nixon Fork Step 2 of the study was to conduct a site visit. During this trip, all segments were observed and photographed from a helicopter (except Takotna to Nixon Fork). Subconsultant Tom Bundtzen participated in planning the trip, traveled with the FINAL DRAFT ANC/030990015 32 4 (75 ayy 7 gs ta? RS, a” Pe Bs Legen ‘ gend Figure 3-1 SIT | uses Aimsta nataomen soem aac aor | Stage | Road Segments Road segments and stages Alaska in maps Stage Il Road Segments == Stage II Road Segments 0. 5 10 20 30 ‘ ee —— ee ics <== Crooked Creek to Donlin Creek Mine YUKON RIVER PORT AND ROAD NETWORK team, and provided interpretation and geologic maps. Observations and discussions of the trip are provided in the field trip report (Appendix D). Step 3 was the report preparation, which entailed compilation of observations from the site visit, documentation of findings from ensuing team discussions, and review of the information gathered. Figures C-5 through C-10 show the potential road alignments to support mineral development within the study area. Photographs 1 through 74 in Appendix C illustrate study area features. 3.2.1 Crooked Creek to Donlin Creek Mine Access to the Donlin Creek Mine from the Kuskokwim is being developed as a separate project from this study. It is mentioned here because it has importance in the potential development of the Donlin Creek gold deposit, and is considered a base case scenario for economic analysis within this study. Two routes are being considered at this time. One alignment would begin at or near Crooked Creek and would stay more or less within the Crooked Creek drainage to the Donlin Creek Mine area. This alignment is approximately 14 miles long. The second alignment would begin on the Kuskokwim River downstream of Crooked Creek at or near Jungjuk Creek, and would follow uplands to the west of Crooked Creek until it would cross the creek in the upper valley to access the Donlin Creek Mine area. This alignment is approximately 19 miles long. See Figure C-5 for corridor locations. 3.2.2 Stage I, Holy Cross to Donlin Creek Mine to Flat During Stage |, a road system would be constructed from a port on the Yukon River near Holy Cross to the Donlin Creek Mine, to the Flat mining district. Although consideration of a Crooked Creek port or road segment was beyond the scope of this study, it is recognized that there are is an active project to construct a road from Crooked Creek on the Kuskokwim River to the Donlin Creek Mine area. Figure C-5 for the Stage | corridors shows the USGS 1:250,000 scale mapping. Figure C-6 shows locations of selected photographs. 3.2.2.1 Yukon River Port (Holy Cross) to the Donlin Creek Mine (Photographs 13 to 32) Two potential alignments have been identified and were studied between Holy Cross and the Donlin Creek Mine. Both initially traverse the Innoko Lowland and then traverse the hills to the east to the Donlin Creek Mine. The southern alignment was eliminated during the 2003 site visit because of very extensive wetlands. Description. The beginning of this road segment would be at a new port site along the Yukon River and across from the village of Holy Cross. Figure C-5 shows the location of the potential port site on the main Yukon River north of Railroad City. From the Holy Cross port, this route would trend east across the Innoko Lowland for a straight-line distance of approximately 10 miles (Photographs15 to 22). The Innoko Lowland consists of river-deposited silty soils that may be frozen and ice FINAL DRAFT ANC/030990015 33 YUKON RIVER PORT AND ROAD NETWORK rich. Predominant surface features of the general flat lowlands are numerous active and abandoned river channels, oxbow and meander scroll lakes, and thaw ponds. This area is likely to be the most challenging to cross because of the poorly drained surface, numerous channel crossings, and potential presence of thaw-unstable permafrost. In addition, embankment materials would need to be imported. This area could potentially use a large amount of foundation material to stabilize the in situ soils. The corridor exits the Innoko Lowland by climbing onto high ground and onto the lower flanks of Fox Hills (see the right side of Photograph 23). This area is the western edge of the Kuskokwim Mountains, and the surface can be expected to be underlain by a layer of broken weathered bedrock over shallow solid granitic bedrock. This upland area is the nearest potential material source for the lowland crossing. The corridor shown then travels east along the lower southern flank of Fox Hills. From Fox Hills, the corridor continues generally east until it turns southerly and crosses the Iditarod River Valley. The valley is expected to be underlain by some silt-rich soils and permafrost. East of the Iditarod River Valley, the corridor trends southeast past Decourcy Mountain on its north side and on to the Donlin Creek Mine. The entire segment is approximately 65 miles long. Design standards. This segment is presumed by this study to support mining operations at the Donlin Creek Mine as well as exploration and possible future operations at Flat and other areas eastward toward Takotna. Under this scenario, significant truck traffic would be used to haul freight, equipment, fuel, explosives, and mining product. The traffic volume expressed in average daily traffic (ADT) may be fewer than 100 vehicles per day, and is expected to be less than 250 vehicles per day under any reasonably foreseeable development scenario. The recommended design standard would include a minimum 24-foot lane and shoulder width. Added width for clear zones should be minimized where practical to reduce cost and minimize the construction footprint. A narrower width could be used if further study indicates traffic volumes are significantly less than 100 vehicles per day. On the other hand, geotechnical and safety considerations could actually dictate a wider road in some places, for instance the crossing of the Innoko Lowland. Regardless of functional classification and roadway width considerations, American Association of State Highway and Transportation Officials (AASHTO) policy and guidelines govern the selection of safety and structural standards that are used in designing a roadway for safe, reliable operation. Whether the roadway is used year-round or part of the year is generally a local consideration determined in the planning and design process and is not governed by AASHTO. Maintenance responsibilities are generally the responsibility of the state that receives and uses federal highway money. 3.2.2.2 Donlin Creek Mine to Flat (Photographs 33 to 43) Two possible routes have also been identified and studied between the Donlin Creek Mine and Flat. Subsurface conditions are expected to range from bedrock exposures to alluvium in the lowlands. Permafrost is anticipated to be generally FINAL DRAFT ANC/030990015 3-4 YUKON RIVER PORT AND ROAD NETWORK present, and extensive gravel tailings piles are anticipated to provide a good source of aggregate for constructing road embankments. The segment corridor recommended is shown on the map in Figure C-5 and described below. Description. This segment would require the road corridor to follow the Donlin Creek valley north and slightly east until it reaches the Iditarod River Valley again. The recommended corridor would avoid the widest valley lowlands by trending east to a relatively narrow crossing. From the valley crossing, either the road route would join up with the existing road or a new alignment could be provided to connect the road system to the north side of Chicken Mountain. The segment from the Donlin Creek Mine to the existing Flat road system is approximately 25 miles long. Design standards. This segment will support exploration efforts in and around Chicken Mountain in the near term. It could support major mining operations either at Chicken Mountain or future developments eastward in the longer term. Initially, this segment would be a rural, local, very low-volume road with an ADT of less than 100. As such, the minimum width would be 18 feet by AASHTO standards, assuming a two-way road. An even narrower width could possibly be justified for very low initial traffic volumes. A road of such width (13 to 18 feet) is limited in several ways. Because of the mountainous terrain some of this segment traverses, sections of the road may need to be widened for turning movements and to achieve minimal sight distance. Upgrading a road from 13 feet wide one way to 18 or 24 feet two way could be similar to complete new construction. The recent use of the existing Chicken Mountain road system, as well as future use considerations, should be analyzed after further study to determine the optimum design criteria for this segment. 3.2.3 Stage Il, Flat to Takotna to Ophir and McGrath to Takotna Stage II would construct a road system from Flat to Ophir that would include improvements to an existing road between Takotna and Ophir. In addition, McGrath would be connected to the road network through a link joining Takotna and McGrath and incorporating an existing road from Takotna to Sterling Landing. 3.2.3.1 Flat to Takotna (Photographs 44 to 45) Description. This segment is approximately 70 miles in a straight line from Flat to the existing road crossing of the Takotna River (see Figure C-7). The general corridor runs along or parallel to the distinct Iditarod-Nixon Fault (shown in Figure 1-4). Two road alternatives were considered for this segment: a valley alternative and a ridge alternative. The valley alternative was used for initial mapping and cost estimating. A road located in the valley would have to coexist with a fairly complex drainage system, wetlands, probable silty frozen soils, and the Iditarod Trail (used only during winter). The Kuskokwim Mountains, which rise above the valley on the northwestern side of the valley, consist of a series of south-facing ridges made up of shallow bedrock with some exposed bedrock. These ridges were used for summer access between Flat and Takotna during the early days of mining in the FINAL DRAFT ANC/030990015 35 YUKON RIVER PORT AND ROAD NETWORK area, and some of the trails used by people and horses still exists. Placing the road route on the high ground of these ridges has potential advantages, including solid foundation conditions and avoidance of stream and wetland impacts. The view of the potential ridge alignment was limited during field reconnaissance because of weather conditions. On the basis of recommendations received and previous experience, this route is recommended for consideration if the decision is made to move this segment forward in project development. Design standards. This segment would support mineral exploration and potential development in the area between Flat and Takotna. It would also serve to connect the village of Takotna and the Sterling Landing-Ophir road system to potential port and road destinations such as the Donlin Creek Mine, Crooked Creek, and Holy Cross. These destinations, plus potential activity from McGrath or even from outside the study area, could support a different mix of vehicle use of the road if this connecting segment were to be built. Mineral exploration and support alone would indicate a very low-volume road with a probable ADT of fewer than 100 vehicles per day that could be served by a one-way road with a driving surface width of 13 to 18 feet. Additional traffic could warrant the need for construction of a two-way road with a minimum width of 18 feet. 3.2.3.2 Sterling Landing to Takotna to Ophir (Photographs 46 to 51) Description. This segment would reconstruct the existing 38-mile-long road between Takotna and Ophir (see Figure C-7). The existing road system begins at Sterling Landing on the Kuskokwim River and runs alongside and past the Tatalina Air Force Station on Takotna Mountain, down to the Takotna River crossing, and then to the Village of Takotna and the mining district at Ophir. Consideration for improvements would depend on future use of the road and engineering and safety analysis of the existing road in comparison to acceptable design and safety standards. Design Standards. It is anticipated that the functional class of the design would be a local, rural, very low-volume road. Because of some mix of nonindustrial traffic, a two-way road standard is recommended, with a minimum drivable surface width of 18 feet. If other segments are added to the system, such as a segment to McGrath, due consideration would need to be given to the overall effect of the system as a whole in deriving functional classifications and design standards. 3.2.3.3 Takotna Road to McGrath Description. This segment, which presents several design challenges, would connect McGrath to the road system that joins Sterling Landing, Takotna, and Ophir (see Figure C-7). The road that would connect the existing Takotna Road to McGrath would have to go through some local lowlands near the Kuskokwim River that appear to be very wet (and that could pose permitting challenges). Locating and designing a crossing on the Kuskokwim River would involve analysis of the river channel, approach roads, and clearance under the bridge required to meet regulatory navigability requirements. Restrictions on airspace obstructions at the nearby McGrath Airport also would have to be accommodated. The Federal Aviation Administration Part 77 regulations mandate an area extending from the runway sides and ends that must be maintained free of obstruction to provide FINAL DRAFT ANC/030990015 36 YUKON RIVER PORT AND ROAD NETWORK safety for approaches and takeoffs. The approximate length of this segment of road is 6 to 8 miles. The corridor shown has not been refined at this level of study, but is presented as an alternative that generally minimizes wetlands while providing some distance from the airport to allow for height of a bridge crossing. A vehicle bridge crossing of the Kuskokwim River would be a major structure outside the scope of this study and has not been accounted for in cost estimates. An alternative to a bridge would be a landing on each side of the river and a ferry that would cross the river. Design standards. The design standard for this segment would depend to a large degree on that of the Takotna road segment to which it would connect. Because two communities would be linked, a two-way road standard is anticipated. Consideration of a total lane and shoulder width greater than the minimum 18 feet should be given because of the community aspect and the recreational use that would likely result. 3.2.4 Stage Ill, Ophir to Cripple Creek Mountain to Poorman to Ruby and Takotna to Nixon Fork Stage III would complete the road system between the Holy Cross port and Ruby by completing construction of the road from Ophir to Ruby. In addition, a trunk road to the Nixon Fork mining district would be added to support spur roads to Nixon Fork mining targets or Reef Ridge to the north. Stage III segments are considered longer term objectives than Stage | and II segments, according to the economic analysis portion of this study and current priorities of the ADOT&PF. As such, the functional classification of the individual segments that would lead to design standards and road widths are speculative at this time and are not listed within individual segment discussion. The existing Ruby-Poorman Road is an exception. 3.2.4.1 Ophir to Cripple Creek Mountain (Photographs 70 to 74) This segment assumes a significant development at or near Cripple Creek Mountain, approximately 40 miles of the road corridor (see Figure C-9). Several potential corridors were observed during the site visit. The recommended alignment for a new road in this segment would use the interconnected north-south ridge systems to the greatest extent possible. The corridor shown in Figure C-9 is based on limited observation of the topography, vegetation, and soil conditions. The alignment from Ophir to Poorman traverses an area of decomposed volcanics and sedimentary rocks and colluvium. Soils are variable. A typical profile consists of as much as 30 feet of frozen silt (permafrost) overlying the bedrock. Stacked tailings are available along Flat, Poorman, and Timber creeks; in the Colorado and Bear Creek basins; and along Spruce, Little Ophir, and Ester creeks. Crushed aggregate and riprap could be obtained from the Cripple Creek Mountains. 3.2.4.2 Cripple Creek Mountain to Poorman (Photographs 66 to 69) This segment would construct a new road from the Cripple Creek area to Poorman, a length of about 48 miles (see Figure C-10). The country in this area is similar to that in the Ophir to Cripple Creek Mountain segment. The corridor would lead to the FINAL DRAFT ANC/030990015 37 YUKON RIVER PORT AND ROAD NETWORK existing road system at Poorman and the northern edge of the Kuskokwim Mountains within the study area. 3.2.4.3 Poorman to Ruby (Photographs 52 to 55 travelling north and Photographs 62 to 65 between Ruby and Monument Creek travelling south) This segment would reestablish the old road from Poorman to Monument Creek and reconstruct the existing state-maintained road from Monument Creek to Ruby, a total distance of about 55 miles (see Figure C-10). The ADOT&PF (2001) identifies the existing road as “Ruby/Poorman Road, State Route No. 059000.” The soil and bedrock in the area generally consist of frozen eolian silt deposits over metamorphic bedrock. Large tailings piles could be used for upgrading the existing road near Monument Creek, Long Creek, and tributaries of Long Creek. Weathered quartzite and phyllite bedrock have been mined as aggregate sources near Ruby. The old road alignment is traceable between Poorman and Monument Creek, and although overgrown with vegetation, is used as a winter trail. Some local road settlement from thawed permafrost was observed along the old alignment. The existing road is maintained by the ADOT&PF from Monument Creek north to Ruby. During the site visit, the road appeared to be in good driving condition. Gravel and rock materials sources were observed along this segment. The existing road now serves several mining developments and may be adequate for the very low traffic volume that is on the road in the summer (an ADT well below 100 vehicles per day). Increased use of the road would depend on further development within the study area and would need to be considered when appropriate. 3.2.4.4 Takotna Road to Nixon Fork Mine This segment would build a trunk road from the Takotna Road to the Nixon Fork mining district (see Figure C-9). The corridor shown is 50 to 55 miles long and is one general alternative that would terminate in the vicinity of the Nixon Fork mining district. This segment could be adjusted if new developments are identified that would influence a clear objective or terminus. 3.3 Design standards 3.3.1 Roadway Highway and road design in Alaska is typically funded through a combination of state and federal dollars and is administered by the Federal Highway Administration (FHWA) and the ADOT&PF. Design criteria are assembled by the design engineer, using applicable Policies and Guidelines that are published by AASHTO. The following two AASHTO publications are directly applicable to this study: 1. A Policy on Geometric Design of Highways and Streets (2001a) 2. Guidelines for Geometric Design of Very Low-Volume Local Roads (2001b) In general, A Policy on Geometric Design of Highways and Streets is used for new construction or reconstruction that will bring the facility up to full modern standards. Among the prime considerations are the type of facility, how it will be used, how much and what kind of traffic it must accommodate, and the design speed. FINAL DRAFT ANC/030990015 38 YUKON RIVER PORT AND ROAD NETWORK Guidelines for Geometric Design of Very Low-Volume Local Roads is used for the special case of a very low-volume local road. The definition of a very low-volume local road is “a road that is functionally classified as a local road and has a design average daily traffic volume of 400 vehicles per day or less.” These guidelines can be used in lieu of Chapter 5 of A Policy on Geometric Design of Highways and Streets. Guidelines for Geometric Design of Very Low-Volume Local Roads provides a great deal of flexibility in selecting design criteria that fit the application. For instance, the minimum total roadway width suggested for a two-way, 35-mile-per-hour local road, including traveled way and shoulders, is 18 to 24 feet. Selection of the minimum width is based on the functional subclass of the road. Two-way, single-lane roads can be used for extremely low traffic volumes that are normally below 50 vehicles per day. For industrial and resource recovery roads used by professional drivers who are in contact with one another, a two-way, single-lane road can be used for traffic volumes of up to 100 vehicles per day. These roads are designed to operate at low speeds, typically no more than 30 miles per hour. The suggested stopping sight distance is twice that of a comparable two-lane road. U.S. Forest Service guidelines recommend turnouts be provided at regular intervals to allow safe passing. Widening at places where sight distance is impractical, such as hill crests, should be considered. Widening along curves may be required for trucks. Figure 3-2 illustrates the functional class, roadway width, and truck use relationships for a low-volume road. Relatively few trucks More trucks Oversize equipment Figure 3-2 Minimum road widths for two-way, 35-mile-per-hour, rural, local road (in feet) 3.3.2 Drainage structures Little hydrologic information is available for the streams crossed by the potential road routes. Consequently, statistical analysis for individual streams is not practical. More generalized statistical regression equations have been developed to help predict flood magnitudes where little hydrologic data exist. A USGS report (Curran FINAL DRAFT ANC/030990015 3-9 YUKON RIVER PORT AND ROAD NETWORK et al., 2003) presents the findings of one analysis and provides an acceptable method for estimating design discharges. Drainage structures would be single culverts, culvert batteries, or bridges, depending on the size of the drainage and its hydrologic and hydraulic characteristics. Culverts would be used for drainages that are smaller or where fish passage is not of concern. These typically are drainages with design discharges (Q50) of less than 500 to 1,000 cubic feet per second. For larger drainages, a bridge would be assumed until site-specific information becomes available. Estimates were based on drainage boundaries, topographical features, and comparisons to other rural road systems. All stream crossing estimates are based on USGS quadrangle mapping as a base source. An analysis of this type is considered adequate at the planning level and is intended to support a planning-level cost estimate. Table 3-1 identifies the crossings requiring bridges and the number of culvert drainage structures for the route alternatives. The number of culvert crossings does not include small-diameter culverts required in low areas for cross drainage or minor drainages that typically only pass snowmelt runoff or flow during large storm events. These culverts are typically 24 inches in diameter and are assumed to be spaced every 500 feet for planning purposes. Bank migration, channel erosion, and scour at larger streams would need to be evaluated on a case-by-case basis. These factors are not considered significant for this level of planning with the types of streams being considered. 3.4 Other pertinent information 3.4.1 Environmental considerations 3.4.1.1 Affected environment This subsection provides a brief overview of the environmental considerations associated with construction of a network of roads that would link existing and potential new mines with a Yukon River port. The approach and research sources are the same as described in Subsection 2.5.1. Appendix F contains the detailed information compiled during the evaluation of environmental topics. Although winter trails exist in several areas between communities and mines, a project to develop a road network would increase the amount of travel and the vehicles that would be traveling on roadways. Tables 3-2, 3-3, and 3-4 summarize the current social, physical, and biotic environment topics for the three stages of potential road segments considered in this study. These tables also present environmental considerations during development of a potential project. FINAL DRAFT ANC/030990015 3-10 YUKON RIVER PORT AND ROAD NETWORK Table 3-1 Bridge crossings and culvert drainage structures required by segment Segment Crossings requiring bridges Approximate number of culvert drainage structures Holy Cross to Donlin Innoko River Reindeer River Iditarod River Crooked Creek 40 Donlin to Flat Little Eldorado Creek Bonanza Creek 20 Flat to Ophir, including the existing road between Takotna and Ophir Lincoln Creek Takotna River (existing) Ganes Creek (existing) 35 Ophir to Poorman Folger Creek Colorado Creek North Fork Innoko River Our Creek 50 Poorman to Ruby (existing road) Sulatna River (ADOT&PF Bridge 0412) Monument Creek (ADOT&PF Bridge 1116) 18 Takotna to Nixon Fork John Reek Creek Ivy Creek Agale Fork West Fork Nixon Fork Washington Creek Hosmer Creek Cottonwood Creek 70 McGrath to Takotna Kuskokwim River 13 Takotna to Ophir (existing road) Ganes Creek (existing) Takotna River (existing) Tatalina River (existing) 10 3.4.1.2 Environmental regulatory compliance As described in Subsection 2.5.1.2, the NEPA process is the set of procedures used by a federal agency to analyze and document potential environmental impacts of a proposal and its alternatives. The NEPA process also establishes project components that will require federal, state, and local permitting. In this study, three stages of road networks that could be implemented in support of transportation of Yukon River area resources (Section 3.2) are examined. Appendix F describes a FINAL DRAFT ANC/030990015 3-11 Table 3-2 Environmental review summary for Stage | of the Yukon River road network Communities within Stage | Flat Environmental Considerations Consistency with existing land use plans; assess if roadway could change land use within established communities or along the roadway. Topics Donlin Creek Land use Crooked Creek has 137 people (mixed Yup'ik Eskimo and Ingalik Athabascan) — According to the 2000 U.S. Census, Flat has a current population of four. There are within an area of 101.1 square miles of land and 7.4 square miles of water. The three homes in the community, but the only family living in Flat resides there Calista Corporation, Kuskokwim Corporation, and Placer Dome U.S. signed an _ seasonally. There are 161.1 square miles of land at Flat. exploration and mining lease for Donlin Creek, north of Crooked Creek. Determine land ownership and right of way / access requirements. Land ownership Native land Private Socioeconomics This mixed Eskimo and Ingalik village relies heavily on subsistence activities. The Iditarod Mining District still produces gold ata placer mine in Flat. There are no Determine how communities view changes resulting from road access to mineral development. Assess Salmon, moose, caribou, and water fowl are consumed. public facilities or road access but a gravel airstrip is available. subsistence practices and other social and economic concerns. Determine current subsistence practices relative to the proposed roadway; determine interaction possible Subsistence See above Unknown between subsistence species and proposed road; new roads can increase access to fishing, hunting, and gathering areas. Air quality Current air quality is assumed to be good Current air quality is assumed to be good Comply with Clean Air Act requirements. Noise receptors Unknown Unknown, some noise likely associated with gold mine There are no sensitive noise receptors, as identified by FHWA and State of Alaska noise policies. Some wildlife receptors may need to be considered. Water quality Unknown Unknown Design and construct to maintain water quality and stream bed habitat. Wetlands Unknown Unknown Roadway design should avoid and minimize work in wetlands. Use BMPs in design for work in wetlands. Communicate with the Corps of Engineers early on to discuss the expectation for mitigation if wetland impacts are unavoidable. Wildlife refuges None None Not Applicable Wildlife - terrestrial Unknown Unknown Roadway design should consider wildlife migration corridors. Communicate with USFWS to identify migration corridors or other important terrestrial habitat. Work with them to determine potential seasonal construction constraints and other mitigative measures that may be required. Discuss the expectation for avoidance, minimization and mitigation during roadway design. Design and construct to avoid nesting and hatching periods. Assess habitat areas. Communicate with Wildlife - avian Unknown Unknown USFWS to discuss species of interest or concern. Wildlife - fish See below See below Design and construct to maintain water quality and stream bed habitat. Communicate with ADF&G to discuss species of interest or concern. Viewsheds Unknown Unknown Communicate with Native communities, State Historic Preservation Office, ADNR, and BLM to determine sensitive areas. Consider existing waysides, campgrounds, or public rest areas in roadway design. Anadromous streams Several anadromous streams could be crossed No anadromous streams identified Design and construct to maintain water quality and stream bed habitat. Communicate with ADF&G to discuss species of interest or concern. Floodplains Unknown No Roadway design should avoid and minimize work in floodplains. Use BMPs in design for work in floodplains. Communicate with the Corps of Engineers to discuss expectations during construction. Coastal zones Not applicable Not applicable Not Applicable Wild and Scenic Rivers Not applicable Not applicable Not Applicable Cultural resources Unknown Possible cultural/historical resources in Flat associated with historical mining. Determine subsistence hunting, fishing, trapping, and gathering areas. Communicate with Native tribes, State Historic Preservation Office, and Doyon to determine sensitive areas. Construction Unknown Unknown Use BMPs during construction. Construction activities should minimize the effects of noise, dust and heavy activity in areas of human or wildlife presence. Energy Construction of power plants may be needed to get energy to the new or expanded mines. Potential based on historical uses but none recorded. Design and construction for safe transport of fuel and other hazardous materials. Communicate with mining Hazardous waste — industry to determine materials and usage. DRAFT ANC\033530014 Table 3-3 Environmental review summary for Stage II of the Yukon River road network Topics Land use Land ownership Socioeconomics Subsistence Air quality Noise receptors Water quality Wetlands Wildlife refuges Wildlife - terrestrial Wildlife - avian Wildlife - fish Viewsheds Anadromous streams Floodplains Coastal zones Wild and Scenic Rivers Cultural resources Construction Energy Hazardous waste DRAFT ANC\033530014 Communities within Stage Il Ophir Nothing listed in Community Database Unknown Nothing listed in Community Database Current air quality is assumed to be good. Unknown Unknown Unknown None Unknown Unknown See below Unknown Several anadromous streams could be crossed Unknown Not applicable Not applicable Unknown Unknown McGrath Takotna Environmental Considerations McGrath has 401 people in 48.9 square miles of land and 5.7 square miles of water. Takotna encompasses an area of 23.5 square miles of land. The mixed —_ Consistency with existing land use plans; assess if roadway could change land use within established communities or along the About half the population is Athabascan, Eskimo, or Aleut. There are no road population of 50 includes non-Natives, Ingalik indians, and Eskimos. roadway. connections, but local roads are used by ATVs and trucks. Winter trails are marked Access to Takotna is by air or water. It is served by 80 miles of local roads to Nikolai and Takotna. It is the most inland point on the Kuskokwim River and a winter trail that is marked to McGrath. accessible by large riverboats. Residents rely on air service and barges to deliver supplies. There is an FAA communications complex that was an important refueling stop during World War Il. Native Lands Private and native lands. There is a Takotna Village Council. Determine land ownership and right of way / access requirements. McGrath is a regional center providing a variety of employment opportunities and © Takotna has a combined cash and subsistence economy. Employment is Determine how communities view changes resulting from road access to mineral development. Assess subsistence practices and functioning as a transportation, communications, and supply center in Interior through the school district, post office, clinic, local businesses, and other social and economic concerns. Alaska. seasonal construction. Takotna is a checkpoint for the Iditarod sled dog race. Subsistence is important to the economy, and 80 percent of the residents Determine current subsistence practices relative to the proposed roadway; determine interaction possible between subsistence Subsistence is an important part of the local culture, and salmon, moose, caribou, species and proposed road; new roads can increase access to fishing, hunting, and gathering areas. bear, and rabbits are consumed. Approximately 10 families have dog teams that _are involved in subsistence activities. Moose and salmon are the primary they enter in high-profile dog races such as the Iditarod and Kuskokwim 300. meat sources. Current air quality is assumed to be good Current air quality is assumed to be good. Comply with Clean Air Act requirements. Unknown Unknown There are no sensitive noise receptors, as identified by FHWA and State of Alaska noise policies. Some wildlife receptors may need to be considered. Unknown Unknown Design and construct to maintain water quality and stream bed habitat. Unknown Unknown Roadway design should avoid and minimize work in wetlands. Use BMPs in design for work in wetlands: Communicate with the Corps of Engineers early on to discuss the expectation for mitigation if wetland impacts are unavoidable. None Not Applicable Unknown Unknown Roadway design should consider wildlife migration corridors. Communicate with USFWS to identify migration corridors or other important terrestrial habitat. Work with them to determine potential seasonal construction constraints and other mitigative measures that may be required. Discuss the expectation for avoidance, minimization and mitigation during roadway design. Unknown Unknown Design and construct to avoid nesting and hatching periods. Assess habitat areas. Communicate with USFWS to discuss species of interest or concern. See below See below Design and construct to maintain water quality and stream bed habitat. Communicate with ADF&G to discuss species of interest or concern. Unknown Unknown Communicate with Native communities, State Historic Preservation Office, ADNR, and BLM to determine sensitive areas. Consider existing waysides, campgrounds, or public rest areas in roadway design. No anadromous streams identified Several anadromous streams would be crossed with this road network Design and construct to maintain water quality and stream bed habitat. Communicate with ADF&G to discuss species of interest or stage. concern. No Unknown Roadway design should avoid and minimize work in floodplains. Use BMPs in design for work in floodplains. Communicate with the Corps of Engineers to discuss expectations during construction. Not applicable Not applicable Not Applicable Not applicable Not applicable Not Applicable Unknown Unknown Determine subsistence hunting, fishing, trapping, and gathering areas. Communicate with Native tribes, State Historic Preservation Office, and Doyon to determine sensitive areas. Use BMPs during construction. Construction activities should minimize the effects of noise, dust and heavy activity in areas of human or wildlife presence. Construction of power plants may be needed to get energy to the new or expanded mines. Design and construction for safe transport of fuel and other hazardous materials. Communicate with mining industry to determine There are several sites in or near McGrath primarily associated with the FAA and = Unknown materials and usage. Air Force facilities DRAFT ANC\033530014 Table 3-4 Environmental review summary for Stage Ill of the Yukon River road network Communities within Stage III Topics Poorman Environmental Considerations Land use Nothing listed in Community Database Consistency with existing land use plans; assess if roadway could change land use within established communities or along the roadway. Land ownership Unknown Determine land ownership and right of way / access requirements. Socioeconomics Nothing listed in Community Database Determine how communities view changes resulting from road access to mineral development. Assess subsistence practices and other social and economic concerns. Subsistence Determine current subsistence practices relative to the proposed roadway; determine interaction possible between subsistence species and proposed road; new roads can increase access to fishing, hunting, and gathering areas. Air quality Current air quality is assumed to be good Comply with Clean Air Act requirements. Noise receptors Unknown There are no sensitive noise receptors, as identified by FHWA and State of Alaska noise policies. Some wildlife receptors may need to be considered. Water quality Unknown Design and construct to maintain water quality and stream bed habitat. Wetlands Unknown Roadway design should avoid and minimize work in wetlands. Use BMPs in design for work in wetlands. Communicate with the Corps of Engineers early on to discuss the expectation for mitigation if wetland impacts are unavoidable. Wildlife refuges None Not Applicable Wildlife - terrestrial Unknown Roadway design should consider wildlife migration corridors. Communicate with USFWS to identify migration corridors or other important terrestrial habitat. Work with them to determine potential seasonal construction constraints and other mitigative measures that may be required. Discuss the expectation for avoidance, minimization and mitigation during roadway design. Wildlife - avian Unknown Design and construct to avoid nesting and isatching periods. Assess habitat areas. Communicate with USFWS to discuss species of interest or concern. Wildlife - fish See below Design and construct to maintain water quality and stream bed habitat. Communicate with ADF&G to discuss species of interest or concern. Viewsheds Unknown Communicate with Native communities, State Historic Preservation Office, ADNR, and BLM to determine sensitive areas. Consider existing waysides, campgrounds, or public rest areas in roadway design. Anadromous streams Several anadromous streams could be crossed Design and construct to maintain water quality and stream bed habitat. Communicate with ADF&G to discuss species of interest or concern. Floodplains Unknown Roadway design should avoid and minimize work in floodplains. Use BMPs in design for work in floodplains. Communicate with the Corps of Engineers to discuss expectations during construction. Coastal zones Not applicable Not Applicable Wild and Scenic Rivers Not applicable Not Applicable Cultural resources Unknown Determine subsistence hunting, fishing, trapping, and gathering areas. Communicate with Native tribes, State Historic Preservation Office, and Doyon to determine sensitive areas. Construction Use BMPs during construction. Construction activities should minimize the effects of noise, dust and heavy activity in areas of human or wildlife presence. Energy Construction of power plants may be needed to get energy to the new or expanded mines. Hazardous waste Unknown Design and construction for safe transport of fuel and other hazardous materials. Communicate with mining industry to determine materials and usage. _ SS sw eee YUKON RIVER PORT AND ROAD NETWORK general environmental documentation process and lists the potential permits generally needed for advancement of the types of road projects considered in this study. 3.4.2 Construction considerations 3.4.2.1 Material needs and availability Table 3-5 summarizes available information on soil conditions and potential aggregate sources along the segments and alternative routes. It was developed based on the Bundtzen report (2003). 3.4.2.2 General soil conditions The study area traverses a discontinuous permafrost zone. Because silty soils commonly occur in this zone, frequent instances of ice-rich, non-thaw-stable soils can be anticipated. These occurrences often depend on local microclimate, including factors of northern exposure, shade, and presence of an undisturbed moss mat. The permafrost temperature in Interior Alaska is typically near 30°F or higher. The active layer is often relatively thick; for example, 5 to 10 feet. Unlike on the North Slope, providing sufficient gravel overlay thickness to prevent progressive late-summer thawing of the subgrade is not generally feasible as a design approach. Instead, judicious routing is usually the best approach. Frequent alignment adjustments during the design process should be anticipated and should be based on two or three successive seasons of exploratory drilling. Geofabrics are expected to be an important part of the roadway cross-section design, not only as a separator between the gravel fill and underlying silt, but also as reinforcement over a thawing subgrade where differential settlement is expected. Available information Associated with precious-metals mining activities, numerous primitive roads and trails have been developed and used in the region during the past century. Some are winter trails; others have been used year-round. Although the roads and trails are by no means uniformly distributed along the alignments, the supplies of aggregate materials along many of the routes being considered between Holy Cross and Ruby appear to be abundant. In many instances, these materials have already been mined, even processed. Material quality in tailings piles is best checked by excavating backhoe pits on a sampling basis. Figure 3-3 shows selected locations of potential material sources identified by Bundtzen (2003). Unexplored fluvial sources, particularly if they are frozen and ice-bonded or buried beneath a substantial thickness of overburden, would require exploratory drilling and sampling. Upland sources beneath a substantial overburden thickness would also require exploratory drilling and sampling. FINAL DRAFT ANC/030990015 3-12 YUKON RIVER PORT AND ROAD NETWORK Table 3-5 Soil conditions and aggregate sources for potential roads Approximate Length Segment (miles) Surficial Geology Permafrost Soils Aggregate Sources Remarks Holy Cross to 65 Innoko Lowland: Generally present Siltand sand Weathered graywacke and Southern route Donlin Creek Mine abundant abandoned overbank conglomerate oxbow lakes east of Holy deposits Cross Donlin Creek Mine 25 Kuskokwim Mountains: Generally present Gravel tailings from placer mines to Flat bedrock exposures, stacked along Lower Chicken and alluvium in lowlands Prince creeks. 35 million yd° of well- washed stacked tailings in Iditarod District. Flat to Ophir 90 Kuskokwim Mountains: Present in valley —_ Ice-rich Tailings, alluvial gravels and rock Northern route sedimentary and igneous _ bottoms but absent frozen silt in outcrops plentiful. Extensive washed rocks on ridges valley and stacked tailing piles along Yankee bottoms (2.8 million yd’), Ganes (4.5 million yd°), and Moore (1.25 million yd*) creeks Ophir to Poorman 90 Decomposed volcanic Generally present Variable, up 1.5 million yd® in tailings on Flat, and sedimentary rock to 30 feet of Poorman, and Timber creeks. 2.4 million and colluvium frozen silt yd? in Colorado Creek basin. 2 million overburden yd’ in Bear Creek Basin. Cripple Creek Mountains for crushed aggregate and riprap. 3 million yd® placer of tailings along Spruce, Little Ophir, and Ester creeks. Poorman to Ruby 55 Nowitna Lowland: eolian Generally present Sandy silts 1.5 million yd® on Long Creek and Existing road yd* = cubic yard silt deposits over metamorphic bedrock tributaries. 1 million yd° at Monument Creek. Weathered quartzite and phyllite bedrock near Ruby. maintained only north of Monument Creek FINAL DRAFT ANC/030990015 3-13 A “< Potential Material Sites (after Bundtzen, 2003) “ Potential Connecting Roads S g Pacific Ocean Vicinity Map 0 15 30 60 90 120 es Source: Alaska Department of Natural Resources, Land Records Information Section, 1990 F igure 3-3 Alaska Geographic Alliance, Institute of the North, 2000 1 . . Bundtzen, Tom. "Annotated Summary of Aggregate Materials Availabilty and Mineral Selected Prospective Material Sites Resource Potential in Yukon Ports and Roads Project Area.” 2003 FINANCIAL CONSIDERATIONS FINN a MeL Ree Me UU 4. FINANCIAL ANALYSIS 4.1 Overview The impacts of a river port and road network on mining activity in the Tintina Gold Belt north of the Donlin Creek Mine area will depend on future mineral prices and the location, size, type, production costs, and production dates of mines yet to be discovered. Public information on the geology of the Tintina Gold Belt; information on past, current, and planned mineral development activity; and expert opinions about the likely impact of a port and road network were used to develop estimates, which are believed to be conservative, of the following: = Additional mine production = Mining company income = Payments to land owners and state and local governments = Transportation and labor needs that would result from the construction of a Yukon River port and road network The values used in this report are based on current knowledge of the Tintina Gold Belt and the opinions of industry experts. Of necessity, they are speculative in nature. In addition, the project’s long time horizon and the uncertainty of future mineral discoveries and market prices mean that the actual effects of a port and road network may be either significantly higher or lower than the values in this report. The following appendices provide supplemental information for the financial analysis: Appendix |, Transportation Cost Calculations; Appendix J, Mineral Potential Calculations; and Appendix K, Transportation Demand Calculations for the Study Area. Two historical port locations on the lower Yukon River were considered—one at Ruby and one across the river from Holy Cross. The Donlin Creek gold mine is the largest planned mineral project that would be served by a Yukon River port. Its transportation needs would greatly exceed current and projected transportation requirements of communities within the study area. Estimates of the transportation requirements and costs for the mine are included in this analysis to illustrate the likely effects of a Yukon River port on the Donlin Creek Mine and other resource development projects within the region. A benefit-cost analysis approach is used to compare potential river port and road network alternatives. A base case scenario was developed representing the most likely potential mineral development pattern for the study area during the 27-year time period of the study—the time frame corresponds to the expected construction and production period of the Donlin Creek Mine. In the base case, freight and fuel are shipped by barge up the Kuskokwim River to Crooked Creek and then moved by truck either to the Donlin Creek Mine or north to other mines in the Tintina Gold Belt (Figure 4-1). FINAL DRAFT ANC/030990015 41 Table 4-1 Summary of benefits and transportation facility costs for new mines in the Tintina Gold Belt River and port site alternatives — = To) Pichi ec Alternative 1b: shipments | Alternative 2a: shipments Base case: shipments on Kuskokwim River | Alternative 1a: shipments through Yukon River | through Yukon River mouth} through Nenana and Ruby | through Crooked Creek port mouth and port near Holy Cross | and Ruby port ports Shortened Pioneer pioneer Annualized costs and benefits in 2003 $ million Stage1 Stage2 Stage3 Total road |Stage1 Stage2 Stage3 Total road? Total Total Annualized transportation and transportation facility costs Road costs Construction 4.2 8.5 16.0 28.7 15.9 7.6 8.4 16.1 32.1 19.2 28.7 28.7 Maintenance 141 2.3 4.3 7.7 3.1 2.1 2.2 4.3 8.6 4.0 7.7 7.7 Fuel storage facilities costs - - Construction 2.9 - - 2.9 2.9 2.9 - - 2.9 2.9 4.3 5.8 Maintenance 0.9 - - 0.9 0.9 0.9 - - 0.9 0.9 1.3 1.7 Docks facilities costs - - Construction 0.3 - - 0.3 0.3 0.3 - - 0.3 0.3 0.3 0.7 Maintenance 0.1 - - 0.1 0.1 0.1 - - 0.1 0.1 0.1 0.1 Power line costs - - Construction 0.4 - - 0.4 0.4 1.4 - - 1.4 1.4 - : Maintenance - - Annualized total transportation facili 10.0 10.7 20.3 41.0 23.6 15.2 10.7 20.3 46.2 Annualized benefits of additional mineralization activities in Tintina Gold Belt Industry profits after state and local government taxes 1.4 5.1 5.1 11.6 11.6 1.3 4.7 47 10.8 10.8 7A 5.6 Landowner revenues 0.1 0.2 0.2 0.5 0.5 0.1 0.2 0.2 0.5 0.5 0.3 0.2 State and local government revenues - 0.2 0.1 0.3 0.3 - 0.2 0.1 0.3 0.3 0.2 0.1 Local labor income Road construction and maintenance 1.6 3.2 6.1 10.9 5.7 2.9 3.2 6.1 12.2 7.0 10.9 10.9 Fuel storage construction and maintenance 0.8 - - 0.8 0.8 0.8 - - 0.8 0.8 1.2 1.6 Dock construction and maintenance 0.1 : : 0.1 0.1 0.1 - - 0.1 0.1 0.1 0.2 Mine construction and operations 1.5 5.4 5.5 12.4 12.4 1.5 5.4 5.5 12.4 12.4 12.4 12.4 Total annualized additional benefits 5.5 14.1 17.0 36.6 31.4 6.7 13.7 16.6 37.0 31.7 32.2 31.41 Annualized benefits minus facilities costs 7.8 (8.5) 2.9 Transportation cost savings for Donlin Creek Mine® Fuel ; - - - - (0.6) Supplies = * Annualized values are based on a 3.2 percent discount rate from Office of Management and Budget (2003). » Road segment from 47 miles south of Poorman to Ruby not included in project; segment from port near Holy Cross to Donlin Creek Mine is a two-lane gravel road built to AASTHO standard for heavy trucks; segments north of Donlin Creek are single-lane pioneer roads with turnouts. ° Annualized transportation costs for an alternative minus annualized transportation costs for Alternative 1a, shipments through Yukon River mouth and a Railroad City port. Positive values indicate annualized transportation costs for shipments to Donlin Creek Mine are lower than for Alternative 1a. Negative values indicate higher annualized transportation costs. Assumes all traffic to Donlin Creek Mine uses alternative. (0.6) Source: Values calculated by Northern Economics, Inc. Construction and maintenance values were provided by CH2M HILL. Marine transport costs were derived from COE, Institute for Water Resources (2000a) and Bringloe (2003). Motor transport costs were derived from Trimac Logistics Ltd. (2002). Mineral development activity is based on Glavinovich (2003c). Labor income estimates for road and port construction are based on values from Minnesota IMPLAN Group (2000). FINAL DRAFT ANC\032830004 TO42003003ANC_figd t.ai 12/1803 jb Base case: shipments on Kuskokwim River through Crooked Alternative 1a: shipments through Yukon River mouth and port near Holy Cross —" Creek port a Pole Nenana Alternative 1b: shipments through Yukon River mouth and Ruby port a Pole Nenana 7 ‘Crooked Creek Figure 4-1 Alternative routes YUKON RIVER PORT AND ROAD NETWORK Alternatives to the base case were also developed for evaluation. Alternatives evaluated in this study include scenarios based on barge shipments of freight and fuel through the Mouth of the Yukon River to ports near Holy Cross or Ruby and scenarios based on barge shipments of freight and fuel downriver from Nenana to river ports also located near Holy Cross or Ruby. After an initial screening, three scenarios were retained for detailed analysis (Figure 4-1): » Alternative 1a—shipments through the Yukon River mouth and a port near Holy Cross = Alternative 1b—movement of fuel and freight through the Yukon River mouth to a Ruby port » Alternative 2a—shipments through Nenana and Ruby ports The monetary values of future benefits and costs associated with the base case and the alternatives are estimated. Costs and benefits that occur in the future are discounted, or adjusted, to current dollar values because the opportunity to earn interest makes a dollar paid or received today worth more than a dollar paid or received in the future. For example, $1,000 received today and placed in an account paying 4.0 percent interest would have a value of $1,040 a year from now; therefore, the potential to eam $40 of interest makes $1,000 paid today more valuable than $1,000 paid a year from now. Viewed another way, given a 4 percent interest rate, the present value of $1,040 paid 1 year from now is $1,000. The present value of future estimated benefits and costs are calculated; the difference between them is the estimated net present value (NPV) of the alternative. The alternative with the highest NPV is considered the best financial choice. The principal benefits of a Yukon River port include reductions in barge traffic and congestion on the Kuskokwim River and reduced risks to the logistics system for mine owners in the Tintina Gold Belt. For this study, these benefits do not include production at the Donlin Creek Mine. These benefits were not included because the Donlin Creek Mine operator has announced that it plans to use a new port at Crooked Creek on the Kuskokwim River to transport both fuel and freight to the mine. Potential reductions in transportation costs to the Donlin Creek Mine were evaluated along with the benefits from the operation of new mines in the area. The principal benefits of a road network north from the Donlin Creek Mine area are that it would encourage mineral exploration and production in the area between the Yukon and Kuskokwim rivers and reduce shipping costs to and from the area. On the basis of current understanding of the geology of the Tintina Gold Belt, it is assumed that almost all new mineral production will occur between Colorado Creek, about 90 miles south of Ruby, and the Donlin Creek Mine. Each alternative would require capital expenditures for roads, fuel storage facilities, and docks. During construction, these capital projects would create employment opportunities and labor income for local residents. Increases in local employment are not usually included as national benefits in benefit-cost studies. However, the persistent high unemployment levels within the study area—in each of the years between 1998 and 2002, the unemployment rate in the study area was at least two and a half times the national average—would meet COE guidelines for including FINAL DRAFT ANC/030990015 4-2 YUKON RIVER PORT AND ROAD NETWORK employment of local residents as a national benefit during the construction stage of a project (COE, 2000). From a review of information in previous reports prepared for the Donlin Creek Mine, it is anticipated that at least 60 percent of the construction labor force would be residents of the region; the balance of the construction labor force is anticipated to be from other locations without persistent, high unemployment. During the operating periods of new mines in the Tintina Gold Belt that would be opened as a result of improved access associated with a Ruby to the Donlin Creek Mine road, local residents would benefit from employment opportunities at the mines and increased incomes. The COE does not include such income when calculating its National Economic Development Plan benefits for a project. However, from the perspective of the State of Alaska and local residents, the additional employment and associated labor income would be benefits. The major benefits of a river port to communities within the study area would be increased job opportunities and investment in skills training for local residents. Some lowering of fuel and freight costs might occur, but the absence of docking and fuel storage facilities would keep delivered fuel and freight prices high. Cooperative fuel purchases and other measures, which are not associated with the alternatives, would be needed to achieve substantial reductions in fuel and freight costs. The major cost to communities within the study areas, as perceived by their residents, is the potential for adverse impacts on subsistence resources. Table 4-1 presents a comparison of the annualized costs and benefits of the base case, a port at Crooked Creek with a road network to and north from the Donlin Creek Mine, and alternative systems of Yukon River port and road networks that were evaluated during this study. Annualized values represent the average annual monetary values of costs or benefits over the 27-year period of the study. Annualized transportation facility costs are presented for the alternatives and the base case. Transportation facility costs include road construction and maintenance costs, fuel storage construction and maintenance costs, dock construction and maintenance costs, and power line construction and maintenance costs. Annualized benefits in Table 4-1 are for new mines in the Tintina Gold Belt. Other than potential reductions in transportation costs, Table 4-1 does not include benefits from production at the Donlin Creek Mine. Other potential benefits from the Donlin Creek Mine, such as state and local government revenues, are not included because the production company has announced plans to rely on a port at Crooked Creek; therefore, the level of production at the mine would not be affected by a Yukon River port. If it is later determined that the level of production at the Donlin Creek Mine would be increased by the presence of a Yukon River Port, additional benefits from the mine could be included in the evaluation of alternatives. Benefits identified in Table 4-1 consist of the following: » Industry profits after federal, state, and local government taxes = Landowner revenues * State and local government revenues FINAL DRAFT ANC/030990015 43 YUKON RIVER PORT AND ROAD NETWORK = Income to local residents from mine construction and operations = Income to local residents from construction and maintenance of roads, fuel storage facilities, and docks Table 4-1 also illustrates potential transportation cost increases for Donlin Creek Mine operators. In Table 4-1, annualized transportation costs for each alternative are subtracted from the annualized transportation costs for the base case. Negative values indicate how much higher the annualized transportation costs of an alternative are than those costs for the base case. For example, the annualized fuel transportation costs of Alternative 1b are $6.0 million higher than those costs for shipping fuel through Crooked Creek. As shown in Table 4-1, the base case, Crooked Creek port on the Kuskokwim River, provides the lowest transportation facility costs and the greatest net benefits when comparing additional mineralization activity with transportation facility costs. The base case, Crooked Creek port, provides the lowest costs for shipments to the Donlin Creek Mine. However, the short operating season (122 days), shallow drafts (4.5 to 6 feet), and narrow channel on the Kuskokwim River, plus the large number of tows that would be required to deliver supplies to the Donlin Creek Mine (186 round trips if the power plant is located at Crooked Creek or the mine, 129 round trips if the power plant is located elsewhere), could pose significant risks to mine operators if they relied solely on the Kuskokwim River for transportation access. None of the initial options considered, including the base case, produced positive net benefits; however, two new options were identified that generated positive net benefits. Initially all road networks were assumed to extend north from the Donlin Creek Mine to Ruby and to consist of two-lanes built to AASTHO standards. Subsequent analysis looked at development of the road networks in stages, use of pioneer road standards north of the Donlin Creek Mine, and shorter road networks. Building the road network in stages did not have a major impact on costs or the NPV; however, it was determined that a Crooked Creek port and road network with pioneer road construction north of the Donlin Creek Mine could generate $148.7 million of net benefits and a port near Holy Cross with a shortened road network with pioneer road construction north of the Donlin Creek Mine Creek and ending near Colorado Creek could generate $66.0 million of total net benefits during the 27-year period of this study. Findings for each alternative evaluated are described below: = Base case (shipments on Kuskokwim through Crooked Creek Port) generated the smallest negative net benefits and provided the lowest transportation costs for shipments of fuel and supplies to the Donlin Creek Mine. If single-lane, pioneer road construction is used north of the Donlin Creek Mine, the base case generates positive net benefits. = Alternative 1a (shipments through the Yukon River mouth and a port near Holy Cross) generated the smallest negative net benefits of the alternatives to the base case in this study. Alternative 1a also provided the lowest transportation costs of the Yukon River alternatives for shipments of fuel and supplies to the Donlin Creek Mine. If the road network is shortened by 90 miles and single- FINAL DRAFT ANC/030990015 4-4 YUKON RIVER PORT AND ROAD NETWORK lane, pioneer road construction is used north of the Donlin Creek Mine, Alternative 1a generates positive net benefits. The benefits of this modified Alternative 1a include the following: — $377.3 million (2003 $) of income to Alaska residents currently living in areas with persistent, high levels of unemployment — $192.8 million (2003 $) of after-tax profits to owners and operators of mining operations in Alaska — $7.7 million (2003 $) of revenues to Alaska land and mineral rights owners — $5.8 million (2003 $) of revenues to state and local governments = Alternative 1b (movement of fuel and freight through the Yukon River mouth to a Ruby port) had lower costs for shipments to the Donlin Creek Mine and higher net benefits for shipments to new mines in the Tintina Gold Belt than did Alternative 2a. However, Alternative 1b had lower net benefits and higher transportation costs than did Alternative 1a. » Alternative 2a (shipments through Nenana and Ruby ports) had lower net benefits and higher transportation costs than for Alternatives 1a and 1b. Although a port at Crooked Creek appears to be the lowest cost option, there are several reasons for considering the development of a Yukon River port. First, the risks of relying solely on a Crooked Creek port, especially the risks of long periods of low water, may be so great as to require development of the more costly Yukon River port alternative. Second, analysis of a port near Holy Cross and partial road network extending from the Donlin Creek Mine to Colorado Creek generated estimated benefits that exceed costs by $66 million. Third, transport costs for large mine operations that use a Yukon River port near Holy Cross would not be significantly different from the transportation costs of using the Crooked Creek port. There are unanswered questions about the ability of the Kuskokwim River to support the Donlin Creek Mine and large-scale future mineral development in the Tintina Gold Belt. If the Kuskokwim River can support anticipated activities for major mineral development, the need for a Yukon River port appears uncertain. If the Kuskokwim River cannot support these anticipated development activities, a Yukon River port has the potential to provide large net benefits. If the Donlin Creek Mine is built, building a pioneer road north from the mine would generate the highest return to the state. If a Yukon River port is needed to support the Donlin Creek Mine, new mines in the Tintina Gold Belt, or both, a port near Holy Cross is expected to generate the greatest return to the state. 4.2 Benefit-cost analysis A benefit-cost analysis approach was used to compare potential river port and road network alternatives. A benefit-cost analysis consists of the following: » Defining project objectives = Determining the appropriate evaluation period FINAL DRAFT ANC/030990015 45 YUKON RIVER PORT AND ROAD NETWORK = Specifying assumptions about future conditions = Identifying a base case = Identifying and screening reasonable alternatives to meet objectives = Identifying, quantifying, and evaluating benefits and costs of alternatives relative to the base case : « Estimating impacts of alternatives = Comparing benefits and costs of alternatives = Evaluating variability of benefit-cost estimates = Recommending a best course of action The objective of this study is to identify the Yukon River port and road network that will best support mineral development in the study area. The evaluation period of the study is from 2003 to 2029. This 27-year period corresponds to the expected _ construction and production periods for development of the Donlin Creek Mine (Van Nieuwenhuyse, 2003). Subsection 4.2.1 below contains assumptions used throughout the analysis; Subsection 4.2.2 describes the base case scenario and alternatives evaluated; and Subsection 4.2.3 compares the NPV of the base case scenario to the alternative scenarios evaluated. 4.2.1 Assumptions The following assumptions based on available information were developed to address issues that might significantly affect the decision to develop a Yukon River port and that could not be resolved before the writing of this report: = Yukon River port required to reduce risks—Analysis indicates that a port at Crooked Creek on the Kuskokwim River could generate higher net benefits than the any of the Yukon River ports considered. However, there is a significant risk that shallow drafts, narrow channels, and the large volume of traffic required to support a mine the size of the Donlin Creek Mine could lead to significant disruptions of traffic on the Kuskokwim River. Without a port on the Yukon River, mine operators would have to rely on more costly air transport during a disruption on the Kuskokwim River or maintain higher inventories of fuel and supplies at mine sites. Once a Yukon River port and road network is built, the transportation costs to support the Donlin Creek Mine from the port would not be significantly different from the costs of using the Crooked Creek port. No benefits from reducing this risk to the Donlin Creek Mine are attributed to the Yukon River alternatives in this analysis. «Single Yukon River port—Only one Yukon River port site to support mineral exploitation in the Tintina Gold Belt and at the Donlin Creek Mine would be developed during the time frame of this study, 2003 to 2029. The movements of fuel and freight by ocean barge have very different cost structures, regulatory constraints, and risks. Bulk fuel docks and storage facilities require different equipment and structures than do general cargo facilities; however, shared facilities, such as the road network, necessitate the location of fuel and general FINAL DRAFT ANC/030990015 46 YUKON RIVER PORT AND ROAD NETWORK freight facilities at or near the same site. Analysis indicated that the single Yukon River port assumption did not change the relative economic viability of a port near Holy Cross relative to a Ruby port. = Existence of both Yukon River and Crooked Creek ports—Although a port on the Yukon River might support the production stage of the Donlin Creek Mine, the mine operator has planned on the use of a port built near Crooked Creek on the Kuskokwim River to support construction of the mine (Ridley, 2003a). Delivery of fuel and freight with the use of a Yukon River port was modeled both with and without port and road capital and maintenance expenses for a port and road network from the Kuskokwim River port. The existence of ports on both rivers would reduce the risks of disruptions or delays associated with reliance on a single river port. Analysis indicated that inclusion of Kuskokwim port and road costs did not change the relative economic viability of a port near Holy Cross relative to a Ruby port. = Production at Donlin Creek Mine—The Donlin Creek Mine is expected to achieve full-scale production between 2008 (Bush, 2003) and 2010 (Van Nieuwenhuyse, 2003)—2010 is used in this study. Without the Donlin Creek Mine operation, it is unclear whether a port and road network alone would generate the levels of mineral exploration and development assumed in this study. » Production at other Tintina Gold Belt mines—The quantity of gold production is assumed to be the same for all the options evaluated. This assumption does not change the relative economic viability of a port near Holy Cross relative to a Ruby port. It is likely that, because of higher transportation costs, some mines that could be profitable when supported by a port at Crooked Creek or near Holy Cross would not be economically viable if they had to rely on a Ruby port. Similarly mines supported by a Ruby port would not be economically viable if they had to rely on access from a port at Crooked Creek or near Holy Cross. » Limestone—The quality of limestone and aggregate deposits near the mine and Kuskokwim River would not be sufficient for use in mining operations. If usable deposits were located, limestone would be moved either by barge on the Kuskokwim River or by trucks to the Donlin Creek Mine. During evaluation of delivery of lime from both Vancouver, British Columbia, and the Kuskokwim River, this assumption was not found to change the relative economic viability of a port near Holy Cross relative to a Ruby port. In fall 2003, the mine operator indicated that adequate limestone deposits that could be competitively transported to the mine had not yet been identified in the study area and the transport of lime from Vancouver was still a likely option (Bush, 2003). = Fuel volume—Fuel deliveries to a river port either on the Yukon River or the Kuskokwim River would total 48 million gallons per year—38 million gallons for power generation and 10 million gallons for equipment fuel. Fuel deliveries were modeled both with power production (48 million gallons) and without power production (10 million gallons) at the river ports to support the Donlinh Creek Mine. Delivery of fuel to a power plant at the mine would greatly increase FINAL DRAFT ANC/030990015 4-7 YUKON RIVER PORT AND ROAD NETWORK the use of docks, fuel storage tanks, and roads. The fixed costs of these investments would be spread over greater volumes of traffic, which would lower the cost per ton (gallon) to deliver both fuel and freight. These lower costs per unit do not imply that building a power generating plant at the mine would be the least-cost or optimum solution. Other feasible options, such as transmitting power from a plant at a remote site, would need to be evaluated. Evaluation of such options is beyond the scope of this study; limited data about other likely alternatives are provided for informational purposes. Analysis indicated construction of a power plant at the mine did not change the relative economic viability of a port near Holy Cross relative to a Ruby port; however, because of the greater barge traffic associated with a power plant at the mine, its construction would increase the risks of a disruption on the Kuskokwim River. = Limiting drafts on the Yukon River—The limiting drafts through the Yukon River mouth and on the Yukon River beyond Saint Marys are 10 feet and 8 feet, respectively. There is some disagreement about the limiting draft upriver from Saint Marys, with both 8-feet and 10-feet restrictions reported. The shallower draft is used in this study. Analysis indicated this assumption did not change the relative economic viability of a port near Holy Cross relative to a Ruby port, but did affect the economic viability of the alternatives relative to a Crooked Creek port because deeper drafts above Saint Marys would allow more efficient use of barges and tugboats. « Lightering risks—Fuel barge operators would be willing to accept the risks of lightering at least a portion of the fuel either in or near the Yukon River mouth. Analysis indicated this assumption did not change the relative economic viability of the alternatives considered. = Annual barge utilization—Because of ice and violent breakup of the rivers, the navigation seasons on the Yukon and Kuskokwim rivers are limited to 100 and 122 days, respectively. Ocean-going barges and tugboats would be available and used on other routes during periods when these rivers were closed to navigation. River barges and tugs would be dedicated to the Yukon and Kuskokwim River routes. Analysis indicated this assumption did not change the relative economic viability of the alternatives considered but could affect the economic viability of the alternatives relative to a Crooked Creek port. * Annual truck utilization—Super-B tractor-trailer (a tractor pulling two semi trailers connected by a three-axle platform) equipment would operate 300 days per year from river ports to the mine and, for Alternative 2a, 300 days per year from North Pole and Anchorage to a port at Nenana or the Dalton Highway Bridge. Trucks would haul an average of 15,000 gallons of fuel and 52 tons of freight on industrial roads and 15,000 gallons of fuel and 52 tons of freight on the highway. Analysis indicated this assumption did not change the relative economic viability of the alternatives considered. * Fuel cost and availability—Alaska refineries would convert to the production of low-sulfur diesel fuel and have sufficient capacity at both North Pole and Cook Inlet to support the Donlin Creek Mine. This assumption would be FINAL DRAFT ANC/030990015 48 YUKON RIVER PORT AND ROAD NETWORK necessary for the viability of fuel delivery from North Pole; however, it did not change the relative economic viability of the alternatives considered. » Construction costs—Dock, fuel storage, and per mile road construction and maintenance costs for a Yukon River port and road network would be similar to those costs for the Crooked Creek port and road network. Analysis indicated this assumption did not change the relative economic viability of the alternatives considered. 4.2.2 Selection of the base case and alternative scenarios The base case reflects recent trends within the study area and current plans to support construction and development of the Donlin Creek Mine by using a port at Crooked Creek on the Kuskokwim River. Alternative port locations were initially identified during Phase | of the RTA (CH2M HILL, 2001b). The following sections describe the base case, the alternatives initially considered, and the alternatives retained for more detailed evaluation after an initial screening based on relative transportation costs. 4.2.2.1 Base case—shipments on Kuskokwim through Crooked Creek In the base case, a port is built at or near Crooked Creek on the Kuskokwim River to support construction of and production operations at the Donlin Creek Mine. A two-lane road is constructed from the Crooked Creek Port to the Donlin Creek Mine and is eventually extended north into the Tintina Gold Belt. Development of a Crooked Creek port to support the Donlin Creek Mine operation would provide opportunities for transportation economies from large-volume shipments for Kuskokwim River villages, especially those at locations near the mine. However, limited dock facilities in river communities would continue to have a significant negative impact on transportation costs. Without a major increase in the demand for transportation services, significant improvements in dock facilities at Yukon River villages, or both, transportation costs to villages along and near the Yukon River within the study area will most likely remain at their current high levels. A road north from the Donlin Creek Mine area toward Ruby could reduce transportation and energy costs for other mine operators and increase exploration and mineral development within the study area. The following subsections provide additional detail about the region for the base case scenario and include information on estimated increases in village transportation demand, transportation demand to support the Donlin Creek Mine, and the potential for development of mineral resources in the study area north of the mine if a road is built. Expected growth in village transportation demand Information on the volume of freight and fuel delivered to the study area has been inferred from data collected for a much larger geographic area and from interviews with barge operators that serve the area (ADOT&PF, 2002c). The estimates vary widely, particularly for freight; therefore, projections for fuel and freight deliveries to the region exhibit large ranges between their minimum and maximum values. In 2002, from 3,900 to 19,600 tons of freight and from 3.5 million to 5.3 million gallons of fuel were delivered to the study area by barge. An additional 8,443 tons of freight FINAL DRAFT ANC/030990015 49 YUKON RIVER PORT AND ROAD NETWORK were delivered by air, primarily by bypass mail. The water-transported deliveries to villages along the Yukon River were primarily by shallow-draft barges from Nenana. Barge deliveries to coastal villages were completed by a combination of large ocean-going barges and lighters. Typically, line-haul ocean barges moved fuel and freight from Cook Inlet or Puget Sound to ports at Bethel or Saint Michael for off- loading and transportation to coastal villages by lighters. Changes in population, income, and technology will be the major factors influencing future demands for transportation services by village residents and businesses. The 2002 Yukon-Kuskokwim Delta Transportation Plan (ADOT&PF, 2002c) provides state- and borough-wide estimates of per capita freight and fuel demand through 2020. The plan also provides per capita demand estimates for six of the nine largest villages within the study area. These values provided the basis for estimates of transportation needs for the study area through 2020. Projections of study area population growth from 2020 to 2030 then provided the basis for estimates of regional transportation demand through 2030 (Appendix K). Fuel deliveries to the region are expected to increase from between 3.5 million and 5.3 million gallons in 2002 to between 4.7 million and 7.2 million gallons in 2030. Nonfuel freight delivery is expected to increase from between 2,900 and 19,800 tons in 2002 to between 3,900 and 26,600 tons in 2030. Growth in transportation demand from mineral development The Donlin Creek Mine is expected to generate a level of demand for transportation and energy services that will justify the large capital expenditures required to significantly lower power and shipping costs to the region. Once it is in place, this transportation and energy infrastructure can form the basis of a transportation network that provides reasonably priced access to what are estimated to be extensive mineral deposits north of the Donlin Creek Mine. The following subsections describe the expected demand for transportation services from the Donlin Creek Mine, potential limitations of the Kuskokwim River, and the mineral potential of the study area north of the mine. Planned transportation flows for Donlin Creek Mine In February 2003, Placer Dome announced plans to “spend a minimum of $30 million toward project development of the Donlin Creek Mine, complete a project Feasibility Study, and make a decision to construct a mine that produces not less than 600,000 ounces of gold per year, within 5 years of the effective date of the option on November 13, 2002” (NovaGold Resources Inc., 2003). Placer Dome estimated development of the site would require the movement of approximately 374,000 tons of equipment and supplies by barge and 4,000 tons by air during the construction stage (about 30 months). When operational, the mine would require annual delivery of approximately 273,000 tons of supplies by barge and 1,500 tons by air. The 273,000 tons of annual barge deliveries does not include 38 million gallons (140,000 tons) of fuel deliveries that would be required if a diesel power plant were constructed at the mine. As of March 2003, Placer Dome planned to purchase power from a proposed coal-fired plant in Bethel. Demand for power at the mine was estimated to be about 70 megawatts (Ridley, 2003a). These values reflect early planning estimates and may change significantly. FINAL DRAFT ANC/030990015 4-10 YUKON RIVER PORT AND ROAD NETWORK Sand and gravel would account for 220,000 tons (59 percent) of the supplies and equipment transported by barge during mine construction. Potential sand and aggregate sources had previously been identified near Aniak and Kalskag on the lower Kuskokwim River (PN&D, 1999). Sand and aggregate from these sites would be barged up the Kuskokwim River to a dock located at Crooked Creek, near the mine site. Cook Inlet (Anchorage) and Puget Sound (Seattle) would be the primary . sources for the remaining 55,000 tons of fuel (15 percent) and 98,000 tons of other supplies and equipment (26 percent). Fuel for the mine would be transported to Johnson Crossing near Bethel by ocean-going barges and lightered to 2,500-ton barges for delivery to Crooked Creek on the Kuskokwim River. Other supplies would move to the Bethel area by ocean-going barges and lightered to river barges i for the trip to the Crooked Creek dock. The 2,500-ton barges would be light-loaded for the trip to Crooked Creek to meet restrictions imposed by water depth in the river channel. Lime (or limestone) would account for 135,000 tons (50 percent) of annual supplies and equipment transported by barge when the mine is at full production. Potential limestone sites at Sleetmute, upriver from the mine, were being evaluated as potential sources in early 2003. The use of limestone would increase total annual transportation requirements by 135,000 tons. (270,000 tons of limestone are required to produce 135,000 tons of lime.) If local supplies are not economical, the company plans to barge 135,000 tons of lime from Vancouver, British Columbia. Cook Inlet and Puget Sound would be the primary sources for the 37,000 tons of a. fuel (13 percent) and 101,000 tons of other supplies and equipment (37 percent) (Ridley, 2003b). The deliveries would be moved to the Bethel area on ocean-going barges and lightered to river barges for the trip to the Crooked Creek dock. If a diesel-fueled power plant is built at the mine or a port on the Kuskokwim or Yukon rivers, an additional 140,000 tons (38 million gallons) of diesel would be transported to the mine or port, an increase in overall tonnage of 51 percent. The values used in the discussion above reflect early planning estimates and may change significantly. During construction of the Donlin Creek Mine, fuel and freight are expected to be transported by ocean-going barge from Cook Inlet, Puget Sound, or Vancouver to Bethel. Fuel and freight are then transported by river barge from Bethel up the Kuskokwim River to Crooked Creek where they would be off-loaded and trucked to the Donlin Creek Mine. As of October 2003, this scenario was the preferred alternative of the mine operator. It is assumed that a diesel-fueled power plant supports the Donlin Creek Mine because this type of power system was evaluated in earlier feasibility studies. Recently, Placer Dome, the company developing the Donlin Creek Mine expressed interest in buying power from a coal-fired power plant to be located near Bethel. Another option is purchasing power from a gas-fired power plant that would be located in the Holitna Basin, approximately 60 miles east of the Donlin Creek Mine. The natural gas resources in the basin are unconfirmed and initial exploration is planned for the winter of 2003-2004. Doyon Ltd. has announced a proposal to use liquid propane gas (LPG) to generate energy and fuel equipment at the Donlin Creek Mine. LPG would be transported by ocean barge to Saint Michael and then moved by barge to a Yukon River port near Holy Cross. A newly constructed FINAL DRAFT ANC/030990015 4-11 YUKON RIVER PORT AND ROAD NETWORK pipeline would then move the LPG to the Donlin Creek Mine. As of November 2003, Placer Dome had not made a final decision about the source of power for the mine. The assumption of a power plant at Crooked Creek, a Yukon River port, or near the Donlin Creek Mine is used in this study to show the impacts of major fuel movements on the Yukon and Kuskokwim rivers. Analysis indicates the use of alternative power sources would not change the overall rankings of the alternatives considered but could greatly affect the volume of traffic on the Yukon or Kuskokwim rivers. Consequently, the source of power selected for the Donlin Creek Mine could have a major impact on the potential need for a second port to support mineral development within the study area. As of March 2003, Placer Dome planned to move all barge shipments to the Donlin Creek Mine on the Kuskokwim River during its production life. Although the Kuskokwim River provides the shortest barge route, it has a short, approximately 122-day, barging season and the channel is shallow and narrow at points below Crooked Creek. Kuskokwim barge operators indicate they would likely build a new fleet of dedicated barges and tugs to support the Donlin Creek Mine. These barge operators indicate the need for a draft of 5 feet to Crooked Creek for efficient operation (Sweetsir, 2003b). During the typical barging season on the Kuskokwim River, limiting drafts below Crooked Creek usually range from a high of 6 feet to a low of 4 feet 6 inches. Limiting drafts of 4 feet sometimes occur at Tuluksak, approximately 145 miles downriver from Crooked Creek. During the unusually dry summer of 1997, there was a 4-foot draft limitation at Tuluksak for almost the entire barging season (PN&D,1999; Sweetsir, 2003b). USGS has operated a stream gage on the Kuskokwim River at Crooked Creek since 1951 (with the exception of October 1994 through September 1995) (USGS, 2003). During the low flows of 1997, average daily flows at the Crooked Creek gage remained below 44,000 cubic feet per second for 110 days of the 122-day barging season. To obtain an estimate of the number of days on which limiting flows of 4 feet or less might occur, historical data from the Crooked Creek gage were analyzed. The results are summarized in Table 4-2. Although the relationship between water flow at Crooked Creek and limiting drafts and channel widths downriver has not been precisely calculated, Table 4-2 suggests that during 3 of the latest 49 years (1997, 1988, and 1978) for which data are available, barge traffic on the Kuskokwim River may have been severely restricted by low water for more than 40 percent of the barging season. During 3 of the remaining 46 years (1976, 1957, and 1954), barge traffic may have been severely restricted by low water for between 30 and 39 percent of the barging season. Because of the large volume of planned traffic to the Donlin Creek Mine, even a short disruption could have a significant impact on operations in the Tintina Gold Belt. The potential impacts of such disruptions may require large mine operators to use much more costly air delivery, maintain high inventories levels of supplies and fuel, or severely curtail production during periods of low water flows. The presence of a Yukon River port and road system that could serve the Donlin Creek Mine and FINAL DRAFT ANC/030990015 4-12 YUKON RIVER PORT AND ROAD NETWORK Table 4-2 Years with extended periods of low water flows at Crooked Creek’, 1952 to 2001° Days of flow below 44,000 cubic feet per second Year Total days Longest period (consecutive days) 1997 110 37 1988 50 32 1983 28 12 1978 49 15 1976 38 30 1969 30 25 1968 31 30 1959 27 13 1957 36 10 1954 46 30 * At least 24 days of flows below 44,000 cubic feet per second between June 1 and September 30 > Data for 1995 not available Source: Values calculated by Northern Economics, Inc., by using data from USGS (2003b). other mines in the Tintina Gold Belt would reduce the risk of disruptions to the transportation of supplies and fuel. There are differences of opinion among knowledgeable persons contacted for this study about the ability of a Kuskokwim River transportation system to handle all of the tug and barge movements required for fuel and supplies to the Donlin Creek Mine, let alone the fuel and supplies required for additional new mines that might be developed in the Tintina Gold Belt. In addition, the potential risk to the mine operator of a major delay in the Kuskokwim River transportation system could be substantial and may be an impediment obstructing development of the Donlin Creek Mine. For these reasons, this analysis assumes that a Yukon River port and road system will be required at some point in the future, even with a Kuskokwim River transportation system in place. It should be noted that if fuel movements are reduced because electric power is provided by transmission lines from Bethel or the Holitna Basin, the anticipated transport capacity on the Kuskokwim River may be sufficient to support the Donlin Creek Mine and some number of potential new mines in the Tintina Gold Belt. Given the present uncertainty about the alternative power plants, this potential future scenario was not investigated in this analysis. Other mineral development in the study area Development of the Donlin Creek Mine will lower the cost of transporting large _ volumes of freight and fuel into the southern portion of the study area. Depending FINAL DRAFT ANC/030990015 . 4-13 YUKON RIVER PORT AND ROAD NETWORK on the power source adopted for use at the Donlin Creek Mine, lower cost power may also become available to other mine operators in the area. In the base case, a road is constructed north from near the Donlin Creek Mine site to support mineral development in the Tintina Gold Belt. The likely potential benefits of mineral development north of the Donlin Creek Mine area are described below. The information is adapted from Glavinovich (2003c). River transport and dog team provided early access into the mining districts of western Interior Alaska. Those modes of transportation evolved into the present system of barging and use of winter trails, and more recently to support by heavy aircraft such as the Douglas DC-6 or Hercules C-130. Some current operations are totally dependent on air support without the availability of a regional road network. Only the more richly endowed, or “higher grade,” mineral deposits can be developed under such a high-cost transportation scenario. Construction of a road route such as that proposed from Poorman to Crooked Creek would greatly improve access into some of the most prospective terrane of the Tintina Gold Belt. Improved access would have a direct effect on mineral activity in the region by providing reasonable access to exploration and development activities and subsequently to mine operations. The availability of surface access would greatly reduce the costs of transport for such bulk items as fuel and heavy equipment and, in the case of ore concentrates, provide a means to move concentrates to the Yukon or Kuskokwim rivers. For properties that could not economically support independent milling facilities, the road could provide a means of moving ore to a more central mill. Successful development of the Donlin Creek Mine is expected to be a catalyst that sparks renewed interest in the area directly influenced by transportation routes joining the Donlin Creek Mine and Poorman. Interested groups would be attracted not only by the demonstrated mineral potential of the belt, but also by the presence of a generally lower cost and more efficient transportation alternative that would allow more dollars for direct mineral exploration. A high level of exploration activity by several professional exploration groups and individuals could reasonably lead to the discovery of at least one gold system the size of the Donlin Creek Mine (10 million ounces) plus three or four smaller systems, each capable of producing from 1 million to 2.5 million ounces. Renewed activity at Mount Hurst (platinum) and other sites along the transportation corridor would also be expected. On the basis of the preceding evaluation of the mineral potential of the study area, a base case scenario was developed for possible mineral development in the area north of the Donlin Creek Mine. In this base case scenario, increased exploration leads to the discovery and extraction of an additional 9.6 million ounces of gold and the creation of an average of 475 additional jobs for local residents during the time frame of this study, 2003 to 2029. Without surface access, mines that would have to ship a concentrate and mines that would be dependent on a central milling facility probably would not be developed. Precious metal mines of sufficient grade would still be developed; however, the economic hurdle or break-even point would be much higher, jeopardizing or eliminating properties of marginal or lower grade. FINAL DRAFT ANC/030990015 4-14 YUKON RIVER PORT AND ROAD NETWORK Limiting road construction to the routes between Crooked Creek and the Donlin Creek Mine or near Holy Cross and the Donlin Creek Mine would benefit the development of the Donlin Creek Mine; however, such routes would provide little direct benefit to the development of the prospective mineral resources to the north of the Donlin Creek Mine within the time frame of this study, 2003 to 2029, or 20 years after production at the Donlin Creek Mine is expected to begin. 4.2.2.2 Alternative Yukon River port and road networks A port on the Yukon River with a road network to the Donlin Creek Mine could reduce the impact of disruptions to Kuskokwim River traffic. The availability of such a port might shift to the Yukon River large quantities of fuel, freight traffic, or both that would be moving to the mine. The potential change in routing would reduce risk and congestion on the Kuskokwim River and permit diversification of suppliers. A Yukon River port might also reduce the cost of fuel and freight deliveries to some villages along the Yukon River. In addition to alternative port locations, two general routing options were-considered for delivery of freight and fuel to Yukon River ports in this study: = Mouth of the Yukon River—in this routing option, ocean-going barges transport fuel and freight from Cook Inlet, Puget Sound, or Vancouver to transshipment points for off-loading to lighters, storage facilities, or both. Next, river barges transport the fuel and freight through the Yukon River mouth to a port near Holy Cross (see Alternative 1a in Figure 4-1) or to Ruby (see Alternative 1b in Figure 4-1) for off-loading to storage facilities. = Upper Yukon River—tn this routing option, the routes for freight and fuel differ because of their different origins. Fuel moves first by trucks or trains from North Pole to an expanded facility at Nenana (see Alternative 2a in Figure 4-1) or toa new dock and storage facility at the Dalton Highway Bridge. Next, shallow-draft river barges transport the fuel from either Nenana or the Dalton Highway Bridge to a port at Ruby or near Holy Cross. Freight shipments move first by ocean barges or container ships from Puget Sound or Vancouver to Southcentral Alaska, and then by trucks or trains to Nenana or the Dalton Highway Bridge. Subsequently, shallow-draft river barges transport the freight from either the Dalton Highway Bridge or Nenana to a port at Ruby or near Holy Cross. The short, 100-day barging season would be the major restriction on the use of the Yukon River. For barge traffic moving upriver through the river's mouth, a major restriction would be the shallow, shifting nature of entrances to the Yukon River mouth. For barge traffic moving downriver from Nenana or the Dalton Highway Bridge, major restrictions would be the shallow draft on the Tanana River and rapids on the Yukon River. Upriver and downriver traffic flows on the Yukon River have substantially different transportation costs and require substantially different investments in docks and fuel storage facilities. To help distinguish among the several Yukon River port and road alternatives initially considered, a number-letter code is used in this report. The first number indicates the flow of freight or fuel on the Yukon with “1” representing flows through the mouth and “2” representing downriver flows from Nenana or the Dalton FINAL DRAFT ANC/030990015 4-15 YUKON RIVER PORT AND ROAD NETWORK Highway Bridge. The second entry is a letter that corresponds either to a port on the Yukon River Port or a transshipment point. Thus, Alternative 1a represents shipments through the Yukon River mouth to a port near Holy Cross while Alternative 2a represents shipments downriver from Nenana to Ruby. Because of differences in transportation equipment, handling facilities, and origins, the flows of fuel and freight are described separately below for each of the alternatives. Fuel—delivery through the Yukon River mouth In a 1999 study for Placer Dome (PN&D), the estimated costs of ocean-going barge delivery to Saint Michael or Nome and then lighter delivery through the Yukon River mouth to the Donlin Creek Mine were compared to delivery of fuel and freight from the Fairbanks area and delivery from Seattle and Cook Inlet through Bethel. The advantages of the Nome route were a shorter trip for the inland barge and 10 million gallons of existing storage capacity at Nome. The major disadvantage was the requirement to move shallow draft vessels across Norton Sound. The port at Saint Michael eliminates the trip across Norton Sound, but the 1.5 million gallons of storage capacity at the port was not sufficient to off-load an ocean-going barge and would require a major expansion (Alaska Department of Environmental Conservation, 2003). In both cases, the need for shallow-draft vessels to transport fuel into the Yukon River mouth made these options more expensive than delivery to Bethel and barge transport up the Kuskokwim River. A variation of the Nome route and three other scenarios for fuel delivery through the Yukon River mouth were evaluated. The results confirm the findings of the 1999 PN&D study. = Fuel Alternative 1a—A 12,000-ton, ocean-going fuel-barge (20-foot draft) with 3.3 million gallons of fuel travels to the Yukon River mouth and off-loads to three sets of lighters (one tug and one 300-foot long fuel barge per set) toa draft of 8 feet (1.1 million gallons). The 300-foot barge sets travel through the Yukon River mouth to a port near Holy Cross. Because of disagreement about controlling drafts on the Yukon River, the use of both 8- and 10-foot drafts for shipping were evaluated. Increasing the draft to 10 feet did not change the economic viability of a port near Holy Cross relative to a Ruby or Crooked Creek port; therefore, to be conservative, the analysis is based on the 8-foot draft. Of the options considered, this one has the lowest cost for fuel shipments through a Yukon River port and was only 7 percent more expensive than shipment through a Kuskokwim River port and 39 percent less expensive than shipments from North Pole. = Fuel Alternative 1b—A 12,000-ton, ocean-going fuel-barge (20-foot draft) with 3.3 million gallons of fuel travels to the Yukon River mouth and off-loads to three sets of lighters (one tug and one 300-foot long fuel barge per set) to a draft of 8 feet (1.1 million gallons). The 300-foot barge sets travel through the Yukon River mouth to a port at Ruby. » Fuel Alternative 1¢—A 16,500-ton, ocean-going fuel barge (20-foot draft) with 5 million gallons of fuel travels to Nome and off-loads to a fuel storage site, lighters, or both. A lighter set consists of one tug and one 300-foot-long fuel barge light-loaded to a draft of 8 feet (1.1 million gallons). The 300-foot barge FINAL DRAFT ANC/030990015 4-16 YUKON RIVER PORT AND ROAD NETWORK and tug sets would travel from Nome through the Yukon River mouth to a port either near Holy Cross or at Ruby. = Fuel Alternative 1d—A 16,500-ton, ocean-going fuel barge (20-foot draft) with 5 million gallons of fuel travels to Saint Michael and off-loads to three sets of lighters (one tug and one 300-foot-long fuel barge per set) to a draft of 8 feet (1.1 million gallons). The 300-foot barge sets would travel through the Yukon River mouth to a port either near Holy Cross or at Ruby. Freight delivery through the Yukon River mouth A variation of the Nome and two other scenarios for freight delivery through the Yukon River mouth were evaluated: «Freight Alternative 1a— A16,500-ton, ocean-going freight barge (20-foot draft) with 16,500 tons of freight travels to the Yukon River mouth and off-loads to four lighter sets. A lighter set consists of one tug and one 300-foc* freight barge. Light-loaded to a draft of 8 feet (4,100 tons), the 300-foot barge and shallow- draft tug sets travel through the Yukon River mouth to a port near Holy Cross. Of the options considered, this one has the lowest cost for freight shipments through a Yukon River port and was only 11 percent more expensive than shipment through a Kuskokwim River port and 28 percent less expensive than shipments from Nenana or the Dalton Highway Bridge. = Freight Alternative 1b—A16,500-ton, ocean-going freight barge (20-foot draft) with 16,500 tons of freight travels to the Yukon River mouth and off-loads to § four lighter sets. A lighter set consists of one tug and one 300-foot freight barge. Light-loaded to a draft of 8 feet (4,100 tons), the 300-foot barge and shallow- draft tug sets travel through the Yukon River mouth to a port at Ruby. = Freight Alternative 1c—A 16,500-ton, ocean-going freight barge (20-foot draft) with 16,500 tons of freight travels to Nome and off-loads to a storage site, lighters, or both. A lighter set consists of one tug and one 300-foot freight barge. Light loaded to a draft of 8 feet (4,100 tons), the 300-foot barge and shallow-draft tug sets travel from Nome through the Yukon River mouth to a port near Holy Cross or at Ruby. = Freight Alternative 1d—A 16,500-ton, ocean-going freight barge (20-foot draft) with 16,500 tons of freight travels to Saint Michael and off-loads to a storage site, lighters, or both. A lighter set would consist of one tug and one 300-foot freight barge. Light-loaded to a draft of 8 feet (4,100 tons), the 300-foot barge Pat : and shallow-draft tug sets travel from Nome through the Yukon River mouth to a port near Holy Cross or at Ruby. Fuel delivery from North Pole The Williams and PetroStar refineries at North Pole do not currently produce the low-sulfur diesel that will be needed at the Donlin Creek Mine. PetroStar indicates it plans to have both the capability and capacity to meet all the fuel needs of the mine by the time it is operational (Martin, 2003). Shipments from North Pole refineries would travel by railroad or truck to an existing dock at Nenana or by truck to a new dock near the Dalton Highway Bridge. From either of these sites, river barges would be light loaded (4-foot and 5-foot drafts from Nenana and the Dalton FINAL DRAFT ANC/030990015 4-17 YUKON RIVER PORT AND ROAD NETWORK Highway Bridge, respectively) onto barges for downriver transport to a Yukon River port. Draft restrictions on the Tanana River and rapids on the Yukon River may prohibit large-scale delivery of fuel to the Donlin Creek iiaibii Two options with light- loaded river barges were considered: * Fuel Alternative 2a—Fuel is trucked from North Pole to Nenana and light- loaded (170,000 gallons) onto 160-foot river barges with 800-horsepower tugs. Fuel is transported to a Yukon River port at Ruby. Transportation costs for this option are the lowest for fuel delivery from a port at Nenana or the Dalton Highway Bridge; however, the costs of this option are 76 percent higher than for fuel shipments on the Kuskokwim River and 64 percent higher than for the lowest-cost route through the Yukon River mouth. Additionally, barge operators raised very strong concerns about the risks associated with these alternatives for the downriver delivery of large quantities of fuel (Sweetsir and Hnilicka, 2003). = Fuel Alternative 2b—Fuel is trucked from North Pole to Nenana and light- loaded (170,000 gallons) onto 160-foot river barges with 800-horsepower tugs. Fuel is transported to a Yukon River port near Holy Cross. » Fuel Alternative 2c—Fuel is trucked from North Pole to a new dock and fuel storage site near the Dalton Highway Bridge. A light-loaded (195,000 gallon), 160-foot fuel-barge with an 800-horsepower tug transports the fuel to a Yukon River port at Ruby. Freight delivery through the Fairbanks area Only one alternative, Freight Alternative 2a, was considered for movement of freight downriver from the Fairbanks area. General cargo for the Donlin Creek Mine would typically originate in Puget Sound or Anchorage and be transported to Nenana or the Dalton Highway Bridge for downriver shipment. The cost of handling cargo in Southcentral Alaska and then shipping by rail or truck to Nenana or the Dalton Highway Bridge makes this routing prohibitively expensive. The cost of shipping freight to either Nenana or the Dalton Highway Bridge for movement to the Donlin Creek Mine was at least 68 percent higher than for shipment on the Kuskokwim River and 51 percent higher than for shipments through the Yukon River mouth. Alternatives retained for further analysis After initial analysis, the base case and three of the alternative scenarios were retained for detailed analysis of benefits and costs. These alternatives are as follows: = Base case—shipments up the Kuskokwim River through Crooked Creek = Alternative 1a—shipments of freight and fuel through the Yukon River mouth and a port near Holy Cross = Alternative 1b—shipments of freight and fuel through the Yukon River mouth to a Ruby port » Alternative 2a—shipments of freight and fuel through Nenana and Ruby ports FINAL DRAFT ANC/030990015 4-18 YUKON RIVER PORT AND ROAD NETWORK 4.3 Evaluation of alternatives The major potential benefits of a Yukon River port and road network include the following: = Transportation expense reductions—A more efficient logistics system would allow better utilization of transportation equipment and corresponding reductions in transportation costs to area residents and businesses (including mine operators). = Resource development—A more efficient transportation system might encourage a more rapid development of natural resources and development of some resources that might otherwise not be economically viable. = Reductions in risks to the supply chain—Reductions in risks to the supply chain can increase the likelihood a project will obtain financing and possibly lower financing costs. = Government and landowner revenues—Development of natural resources could increase net revenues to landowners and governments. = Employment—Development of natural resources could increase the training and employment opportunities and the incomes for residents in an area of very high, persistent unemployment. The major potential costs of a Yukon River port and road network include the following: = Capital and maintenance costs—A river port and road network would require large expenditures for construction and maintenance. = Subsistence disruptions—Local residents are concerned that a port and road network could have a negative impact on subsistence activities that are extremely important to both the economy and culture of the study area. The potential impact on subsistence resources and activities are not analyzed in this chapter. The base case of a Crooked Creek port and road system generates the highest overall net benefits and lowest transportation costs (Table 4-3), Alternative 1a has the highest net benefits and the lowest transportation costs for shipments to the Donlin Creek Mine among the options evaluated. Opinions vary about the capacity of the Kuskokwim River to accommodate the large amount of barge traffic that would be required to support the Donlin Creek Mine and other mines in the Tintina Gold Belt. In the event that a disruption of transportation services on the Kuskokwim River would result in higher costs to the mine operators, the potential benefits associated with the Yukon River alternatives are understated in this study. The following subsections summarize the advantages and disadvantages identified for the base case and each alternative. Each discussion assesses the major issues of transportation costs, development of natural resources, revenues, training and employment opportunities, construction and maintenance expenses, and impact on subsistence. FINAL DRAFT ANC/030990015 4-19 YUKON RIVER PORT AND ROAD NETWORK Table 4-3 Net present values of benefits and costs for transportation facilities for Yukon and Kuskokwim river ports and roads Net present value in 2003 $ million Base case: Alternative 1a: shipments on shipments Alternative 1b: Kuskokwim through Yukon shipments Alternative 2a: River through River mouth and __ through Yukon shipments Crooked Creek port near Holy River mouth and _ through Nenana Costs and benefits port Cross Ruby port and Ruby ports Road costs * Construction 514.3 573.9 514.3 514.3 Maintenance 137.0 153.7 137.0 137.0 Fuel storage facilities costs Construction 51.9 51.9 77.8 103.8 Maintenance 15.4 15.4 23.2 30.9 Dock facilities costs Construction 5.9 5.9 5.9 11.8 Maintenance 1.3 1:3 1.3 2.5 Power line costs Construction 7.9 24.9 - - Maintenance 0.2 0.7 NPV of total transportation 733.9 827.7 759.5 800.3 costs Industry profits after state and 207.9 192.8 128.1 101.0 local government taxes Landowner revenues 8.3 7.7 5.1 4.0 State and local government 6.2 5.8 3.8 3.0 revenues Local labor income Road, port, and power line 220.2 248.3 227.9 240.1 construction and maintenance Mine construction and 222.3 222.3 222.3 222.3 operations NPVs of total additional 664.9 676.9 587.2 570.5 benefits NPV of benefits minus facilities (69.0) (150.8) (172.3) (229.8) costs Fuel : - (11.0) (107.4) (115.1) Supplies - (34.4) (173.4) (214.6) ? Road costs are for two-lane AASHTO standard construction. > NPV of transportation costs for an alternative minus NPV of transportation costs for base case. Positive values indicate transportation costs for shipments to Donlin Creek Mine are lower than the base case; negative values indicate higher transportation costs. Values assume all traffic to Donlin Creek Mine is captured by alternative. Source: Values calculated by Northern Economics, Inc. Construction and maintenance values were provided by CH2M HILL. Marine transport costs were derived from the COE, Institute for Water Resources (2000), and Bringloe (2003). Motor transport costs were derived from Trimac Logistics Ltd. (2002). Mineral development activity is based on Glavinovich (2003c). Labor income estimates for road and port construction are based on values from Minnesota IMPLAN Group (2000). FINAL DRAFT ANC/030990015 4-20 YUKON RIVER PORT AND ROAD NETWORK 4.3.1 Effects of base case, a Crooked Creek port and road system to support Donlin Creek Mine and new mines in the Tintina Gold Belt Transportation costs for Donlin Creek Mine—Reliance on a Kuskokwim River port and road system would result in average annual transportation costs for fuel and freight that are 7 percent and 10 percent, respectively, lower than the best Yukon River alternatives considered. However, this cost advantage may be offset by the potential costs of disruptions on the Kuskokwim River. Transportation costs for area residents—Transportation costs in the study area would likely remain at their current high levels throughout the time frame of this study. Development of natural resources—The Donlin Creek Mine would likely encourage resource development in the Flat area. A road network north from the Donlin Creek Mine would encourage mineral development in a western portion of the Tintina Gold Belt. The NPV of the estimated benefits from this mineral development would be $69.0 million less than the NPV of the estimated construction and maintenance costs. Net revenues to landowners and governments—The Donlin Creek Mine would provide substantial revenues to Calista Corporation and governments. The estimated NPV of the net revenues to landowners and governments from a road network north into the Tintina Gold Belt is $14.5 million. Training and employment opportunities—Total employment at the Donlin Creek Mine is estimated to be about 535 jobs per year at full production. Employment of local residents at new mines in the Tintina Gold Belt is estimated to average about 475 jobs per year. Construction and maintenance expenses—The NPV of the estimated road, port and power line construction and maintenance expenses for a Kuskokwim River port and road network is estimated to be $733.9 million, $93.8 million less than for Alternative 1a (shipments through the Yukon River mouth and a port near Holy Cross). Impact on subsistence—Supporting the Donlin Creek Mine from a Kuskokwim River port would have the least impact on the subsistence activities in the study area. Impacts on Kuskokwim River subsistence activities in areas downriver of the port were not evaluated for this study, but could be significant because of the large volume of river barge traffic. 4.3.2 Effects of Alternative 1a, barges through the Yukon River mouth to near Holy Cross Transportation costs for Donlin Creek Mine—Annual transportation costs for shipment of fuel and freight through the Yukon River mouth to near Holy Cross are estimated to be 7 and 11 percent higher, respectively, than for shipments on a road and port system on the Kuskokwim River. This cost disadvantage may be offset by the potential costs of disruption on the Kuskokwim River. Transportation costs for area residents—Because of higher transportation costs, delivery of significant amounts of mine-related fuel or cargo to a Yukon River port is FINAL DRAFT ANC/030990015 424 YUKON RIVER PORT AND ROAD NETWORK 4.3.3 uncertain. Given existing docking conditions at villages along the Yukon River and the possibility of only limited barge traffic increases, local costs for barge delivery probably would not be affected by this alternative. Development of natural resources—A Yukon River port and road network would encourage mineral development in the Tintina Gold Belt. The NPV of the estimated mineral development benefits from this alternative would be $150.8 million less than the NPV of the estimated construction and maintenance costs for the entire planned road network. However, it is anticipated that some links in the potential network may be eliminated, and that a shorter road system that uses pioneer standard construction for this alternative might allow total benefits to equal or exceed total costs. (See Section 4.4.) Net revenues to landowners and governments—The estimated NPV of the net revenues to landowners and governments from a road network north into the Tintina Gold Belt is $13.5 million or $1.1 million less than for a Kuskokwim River port. This difference is due to higher transportation costs and reductions in net revenues to mine operators. Training and employment opportunities—Employment of local residents at new mines in the Tintina Gold Belt is estimated to average about 475 jobs per year. This level of employment is the same as for the Crooked Creek port and road network. Construction and maintenance expenses—The NPV of estimated construction and maintenance costs of this alternative are $827.7 million, $93.8 million more than the NPV of these costs for a Crooked Creek port and road network. Impact on subsistence—Construction of this alternative has the potential to increase nonresident access to rich traditional subsistence resources used by Holy Cross residents. This potential increase to hunting pressure from non-area residents is a major concern of Holy Cross residents. Concern about the potential for a large oil spill has also been expressed by area residents. Effects of Alternative 1b, barges through the Yukon River mouth to Ruby Transportation costs for Donlin Creek Mine—Annual transportation costs for shipment of fuel and freight through the Yukon River mouth to Ruby would be at least 71 and 55 percent higher, respectively, than for shipments on a road and port system on the Kuskokwim River. Transportation costs for area residents—Because of high transportation costs, delivery of significant amounts of mine-related fuel or cargo to a Yukon River port would be unlikely. Given existing docking conditions at villages along the Yukon River and the likelihood of only limited barge traffic increases, local costs for barge delivery probably would not be affected by this alternative. Development of natural resources—A Yukon River port and road network would encourage mineral development in the Tintina Gold Belt. The NPV of the estimated mineral development benefits from this alternative would be $172.3 million less than the NPV of the estimated construction and maintenance costs for the entire planned road network. FINAL DRAFT ANC/030990015 4-22 YUKON RIVER PORT AND ROAD NETWORK Net revenues to landowners and governments—tThe estimated NPV of the net revenues to landowners and governments from a road network north into the Tintina Gold Belt is $8.9 million or $5.6 million less than for a Kuskokwim River port. This difference is due to higher transportation costs and reductions in net revenues to mine operators. Training and employment opportunities—Employment of local residents at new mines in the Tintina Gold Belt is estimated to average about 475 jobs per year, the same level of employment as the Crooked Creek port and road network. Because of the much higher transportation costs for this alternative, there would be a reduction in mineral production and exploration activities and employment; therefore, the employment and revenue impacts above are probably overstated. However, current data do not allow estimation of the reduction in employment that is likely to occur. Construction and maintenance expenses—The NPV of estimated construction and maintenance costs of this alternative is $759.5 million, $28.6 million more than the NPV of these costs for a Crooked Creek port and road network. Impact on subsistence—Construction of this alternative has the potential to increase nonresident access to rich traditional subsistence resources used by Holy Cross residents. This increased access is a major concern of Holy Cross residents. 4.3.4 Effects of Alternative 2a, downriver barges from Nenana and the Dalton Highway Bridge Transportation costs for Donlin Creek Mine—Annual transportation costs for shipment of fuel and freight from Nenana or the Dalton Highway Bridge down the Yukon River would be 76 and 68 percent higher, respectively, than reliance on a road and port system on the Kuskokwim River. Of the alternatives considered, Alternative 2a was the one least likely to be used to support the Donlin Creek Mine. Transportation costs for area residents—Because of higher transportation costs, significant amounts of fuel or cargo destined for the Donlin Creek Mine or potential large mines in the region would not likely be delivered to a Yukon River port. Given existing docking conditions at villages along the Yukon River and the likelihood of limited increases in barge traffic, local barge delivery costs probably would not be affected by this alternative. Development of natural resources—The NPV of the estimated benefits of mineral development for this alternative would be $121.0 million less than the NPV of the estimated construction and maintenance costs for the road network. Net revenues to landowners and governments—The estimated NPV of the net revenues to landowners and governments from a road network north into the Tintina Gold Belt is $7.0 million, $7.5 million less than for a Kuskokwim River port. This difference is due to higher transportation costs and reductions in net revenues to mine operators. Training and employment opportunities— Because transportation costs are much higher, fewer mines are likely to be developed and the number of new jobs would likely be lower than for a Crooked Creek port. FINAL DRAFT ANC/030990015 4-23 YUKON RIVER PORT AND ROAD NETWORK Construction and maintenance expenses— The NPV of estimated construction and maintenance costs of this alternative is $800.3 million, $66.4 million more than the NPV of these costs for a Crooked Creek port and road network. Impact on subsistence—Construction of this alternative has the potential to increase nonresident access to rich, traditional subsistence resources in the Doyon Ltd. region. This increased access is a major concern of local residents. The base case and the alternatives evaluated have negative NPVs. The base case has the smallest negative NPV and Alternative 1a, a port near Holy Cross had the smallest negative NPV of the alternatives. In the following sections, modifications to the base case and Alternative 1a are evaluated and a new base case and Alternative 1a that produce positive NPVs are identified. 4.4 Modifications to base case and Alternative 1a Three modifications to the base case and Alternative 1a were considered: e Staging of road construction e Use of pioneer road construction standards e Reduction of road network length Staged construction of roads did not produce significant cost saving for any of the options. However, the use of pioneer road construction standards reduced construction and maintenance costs sufficiently to produce a positive NPV in a modified base case of a port at Crooked Creek with a pioneer road north of the Donlin Creek Mine. Given the assumptions of the study, the combination of pioneer road construction north of the Donlin Creek Mine and a shortened road network produced a positive, but smaller, NPV for the modified Alternative 1a. 4.4.1 Staged road construction Tables 4-4 and 4-5 illustrate the impacts of a staged approach to road construction in which segments of a road network that serves the Donlin Creek Mine and areas where new mineral discoveries are most likely to occur are constructed first. Construction of other segments would be delayed until likely future patterns of mineral development within the Tintina Gold Belt become more apparent. In Tables 4-4 and 4-5, the road networks from Crooked Creek and a port near Holy Cross are divided into three stages (see Figure 3-1). The road network from Ruby is divided into two stages. It is assumed that any road network must initially provide access to the Donlin Creek Mine site and a road originating at Ruby would have to complete most of Stages II and III (shown in Figure 3-1) during the initial construction. As illustrated in Tables 4-4 and 4-5, the large capital costs associated with construction of fuel storage facilities, docks, and roadways generate large negative net benefits for Stage | of the base case and Alternatives 1a, 1b, and 2a. Positive net benefits are later generated in Stage II of the base case and Alternative 1a and in Stage Ill of Alternatives 1b and 2a. However, these relatively small positive net benefits are less than the negative values of the preceding stages and none of the route combinations attains an overall positive net benefit. FINAL DRAFT ANC/030990015 4-24 YUKON RIVER PORT AND ROAD NETWORK Table 4-4 Net present value of mineral development benefits and transportation facility costs for Yukon and Kuskokwim river ports and road networks by stages River and port site alternatives (net present value in 2003 $ million) Base case: Alternative 1a: shipments on shipments Alternative 1b: Kuskokwim _ through Yukon shipments Alternative 2a: River through Rivermouth through Yukon shipments Crooked Creek and port near River mouth through Nenana Item port Holy Cross and Ruby port and Ruby ports Stage miles 53.6 94.0 270.2 270.2 NPV of stage transportation facility costs 178.8 272.6 577.4 618.2 NPV of stage benefits of additional mineralization activities haste 123.1 383.8 ean NPV of stage benefits minus transportation facility costs (72.0) (139.5) (193.6) (239.2) Stage miles 111.7 111.7 - - NPV of stage transportation facility costs 192.4 192.4 - - NPV of stage benefits of additional mineralization activities 252.4 245.4 - - NPV of stage benefits minus transportation facility costs 60.0 53.0 i = Stage miles 210.6 210.6 105.7 105.7 NPV of stage transportation facility costs 362.7 362.7 182.1 182.1 NPV of stage benefits of additional mineralization activities 305.6 ane 203.4 ey NPV of stage benefits minus transportation facility costs (87.1) (64.2) 21.3 9.3 * Does not include Crooked Creek to Donlin Creek Mine segment, which is assumed to exist. Source: Values calculated by Northern Economics, Inc. Construction and maintenance values were provided by CH2M HILL. Marine transport costs were derived from the COE, Institute for Water Resources (2000), and Bringloe (2003). Motor transport costs were derived from Trimac Logistics Ltd. (2002). Mineral development activity is based on Glavinovich (2003c). Labor income estimates for road and port construction are based on values from Minnesota IMPLAN Group (2000). FINAL DRAFT ANC/030990015 4-25 YUKON RIVER PORT AND ROAD NETWORK Nixon Fork, and Ruby, a distance of about 211 miles. The NPV for the benefits of additional mineral activity minus the NPV of construction and maintenance costs of transportation facilities for Stage III is -$64.2 million for Alternative 1a and -$57.1 million for the base case. In Tables 4-4 and 4-5, Alternatives 1b and 2a are divided into two stages. (Stage II is described as “same as Stage | in Tables 4-4 and 4-5.”) The first stage extends from Ruby to the Donlin Creek Mine, a distance of about 247 miles. The NPV for the benefits of additional mineral activity, minus the NPV of construction and maintenance costs of transportation facilities for Stage |, is -$193.6 million for Alternative 1a and -$239.2 million for Alternative 2a. Stage III connects Stage I to known mineral deposits near Nixon Fork and McGrath, a distance of about 106 miles. The NPV for the benefits of additional mineral activity, minus the NPV of construction and maintenance costs of transportation facilities for Stage III, is $21.3 million for Alternative 1b and $9.3 million for Alternative 2a. 4.2.2 Pioneer road construction In the previous sections of this study, all road segments are designed to meet AASHTO standards appropriate for the volume of heavy truck trips required between a port and the Donlin Creek Mine. Unless a Yukon River port is located at Ruby, much smaller volumes of truck traffic are initially anticipated on road segments north of the Donlin Creek Mine. Until a large mine is developed, a pioneer road north of the Donlin Creek Mine may be sufficient to encourage much of the exploration and development of new mineral sites illustrated in this study. Pioneer roads may also prove to be sufficient to support production at new mine sites north of the Donlin Creek Mine. Detailed construction and maintenance estimates for pioneer road segments were not calculated for this study. However, rule-of-thumb estimates that a pioneer road would reduce construction costs by about 33 percent per mile and maintenance costs by more than 50 percent per mile were provided by CH2M HILL (Jochens, 2003). Shipments to the Donlin Creek Mine from a Ruby port would require AASHTO standard two-lane roads for at least 72 percent of the road miles for the networks in Alternative 1b and 2a (Ruby ports). Road networks from ports at Crooked Creek and near Holy Cross could potentially use pioneer construction standards on 86 and 77 percent of their road miles, respectively. Because of the greater potential for cost savings, the impacts on net benefits of pioneer roads were calculated for Alternative 1a (port near Holy Cross) and the base case (Crooked Creek port). Analysis indicated that, if pioneer roads were constructed on road segments north of the Donlin Creek Mine, the total net benefits of a port and road network are -$12.4 million for Alternative 1a, port near Holy Cross, and $69.4 million for the base case, Crooked Creek port (Table 4-6). 4.4.3 Reduction of road network length Analysis of known geological formations indicates that future, large-scale mineral development is most likely to occur between the Donlin Creek Mine and Colorado Creek, which is about 90 miles south of Ruby. Therefore, it may be possible to delay construction of the last 90 miles of road from Colorado Creek to Ruby in Stage III of Alternative 1a (port near Holy Cross) and the base case (Crooked FINAL DRAFT ANC/030990015 4-27 YUKON RIVER PORT AND ROAD NETWORK Table 4-6 Net present value of benefits and costs for transportation facilities for Yukon and Kuskokwim river port and road networks with pioneer construction and shortened routes Net present value in 2003 $ million Base case: shipments on Kuskokwim _ Alternative 1a: shipments through Yukon River through Crooked Creek port River mouth and port near Holy Cross Pioneer road, Pioneer road, Two-lane shortened Two-lane shortened Costs and benefits road Pioneer road routes road Pioneer road routes Road costs ; Construction 514.3 380.3 284.6 573.9 440.0 344.2 Maintenance 137.0 73.2 55.6 153.7 89.9 72.3 Fuel storage facilities costs Construction 51.9 51.9 51.9 51.9 51.9 51.9 Maintenance 15.4 15.4 15.4 15.4 15.4 15.4 Docks facilities costs Construction 5.9 5.9 5.9 5.9 5.9 5.9 Maintenance 1.3 1.3 1.3 1.3 1.3 1.3 Power line costs Construction 79 7.9 79 24.9 24.9 24.9 Maintenance 0.2 0.2 0.2 0.7 0.7 0.7 Cee ea itt 733.9 536.1 422.8 827.7 630.0 516.6 Industry profits after state and local government taxes 207.9 207.9 207.9 192.8 192.8 192.8 Landowner revenues 8.3 8.3 8.3 7.7 7.7 7.7 State and local government revenues 6.2 6.2 6.2 5.8 5.8 5.8 Local labor income Road, port and powerline construction and 220.2 160.8 126.8 248.3 189.0 155.0 maintenance Mine construction and operations 222.3 222.3 222.3 222.3 222.3 222.3 NPV total additional benefits 664.9 605.5 571.5 676.9 617.6 583.5 NPV of benefits minus facility costs (69.0) 69.4 148.7 (150.8) (12.4) 66.9 Fuel - - - (11.0) (11.0) (11.0) Supplies - - - (34.4) (34.4) (34.4 ? NPV of transportation costs for an alternative minus NPV of transportation costs for base case. Positive values indicate transportation costs for shipments to Donlin Creek Mine are lower than the base case; negative values indicate higher transportation costs. Values assume all traffic to Donlin Creek Mine is captured by alternative. Source: Values calculated by Northern Economics, Inc. Construction and maintenance values were provided by CH2M HILL. Marine transport costs were derived from the COE, Institute for Water Resources (2000), and Bringloe (2003). Motor transport costs were derived from Trimac Logistics Ltd. (2002). Mineral development activity is based on Glavinovich (2003c). Labor income estimates for road and port construction are based on values from Minnesota IMPLAN Group (2000). FINAL DRAFT ANC/030990015 4-28 YUKON RIVER PORT AND ROAD NETWORK Creek port). Analysis indicated that if pioneer roads are built north of the Donlin Creek Mine and the overall road network length is reduced by 90 miles, the total net benefits of a port and road network are $66.9 million for Alternative 1a, port near Holy Cross, and $148.7 million for the base case, Crooked Creek port (Table 4-6). 4.5 Findings Although a port at Crooked Creek appears to be the lowest cost option, there are several reasons for considering the development of a Yukon River port. First, the risks of relying solely on a Crooked Creek port, especially the risks of long periods of low water, may be so great as to require development of the more costly Yukon River port alternative. Second, a Holy Cross port and partial road network extending from the Donlin Creek Mine to Colorado Creek generated estimated benefits that exceed costs by $66 million. Third, transport costs for large mine operations that use a Yukon River port at Holy Cross would not be significantly different from the transportation costs of using the Crooked Creek port. There are unanswered questions about the ability of the Kuskokwim River to support the Donlin Creek Mine and large-scale future mineral development in the Tintina Gold Belt. If the Kuskokwim River can support anticipated, major mineral development activities, the need for a Yukon River port appears uncertain. If the Kuskokwim River cannot support anticipated major mineral development, a Yukon River port has the potential to provide large net benefits. If the Donlin Creek Mine is built, building a pioneer road north from the mine would generate the highest return to the state. If a Yukon River port is needed to support the Donlin Creek Mine, new mines in the Tintina Gold Belt, or both, a Holy Cross port is expected to generate the greatest return to the state. FINAL DRAFT ANC/030990015 4-29 USL SALLE ELC 5. FUNDING MECHANISMS 5.1 Financing alternatives This section describes potential financing and funding alternatives for construction and maintenance of a Yukon River port and road system. Funds for building and maintaining roads can be generated in many ways, but fewer sources of funding are available for port infrastructure projects. Alaska is a young state, with a small population covering vast geographic areas. There is a significant gap between the availability of funds for transportation infrastructure projects and the needs of the state. In this section, federal, state, tribal, local, and private funding sources for roads and ports are identified and described. A discussion of financing mechanisms is really a discussion of three basic questions: who pays, how much, and when. How funding mechanisms are constructed determines what portion of the infrastructure needs is met by the federal government, state governments, or others. Funding structure also determines how many current and future needs are met by current users and taxpayers versus how many are met by future users and taxpayers. Alaska is the only state without a state-funded road construction program, and is therefore almost entirely dependent on funding from the federal government, with matching funds from state government (Denali Commission, 2003b). The ADOT&PF is more limited than most state Departments of Transportation because the state does not have a revenue source dedicated to funding transportation projects—road or marine. Most states have established highway trust funds supported by state gas taxes, motor vehicle excise taxes, licensing fees, and other transportation-related user fees. In Alaska, however, each transportation project (surface and marine) must compete for funding not only with other transportation projects but also with other pressing social and infrastructure needs. Although the federal government provides substantial funding for transportation projects, most require matching state funds ranging from 9.03 percent to 20 percent of project costs for surface infrastructure and 20 to 60 percent for marine projects. The state has historically funded its transportation projects on a “pay-as-you-go” basis, paying for construction, maintenance, and administration as money becomes available from user fees and federal grants from the Federal Highway Trust Fund (FHTF), the Federal Transit Administration (FTA) with state matching funds, or in some cases, from special appropriations. The FHTF is funded totally from federal fuel excise taxes and various truck taxes collected from highway users (Office of Don Young, 1998). Alaska, a donee state (one that receives more money from the FHTF than it contributes in federal motor fuel taxes), received an average of $312 million per year during the 6-year period (1998-2003) covered by the most recent transportation legislation—the Transportation Efficiency Act for the 21st Century (TEA-21). That amount FINAL DRAFT ANC/030990015 5-1 YUKON RIVER PORT AND ROAD NETWORK represented $5.13 for every dollar Alaska contributed in motor fuel taxes; the highest amount of any state. Although the federal government is the major source of transportation funding in Alaska for capital projects, the state pays for maintenance and operations for state roadways, most Alaska airports, and the Alaska Marine Highway System (AMHS). The COE in collaboration with the ADOT&PF, designed and constructed many of Alaska's small-boat harbor and navigation projects. Currently, the COE is responsible for developing and building federally funded navigation projects at public ports, but is restricted from investing directly in commercial port infrastructure. The COE supports port development and improvement by studying the feasibility of channels and breakwaters on port approaches and other similar analyses. Participation by the COE requires that facilities be publicly owned and available to all on equal terms. If the facilities of the mineral export terminal are publicly owned, as in the case of the port and road system at Red Dog Mine, the COE can potentially provide some assistance. For example, the COE is conducting an analysis of water and wind effects on the potential extension of an ore loading dock at the Red Dog Mine northwest of Kotzebue. The mine is owned by Teck Cominco Alaska Incorporated and operated in partnership with NANA Regional Corporation. The Alaska Industrial and Development Export Authority (AIDEA), the state development agency, owns the port and the access road to the mine. The COE would be restricted to providing funds for offshore dredging if needed to enable fuel and deck barges to enter the Yukon River channel. 5.1.1 Public-sector funding for construction 5.1.1.1 Roads Ownership of all public roads in the United States is divided among federal, state, and local governments (Government Accounting Office [GAO], 2002a). Local governments own more than 77 percent of public roads in the United States. States own 20 percent, including most of the Interstate Highway System. Although the federal government owns only 3 percent of public roads (including roads in national forests, parks, and on military and Indian reservations), it has played a major role in funding the nation’s highways. According to a GAO report released in August 2002, the federal government invested more than $370 billion (constant 2001 dollars) in the interstate highway system from 1954 through 2001 (GAO, 2002a). In Alaska, approximately 43 percent of the 13,635 miles of roads are state- controlled, and approximately 19 percent are federal roads. In terms of nonfederal rural roads, about 55 percent are state roads, 22 percent are borough-owned, and 23 percent fall under municipal and other categories (National Association of Development Organizations, 2003). The federal highway program is financed through the collection of motor fuel taxes and other levies on highway users. Federal aid for highways is then provided to the states largely on a grant (cash) basis. Grant monies are distributed from the FHTF and apportioned to the states based on a series of funding formulas. Most funding FINAL DRAFT ANC/030990015 5-2 YUKON RIVER PORT AND ROAD NETWORK is subject to grant matching, which for most federally funded projects is 80 percent federal and 20 percent state. With most grant funding, states are obligated to have available all of the funds needed for a project up front, and they are reimbursed for project costs as they are incurred. In many cases, however, states can use funds from other federal agencies as their match for funds from the FHWA. When the Interstate Highway System was completed in the 1980s, the federal government shifted its focus from construction to preservation and enhancement of the system’s capacity. The Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) and the TEA-21 created a revolution of sorts in public transportation by providing , predictable funding, innovative financing, and investments in new technology over multiple years. Enacted on June 9, 1998, TEA-21 is the most recent authorization act for the federal-aid highway program, but it expires at the end of the current federal fiscal year (September 30, 2003). Reauthorization hearings are currently under way in the Senate and the House of Representatives. These hearings present opportunities for a new set of congressionally mandated, high-priority projects. Surface transportation acts vary in their scope and duration, from short-term stop- gap funding bills to major multiyear bills. On December 1, 1997, the Surface Transportation Extension Act extended funding for surface transportation programs and ensured continued program operation while Congress worked on more comprehensive, multiyear legislation. The possibility of a stop-gap bill for this funding cycle currently exists. 5.1.1.2 Ports and harbors The U.S. Maritime Transportation System includes more than 300 ports and 25,000 miles of commercially navigable waters. In contrast to capital construction of surface transportation projects, which are funded primarily by user fees, commercial marine transportation projects depend on appropriations of general tax revenues. Until the federal Water Resources Development Act of 1986, 100 percent financing was available for these types of projects. Now, public ports must share the cost of navigation projects with an amount that ranges from 20 to 60 percent, depending on the project and channel depth. Although federal spending for highways has increased during the last decade, federal spending for waterways stayed constant for the period 1991 to 2000 (GAO, 2002a) (Figure 5-1). Federal government investments in navigation projects have been focused on projects of national economic significance. As pointed out in the Denali Commission’s 2003 work plan (2001), the threshold for federal involvement includes an assessment of national benefits and costs, a very high hurdle to overcome. The geography, climate, and low population density of Western Alaska likely preclude federal involvement in navigation projects. The State of Alaska constitution forbids the use of dedicated funds to supplement federal programs. As a result, most transportation projects (both surface and maritime) in Alaska must compete with each other and with other state projects to provide matching funds for federal funding. FINAL DRAFT ANC/030990015 5-3 State and local governments, $2,441 34% Federal government, $4,723 66% State and local government, $3,117 41% Federal government, $4,565 59% T042003003ANC___fig5_1.ai_ 12/18/03 _jb Source: GAO, 2002a. Figure 5-1 Federal, state, and local government share of expenditures on waterborne transportation (in millions of 1999 dollars), 1991 and 1999 YUKON RIVER PORT AND ROAD NETWORK State governments and the private sector play major roles in financing the nonfederal share of port and harbor construction. The dual public and private nature of commercial port infrastructure creates challenges in both planning and financing of such projects. A project may involve multiple project advocates and beneficiaries, and “ownership” is not always clear. As projects become complex and multimodal, financing also becomes more complicated. In a study completed in 2000, the GAO surveyed 37 states that had potential COE navigation projects at small and medium-sized ports from 1986 through 1999 (GAO, 2000). Of the 463 projects analyzed, 12 had been terminated or suspended because of failure to raise the nonfederal share of funds. Two of these projects were in Alaska: one in Kenai and one in Saxman. Table 5-1 shows port operators, the number of ports, and funding sources for the states surveyed in the GAO report. Although states provided the majority of the required nonfederal funds, nine states did not provide any financing. Various financing mechanisms were used, including direct appropriations, grants, and bonds. Some states allow local districts to raise their own funds by levying property taxes, sales taxes, or user fees. Table 5-1 How other states operate and fund small and medium-sized ports State Operator Funding Alabama Alabama State Docks Department Funded through state’s general fund, port user fees, operates one deepwater port and general obligation bonds, and revenue bonds. 10 inland river ports. State estimates five other ports in state operated by municipalities, counties, and private entities. Arkansas Number of ports not given State assistance through appropriations and grants. Ports can use property taxes, general obligation bonds, revenue bonds, fees, and guaranteed loans. California Number of ports not given No state grants or appropriations for nonfederal share of COE navigation projects. State provides low-interest loans to local governments to create and improve harbors for small craft. Connecticut No ports operated by state. Ports No state assistance for nonfederal share of COE owned by municipalities or private projects. entities. Delaware Two public ports: one operated by No COE projects in state since Water Resources state, one operated by private Development Act of 1986. entity Florida 14 deepwater seaports State issues grants to fund up to 50 percent of nonfederal share of COE projects. State also offers up to $15 million per year to pay half of debt service on bonds issued by ports for COE projects. Funds originate from proceeds of motor vehicle licenses and fuel taxes. FINAL DRAFT ANC/030990015 YUKON RIVER PORT AND ROAD NETWORK Funding Legislative appropriations, general obligation bonds, and revenue bonds No assistance to port districts for nonfederal share of COE projects. Ports each have funding programs that are site-specific. Legislative appropriations, general obligation bonds, and revenue bonds. Do not qualify for COE projects. 1966-1992 state provided assistance with infrastructure and equipment funding. Port authorities have authority to issue revenue bonds. Legislative appropriations for COE projects. Larger projects have received 100 percent state funding. Governor in 2000 moved to make local authorities pay 30 percent of nonfederal share. State has a Port Construction and Development Priority Program to pay for landside port improvements. Maine Department of Transportation uses funds raised by general obligation bonds to develop landside facilities of recreational and commercial ports. Provides no financial assistance to improve navigational access to ports. State funds nonfederal share of COE projects through appropriations. Ports receive funding through state’s Harbors, Rivers, and Inland Waterways Program that offers grants to provide 75 percent of local share of dredging costs and 50 percent of other types of projects. Local sponsor can use general obligation bonds and revenue bonds for remaining costs. No cost-share projects with the COE State offers assistance for improving infrastructure, marketing, and dredging nonfederal waterways through its Port Development Assistance Program. Provides funds from general obligation bonds to largest port. Ports can apply for loans from state’s revolving loan fund—up to $500,000 a year—paid off in 10 years at 3 percent. Table 5-1 How other states operate and fund small and medium-sized ports State Operator Georgia Georgia Port Authority operates state’s four public ports. Illinois Independent port authorities manage all ports Indiana Three public ports operated by state lowa All ports privately owned Kentucky Public ports operated by independent river port authorities Louisiana Number of ports not given Maine Number not given Maryland State operates Port of Baltimore, and private entities operate four other public ports. Massachusetts State operates three ports. Michigan No number given. Ports owned and operated by public and private entities Minnesota State operates five public ports. Mississippi State operates two ports. Missouri All public ports operated by independent port authorities Legislative appropriations for capital needs to Missouri Department of Transportation FINAL DRAFT ANC/030990015 5-5 YUKON RIVER PORT AND ROAD NETWORK Table 5-1 How other states operate and fund small and medium-sized ports State Operator Funding New Port Authority manages one major = Nonfederal share of COE projects funded through Hampshire international seaport and three appropriations from general fund smaller harbors with commercial traffic. New Jersey State entities operate four ports Legislative appropriations and ports can use revenue and private entity operates one bonds, guaranteed loans, and user fees to pay port. nonfederal share. New York State entities operate four ports Legislative appropriations, grants, and loans. Ports can and private entity operates one use general obligation bonds, guaranteed loans, and port. user fees to pay nonfederal share. North Carolina —_ North Carolina State Ports Legislative appropriations and grants. Local sponsors Authority operates four ports. can use sales taxes, general obligation and revenue Municipalities, counties, and private entities operate 31 other ports. Ohio Ports operated by independent port authorities. Oregon No number given Oklahoma Two public ports operated by local port authorities. Pennsylvania State operates one port, anda municipality operates one port. Rhode Island State operates four ports, and private entities operate two ports. South Carolina South Carolina State Ports Authority operates all ports. Tennessee No number given Texas Ports operated by cities and navigation districts Vermont No publicly owned ports Virginia Virginia Port Authority operates Port of Hampton Roads. City operates another port. Washington No number given bonds, property taxes, and user fees. Ohio’s State Infrastructure Bank can offer loans for transportation projects. As of 1999, no loans made to ports. Ports consult with state’s Economic Development Department before initiating projects. If approved, department provides nonfederal share of funding. Funds earmarked from state lottery. No COE navigation projects since 1986 As of 1999, state was planning to offer direct appropriation for major project on Delaware River and to develop a state infrastructure bank. No COE dredging since 1986 Legislative appropriations and general obligation bonds State established the Tennessee Transportation Equity Trust Fund. As of 1999, no loans had been made for nonfederal share of COE projects. State provides no funds for nonfederal share. Cities and districts use general obligation and revenue bonds, user fees, and guaranteed loans. (Not applicable) Legislative appropriations and grants Legislative appropriations. Local sponsors must pay some portion of nonfederal share. State establishing a state infrastructure bank. FINAL DRAFT ANC/030990015 YUKON RIVER PORT AND ROAD NETWORK Table 5-1 How other states operate and fund small and medium-sized ports State Operator Funding West Virginia No number given State provides some assistance but not for local nonfederal share Wisconsin No number given Ports are able to levy property taxes, issue general obligation and revenue bonds, and user fees. Source: GAO, 2000. 5.1.1.3 Federal programs Federal funding has been the primary funding source in Alaska for construction of surface transportation projects and for construction of ports and harbors. For surface transportation projects, most funding comes to the State of Alaska through the FHWA and FTA. The federal government contribution to total public expenditures on all roads accounted for $26.9 billion in Fiscal Year 2000 (GAO, 2002a). In the United States; maritime infrastructure is owned and operated by an aggregation of state and local agencies and private companies. Some federal funding for maritime infrastructure is provided by the federal government through the COE, U.S. Coast Guard, and U.S. Department of Transportation (USDOT) Maritime Administration. Public-sector spending on ports and waterways has remained relatively constant, increasing from $7.2 billion to $7.9 billion (in 1999 dollars) between fiscal years 1991 and 1999 (GAO, 2002a). State and local funding increased by 27.7 percent and accounted for 41 percent of total public expenditures for water transportation in Fiscal Year 1999 compared to 34 percent in Fiscal Year 1991. The following subsections summarize federal legislation related to surface transportation. A subsection on innovative finance techniques is included.. 5.1.1.3.2 Intermodal Surface Transportation Efficiency Act ISTEA gave state and local officials substantial flexibility by allowing them to shift funding among various surface transportation modes; for example, use of highway funding for transit projects. ISTEA also provided substantial funding for Intelligent Transportation Systems such as development of Smart Highways and Smart Cars to help provide safer, cleaner, and more efficient use of the nation’s transportation infrastructure. ISTEA, Title 23, U.S. Code, called for public involvement at all stages in the development of state transportation plans. The act expired on September 30, 1997. Through Title 23 of the U.S. Code, ISTEA called for involvement of the public at all stages in the development of state transportation plans. ISTEA established a new set of program principles: * Build partnerships with local and state officials to advance the strategic goals for transportation capital investment FINAL DRAFT ANC/030990015 57 YUKON RIVER PORT AND ROAD NETWORK = Provide for flexible use of funds = Create commitment to strengthen intermodal connections = Expand investment in, and deployment of, new information technologies for transportation services = Heighten sensitivity to the positive impact that transportation has on quality of life and on the shape and character of America’s communities 5.1.1.3.3 Test and Evaluation Finance Research Project The Test and Evaluation Finance Research Project of 1994 launched the FHWA Innovative Finance Test and Evaluation Program (TE-045). TE-045 was a major initiative to identify barriers to highway infrastructure investment and to develop strategies to overcome them (FHWA, 2002). The program was an acknowledgment of funding gaps between traditional government funding sources and the increasingly complex and diverse needs of the nation’s transportation infrastructure. States were asked to provide input on flexible approaches to blending federal and nonfederal highway funds so that existing federal resources could be leveraged. Many innovative techniques proposed under the TE-045 initiative were later enacted into law with passage of the National Highway System Designation Act of 1995. 5.1.1.3.4 National Highway System Designation Act This 1995 landmark legislation (FHWA, 2002) designated almost 160,955 miles of roads as the National Highway System (NHS), considered the backbone of the national transportation network for the 21st Century. The system includes the Interstate Highway System, as well as other roads considered important to the economy, defense, and mobility of the nation. NHS was developed by the USDOT in cooperation with states, local officials, and metropolitan planning organizations (MPOs). ISTEA prevented NHS and Interstate Maintenance (IM) funds from being released to the states until an NHS was designated, and this act removed that block. The National Highway System Designation Act of 1995 built on important financing options set forth in ISTEA and identified in TE-045 initiatives. These options are referred to as “innovative finance” by the FHWA and are intended to provide alternatives to traditional highway financing practices. For example, the NHS Designation Act expanded the eligibility of debt financing costs for federal-aid reimbursements and enabled states to use a debt finance instrument called Grant Anticipation Revenue Vehicle (GARVEE) bonds to generate up-front capital for major highway projects. Use of these approaches allowed states to construct near- term projects with traditional pay-as-you-go funding approaches. The NHS Designation Act also amended Section 115(d) of Title 23 to permit the Secretary of Transportation to approve applications for advance construction consistent with projects included in the State Transportation Improvement Program (STIP). FINAL DRAFT ANC/030990015 5-8 YUKON RIVER PORT AND ROAD NETWORK Advance construction allows a state to initiate federally approved projects without a commitment of federal funds. A state may request obligation (commitment) of federal funds at a later date. Before the NHS Designation Act, the limitation on advance construction required that an authorization of federal funds be in effect 1 year beyond the fiscal year for which the project was approved, eliminating the ability of a state to advance construction in the final year of a multiyear project. The amendment provided greater flexibility to the states to engage in advance construction. The NHS Designation Act of 1995 set the federal matching share at 80 percent for all eligible projects. In addition, loan provisions have been expanded to cover both toll and nontoll facilities with a dedicated revenue source. Further, the states were given greater flexibility in determining loan interest rates and were given the authority to use loan repayments for additional activities. Section 323 of Title 23 was amended to allow states to use privately donated funds, materials, or services on a specific federal-aid project as a credit toward the required state match. Before this change, states could receive credit only for donations of private property incorporated into a federal project, or for contributed state and local funds. Section 118(e) of Title 23, U.S. Code, states the following (Legal Information Institute, 2003): Funds made available to the State of Alaska and the Commonwealth of Puerto Rico under this title may be expended for construction of access and development roads that will serve resource development, recreational, residential, commercial, industrial, or other like purposes. It appears that Section 118(e) may allow the use of FHWA funds for construction of an industrial road. Such an industrial road would become part of the Alaska highway system. If Title 23 funds are used to build an industrial road, however, fewer funds would be available to bring other parts of the Alaska highway system up to national standards. The act also allowed 10 states or multistate entities to establish transportation infrastructure banks for project loans, credit enhancement, and subsidized interest rates, and to provide other assistance for eligible highway and transit capital projects. Bank funds could not be used as a grant. The recipients of the assistance could be public and private entities. 5.1.1.3.5 Surface Transportation Extension Act On December 1, 1997, the Surface Transportation Extension Act (Public Law 105- 130; 111 Stat. 2552) was enacted, providing a 6-month extension of highway, highway safety, and transit programs pending enactment of a law reauthorizing the ISTEA of 1991. 5.1.1.3.6 Transportation Efficiency Act for the 21st Century TEA-21 was enacted on June 9, 1998. It authorized federal surface transportation programs for highways, highway safety, and transit for the 6-year period from 1998 to 2003. TEA-21 was set to expire on September 30, 2003; however, in late-September FINAL DRAFT ANC/030990015 5-9 YUKON RIVER PORT AND ROAD NETWORK 2003, Congress enacted a short-term, 5-month reauthorization of TEA-21 that now gives Congress until the end of February 2004 to pass a long-term bill.. TEA-21 is a massive spending program that sets federal transportation spending priorities for road, bridge, public transit, bicycle, pedestrian, and other traffic safety projects. TEA-21 enacted several changes that affected Alaska, including increased total funding availability, new categories of funds, and new opportunities for providing discretionary or competitive grant funds for transportation projects (ADOT&PF, 1999). TEA-21 built on the success of its predecessor, ISTEA, but represented a new era in transportation funding decision-making; it linked highway resource levels to motor fuels tax revenues. TEA-21 directly ties user fees or taxes that go into the Highway Trust Fund to the program level provided. If tax receipts rise, program spending for highways increases proportionately. At the same time, TEA-21 established a federal budget mechanism that guaranteed that approximately $200 billion was reserved exclusively for highways, highway safety, and transit. This spending floor could also be increased through the annual budget process if Congress chose to dedicate a portion of the general budget allocation to highways and highway safety. The fact that TEA-21 was a 6-year bill and resource levels were linked to motor fuels tax revenues promoted state and local planning efforts by providing multiyear resources to state and local governments. TEA-21 also required that state and metropolitan governments incorporate a planning process into their decision- making process and to prepare both short- and long-term transportation plans. Section 1601 of TEA-21 established the “high priority projects (earmarking) program” that lists 1,850 Congressionally designated projects across the United States with a specified dollar authorization for each project (Fischer, 2002). Almost $9.4 billion in authorizations was provided for in this program; however, actual federal appropriations may be less than the amount authorized. ~ Under TEA-21, $68.8 million of federal funding for Alaska was designated for 15 high-priority projects through 17 high-priority appropriations (ADOT&PF, 1999). According to federal rules, appropriations for high-priority projects must be passed through the ADOT&PF before allocation to the project sponsor—a local government or other public agency. Table 5-2 shows the high-priority projects for Alaska contained in TEA-21, along with the funds authorized and the scheduled first year of the project. TEA-21 contained several innovative provisions that help states address the ups— and downs—of federal spending cycles. The provisions allow a state to spread construction costs over several years. TEA-21 allows states to use federal aid funds for design-build contracts after receiving FHWA approval. Traditionally, a transportation project is first designed and then built under separate bids. Now, a single team can submit a plan based on technical factors and price. Because one team performs both the design and construction, construction can start before all design details are finished. FINAL DRAFT ANC/030990015 5-10 YUKON RIVER PORT AND ROAD NETWORK Table 5-2 Alaska high-priority projects contained in TEA-21 First year of Project name Total funding ($ 000)a award Seward — Spruce Creek Bridge 262.5 2002 ae hada Freight and 4,500.0 1999 Kotzebue Roads 1,762.5 1999 Pt. MacKenzie Intermodal Facility 6,750.0 1999 Coffman Cove Ferry 2,250.0 1999 Kenai Spur Road Extension 6,000.0 2001 West Douglas Highway Extension 2,475.0 1999 Gravina Island Bridge 15,000.0 1999 Gravina Island Bridge 5,443.0 , NW Railroad Access 2,500.0 1999 North Denali Access Route 1,500.0 2002 Prince of Wales Island Marine 750.0 1999 AMHS Ketchikan Ferry Terminal Facilities 2,250.0 1999 Ketchikan Dry Dock Improvements 750.0 , Ship Creek Route 11,943.0 1999 Bradfield Canal 1,000.0 2002 * Actual federal appropriations may be less than authorization level shown. : Project funding combined with preceding project. Source: ADOT&PF, 1999. 5.1.1.3.7 Transportation Infrastructure Finance and Innovation Act One part of TEA-21, the Transportation Infrastructure Finance and Innovation Act of 1998 (TIFIA), helps states pay for large projects that have some funding, but need additional loan money for completion. Under the act, the federal government provides states with credit assistance, rather than grant money. TIFIA established a new federal credit program under which a Department of Transportation may provide three kinds of credit assistance for surface transportation projects of regional or national significance. The state can get a direct loan; the federal government can guarantee a loan; or the federal government can provide a standby line of credit. The goal of TIFIA is to leverage limited federal resources by attracting nonfederal co-investment in infrastructure improvements. When public agencies speak of “leveraging,” they are generally referring to the level of co-investment needed to match federal funds, either directly or through the attraction of new revenue sources (FHWA, 2002). Instead of grants, the federal government provides credit FINAL DRAFT ANC/030990015 5-11 YUKON RIVER PORT AND ROAD NETWORK assistance in the form of direct loans, loan guarantees, and standby lines of credit for projects of regional or national significance. Key objectives of TIFIA include (USDOT, 2002a): » Facilitate projects with significant public benefits = Encourage new revenue streams and private participation = Fill capital market gaps for secondary or subordinate capital "Bea flexible, “patient” investor willing to take on investor concerns about investment horizon, liquidity, predictability, and risk = Limit federal exposure by relying on market discipline Some of the major requirements include the following (USDOT, 2002a): = Large surface transportation projects ($100 million generally and $30 million for Intelligent Transportation Systems) = TIFIA contribution limited by statute to 33 percent = Investment-grade rating requirement = Dedicated revenues for repayment = Applicable federal requirements (Civil Rights, NEPA, Uniform Relocation, and Titles 23 and 49) Eligible sponsors include state government, private firms, special authorities, local governments, and transportation improvement districts. 5.1.1.3.8 Other innovative finance techniques Innovative finance techniques have been developed for surface transportation projects and can be classified into four categories as listed in Table 5-3. Although many of these techniques are not new, their application in the transportation sector is new. With the use of these techniques, FHWA is responding to the need to supplement the more standard method of financing highway projects through grants, which usually cover about 80 percent of a project. FHWA describes the objectives of innovative finance as follows: = Maximize the ability of state and other project sponsors to leverage federal capital for needed investment in the nation’s transportation system = More effectively use existing funds = Move projects into construction more quickly than under a traditional financing mechanism = Make possible major transportation investments that might not otherwise receive financing FINAL DRAFT ANC/030990015 5-12 YUKON RIVER PORT AND ROAD NETWORK Table 5-3 Innovative finance techniques for transportation projects Classification Strategy Uses Innovative management of federal funds Debt financing Credit assistance Advance construction Partial conversion of advance construction Tapered match Flexible match Toll credits Grant Anticipation Revenue Vehicles (GARVEEs) Section 129 loans State Infrastructure Banks (SIBs) Transportation Infrastructure Finance and Innovation Act (TIFIA) A state may begin a project even if the state does not currently have sufficient federal-aid obligation authority to cover the federal share of the of project costs.. A state may elect to obligate funds for an advance-constructed project in stages. The nonfederal matching requirement applies to the aggregate cost of a project rather than on a payment-by-payment basis. Allows states to substitute private and other donations of funds, materials, land, and services for the nonfederal share of funding for highway projects States may use revenue from toll facilities as a credit toward the nonfederal matching share of certain highway projects. Permit states to pay debt service and other bond-related expenses with future federal-aid highway apportionments. Allows states to use regular federal-aid highway apportionments to fund loans to projects with dedicated revenue streams Allows certain states to use regular federal-aid highway apportionments to capitalize state- administered revolving funds. SIBs can offer loans and credit enhancement to both public and private transportation project sponsors. Banks can be capitalized with state funds. Allows USDOT to provide direct credit assistance to sponsors of major transportation projects. Credit assistance can take the form of loans, loan guarantees, or lines of credit; the total amount of credit cannot exceed 33 percent of eligible project costs. Tolling General toll provisions Interstate Reconstruction and Rehabilitation Program Value Pricing Pilot Program Provides states the discretion to levy tolls on most noninterstate federal-aid highways. Allows up to three pilot projects to convert reconstructed or rehabilitated free interstate highway segments into tollways. Sponsors the testing and evaluation of road and parking pricing concepts designed to achieve reductions in highway congestion. Source: FHWA, 2002. FINAL DRAFT ANC/030990015 5-13 YUKON RIVER PORT AND ROAD NETWORK Some of these innovative finance techniques are discussed below. Of note is a recent GAO assessment (2002c) comparing four methods of financing $10 billion of infrastructure projects. The authors concluded that although alternative financing mechanisms have accelerated the pace of some surface transportation infrastructure improvement projects, and have stimulated additional investment and private participation, these mechanisms in the final analysis are different forms of debt financing. In the end, these debts must be repaid with interest. In 1999, Congress asked the GAO to examine how small and medium-sized public ports financed the nonfederal share of the cost of navigation projects between 1986 through 1999, and to identify to what extent projects were terminated or suspended because sponsors were unable to demonstrate a feasible funding source for the nonfederal share of navigation projects (GAO, 2000). Congress also wanted to know if federally sponsored innovative financing mechanisms might help small and medium-sized ports fund their nonfederal share of navigation projects. The GAO (2000) identified two principal factors that hinder practical use of innovative financing techniques in funding cost-sharing requirements for navigation projects. First, because the COE builds the projects, the sponsor of the port project does not receive federal funds directly and, therefore, does not have an opportunity to raise these funds in the private debt market. Second, use of these financing mechanisms requires repayment, which can be difficult for sponsors of some navigation projects. 5.1.1.3.9 Congressional appropriation An appropriation is an act of Congress that generally provides legal authority for federal agencies to incur obligations and spend money for specific purposes. Congress enacts appropriations in as many as 13 regular appropriations bills for each fiscal year. Congress can earmark a direct appropriation for a locally specific project. 5.1.1.3.10 Denali Commission The Denali Commission is a federal-state partnership established by Congress in 1998 to provide critical utilities, infrastructure, and economic support throughout Alaska. Senator Ted Stevens and former Senator Frank Murkowski introduced a measure at the end of the last session of the 107th Congress to provide $440 million to the Denali Commission to fund transportation projects in rural Alaska. Senator Ted Stevens and Senator Lisa Murkowski have introduced a bill in the 108th Congress that would establish a “Denali Transportation System” in the State of Alaska. The following excerpt is from the March 2003 Denali Commission Update (Denali Commission, 2003a): This new transportation element could either be enacted independently, or merged into reauthorization of the Transportation Equity Act (TEA-21), a major piece of legislation, which authorizes and appropriates funds to build roads, bridges, and other infrastructure. Congressman Young chairs the committee with jurisdiction over the reauthorization and bill and will be a driving force behind how funds will be FINAL DRAFT ANC/030990015 5-14 YUKON RIVER PORT AND ROAD NETWORK spent for transportation projects nation-wide over the next six years. In anticipation of this, the Denali Commission has met with a wide variety of agencies and individuals from around the state to gain their perspectives and recommendations on the potential role the Denali Commission could play in the access arena. Funding through the Denali Commission could also expedite the entire funding and construction process. If the Denali Commission receives authorization and appropriation for a transportation program, allocation decisions will need to be made by the Denali Commission. The Denali Commission may place some type of matching criteria on use of these funds. The 2003 Work Plan of the Denali Commission (2001) identifies a need for road construction and major maintenance of $7.5 billion and describes current annual funding of $350 million. The Denali Commission identified a need for port facilities in rural areas of approximately $214 million with annual funding varying from year to year between zero and $0.5 million. 5.1.1.3.11 Economic Development Administration The Economic Development Administration (EDA) in the U.S. Department of Commerce collaborates with local governments and community groups to fund projects that generate new jobs, help retain existing jobs, and stimulate industrial and commercial growth in economically distressed communities. EDA provides project investment grants to assist in the development of public facilities that facilitate the creation of permanent jobs in the private sector in areas where economic growth is lagging. The current focus of EDA is on projects that are regional in scope and impact. Applicants may be states, municipalities, Indian Reorganization Act or Traditional Village Councils, and nonprofit organizations. The applicant must have in place a Comprehensive Economic Development Strategy. EDA has contributed funding to several dock and harbor improvements in Ketchikan, Haines, Homer, Petersburg, and Seward. 5.1.1.4 State of Alaska programs The ADOT&PF prepares a list of needed statewide transportation projects in 3-year increments. The current STIP is for 2001 through 2003, but a new “Needs List” for 2004 through 2006 has been released in predraft format. The ADOT&PF also maintains an up-to-date online project database of the Needs List. The STIP covers four categories of projects toward which surface transportation investments are directed: = Bringing the NHS and the AMHS up to standard » Upgrading the Secondary Highway System (SHS) and the local AMHS connections FINAL DRAFT ANC/030990015 5-15 YUKON RIVER PORT AND ROAD NETWORK = Creating partnerships with local government to develop Community Transportation Plans to construct projects that serve local transportation needs _ = Implementing the Trails and Recreational Access for Alaska (TRAAK) to improve recreational access and opportunities for both visitors and residents The Needs List contains all the projects that state residents, elected officials, and transportation officials have formally proposed, but the list is constrained by the estimate of available funding and limited to those projects for which there is reasonable expectation of funding (ADOT&PF, 1999). The ADOT&PF retains the selection authority of NHS and SHS projects because of their statewide importance. In addition, projects may be advanced or delayed to take advantage of specific funding categories (ADOT&PF, 2003). The matching funds required for federal highway grants and marine projects by the COE are typically appropriated from the General Fund. The Alaska Constitution prohibits dedication of funds. Although motor fuel taxes are important revenue sources for the state, these revenues go into the General Fund. The Marine Users Fuel Tax has traditionally been the foundation of funding for small boat harbors in the state, but it is not a dedicated funding source. The state has used money contributed to the state General Fund by Alaska Housing Finance Corporation (AHFC) for ports and harbors. AHFC has issued corporation bonds to cover state capital needs unrelated to housing. 5.1.1.4.1 Bonds Three types of bonds are described in the following subsections: general obligation bonds, GARVEE bonds, and revenue bonds. The GAO (GAO, 2002b) recently completed an assessment of the costs that federal, state, and local governments (or special purpose entities they create) would incur to finance $10 billion in infrastructure projects by using four current and newly proposed financing mechanisms. To date, federal funding for highways has come from federal-aid highway grants, appropriated by Congress from the Highway Trust Fund, and this funding mechanism remains the lowest-cost financing method. The GAO assessment determined that federal highway grants are the lowest-cost finance mechanism in the long term because they are the only alternative that does not involve borrowing from the private sector through the issuance of some type of bond. Private investors must be compensated for the risks they assume in the purchase of bonds. Governments must compensate for these risks in addition to paying back the present value of the bond principal. For the short term (a 5-year period or less), tax- exempt bonds involve the most borrowing and have the highest combined costs for governments, but they also require the least amount of public money up front. General obligation bonds. A general obligation bond is a municipal bond secured by the taxing and borrowing power of the local or state government issuing it. Both the principal and interest are secured by the full faith and credit of the issuer and usually supported by the issuer’s unlimited or limited taxing power. General obligation bonds must be voter-approved. These bonds are repaid from the tax base of the governmental body issuing the bonds. In other words, a government FINAL DRAFT ANC/030990015 5-16 YUKON RIVER PORT AND ROAD NETWORK entity sells the bonds, uses the proceeds to support one-time capital costs, and then allocates a portion of its future annual revenue to pay toward the debt each year. GARVEE bond. A GARVEE is a debt-financing instrument that enable states to fund transportation projects based on anticipated future federal funding. Combined with advance construction, a GARVEE enables a state to use federal-aid funds for future debt service payments. In this way, the GARVEE bond technique enables a state to accelerate construction timelines while spreading the cost of a transportation project over its useful life, rather than just the construction period (FHWA, 2002). The use of GARVEEs expands access to capital markets either as an alternative or in addition to general obligation or revenue bonding capabilities. Projects need to be approved by the FHWA. GARVEE bonds were conceived as a tool for accelerating transportation projects at present-day costs. Because federally pledged revenues secure the bonds, the bonds do not increase the general bonded indebtedness of a state. They offer an additional source of revenue outside of the general fund. These pledges, however, are subject to annual appropriation by the state legislature. Before TEA-21, states were prohibited from repaying their debt with federal money. TEA-21 removed this hurdle by guaranteeing federal funding levels through Fiscal Year 2003 and included an equity provision ensuring that each state will get back a share of the Highway Trust Fund equal to 90.5 percent of its percentage contribution. A state can then pledge a share of future obligations of federal highway funds toward repayment of bond-related expenses, including a portion of the principal and interest payments, insurance costs, and other costs. In November 2002, Alaska voters approved a $227 million portfolio of transportation projects, including eight projects costing $102.8 million that will be supported by GARVEEs. The rest of the transportation program approved by voters will be financed by state general obligation bonds to be repaid with state revenues. Revenue bond. A municipal bond (“muni”) is a bond issued by city, county, or state governments for a variety of projects such as building schools, expanding highways, or constructing a new sewage system. A municipal bond is normally exempt from state and local taxes. A revenue bond is a type of municipal bond for which principal and interest are secured by revenues such as charges or rents paid by users of the facility built with the proceeds of the bond issue. Projects financed by revenue bonds include highways, airports, and not-for-profit health care and other facilities. The Indian Tribal Government Tax Status Act of 1982 added certain provisions to the Internal Revenue Code, authorizing Indian tribes to issue tax-exempt revenue bonds to finance "essential governmental functions.” Although roads are usually considered “an essential government function,” a private road or port may not be considered “an essential service” by the Internal Revenue Service. FINAL DRAFT ANC/030990015 5-17 YUKON RIVER PORT AND ROAD NETWORK 5.1.1.4.2 Alaska Industrial Development and Export Authority AIDEA is a public corporation and government entity of the State of Alaska that was established by the Alaskan Legislature in 1967 “to promote, develop and advance the general prosperity and economic welfare of the people of Alaska.” AIDEA has established a variety of programs designed to promote economic development in Alaska. The most important program applicable to this study is the Development Finance Program established by the Alaska Legislature in 1980. Through this program, AIDEA owns and finances certain projects (with tax-exempt bonds) that are economically beneficial to Alaska. Projects typically provide infrastructure support for resource utilization and development, such as airports and ports. A project must assist the local economy and be endorsed by local government. A project must be considered financially feasible. To be considered financially feasible, revenues from user fees and leases must be sufficient to repay the costs of the project, which include construction costs, planning and permitting costs, cost of issuing the bonds, and direct job-specific costs. Projects requiring more than $10 million in financing must receive authorization from the Alaska Legislature. Some projects financed through the Development Finance Program include the Federal Express Aircraft Maintenance Facility, Healy Clean Coal Project, the Skagway Ore Terminal, the Unalaska Marine Center, and the DeLong Mountains Transportation System (DMTS)—the port and road serving the Red Dog Mine north of Kotzebue. AIDEA owns the DMTS, and its investment base is approaching $267 million (AIDEA, 2003). The original construction of the project was funded in 1987 by the sale of $103 million in tax-exempt bonds that were sold by AIDEA. Teck Cominco Alaska Incorporated has a non-exclusive priority right to use the system until 2040 and pays a toll for use of the facilities. Teck Cominco is also obligated to operate and maintain DMTS at a commercially reasonable rate of compensation. Financing through AIDEA is most beneficial for projects that qualify for tax-exempt bonds. Projects that do not qualify may find better financing options elsewhere. Depending on the project specifics, AIDEA financing may not be attractive to projects being studied if they do not qualify for the tax-exempt financing. In the case of the DMTS, in return for the state's investment, Teck Cominco guaranteed the State of Alaska $12 million a year in toll fees, or potentially $600 million during its projected 50-year life. That figure included a 6.5 percent rate of return on the original state investment of $150 million (Skok, 1991). 5.1.1.4.3 State Infrastructure Banks Use of an SIB is a new FHWA program established by the 1995 National Highway System Designation Act. An SIB permits a transportation provider at the state or regional level to finance capital projects by establishing an SIB. An SIB can give a state increased flexibility in project selection and financial management. The federal government provides “seed” funds to the SIBs so that the banks can make loans and provide other types of credit assistance to both public and private transportation project sponsors. The original seed money for Alaska was $2.5 million. FINAL DRAFT ANC/030990015 5-18 YUKON RIVER PORT AND ROAD NETWORK After depositing the seed funding, any matching funding, federal-aid highway funding, and possibly other state funds into an SIB, a state can use the SIB to make loans, back bond issues, and accelerate state and federal-aid highway projects. SIBs can enhance private investment by lowering the financial risk and helping to attract private developers wishing to take an equity interest in projects. As of September 2001, 32 states had SIBs with 245 loan agreements amounting to more than $2.8 billion (FHWA, 2002). 5.1.2 Private-sector funding for construction Several public-private models for funding transportation construction have been used, including the following: = Build-operate-transfer. A private company or consortium receives a concession to finance, build, and operate a facility for a fixed period of time, after which ownership reverts to the public sector. = Build-operate-own. A private company or consortium is granted a franchise, then designs, finances, builds, and operates the facility it owns by using public support in land acquisition and other related matters. = Buy-rehabilitate-operate. A private group purchases or leases an existing _ facility from the government and then repairs, refurbishes, or expands it. The investors retain ownership and exercise all responsibilities of ownership, including collecting all revenues and paying taxes on the property. = Lease-rehabilitate-operate. Similar to buy-rehabilitate-operate, under lease- rehabilitate-operate, the private developer operates the facility for a period of years before the property reverts to the public sector at the end of the lease. 5.1.2.1 Toll roads Toll roads offer an alternative method of financing for needed highway projects, particularly when the traditional tax-based method of financing roads is no longer sufficient to handle the mobility needs of a state in a timely fashion. Toll roads have proven to be an effective method to finance an industrial road as supported by AIDEA’s experience with the DMTS. 5.1.2.2 Right-of-way contribution Some funding for construction of transportation projects may be obtained by contributions from the private sector for allowing them to use the road right-of-ways (ROWs) for electric transmission lines. Section 323 of Title 23 allows certain ROW donations to count toward the local funding share of a transportation project. Donations must be from private ownership to public ownership and for project purposes. Acquired ROWs are not eligible as the match. Land that has been acquired previously and is already intended or available for use by the public does not qualify for donation credit. FINAL DRAFT ANC/030990015 5-19 YUKON RIVER PORT AND ROAD NETWORK 5.2 Maintenance Maintenance and rehabilitation of existing infrastructure should be considered an important supplement to, and in some cases a substitute for, building new infrastructure (GAO, 2002a). Maintenance optimizes capital investments. 5.2.1 Roads Road maintenance is based on deterioration. Although roads will deteriorate if simply left unused, most deterioration is associated with use. The damage caused by vehicles goes up proportionately with size and weight; therefore, costs associated with maintenance are greater for trips made by heavy vehicles. Taxes or tolls on users are broadly viewed as being the more equitable way to fund road maintenance, and from an efficiency perspective, such taxes or tolls are the most efficient way to generate funding for maintenance. The efficiency effects can only be realized, however, if the costs of maintenance are internalized to road users. Ideally, each vehicle would pay its share of the maintenance costs necessitated by its use—the cost of maintenance would be allocated to those who generate the cost requirement. §.2.2 Ports and harbors Since the late 1980s when oil revenues began declining, maintenance of many ports and harbors in the state has been neglected. The neglect is due in part to a lack of a dedicated funding source. When facilities are allowed to deteriorate, the net result may be a reduction in revenues, such as revenues from the marine fuel tax. 5.2.3 Federal funding With FHWA funding for roads, the recipient is responsible for the long-term maintenance of the project because federal funding is not available for operation or maintenance. The Bureau of Indian Affairs (BIA) distributes funding to tribes and Native organizations on a state-by-state basis under their own administrative criteria for operation and maintenance of tribal roads. In Alaska, however, the BIA funding, which amounts to approximately $14 million per year, is spread out between approximately 200 tribes in the state (Denali Commission, 2003b). 5.2.4 State funding Although the federal government is the major source of transportation funding for capital projects in Alaska, the state pays for maintenance and operations for state roadways. The ADOT&PF is more limited than most state Departments of Transportation because the state does not have a revenue source dedicated to funding transportation projects. The Vision 2020 Statewide Transportation Policy Plan (ADOT&PF, 2002b) was approved by ADOT&PF Commissioner Joe Perkins in November 2002 and currently sets the direction for Alaska's 21st Century transportation system. In this plan, 3 of the 18 policies deal directly with maintenance issues. One of the policies FINAL DRAFT ANC/030990015 5-20 YUKON RIVER PORT AND ROAD NETWORK addresses the need to “adequately operate and maintain the transportation system; advocate and develop mechanisms that provide sufficient and stable levels of funding.” Five objectives are specified to carry out this policy. 3. Advocate for an adequate level of state funding for maintenance and operation of state surface, air, and marine transportation facilities 4. Explore an increase in transportation fuel taxes and related fees (such as vehicle and driver registration fees) and seek ways to ensure that these revenues are allocated to transportation capital and operating needs 5. Consider maintenance and operating costs during project development to reduce long-term maintenance costs 6. Contract out maintenance work when cost-effective 7. Advise the public of personal actions they can take to reduce litter, aid in highway maintenance, and lengthen the useful life of transportation facilities 5.2.5 Local government funding Currently there are no boroughs within the area in which the Yukon River ports and road being studied might be constructed. This situation could change because of the Donlin Creek gold project, however. Three second-class incorporated cities are located within the study area: Ruby, Holy Cross, and McGrath. Title 29 of the Alaska Statutes provides the authority that enables cities and boroughs throughout the state to establish port organizations, plan for waterfront development, own, lease or manage properties, raise funds, and exercise financial control over public ports. 5.2.6 Private-sector funding 5.2.6.1 Toll roads The GAO report (2002a) recommends partnerships among state and local governments and the private sector for the purpose of sharing the risks, financing costs, and benefits of a transportation project. Such a partnership can be formed to develop, finance, build, and operate new toll roads and other roadways. Tolls are a growing source of money for highways. Toll roads exist in 29 states, and are bringing in more than $4 billion a year. Typically, tolls pay for maintenance as well as debt service on bonds for the initial construction. Toll roads provide a precise way of linking benefit to user costs. If toll facility projects are initiated by a public authority in a state, the state transportation department can request that reimbursements from the federal government are made directly to that public authority. As discussed previously, Teck Cominco Alaska Incorporated has a non-exclusive priority right to use the DMTS (which includes a road and port, until 2040 and pays a toll for use of the facilities. Teck Cominco is also obligated to operate and maintain DMTS at a commercially reasonable rate of compensation. FINAL DRAFT ANC/030990015 5-21 YUKON RIVER PORT AND ROAD NETWORK 5.2.6.2 Contractual arrangements Interest in public-private partnerships for transportation projects has increased as a result of the growth in the demand for infrastructure and limited public funds to meet current and future needs. Contractual arrangements in the form of public-private partnerships may provide for the transfer of a significant level of responsibility and risk from the public to the private sector. Contractual arrangements can be based on performance-based outcomes, rather than on work activities. Several states allow agreements with highway construction contractors, engineering consulting firms, toll facilities, private developers, and the financial community to pay for transportation project construction and operation. For example, in New Mexico, the private firm that designed and built a major new highway expansion contracted with the state to maintain the road for 20 years. FINAL DRAFT ANC/030990015 5-22 6. CONCLUSIONS AND RECOMMENDATIONS 6.1 Conclusions From a review of the assumptions, analysis, and information contained within this study, the Holy Cross port and associated road network has estimated economic benefits that exceed the estimated costs. In addition, this project is feasible from an engineering standpoint. This project would begin at a port site on the Yukon River located across the river from the village of Holy Cross. A road would extend eastward to Donlin Creek, north and east to Chicken Mountain, east and north to the existing Takotna Road, and north through Ophir to the Cripple Creek Mountains/Colorado Creek area. See Figure 6-1. As a result of this study the Holy Cross port and associated road network project merits moving into the design phase. Further, the assumptions, analysis, and information contained within this study indicated. that the estimated benefits are less than the estimated costs for development of a port at Ruby and an associated road network that would support resource development within the study area. Benefit and cost estimates are subject to change if underlying assumptions change; for example, a new mine is discovered or developed or benefit objectives other than resource development are considered. 6.2 Recommendation It is recommended that a project or projects be considered for further development, given the positive net benefit minus cost of the project described above. FINAL DRAFT ANC/030990015 6-1 Colorado Creek ‘Stiidy Area a, Legend Figure 6-1 0.510 20 30 4 iles === = Eenefits exceed cost, this study Road segment = conclusions qm Other segments considered eem=me Segment not part of this study DEOL eA SAR ate REAL ‘ 3 APPENDIX A. REFERENCES Chapter 1 Alaska Department of Community and Economic Development (DCED). 2003. <http://www.dced.state.ak.us/cbd/>. Accessed December 2003. Alaska Department of Natural Resources (ADNR). 2000, November. Public Access Geographic Data. < http://www.asgdc.state.ak.us/homehtml/pubaccess.html>. Alaska Department of Transportation and Public Facilities (ADOT&PF), Division of Statewide Planning. 2000, November. Statewide GIS Mapping Section. <http:/www.dot.state.ak.us/mapping/>. Alaska Department of Transportation and Public Facilities (ADOT&PF). 2002a, March 5. Public Airports in Alaska. <http://www.dot.state.ak.us/>. Accessed March 2003. Alaska Department of Transportation and Public Facilities (ADOT&PF). 2002c, March. Yukon-Kuskokwim Delta Transportation Plan. <http://)www.dot.state.ak.us/>. Accessed March 2003. Alaska Geographic Alliance, Institute of the North, Alaska Pacific University. 2000. Alaska in Maps: A Thematic Atlas. Bundizen, Tom, Pacific Rim Geological Consulting, Inc. 2003. Annotated Summary of Aggregate Materials Availability and Mineral Resource Potential in Yukon Ports and Roads Project Area. Prepared for CH2M HILL. Bundizen, T.K., and M.L. Miller. 1997. Precious Metals Associated with Late Cretaceous-Early Tertiary Igneous Rock of Southwestern Alaska. Economic Geology Monograph 9. CH2M HILL. 2001b, August. Resource Transportation Analysis, Phase 1—Potential Corridors Identification. Revised Draft. Prepared for Alaska Department of Transportation and Public Facilities. Prepared in association with Sandwell Engineering Inc.; Northern Economics, Inc.; HDR Alaska, Inc.; Kelley Hegarty & Associates; and Kevin Waring Associates. Kline, J.T., and T.K. Bundtzen. 1986. “Two Glacial Records from West-Central Alaska,” in T.D. Hamilton, K.M. Reed, and R.M. Thorson, eds., Glaciation in Alaska — the Geologic Record. Alaska Geological Society. Miller, M.L., and T.K. Bundtzen. 1994. Generalized Geologic Map of the Iditarod Quadrangle, Alaska. U.S. Geological Survey Miscellaneous Field Studies Map MF-2219, 48 pp. One sheet @ 1:250,000 scale. NovaGold Resources Inc. 2003, February 11. Press Release: Placer Dome to Increase Stake by Advancing Donlin to Construction Decision. <http:/www.novagold.net/s/NewsReleases.asp>. FINAL DRAFT AA YUKON RIVER PORT AND ROAD NETWORK Pewe, Troy. 1975. Quaternary Geology of Alaska, U.S. Geological Survey Professional Paper 835. 145 pp. U.S. Geological Survey (USGS), EROS Field Office. 1996. Physiographic Divisions of Alaska. Van Nieuwenhuyse, Rick, President and Chief Executive Officer, NovaGold Resources Inc. 2003, February 20. Personal communication with Ken Lemke, Northern Economics, Inc. Wahrhaftig, Clyde. 1965. Physiographic Divisions of Alaska, U.S. Geological Survey Professional Paper 482, 52 pp. Digital data created by U.S. Geological Survey EROS Alaska Field Office, December 1996. <http://agdc.usgs.gov/data/usgs/erosafo/akcharact.html>. Accessed on October 1, 2003. Wilson, F.H., J.H. Dover, D.C. Bradley, F.R. Weber, T.K. Bundtzen, and P.J. Haeussler. 1998. Geologic Map of Central (Interior) Alaska. U.S. Geological Survey Open-File Report OF 98-133. Chapter 2 Alaska Department of Community and Economic Development (DCED). 2003. <http:/Awww.dced.state.ak.us/cbd/>. Accessed December 2003. Alaska Department of Transportation and Public Facilities (ADOT&PF). 1980, February. Engineering Geology and Soils Report, Ruby Airport, Materials Investigation. Alaska Department of Transportation and Public Facilities (ADOT&PF). 1983, January. Engineering Geology and Soils Report, Holy Cross Airport, Project No. F25341. Ausdahl, David, Northweb Marine. 2003, August 27. Personal communication with Ken Lemke, Northern Economics, Inc. Beikman, H.M. 1980. Geologic Map of Alaska. U.S. Geological Survey Map $G0002-1T and 2T. Scale 1:2,500,000. Digital file created by U.S. Geological Survey. 1997. <http://agdc.usgs.gov/data/usgs/geology/index.html>. Accessed March 2001. Brabets, T.P., B. Wang, B., and R. Meade. 2000. Environmental and Hydrologic Overview of the Yukon River Basin, Alaska and Canada. U.S. Geological Survey. Water-Resources Investigation Report 99-4204. Anchorage, Alaska. Bringloe, J. Thomas, The Glosten Associates, Incorporated. 2003, August 20. Personal communications with Ken, Lemke, Northern Economics, Inc. CH2M HILL. 2001a, June. City of Ruby Sanitation Facilities Master Plan. Prepared for the City of Ruby. CH2M HILL. 2001b, August. Resource Transportation Analysis, Phase 1—Potential Corridors Identification. Revised Draft. Prepared for Alaska Department of FINAL DRAFT A-2 YUKON RIVER PORT AND ROAD NETWORK Transportation and Public Facilities. Prepared in association with Sandwell Engineering Inc.; Northern Economics, Inc.; HDR Alaska, Inc.; Kelley Hegarty & Associates; and Kevin Waring Associates. Clarke Engineering Company. 1994, January. Geotechnical Investigation and Foundation Study, Ruby, Alaska. Prepared for Interior Regional Housing Authority. Hanson, Don, Northland Barge. 2003, March 12. Personal communication with Ken Lemke, Northern Economics, Inc. Jarue, Rick. 2003, April. Personal communication with Steve Jochens, CH2M HILL. Leonard, Bob, President, Bowhead Barge. 2003, February 24. Personal communication with Ken Lemke, Northern Economics, Inc. Selkregg, Lidia L. 1975. Alaska Regional Profiles. Vol. V1, Yukon Region. University of Alaska, Arctic Environmental Information and Data Center, Anchorage, Alaska. Sweetsir, Matt, President, Yutana Barge Lines. 2003a, March 15. Personal communication with Ken Lemke, Northern Economics, Inc. Sweetsir, Matt, President, Yutana Barge Lines. 2003b, September 26. Personal communication with Ken Lemke, Northern Economics, Inc. Sweetsir, Matt, President, Yutana Barge Lines, and Charles Hnilicka, Inland Barge Service. 2003, February 21. Personal communication with Ken Lemke, Northern Economics, Inc. Tarter, Shaen, Yukon Fuel Company. 2003, February 26. Personal communication with Ken Lemke, Northern Economics, Inc. Tetra Tech Inc. 2001, July. Yukon-Kuskokwim Delta Coast Regional Port Study. Prepared for U.S. Army Corps of Engineers, Alaska District. U.S. Army Corps of Engineers (COE), Alaska District. 1978. Yukon and Kuskokwim River Basins. Alaska Interim Report No. 7. U.S. Department of Agriculture, Natural Resource Conservation Service. 1979. Exploratory Soil Survey of Alaska. STATSGO Publication, Digital data created 1995. <http://agdc.usgs.gov/data/usgs/erosafo/soil/ak.html>. Accessed on March 19, 2003. U.S. Department of Commerce, National Ocean Service. 2002a. Distances Between United States Ports, 2002. 9th edition.<http://chartmaker.ncd.noaa.gov/nsd/distances-ports/distances.pdf>. Accessed March 2003. U.S. Department of Commerce, National Ocean Service. 2002b. United States Coast Pilot, Pacific and Arctic Coasts Alaska: Cape Spencer to Beaufort Sea. 2002 (20th) Edition. U.S. Geological Survey (USGS). 2003a. National Seismic Hazard Mapping Project, Interactive Deaggregations. 1996. <http://eqint.cr.usgs.gov/eq/html/deaggint.htmI>. Accessed on February 4, 2003. FINAL DRAFT A-3 YUKON RIVER PORT AND ROAD NETWORK U.S. Geological Survey (USGS). 2003b. Surface Water Data for Alaska. <http://waterdata.usgs.gov/ak/nwis/sw>. Accessed September 2003. Wilson, F.H., J.H. Dover, D.C. Bradley, F.R. Weber, T.K. Bundtzen, and P.J. Haeussler. 1998. Geologic Map of Central (Interior) Alaska. U.S. Geological Survey Open-File Report OF 98-133. Chapter 3 Alaska Department of Community and Economic Development (DCED). 2003. <http://www.dced.state.ak.us/cbd/>. Accessed December 2003. Alaska Department of Transportation and Public Facilities (ADOT&PF). 2001. Northem Region Traffic Data: 1998-1999-2000 Annual Traffic Volume Report. Vol. |. Prepared by Northern Region, Planning and Administrative Services, in cooperation with U.S. Department of Transportation, Federal Highway Administration. Alaska Department of Transportation and Public Facilities (ADOT&PF). 2002c, March. Yukon-Kuskokwim Delta Transportation Plan. <http:/www.dot.state.ak.us/>. Accessed March 2003. American Association of State Highway and Transportation Officials (AASHTO) AASHTO. 2001a. A Policy on Geometric Design of Highways and Streets. American Association of State Highway and Transportation Officials (AASHTO) AASHTO. 2001b. Guidelines for Geometric Design of Very Low-Volume Local Roads. Bundtzen, Tom, Pacific Rim Geological Consulting, Inc. 2003. Annotated Summary of Aggregate Materials Availability and Mineral Resource Potential in Yukon Ports and Roads Project Area. Prepared for CH2M HILL. Curran, Janet H., David F. Meyer, and Gary D. Tasker. 2003. Estimating the Magnitude and Frequency of Peak Streamflows for Ungaged Sites on Streams in Alaska and Conterminous Basins in Canada. USGS Water Resources Investigations Report 03-4188. Ferrians, O.J., Jr., Compiler. 1965. Permafrost Map of Alaska. U.S. Geological Survey Miscellaneous Investigations Series Map I-445, Scale 1:2,500,000. Chapter 4 Alaska Department of Environmental Conservation (ADEC). 2003, April 4. Tank Vessel and Facility Approval Certificates Issued by ADEC. <http:/www.state.ak.us/dec/dspar/ipp/fac&ves!.pdf>. Accessed March 2003. Alaska Department of Transportation and Public Facilities (ADOT&PF). 2002c, March. Yukon-Kuskokwim Delta Transportation Plan. <http://www.dot.state.ak.us/>. Accessed March 2003. Bringloe, J. Thomas, The Glosten Associates, Incorporated. 2003, August 20. Personal communications with Ken, Lemke, Northern Economics, Inc. FINAL DRAFT A-4 YUKON RIVER PORT AND ROAD NETWORK Bush, Gregg, Placer Dome. 2003, October. Personal communication with Ken Lemke, Northern Economics, Inc. CH2M HILL. 2001b, August. Resource Transportation Analysis, Phase 1—Potential Corridors Identification. Revised Draft. Prepared for Alaska Department of Transportation and Public Facilities. Prepared in association with Sandwell Engineering Inc.; Northern Economics, Inc.; HDR Alaska, Inc.; Kelley Hegarty & Associates; and Kevin Waring Associates. Glavinovich, Paul S., Minerals Consultant. 2003, March. Potential Mineral Resources of the Proposed Land Route Poorman, AK, to Crooked Creek, AK. Prepared for Northern Economics, Inc. Jochens, Steve, P.E., CH2M HILL. 2003, September 29. Personal communication with Ken Lemke, Northern Economics, Inc. Martin, Don. PetroStar. 2003, March 11. Personal communication with Ken Lemke, Northern Economics, Inc. Minnesota IMPLAN Group, Inc. 2000, June. IMPLAN Professional Version 2.0 NovaGold Resources Inc. 2003, February 11. Press Release: Placer Dome to Increase Stake by Advancing Donlin to Construction Decision. <http://www.novagold.net/s/NewsReleases.asp>. Office of Management and Budget. 2003, January 30. 2003 Discount Rates for OMB. Circular No. A-94. <www.whitehouse.gov/omb/memoranda/m03-08.htmI>. Accessed July 2003. Peratrovich, Nottingham, and Drage, Inc. (PN&D). 1999, March. Donlin Creek Mine Late Stage Evaluation Study. Prepared for Placer Dome Technical Services Ltd. Ridley, Richard, Placer Dome. 2003a, March 14. Personal communication with Ken Lemke, Northern Economics, Inc. Ridley, Richard, Placer Dome. 2003b, March 16. Personal communication with Ken Lemke, Northern Economics, Inc. Sweetsir, Matt, President, Yutana Barge Lines. 2003b, September 26. Personal communication with Ken Lemke, Northern Economics, Inc. Sweetsir, Matt, President, Yutana Barge Lines, and Charles Hnilicka, Inland Barge Service. 2003, February 21. Personal communication with Ken Lemke, Northern Economics, Inc. Trimac Logistics Ltd. 2002. Operating Costs of Trucks in Canada - 2001, Final Study Report. Prepared for Transport Canada. <http:/Awww.tc.gc.ca/pol/en/Report/ OperatingCost2001 .pdf>. Accessed March 2003. U.S. Army Corps of Engineers (COE). 2000, April. ER 1105-2-100, Planning Guidance Notebook. <http://www.iwr.usace.army.mil/iwr/planningcapabilities/docs/planform/11052100e. pdf>. Accessed March 2003. FINAL DRAFT AS YUKON RIVER PORT AND ROAD NETWORK U.S. Army Corps of Engineers (COE), Institute for Water Resources. 2000, April. Economic Guidance Memorandum 00-05, FY 2000 Shallow Draft Vessel Operating Costs. <http://www.iwr.usace.army.mil/iwr/pdf/egm051 .pdf>. Accessed March 2003. U.S. Geological Survey (USGS). 2003a. National Seismic Hazard Mapping Project, Interactive Deaggregations. 1996. <http://eqint.cr.usgs.gov/eq/html/deaggint.html>. Accessed on February 4, 2003. U.S. Geological Survey (USGS). 2003b. Surface Water Data for Alaska. <http://waterdata.usgs.gov/ak/nwis/sw>. Accessed September 2003. Van Nieuwenhuyse, Rick, President and Chief Executive Officer, NovaGold Resources Inc. 2003, February 20. Personal communication with Ken Lemke, Northern Economics, Inc. Chapter 5 Alaska Department of Transportation and Public Facilities (ADOT&PF). 1999, August. Transportation Needs and Priorities in Alaska. Alaska Department of Transportation and Public Facilities (ADOT&PF). 2002b, November. Vision 2020 Statewide Transportation Policy Plan. <http:/www.dot.state.ak.us/stwdpIng/areaplans/v2020.html>. Accessed March 2003. Alaska Department of Transportation and Public Facilities (ADOT&PF). 2003, January 21. The STIP Explained. <http://www.dot.state.ak.us/stwdping/cip_stip/index.html>. Accessed March 2003. Alaska Industrial Development and Export Authority (AIDEA). 2003, March 19. Project Fact Sheet: DeLong Mountain Regional Transportation System Road and Port Serving Mining District That Includes the Red Dog Mine. <http://www.aidea.org/PDF%20files/DMTSFactSheet.pdf>. Accessed March 2003. Denali Commission. 2001, October 1. Denali Commission 2003 Work Plan. <http://www.denali.gov/content/Activities%20PP&F/Work%20Plan/2003workplan. pdf>. Accessed March 2003. Denali Commission. 2003a, March. Denali Commission Update Denali Commission. 2003b. Rural Alaska Challenges, Transportation. <http://www.denali.gov/content/challenges/rural.htm>. Accessed on March 10, 2003. Federal Highway Administration (FHWA). 1999, August. Financing Federal-Aid Highways. Publication No. FHWA-PLO99-015. Federal Highway Administration (FHWA), U.S. Department of Transportation. 2002. Innovative Finance Primer. Publication No. FHWA-AD-02-004. Fischer, John W. December 11, 2002. Highway and Transit Program Reauthorization. Prepared for Congress by the Congressional Research Services. Order Code RL31665. FINAL DRAFT AS YUKON RIVER PORT AND ROAD NETWORK Government Accounting Office. 2000, March. Port Infrastructure: Financing of Navigation Projects at Small and Medium-Sized Ports. GAO/RCED-00-58. Government Accounting Office (GAO). 2002a, August. Surface and Maritime Transportation: Developing Strategies for Enhancing Mobility: A National Challenge. GAP-02-775. Government Accounting Office. 2002b, September 9. Marine Transportation: Federal Financing and an Infrastructure Investment Framework. Government Accounting Office (GAO). 2002c, September 25. Transportation Infrastructure: Alternative Financing Mechanisms for Surface Transportation. GAP- 02-11262. Legal Information Institute, Cornell University. 2003. GAP-02-1090T. <http://www4.law.cornell.edu/uscode/23/118.html>. Accessed on March 15, 2003. National Association of Development Organizations, Regional Transportation Online Center. 2003. Alaska: The Rural Context for Transportation Consultations. <http://www.nado.org/rtoc/library/ak.html>. Accessed on March 12, 2003. Skok, Mark. 1991, June. “Alaska’s Red Dog Mine: Beating the Odds." Minerals Today. U.S. Bureau of Mines. <http://imcg.wr.usgs.gov/usbmak/mt1 .html>. Accessed March 2003. U.S. Department of Transportation (USDOT). 2002a, June. T/FIA Report to Congress: Transportation Infrastructure Finance and Innovation Act of 1998. < http://tifia.fhwa.dot.gov/rtc.htm>. Accessed March 2003. U.S. Department of Transportation (USDOT). 2002b, December 4. Surface Transportation Reauthorization: FAQs on Reauthorization. <http://www.fhwa.dot.gov/reauthorization/ftafaq.htm>. Accessed on March 10, 2003. U.S. House of Representatives, Committee on Transportation and Infrastructure. 2003. “Surface Transportation Extension Act of 1997.” <http://www.house.gov/transportation/highway/compilations/STEA97_.PDF>. Accessed March 2003. Young, Don, Office of. 1998, May 22. News Release: Highway Transportation Bill Clears U.S. House. <http:/www.house.gov/donyoung/press/p19980522_2.htm>. Accessed March 2003. FINAL DRAFT A7 UMMARY OF Q 0 i= —— | eT ——— smaaeed| — [poms —_- Beadle oll Annotated Summary of Aggregate Materials Availability and Mineral Resource Potential i in Yukon Ports and Roads - Project Area . DRAFT REPORT ks Prepared by: Tom Bundtzen, Pacific Rim Geological Consulting, Ine: “For: CH2M Hill i seus oS 301 West Northern Lights Blvd. Suite 601 S&P tee Anchorage, Aleskc, 99503 Peel ah Table of Contents Introduction . Bedrock Geologic Summary Quaternary Geology and Geography of Project Area Summaries of Selected Metallic and Nonmetallic Mineral Resources of Project Area Summary of Aggregate Resources of Study Area Route Modifications Conclusions and Recommendations References Cited —— Introduction On April 15", 2003, Steven Jochens, CH2M Hill Project Manager for the Yukon Ports and Roads Project, asked Tom Bundtzen of Pacific Rim Geological Consulting, Inc. to prepare a brief annotated summary of aggregate materials availability and the mineral resource potential within the Yukon Ports and Roads Project area of western Alaska. The author possesses knowledge of the geologic framework, mineral resources, and materials availability in this portion of Alaska that spans 25 years of field investigations first beginning in 1977. This report provides: 1) a regional geological and geographical summary for the project area as applied to materials site selection and proposed routes; 2) annotated summaries of the most significant mineral resources that may be impacted by a surface transportation route in the region; 3) annotated summaries of aggregate sources along the proposed surface transportation routes; and 4) 70 photos taken from more than 25 years of field investigations by the author that depict physiographical features of the proposed Yukon Ports and Roads Project area. The annotated discussions of the region progress from north to south, and are designed to add to the existing project information (plate 1). Bedrock Geologic Summary Rock units within the Yukon Ports and Roads Project area (figure 1) are broadly subdivided into two groups by age and tectonic history: 1) Lower Cretaceous and older fault-bounded terranes; and 2) Middle Cretaceous and younger overlap and basin fill assemblages of sedimentary and volcanic rocks, which were subsequently intruded by generally high level granitic plutons. Regional geologic maps that covers 95 percent of the project area have been presented by Bundtzen and Miller (1997) and Wilson and others (1998); both are summarized in figure 1a. The northern portion of the project area from Ruby to the Cripple Creek Mountains and Mt. Hurst area is mainly underlain by mafic volcanic rocks, ultramafic intrusions, chert, and siliciclastic sedimentary rocks of the Ruby, Angayucham-Tozitna, and Innoko Terranes (Puchner and others, 2000; Wilson and others, 1998). These rocks originally formed as parts of an ancestral ocean floor section and as several island arcs that are now sutured onto the North American continental margin. Most of the route from the McGrath-Ophir area to Holy Cross is underlain by the Middle-to-Late Cretaceous Kuskokwim and Yukon-Koyukuk Groups, which are sandstone-dominated, prograding turbidite, shallow marine, and shoreline facies sedimentary rocks. _ The entire region has been intruded and overlain by Late Cretaceous to Tertiary andesitic volcanic and composite granitic plutons. Many of the isolated, sometimes rugged mountain ranges of the project area are underlain by “Volcanic-Plutonic” complexes of this rock suite. These igneous complexes are old andesitic strato-volcanoes with intruded magma chambers that formed in response to continental margin arc subduction processes. Figure 1 b illustrates a typical volcanic-plutonic complex in the Cripple Creek mountains of the northern part of the study area. Quaternary Geology and Geography of Project Area The project area is underlain by several distinct physiographic provinces, which include, from north to south, the Nowitna Lowland, the Kuskokwim Mountains, and Innoko Lowland (Wahrhaftig, 1965; Pewe, 1975). To illustrate the Quaternary geologic features of landforms in each physiographic sub-division, 70 photos and slides have been provided in this report (Figures 2-52; 54-72). The Nowitna Lowland is a rolling silt-covered tableland ranging from 250-1,500 feet in elevation, which exhibits generally local relief of up to 500 feet and slopes of 100-150 feet per mile. The first 45 miles of the Ruby-Poorman road underlain by this physiographic region comprises about 20 percent of the total project corridor. A line of gentle bedrock hills in the center rises to 1,500 feet. The Nowitna lowland has never been glaciated, but is underlain by discontinuous permafrost except on recently abandoned floodplains. The entire Nowitna Lowland is drained by the Yukon River and third order tributaries. A part of the tableland to the south and east of the Project area is covered by longitudinal dune sand up to 50 feet thick. The entire north-south-oriented hill system south of Ruby to the old mining camp of Poorman is buried by eolian silt deposits originating from the Yukon River floodplain. The Kuskokwim Mountains physiographic province underlies about 70 percent of the project area. It includes the portion of the transportation corridor from the general Cripple Creek Mountains near Poorman southward through the Ophir-Upper Innoko River area, thence southwest to the Flat-Iditarod River basin, south to Donlin Creek and west to Mosquito Mountain and the Reindeer River drainage basin (see plate 1). The Kuskokwim Mountains are a monotonous succession of northeast-trending ridgelines having generally rounded summits from 1,500-2,000 feet in elevation and broad gentle slopes. Most of the gently rolling upland has never been glaciated and generally lacks eolian cover. Rather decomposed rock regolith can be found underneath vegetated slopes. The northeast-trending accordant ridgelines are interrupted by 35-300 square miles circular-to-elongate, isolated rugged, glacially sculptured mountain ranges 2,800-4,500 feet in elevation (Kline and Bundtzen, 1986). Such isolated mountain ranges in the project area include the Cripple Creek, Twin, Cloudy; Beaver, Horn, and Russian Mountains (Bundtzen and Miller, 1997). Classic U-shaped valley profiles typify streams that radiate drainage patterns on all sides of the glaciated mountain ranges. One important isolated mountain range along the proposed road network at Chicken Mountain has not been glaciated, but otherwise exhibits many of the geomorphic characteristics of the former glaciated mountain ranges. Most of the accordant rounded ridges in the Kuskokwim Mountains are underlain by Middle to Late Cretaceous sedimentary rocks. The isolated, sometimes glaciated mountain ranges are comprised of composite granitic plutons and associated volcanic fields. In the SW portion of the Kuskokwim Mountains area, flat-lying basalt-to-rhyolite fields cap remnants of a mid-Tertiary erosion surface (Miller and Bundtzen, 1994; Bundtzen and Miller, 1997). Eolian silt buildups do occur on north-flanking portions of several glaciated mountain ranges and in hills adjacent to the Innoko Flats area west of the project area. These silt deposits are usually perennially frozen and laced with interstitial ice and ice wedges. =e The Innoko Lowland underlies the southwest 8-10 percent of the project area from the Yukon River at Holy Cross eastward to the Kuskokwim Mountains in the general vicinity of the Fox Hills. The Innoko Lowland includes a group of flat river flood plains, dendritic in pattern, whose bounding slopes are generally steep banks cut into surrounding hills. In some areas, gentle silt- covered slopes merge with the surrounding hills. Abandoned oxbow and meander scroll lakes are very abundant east of Holy Cross, and thaw lakes abound in old flood plains on gentle, silt- covered slopes. Most of the area is underlain by permafrost of unknown thickness. This part of the corridor is underlain by the Middle Cretaceous and younger flysch deposits of the Koyukuk Basin and pillow basalts and chert of the Yukon-Koyukuk terrane (Wilson and others, 1998). Summaries of Selected Metallic and Non-Metallic Mineral Resources of Project Area The Yukon Ports and Roads Project area is part of the Kuskokwim Mineral Belt, of western and southwestern Alaska, where precious metal-enriched lode and placer deposits are associated with Late Cretaceous-early Tertiary granitic intrusions (Bundtzen and Miller, 1997). More recently the Kuskokwim Mineral Belt has been recognized as an important younger component of the Tintina Gold Province, which contains the bulk of the gold resources of Yukon, Canada, and Interior Alaska (Hart and others, 2002). The project area contains at least eight classes of mineral deposits as summarized below from Bundtzen and others (1989), Nokleberg and others (1987), and Bundtzen and Miller (1997). Data on metallic mineral deposits has been derived from Alaska Resource Data Files (ARDF) for the Medfra, McGrath, and Iditarod quadrangles ~ (Bundtzen, 1999a, b; Keith and Miller, 1994; Bundtzen and others, in press). 1) Gold, silver and other metals associated with mesozonal granitic intrusions—including skarn deposits. 2) Gold, arsenic, and antimony associated with high level dikes, sills and subvolcanic bodies of variable compositions. 3) Silver, tin, tungsten, and other metals associated with Bolivian type tin granite systems. 4) Gold, silver, mercury, and antimony associated with hot springs, and other epithermal settings. 5) Heavy mineral placer deposits mainly important for gold, but also containing subordinate platinum, tungsten, and mercury. 6) Mississippi Valley (MVT) zinc deposits. 7) High quality gravel tailings in historic mining districts. 8) Terrace gravels, and other hardrock resources suitable for riprap and aggregate applications. The following discussions describe metallic and non-metallic mineral resources from north-to- south, beginning with the Ruby-Poorman Road system. Only selected examples of prospective deposits and districts are summarized here. More than 350 prospects are described in the ARDF files for the Ruby, Medfra, McGrath, Ophir, and Iditarod quadrangles. These selected localities are keyed in alphabetical order (A-U) to Plate 1. At the request of CH2M Hill, latitude- longitude coordinates are given for the annotated descriptions. A Gravel and aggregate deposits in Ruby Mining District (64 ° 24' 30" latitude; 155 © 30' 00" longitude) - Significant gravel resources occur in the Ruby district on Long Creek and tributaries, Birch, Flint, Midnight, Greenstone, and Monument Creeks. Historic production has been at Long Creek, where the largest resource occurs at the coordinates given above. Based on past mining records, the available gravel resources at Long Creek and tributaries are estimated to be approximately 1.45 million cubic yards (figure 3). Gravel resources at Midnight Creek amount to about 500,000 cubic yards. Gravel resources at Monument Creek amount to about 1.15 million cubic yards. Resources were not calculated for the other placer-producing streams. Monument Rocks, which is at 64 ° 21’ 20" latitude; 155 ° 29’ 30" longitude is composed of a _ granitic pluton with large remnant tors. Although untested, this unmeasured resource could be a - viable riprap source, along with greenstone blocks that outcrop in nearby Greenstone Creek. B Gravel and aggregate deposits on Flat Creek and tributaries of Poorman Mining District (64 ° 05' 20" latitude; 155 ° 33' 40" longitude)—The Poorman mining district has been intermittently developed since about 1908, and has produced about 155,000 ounces of placer gold. Gravel resources had to be exploited after removal of up to 100 feet of frozen, ice-rich overburden. Exploited gravel deposits are now thawed. A composite estimate of available tailings on Flat, Poorman, and Timber Creeks, and to the north, Spruce Creek, is estimated to be about 1.50 million cubic yards. Gravel deposits are preserved as pushed bulldozer piles and , locally as older drag line tailing piles. C Colorado Creek, Bear Creek, and Cripple Creek Mountains Area (63 ° 34' 00" latitude; 155 ° 59’ 00" longitude)—The coordinates given are midway down the basin of Colorado Creek. Colorado Creek produced about 120,000 ounces of placer gold from 1912-2002. Gravel tailings in the Colorado Creek drainage basin (figure 10) amount to about 2.40 million square yards. Since 1915, about 135,000 ounces of placer gold were recovered from Bear Creek and tributaries. Gravel tailings in the Bear Creek basin are estimated to be about 2.00 million cubic yards. The Cripple Creek Mountains granite pluton contains large unmeasured resources of crushed aggregate and riprap. Hard rock prospects have been found in the Cripple Creek Mountains immediately south of the Colorado Creek placer mine (mainly type 1 deposit above). These include the Neirod, Moose Jaw, Saddle, Gossan, Wyoming, and Montana gold-arsenic- antimony prospects (¥MD015, 016, 017, 018, 019, 020; Bundtzen, 1999a). In 1996-97, Placer Dome Exploration, Inc. drilled the ‘Neirod gold prospect. Although no resource estimates have been released, the Cripple Creek Mountains region remains a prospective area for discovery of lode metallic resources. D Won/Gemini Tin-Silver Prospect Area (63 ° 30' 24" latitude; 155° 41' 45" longitude) - This isolated mountain summit, which is about 10 miles southeast of the Cripple Creek Mountains (figure 15), contains a series of significant silver-tin prospects that also contain niobium and other important metals (type 3 deposit above). Based on drilling conducted by Anaconda Minerals Company, the Gemini prospect was estimated to contain 1.15 million tons grading 0.216 percent tin and elevated silver, tungsten, and antimony. The Won-South deposit was estimated by Anaconda Minerals to contain an inferred resource of 981,875 tons grading 1.03 percent tin (Bundtzen, 1999a, #MD024, 023, 021). The Won/Gemini group constitutes one of the most promising tin-silver prospects in western Alaska and is within 10 miles of the proposed transportation corridor. Although economic concentrations have not been confirmed, secondary road access would likely make this prospect group more attractive to receive additional exploration efforts. E Reef Ridge Zinc District (63 ° 23' 04" latitude; 154 ° 21' 50" longitude) - More than 15 zinc-lead deposits and prospects in the northern Kuskokwim Mountains 50 miles east of the transportation corridor constitute Alaska’s most important Mississippi Valley Type (MVT) district (type 6 deposit above). Based on a limited diamond drill program completed by Patino Ltd. in 1982, the main Reef Ridge deposit contains a minimum of 1.80 million tons grading 6.0 percent zinc. Drill hole intercepts contained up to 10.44 percent zinc, and channel samples collected in 2000 contained up to 40.0 percent zinc. Other nearby zinc prospects include Atoll, Bear Pass, Lynn Marie, and Midway. Although economic concentrations have not been confirmed, secondary road access would likely make this prospect group more attractive to receive additional exploration efforts. F Nixon Fork Gold Mine (63 ° 14' 20" latitude; 154° 45' 50" longitude) - The Nixon Fork mine complex is a series of small but rich contact metamorphic deposits that contain high contents of gold, copper bismuth, and other metals (¥MD062; Bundtzen, 1999a). Hard rock development began in 1920, and has continued intermittently to 1999. Total production by various operators over 33 years of production from 1920-1999 is about 185,000 ounces of gold and credits of both copper and bismuth. This mine complex, which has recently been reactivated by a Denver-based Junior Mining Company, is about 35 miles east of the surface corridor. Recent developments have been serviced by aircraft (figure 19-20), but surface access might help facilitate more exploration of the Nixon Fork district. G Win Tin-Silver Group (63 ° 12' 04" latitude; 155 ° §2' 51" longitude)—The Win tin-silver group is located about 20 miles east of the western corridor and 6 miles north of the proposed access from the McGrath area (figure 16). Duval discovered these deposits and Anaconda Minerals completed surface sampling and trenching of these type 3 deposits. Mineralization — occurs over a 1.25 square miles area (Bundtzen, 1999; #MD059-060). Up to 94.36 ozit silver, 46.8 percent tin, 1,000 ppm bismuth, and 1,699 ppm niobium have been identified in mineralized zones. High grade mineralization has been documented within the prospect group, but no resource estimates have been released. Although economic concentrations have not been confirmed, secondary road access would likely make this prospect group more attractive to receive additional exploration efforts—especially drill programs. H Noir Hill Limestone Quarry (62 ° 56' 20" latitude; 155 ° 17' 15" longitude)— The Noir Hill quarry, which is owned by Doyon Limited, is 8 miles east of McGrath on the south side of the Kuskokwim River near Stewart Bend. After being identified in the late 1980s as a good riprap and materials site, it was placed into development and now operates as the only limestone quarry in western Alaska that supplies a high quality, calcium carbonate resource to local customers. The most recent customer was the State of Alaska supplying efforts in resurfacing the 2001-2002 DOTPF Runway project at McGrath, which was a greater than $12 million program. Road accessibility could help materials from the Noir Hill quarry and nearby areas underlain by limestone to reach local and regional industrial customers, who may need limestone to process refractory ores, help mediate conditions in acid mine generating environments, or road construction and flood control applications. I Vinasale Mountain gold deposit (62 ° 42' 36" latitude; 155 ° 41' 24" longitude) - The Vinasale Mountain gold deposit is 18 miles south of McGrath (Bundtzen, 1999b; #MG009). This deposit, which constitutes the second largest gold resource in southwest Alaska, contains at least 1 million ounces of gold of moderate grade (3.0 g/t) proven through a verifiable diamond drill program. Although on the Kuskokwim River, such a deposit might look more attractive to development capital if it could be accessed with a road to the Yukon River, where much larger barges could be utilized for mine development. J Candle Creek Mine (62 ° 52' 34" latitude; 155 ° 48' 36" longitude) - The Candle Creek mine was one of the most productive and profitable gold mines in the McGrath-Innoko area, and produced 140,000 ounces of gold thru 1999 (Bundtzen, 1999b; #MG006). It is also underlain by a promising lode gold system that has been previously explored with diamond drilling and surface sampling programs by American Copper and Nickel Inc. The Candle deposit might look more attractive to development capital if it could be accessed with a road to the Yukon River, where much larger barges could be utilized for mine development. The prospect/mine site is accessible with the Candle Landing-Ophir road system. At least 1.25 million cubic yards of gravel aggregate are present in mine tailings in Candle Creek that might be used for road construction in the area. K Ophir District/Spruce Creek Area (63 ° 08' 40" latitude; 156 ° 29' 30"' longitude) - The Ophir Mining district has produced more than 200,000 ounces of placer gold from streams such as Spruce, Ophir, Little, Ester, and Dodge Creeks, and Victor Gulch. Lode mineralization in the uplands include type 1 deposits similar to those in Yankee and Ganes Creek (see below). Unworked and exploited gold-bearing terrace gravels hold most of the aggregate resources in this area (figure 24). A rough estimate of 3.00 million cubic yards of placer mine tailings exists in the combined stream drainages of Spruce, Little, Ophir, and Ester Creeks. Unworked terraces contain up to 30 feet of frozen silt overburden overlying the gold-bearing gravels. L Yankee Creek Placer/Lode Area (62 ° 58' 23" latitude; 156 ° 24' 14" longitude) -The Ganes-Yankee Creek dike and sill swarm is in the historic Innoko district. As summarized in Bundtzen and Miller (1997) and in other USGS documents, the mineralized plutons, dikes, and sills are the source of about 100,000 oz placer gold mined from this area. This area would be accessed by either the western or eastern routes as outlined in the report. Of further exploration significance is the recognition that the structurally controlled intrusive suite may be the continuation of the Donlin Creek trend of mineralization now offset by the Iditarod-Nixon Fork transcurrent fault. EMEX Corporation reported results in a press release from a first phase 2001 drill program on two of the prospects. The short drill program indicated that lode gold resources were confirmed in the area. Placer mine tailings occur for a distance of more than 7 miles of stream basin (figure 25). An estimated minimum 2.85 million cubic yards of gravel is present in the Yankee Creek basin, which could be used for road construction in the area. M Ganes Creek placer/ode area (62 ° 58' 44" latitude; 156 ° 30’ 18" longitude) -The Ganes- Yankee Creek dike and sill swarm is in the historic Innoko district. As summarized in Bundtzen and Miller (1997) and in other USGS documents, the mineralized granite bodies, dikes, and sills are the source of about 250,000 oz placer gold mined from this area. This area would be accessed by either the western or eastern routes as outlined in the report. Of further exploration significance is the recognition that the structurally controlled intrusive suite may be the continuation of the Donlin Creek trend of mineralization now offset by the Iditarod-Nixon Fork transcurrent fault. The past productive Independence lode gold mine (Bundtzen and others, in press; #ID-016) is a continuation of lodes in the Yankee Creek area (see above). The Ganes Creek placer deposits have been mined since 1906, and were exploited with a gold dredge for more than 30 years. At least 4.50 million cubic yards of gravel tailings exist in the basin of Ganes Creek, which might be suitable for road construction activities. Both the Ganes and Yankee Creek areas are connected to the 44 mile long Candle Landing-Ophir secondary road by a 17 mile long link built largely with placer mine tailings. Mine tailings in both Yankee and Ganes Creek have also been used to build airstrips capable of handling 4-engine aircraft (figure 27). N Cirque/Tolstoi Copper-Silver-Gold Group, Beaver Mountains (62 ° 50' 42" latitude; 156 ° 58’ 33" longitude for Cirques deposit) - Copper-silver-tungsten (gold) mineralization in the Beaver Mountains including the Cirque, Ganes Creek, and Tolstoi prospects contain grades of up to 20 percent copper, 45 oz/ton silver and elevated gold values (Bundtzen and others, in press; #031, 033, 037). Although economic concentrations have not been confirmed, secondary road access would likely make this prospect group more attractive to receive additional exploration efforts - especially drill programs. The Beaver Mountains also contain untested but probably significant aggregate and riprap resources that could be utilized in road construction. These include the Brown Creek outwash fan, granitic rocks within the core area of the Beaver Mountains, and outwash and terrace gravels in western tributaries of the Mountain range. (see figures 29-36). O Moore Creek/Fourth of July Creek Mine area (62 ° 36' 04" latitude; 157° 08' 10" longitude at Moore Creek) - The Moore Creek mine was exploited from 1913-1995 and was during the 1940s and 1950s the largest producing gold mine in the Iditarod mining district. An estimated 1.25 million cubic yards of gravel exist in the 1 mile long paystreak on the property - all stacked with draglines to 30 feet in height. The much smaller Fourth of July Creek paystreak to the north contains only a few thousand square yards of useable gravel. Hardrock gold- tungsten prospects in mineralized granite of type 1, i.,e., the Broken Shovel lode (Bundtzen and others, in press; #084) occur at the head of the stream drainage, and have been trenched by mining firms. P Bismarck Creek (62 ° 25' 26" latitude; 157° 01' 44" longitude) - The Bismarck Creek mineralized zone (Bundtzen and others, in press; #118) is a type 3 silver-tin-polymetallic system likely related to the Win/Gemini and Won groups previously described to the north. Extensive sampling work indicates that perhaps 500,000 tons of tin-silver bearing mineralization occurs in the main zones (Bundtzen and Miller, 1997). Bismarck Creek and nearby Granite Creek are principle tributaries of George River. Placer gold has been mined on Julian, Spruce, and Granite Pups (Figure 55). This region is highly prospective for discovery of gold and other metals and - firms like Placer Dome have conducted diamond drill programs in the area. Further to the east, the Granite Mountain area has received similar attention in recent years. Q Otter Creek Mine/Iditarod District (62 ° 27' 07" latitude; 157 ° 57' 43" longitude) - Otter Creek is a major auriferous placer deposit that was mined nearly continuously from 1911-1992 (Bundtzen and others, in press; #ID-108). The gravel deposits range from 12-15 feet thick, from 1,000-6,000 feet wide, and a total length of about 3.50 miles. Igneous clasts dominate the gravel compositions.Based on examination of past mining records reported in Bundtzen and others (1992), Otter Creek drainage, which includes Black Creek, contains an estimated 20.5 million cubic yards of gravel and about 420,000 ounces of gold. Of this a documented minimum of 11.87 million cubic yards of washed cobble gravels was processed by two small bucketline dredges from 1914-1966 and stacked in symmetrical tailing piles (figure 51-54). The Golden Horn hardrock gold-tungsten deposit (Bundtzen and others, in press; #ID-110), which occurs in the upper valley area, contains about 250,000 oz of drill-indicated gold resources in ore zones averaging about 0.25 oz/ton gold. Placer tailings in Slate Creek and Granite Creeks, which are tributaries to Otter Creek, are not included here because most of the tailings have been dissipated through erosion and down slope creep. R Flat Creek Mine/Iditarod District (62 ° 25' 40" latitude; 158 ° 03' 00" longitude) - Flat Creek placer mine constitutes the richest and largest past-productive gold deposit in southwest Alaska (Bundtzen and others, in press; #ID-106). From 1911-1990, Flat Creek produced more than 650,000 ounces of gold from about 9.25 million cubic yards of pay gravels. The gravel is largely washed and stacked, and could be used for road construction. Resource estimates for lode gold prospects at the head of Flat Creek have been published and summarized in Bundtzen and Miller (1997) as well as released by Ventures Resources via the internet and approximately 1 million ounces of lode gold of various grades are present. The Flat district may warrant more attention in the report as a hardrock district that would likely look more attractive to a mining company if a good secondary road system could provide access to either the Yukon or Kuskokwim Rivers. 10 S Willow Bench and Happy Creek Mines/Iditarod District (62 ° 23' 16" latitude; 157° 58 ' 19" longitude) - Willow Creek, the Willow Bench and Happy Creek are all part of a remnant drainage system that cuts the southwest part of Chicken Mountain (Bundtzen and others, in press; #128, 129, 104). They collectively constitute one of the most important past producers of placer gold in southwest Alaska. Total combined production has been about 169,434 ounces gold from about 3.76 million cubic yards of sized pay gravels (Bundtzen and others (1992). Overburden on the Willow Creek averages about 25 feet in thickness (figure 48). Gravels range from 8-22 feet thick and are stacked in symmetrical drag line tailing piles on both limits of the stream basin. T Lower Chicken and Prince Creeks/Iditarod District (62 ° 21' 04" latitude; 157 ° 54' 29" longitude)—Prince and Lower Chicken Creeks drain the south and southeast flanks of Chicken Mountain. Both are third order streams basins with well-developed ancestral terraces and more modern stream alluvium. From 1911-1995 an estimated 58,660 oz gold was won from 1.85 million cubic yards of gravel (Bundtzen and others, 1992). The Lower Chicken Creek gravels are symmetrically stacked in drag line piles, but the Prince Creek gravel is mainly preserved in bull dozer pushes and in abandoned road cuts. Pay gravels in upper Chicken Creek, which were also mined in earlier years, are not included in aggregate estimates, because they have largely been dissipated by erosion and down-creep movement. U Donlin Gold Lode (62 ° 04' 51" latitude; 158 ° 10' 44" longitude) - The Donlin Creek lode is Alaska’s largest known gold deposit, with more than 712 tonnes (22.9 million oz gold in measured, indicated, and inferred resources in about 230 million tons of ores [Novagold Press release, January 28, 2002]). The deposit parallels the upper basin of Donlin Creek, where small placer gold deposits also occur. The ore deposit is of type 2 as classified in this report, and is morphologically similar to others in the Yankee and Ganes Creek areas to the north. Host rocks in the Donlin Creek area are mainly granitic dikes and altered sandstone and shale. Development decisions by Placer Dome Exploration, the operator, will be dependent on acquisition of affordable energy and a viable surface and river transportation system. 11 Aggregate Resources Along Proposed Transportation Route This summary has attempted to document metallic mineral resources that might be developed if better surface access is provided in the future. The summary also attempts to provide information concerning the location of easily identified aggregate and riprap resources that could be used to construct roads. Identified aggregate resources in include: 1) 3.10 million cubic yards of rounded placer gravels in the Ruby Mining district (figure 2); 2) 1.50 million cubic yards of rounded placer tailings in the Poorman district (figure 3; 3) 4.40 million cubic yards of rounded gravels in the Cripple Creek Mountains area (figure 10); 4) Unmeasured but large resources of limestone aggregate in the Noir quarry east of McGrath (figure 21); 5) 1.25 million cubic yards in Candle Creek along the Candle Landing Ophir Road; 6) 3.00 million cubic yards of generalized gravel in the Ophir district (figure 24); 7) 7.35 million cubic yards of washed and stacked tailings in the Ganes-Yankee Creek area (figures 25 & 26; 8) Unmeasured but large resources of sand and gravel in outwash fans flanking Beaver Mountains (figures 29 & 30); 9) 1.25 million cubic yards of well stacked tailings in the Moore Creek area (figures 44 & 45); 10) 35.35 million cubic yards of well washed, stacked tailings in the Iditarod district from streams surrounding Chicken Mountain (figures 51, 52, 53, 54). The estimated aggregate resource, which totals about 57.20 million cubic yards, was arrived at by researching past production records, calculation of available surface measurements, and air photo information analysis. Tailings erosion and other factors were also considered. It is emphasized that these resource estimates are not based on systematic drilling, which must be completed before the estimated resources can be advanced to the measured reserves category. The recognized aggregate resources are spaced out along about 70 percent of the proposed surface routes. Ownership of the aggregate resources is a factor in future utilization. The gravel deposits are, in many instances, part of active mining claims historically developed for placer gold mining. Current Alaska State law regards placer tailings as leased—not located. Aggregate on native lands or patented mining claims can be obtained through purchase. Rock units on the proposed transportation route(s) can be utilized for road construction. The glaciated uplands and volcanic-plutonic complexes can be sourced for granitic and volcanic rock types possibly suitable for riprap and crushed aggregate. Basalt and granite localities on the Yukon River below Holy Cross are shown in figures 69 and 70). However, test work on granitic lithologies near McGrath and elsewhere in the Kuskokwim Mountains have shown significant ‘grussification’ processes can occur to depths of up to 100 feet, which can make them unsuitable for riprap and aggregate uses (Acomb, 1988; Bundtzen and others, 1989; McDonald, 1986). The State of Alaska and their contractors have successfully utilized crushed stone, mainly the Kuskokwim Group, to build and maintain existing secondary roads in the project area. Existing secondary roads as they actually exist today (not always how they appear on the map) are graphically shown in blue on plate 1. 12 Route Modifications Because of my experience in the area, I have suggested that the ridgelines between the Flat and McGrath areas could be utilized for surface transportation, thereby avoiding the costly reality of forging through perennially frozen wetlands of the Bonanza, Fourth of July, and Takotna River basins. The broad ridgelines have been historically referred to as the “Summer Route” for accessing the Iditarod Mining district from the McGrath and Ophir areas. This route is featured in figures 37-39, 42-43, 46-47, and 59 of this report. Conclusions and Recommendations A wide variety of metallic and non-metallic mineral resources have been documented on the proposed surface transportation route between Ruby and Holy Cross. The route links up historic secondary road systems which have been active since the early 20 Century. Significant aggregate resources have been identified along the route from published geologic and engineering references and the authors knowledge of the terrane of the area. Future field investigations might evaluate existing secondary roads, further document aggregate resource availability, and look at cost-benefit analyses of utilizing alternate transportation routes. References Cited Acomb, L.J., 1988, Investigation of potential riprap quarry sites near McGrath, Alaska: R&M Consultants, Inc., for Lundell and Associates, 68 pages. Bundtzen, T.K., 1999a, Alaska Resource Data File (ARDF) of the Medfra Quadrangle, Alaska: U.S. Geological Survey Open File Report 99-156, 176 pages. Bundtzen, T.K., 1999b, Alaska Resource Data File (ARDF) of the McGrath Quadrangle, Alaska: U.S. Geological Survey Open File Report 99-357, 199 pages. Bundtzen, T.K., Laird, G.M., and Gilbert, W.G., 1989, Industrial mineral studies along the Kuskokwim River, McGrath to Kalskag, southwest Alaska: Alaska Division of Geological and Geophysical Surveys and Alaska Department of Transportation and Public Facilities Public Data File Report 89-16, 76 pages. Bundtzen, T.K., and Miller, M.L., Precious metals associated with Late Cretaceous and early Tertiary Igneous Complexes of Southwest Alaska, in, Goldfarb, R.J., and Miller, L.D., eds., Mineral Deposits of Alaska: Economic Geology Monograph 9, p. 2410287. Bundtzen, T.K., Miller, M.L., Laird, G.M., and Bull, K.F., 1992, Geology and mineral resources of Iditarod Mining District, Iditarod B-4 and Eastern B-5 quadrangles, Southwestern Alaska: Alaska Division of Geological and Geophysical Surveys Professional Report 97, 48 pages, two sheets @ 1:63,360 scale. 13 Bundtzen, T.K., Swainbank, R.C. Clough, A. H., Henning, M.W., and Hansen, E.W., 1994, Alaska’s Mineral industry—1993, ADGGS Special report 48, 72 pages. Bundtzen, T.K., Laird, G.M., and Pinney, Dianne, 1997, Geologic map of the Ophir C-1 and western Medfra C-6 qudrangles, Alaska: Alaska Division of Geological and Geophysical Surveys Public Data File Report, 6 pages; one sheet @ 1:63,360 scale. Bundtzen, T.K., Miller, M.L., and Hawley, C.C., in press, Updated Alaska Resource Data File (ARDF) for the Iditarod Quadrangle: U.S. Geological Survey Open File Report (3/17/03 Draft), 578 pages. Hart, C.J.R., McCoy, D.T., Goldfarb, R.J., Smith, Moria, Roberts, Paul, Hulstein, Roger, Bakke, Ame, and Bundtzen, T.K., 2002, Geology, exploration, and discovery in the Tintina gold province, Alaska and Yukon, in, Goldfarb, R.J., and Nielson, R.L., eds., Integrated methods for discovery: Global exploration in the twenty-first Century: Society of Economic Geologists Special Publication Number 9, p. 241-274. Keith, W.J., and Miller, M.L., 1996, Alaska Resource Data File (ARDF) for the Iditarod quadrangle: U.S. Geological Survey Open File Report 96-540, 37 pages. Kline, J.T., and Bundtzen, T.K., 1986, Two glacial records from west-central Alaska, in, Hamilton, T.D., Reed, K.M., and Thorson, R.M., eds., Glaciation in Alaska - the Geologic Record: Alaska Geological Society 265 pages. McDonald, G.N., 1986, McGrath Erosion Control Project - Evaluation of Alternatives For: City of McGrath: Lundell and Associates, 74 pages. Miller, M.L., and Bundtzen, T.K., 1994, Generalized geologic map of the Iditarod quadrangle, Alaska: U.S. Geological Survey Miscellaneous Field Studies Map MF-2219, 48 pages, one sheet @ 1:250,000 scale. Nokleberg, W.J., Bundtzen, T.K., Berg, H.C., Brew, D.A., Grybeck, D., Robinson, M.S., Smith, T.E., and Yeend, W., 1987, Significant metalliferous lode deposits and placer districts of Alaska: U.S. Geological Survey Bulletin 1786, 104 pages, one sheet @ 1:2,500,000 scale. Pewe, Troy, 1975, Quaternary Geology of Alaska: U.S. Geological Survey Professional Paper 835, 145 pages. Swainbank, R.C., Bundtzen, T.K., Clough, A.H., and Henning, M.W., 1997, Alaska’s Mineral Industry-1996: ADGGS Special Report 51, 68 pages. Wahrhaftig, Clyde, 1965, Physiographic divisions of Alaska: U.S. Geological Survey Professional Paper 482, 52 pages., several sheets @ 1:250,000 and 1:2,500,000 scales. 14 Wilson, F.H., Dover, J.H., Bradley, D.C., Weber, F.R., Bundtzen, T.K., and Haeussler, P.J., 1998, Geologic map of Central (Interior) Alaska: U.S. Geological Survey Open File Report 98- 133, 58 pages, 3 sheets @ 1:500,000 scale. 15 [__] Middie Tertiary and younger-units 4 Volcanic-pluicnic complexes Volcanic fields Granite porphyry complexes = Gale alkaline plutons without volcanice Pre and synaccretionary intrusions 2) Kuskokwim Group overlap assemblage ce} Yukon-Koyukuk flysch basin GES Continental margin terranes @eOceanic crust and subduction zone terrane Continental affinity temanes 2) Arc and ielated flyschoid terranes ‘Be High angie fault = Thrust fault Figure la Regional Geology of the Kuskokwim Mountains Mineral Belt , from Bundtzen and Miller (1997); Scale: 1 inch=100 miles Figure 1b Regional geology of Cripple Creek Mountains Area, Western Alaska; modified from Bundtzen and others (1997) Explanation Quaternary, undifferentiated —— High angle fault ® Au bearing lodes A N 3 Kilometers Modified from Bundtzen et.al. Ee a ARE Figur e 2 Borrow pit on Ruby-Poorman road about 3.5 miles south of Ruby; showing sheared phyllite being used for road metal for about 10 miles of the road system. (T.K. Bundtzen collection) Figure 4 Ruby-Poorman Road near summit of Monument Dome; circa 1997. (T.K. Bundtzen collection) Figure 3 Long Creek placer deposit; auriferous gravel overlain by 70 feet of silt overburden. Ruby-Poorman road is about 100 feet to the right of the picture (T.K. Bundtzen collection) ul ——_—} Figure § Ruby-Poorman Road showing bridge at Monument Creek. (T.K. Bundtzen Collection) Figure 6 Wooden road base in wetland area on Ruby-Poorman ‘trail’ about 2.5 miles south of Monument Creek bridge. (T.K. Bundtzen collection) Figure 8 Haggland mining operation at Flat Creek, circa early 1990's; illustrating thick overburden and phyllite bedrock of Poorman area. (from T.K. Bundtzen collection) | SS CaN eH | || oJ e Hi Figure 7 Bridge at Susulatna River; needs to be re-surfaced. (T.K. Bundtzen collection) Figure 9 Outcrop of bedded chert on Hunch Creek, tributary of Innoko River. About 7 miles upstream from Cripple Landing (T.K. Bundtzen collection) Figure 10 North end of placer mine gravel tailings in Colorado Creek; circa 1997. (T.K. Bundtzen collection) el Figure 12 Mammoth skull and skeleton extraction on upper Colorado Creek, Rosander Mining Company; circa 1982. This Figure 11 Upland area at the head of Bear Creek at 1,300 feet elevation; Cripple Creek Mountains in the background looking east. (T.K. Bundtzen Collection) Figure 13 Upper-most Colorado Creek showing 1,500 foot airstrip adjacent to Rosander Mining Camp built from mine tailings in the 1950s. Photo taken June 22", 1996 (T.K. Bundtzen collection) Figure 14 Approximately 33 feet of frozen, ice-rich overburden on Lower Colorado Creek pay streak, about 3 miles north of figure 13, circa 1997. (T.K. Bundtzen collection) Figure 16 Ridge overlooking ‘Win’ tin-silver (gold) prospect, western Medfra quadrangle; Page and Mystery Mountains in the distance; circa 1992 (T.K. Bundtzen collection) Figure 15 Cripple Creek Mountains from the south; photo taken July 3, 1996 near the north summit of Fossil Mountain. (T.K. Bundtzen collection) egg ——$—— Figure 17 Boob Creek placer development in 2002, illustrating deep frozen overburden in this area, and gentle hill slopes of area. (T.K. Bundtzen collection) Figure 18 ASA Inc. drill rig exploring copper-gold prospect on Von Frank Mountain, circa 1993 (from Bundtzen and others, 1994). Figure 20 C-47 DC3 aircraft on Nixon Fork runway, mid-1990s (from Bundtzen and others, 1984) Figure 19 Tailings facility at Nixon Fork underground lode gold development, circa 1996 (T.K. Bundtzen collection). a ee aetie y E at Figure 21 Noir Hill limestone quarry, owned by Doyon Limited, supplies calcium carbonate aggregate and riprap for the upper Kuskokwim River region. (Photo from Doyon Limited files) Figure 23 Altiplanation terrace on Mt. Joaquin looking south; Photo taken from Takotna-Ophir road; circa 1978. Near-planar altiplanation terraces form throughout the Kuskokwim Mountains Figure 22 Quaternary dune field southeast of McGrath, Alaska north of Selatna Hills (T.K. Bundtzen Collection). ‘ . Figure 25 Yankee Creek gravel tailings, Innoko mining district. Figure 24 Assymetrical valley profile of Spruce Creek auriferous The tailing piles were stacked with a dragiine in the 1960's and gravel deposit, Ophir mining district. Takotna-Ophir road 1960's. The 17 mile long Yankee-Ganes Creek trunk r was indicated in foreground; circa 1979. (T.K. Bundtzen collection) , inate 5 ke ; Figure 26 Ganes Creek auriferous stream, Innoko District, showing distribution of approximately 8 miles of gravel tailings; circa 2002 (T.K. Bundtzen files). Figure 27 ‘Flying Box Car’ aircraft unloads diamond drill rig on 4,000 foot long Ganes Creek airstrip for exploration on Doyon Lands to the east circa 2001. (T.K. Bundtzen files) Figure 28 Illinoian age glacial moraine in Tolstoi Creek basin at northern Beaver Mountains, with kettles; VABM American in foreground; circa 1979 (T.K. Bundtzen files). Figure 29 Top of large glacial outwash fan in Upper Brown Creek, NE-Beaver Mountains; circa 1981). Although untested, this feature constitutes a large gravel resource possibly suitable for Figure 30 Planated terrace on the north side of the Beaver Mountains east of Tolstoi Creek Valley; Morainal dam Tolstoi Lake in foreground (T.K. Bundtzen files, 1979). Figure 32 Classic U-shaped valley profile of upper Beaver Creek, eastern Beaver Mountains, looking east to Ganes Creek; circa 1979 , illustrating the effects of Pleistocene glaciation in this area PT KK Bundizen files) Figure 31 Granite outcrops and rubble near head of Tolstoi Creek in the rugged core of the Beaver Mountains (T.K. Bundtzen files, 1984). Figure 33 Active rock glacier at the head of Ganes Creek, southern Beaver Mountains; circa 1979, illustrating near-threshold | conditions for glaciation still e the Beaver Mountains Figure 34 Crater Mountain at extreme SE corner of Beaver Mountains; photo taken from head of Lincoln creek, July, 1979 (T.K. Bundtzen files). Figure 36 Abandoned reindeer station in the SW flank of the Beaver Mountains; circa 1981. Reindeer were commercially herded in the Beaver Mountains during the gold-rush era to feed the miners at Fiat, in the Innoko district, and In McGrath (T.K. Bundtzen files). Figure 35 Beaver Mountains on June 20th, early 1980’s; looking west. Note snow cover (T.K. Bundtzen file). Figure 37 NE-SW trending ridgeline south of Ganes Creek looking to the ‘SW toward upper Fourth of July Creek. This ridgeline was used by miners as a summer trail into the Iditarod district from the communities of Figure 38 Classic altiplanation terrace from ridgeline area east of Takotna River; looking north toward Mt. Joaquin; circa 1982 (T.K. Bundtzen files). ee Lae! Figure 40 Landslide deposit @ confluence of Lincoln and Fourth of July Creeks occurred during July, 1984, as the result of movement along Iditarod-Nixon Fork fault (T.K. Bundtzen files). Figure 39 Photo of near flat ridge surface in Kuskokwim Mountains at 1,650 feet elevation; looking west toward Moore Creek area; circa 1983 (T.K. Bundtzen files). Figure 41 Close-up of landslide scarp illustrating sheared nature of Kuskokwim Group sediments, which contributed to failure of material in 1984 (T.K. Bundtzen files). 10 Figure 42 View of ridge area on Deadwood Creek, in Dishna River stream basin, looking east toward Fourth of July Creek upland. This ridge system served as a transportation corridor in summer Figure 44 Moore Creek airstrip, built from mine tailings. Strip is about 1,400 feet long (T.K. Bundtzen files, 1983). Figure 43 Near flat surface of Moore Creek upland just east of Moore Creek. Ridge in foreground was summer route from McGrath-Ophir area to Iditarod district (T.K. Bundtzen files). " Figure 45 Moore Creek Mine showing old heavy equipment at the site, circa 1983. The equipment was transported into area from McGrath along RS2477 right of way winter trails LK Bundizen files) 11 Figure 46 Valley of Upper Bonanza Creek showing the trace of the Iditarod-Nixon Fork strike-slip fault, one of the largest fault systems in Alaska. Arrow shows location of Chicken Mountain to Figure 48 Frozen fine grained overburden on Willow Bench, an auriferous gravel deposit on south flank of Iditarod district (T.K. Bundtzen files) Figure 47 Part of more than 500 cords of old rotten fire wood stacked up at the head of Bonanza Creek during the gold rush era. The fire wood was to be transported to the Iditarod district 35 miles to the SW; circa 1983 (T.K. Bundtzen files). Figure 49 Altiplanation terrace development in granite on Chicken Mountain, Iditarod district; circa 1986 (T.K. Bundtzen files). 12 Figure 50 Willow bench terrace gravel deposit, south side of Figure §1 Old Gold Rush town of Flat, Alaska in late 1980's Chicken Mountain, Iditarod district; circa 1986 showing abandoned gold dredge in foreground (T.K. Bundtzen files). (T.K. Bundtzen files). Figure 62 Four engine ‘Argosy’ aircraft unloading field gear and pack horses in 1984. The 6,000 foot Flat runway, which was built with mine tailings, can handle ‘Hercules’ aircraft tailings, circa 1986. Note state-maintained, secondary gravel road in foreground (T.K. Bundtzen files). LL Figure §4 Otter Creek valley showing extent of old gravel mine Coal mune Ete % , +p | moe] Qc pratpare / Atalemuse | Figure 53 Geologic map of Chicken Mountain, Iditarod District; from Bundtzen and others (1992); note placer tailings outlined Figure 65 Bonanza Creek valley SE of Chicken Mountain, showing Prince Creek placer deposit in foreground. Photo essentially taken on east road route from Donlin Creek; circa 1984 Figure 57 Auriferous gravels in Julian Creek, about 30 miles east of Flat, Alaska (T.K. Bundtzen files; circa 1990). Figure 56 Accordant rounded ridge formation underlain by Cretaceous Kuskokwim Group sandstone; Kuskokwim Mountains east of Iditarod mining area (T.K. Bundtzen files). Figure 58 Historic town of Flat Alaska in 1912, from same aspect as Figure 51. (From UAF Archives Collection, Fairbanks, Alaska). 14 Figure 59 Horse team hauling in steam boilers and other mine equipment along summer ridge trail from McGrath-Ophir area to Iditarod Mining district, circa 1912 (UAF Archives collection). Figure 61 Barge traffic along Kuskokwim River near Stoney River, circa 1977. Maximum barge loads on the Kuskokwim River above Sleetmute are about 750 tons (T.K. Bundtzen files). Figure 60 Kuskokwim River at Devils Elbow. During years of low water and drought, barges cannot ascend the Kuskokwim River to McGrath above this point (T.K. Bundtzen files, circa 1977). Figure 62 Upper Iditarod River near Mosquito Mountain, illustrating meandering nature of stream; circa 1986 (T.K. Bundtzen files). 15 Figure 63 Airstrip at Donlin Creek; circa 1996 (from Swainbank and others, 1997). Figure 65 Bedrock cut on upper-most Bonanza Creek near its confluence with Iditarod River; circa 1986 (T.K. Bundtzen files). Figure 64 Beaver pond on unnamed tributary of Reindeer River, circa 1990's. Beaver dams are quite abundant in Reindeer, Fourth of July, and other stream basins of project area UK Bundizen files) Figure 66 Example of composition of shoreline facies of Kuskokwim Group sedimentary rock section in Reindeer River area near Reindeer Lake (T.K. Bundtzen files). 16 Figure 67 Cretaceous flysch (sedimentary rocks) in road cuts north of Holy Cross and west of Yukon River; circa 1998 (T.K. Bundtzen files). Figure 69 Granite sill intrusive into sedimentary flysch along Yukon River downstream from Holy Cross in southern Paimuit Hills (T.K. Bundtzen files). Figure 68 Yukon River downstream from Holy Cross and above Russian Mission in Paimuit Hills (T.K Bundtzen files) Figure 70 Quaternary basalt outcrops on north side of Yukon River upstream from Russian Mission in Paimuit Hills (T.K. Bundtzen files). 17 Figure 71 Large capacity Yutana Barge Lines, Inc. barge on the Yukon River downstream from Kaltag, circa 2000 (T.K. Bundtzen files). Figure 72 Fuel barge on Yukon River downstream from Kaltag near VABM Kaiyah, circa 2000 (T.K. Bundtzen files). 18 SUPPLEMENTAL FIRES AND PHOTOGRAPHS Figures ~ Be bt J... {Anchorage P25 Source: USGS Alaska field office, 300m dem, 1997 Alaska n maps 0 25 50 100 -150—Ss_2 Figure C-1 Voting districts Source: USGS Alaska field office, 300m dem, 1997 Figure C-2 Alaska in maps 0 25 50 100 150 2 faa Native Regional a __ a i Corporations SS = ft “| a ane o : a A ‘ i aBub il 4 ve pli Be oh fa he I J ' i - ¢ = _ q Bee re a Poorman { = i} } } =f j > ~ colorado) Creek: EY Nixon-Forké ‘ne é i 7 = id Beaver Mtn “ x aines|Creeki © : . at : ] } cen o 5 pa Arias a 5 ; «7 Donlin Creek.Mine z | es z be Se ae eat : UCrookedjCreek - eae ee a ah Be ha ' | a : p 3 A aw Te ; OTe = ioe Shen A ee, 2 oe 3 wy Source: USGS Alaska field office, 300m dem, 1997 BLM/Alaska DNR, land ownership and status, Nov. 1997 0 5 10 20 30 7 Legend et i105 HE Koyukuk nwr BLM Land |] State Patented Foose GE Nowitna NwR HE innoko NWR GE Yukon Delta NwR =e berseens| State Tenatvely Approved Native Patented Native Interim Conveyed ae State and Native Owned Cc] Study Area Figure C-3 Study area land ownership LEGEND Quaternary, undifferentiated Placer mine tailings Felsic ring dike Granitic rocks Volcanics Clastic rocks and tuffs Cirque High angle fault Gold bearing lodes Source: Bundtzen et al., 1997 Figure C-4 Example of pluton geology, Cripple Creek Mountains Fea 2 ee Re if Sia SH RS gay AG A = it ae. a — See ANE AA hh J ye) ~ AS eae Pieces EER S) A Be a Pe INES SS SIO e8 CERRO = Foe ay Aah 9 1: reek ENG HAY ; of “ yy Z : ) SG ‘oe FF es i pe iG RZ aI <5) hy NR $Y ly ee q 3 i g aS Recomended Corridor nln fo Flt based on field observations. ‘aonnernomowenn's “ Se aCe J Wess Yl A. at { yee eae Yo SVN i 7 ] ris ey S| S Figure C-6 Recomended Corridor Yukon River Port ° Poplin : fest based on field observations. photo annotate RY RAPER ES oo TC ETE: BLL Oe fs y Vn. 0 PWS os Zo , may » ae aye SS Shae! ants Se ee » e VAN AD NZ v Be eA Nes 2 5 eee ee ere SERIA LNCAP IRS | tage 5 54 fy ‘A Se oer ee Aa ppd has SEN eat toate APES NCR Gaete Age Ne] 7 OEE Grae we eS AN FSB ek TY jor ly Hee st Pog ye A « e f . q 39) een Sy 4 eds pS \\) 1 5S IS >) oUF ee ; f SS = aie i 4 Blt 0 J Bae, ae iy a ; : ; Spa Sy | s s Le ts « 3 ss : OF NAS ri Be ag i AG. ie a aw aa is fais Nin fi Pape eee)! ORG OE IRE OEE SY ULI SS RE tel Va te) Aes N 15 p Ph 20 Ge note Figure C-7 W. E Recomended Corridor FI “ate Miles Ho. oe based on field observations. at to Takotna Direction S S/S i y Lyf Ri SS ROI aera . h ~ 4 G i A ae | a aise CONY fe ae SE 129 J : . } TAC UN RQ } SOS : Wee Bi ie = Re f Pee ENS he : PF @ We Yee oe pA -V- pS Sa pay PE CO Maaians Ay 7 . ue \ f a ; ie ay ee CTs eS ih ty hy. Recomended Corridor based on field observations. AS ea aoe eye Ee eee ry ¢ i a Mid y | Si Ch TOR GNSS. ENG Al eee e 2/7463 2 iy oo “ 3 Figure C-8 Sterling Landing to Takotna to Ophir and Takotna Road to Til D By Ys E rs LL wh oA pe pe TEV ee aI . Figure C-9 Recomended Corridor Ophir to Cripple Creek Mountains based on field observations. and Takotna to Nixon Fork J SSIS (HYG Fa “ oe = oe a Ze a) el SS, = gr ADC Be oS ey } 1G S iq SN ETON ms nr (ER OF, v 1 CAL a i Up A fel £ = . LOL AAS? nig, a | ery ‘ ee TN n A s el, ee: a 7 a : a ye INS \ 5 it J / Bo! d cf Ae iG SMO) ge 4G VF > @4 oh yo 4 "aS 7 x ss, f EN \ oD Be a ; OF 4) \G eteo p : uv 6 Ped YS h He 5) (iene DEN 4 ba \ RPA ee 4 é ENG Ks a Os Rw L, , N c = ie jy t E> & g Ye }, fi tS PIS Shak ent 4 > Hse PA ear LY BES ay iS th eo S\ Pe iF A CAS as Hy ca < Recomended Corridor based on field observations. Yat a near is oh Ms 7) Y } Bs (Gael) Ae oo NG 0153 6 9 12 Figure C-10 | Cripple Creek Mountains Niles to Poorman to Ruby Study Area Photographs 7042003003ANC PhotoLog.indd 12/22/03 cts aw 1. South of the Red Wind Slough, looking east 2. The spit south of Red Wing Slough 3. Just south of Red Wing Slough, looking east. Note old river channels. 4. Old river channels, looking east. The Reindeer Lake area is on the right. Photographs 1 to 4 Yukon River Port Near Holy Cross 6. Looking south at the spit and Red Wing Slough enti River channel is on the right. 7. Salmon Island on left, Red Wing Slough in center, Innoko River on right 8. Northern entrance to Red Wing Slough T042003003ANC PhotoLog.indd 12/22/03 cts Photographs 5 to 8 Yukon River Port Near Holy Cross T042003003ANC PhotoLog.indd 12/22/03 cts 9. Yukon River bank just north of Red Wing Slough, looking east 10. Yukon River bank just north of Red Wing Slough, looking east oa rr 11. Yukon River bank north of Red Wing Slough, looking northeast 12. Innoko River in.the foreground, Holy Cross to right of center, near a bluff on the Yukon River Photographs 9 to 12 Yukon River Port Near Holy Cross T042003003ANC PhotoLog.indd 12/22/03 cts 13. Yukon River main channel, looking south. Holy Cross on right, airport in center. 15. Looking north, Walker Slough left, main channel of the Yukon River center. 14. Looking north, Walker Slough left, main channel of the Yukon River in center 16. Looking north, Yukon River left, Horseshoe Lake in upper center Photographs 13 to 16 Yukon River Port to Donlin Creek Mine to Flat T042003003ANC PhotoLog.indd 12/22/03 cts 17. Looking north, Horseshoe Lake in upper center, Yukon River on left, Holy Cross on far left 18. Looking north, Innoko River on right, small side channel in center 19. Innoko River, looking north. Note the patterns of the old channel. 20. Innoko River, looking north Photographs 17 to 20 Yukon River Port to Donlin Creek Mine to Flat 7042003003ANC PhotoLog.indd 12/22/03 cts 21. Innoko River, looking north 22. Innoko River, looking north 23. East side of Innoko Valley, looking north. Note the burn area and uplands on right. Photographs 21 to 23 Yukon River Port to Donlin Creek Mine to Flat T042003003ANC PhotoLog.indd 12/22/03 cts 24. Burn area uplands 26. North flank of Fox Hills 25. Looking southeast, burn area in foreground, Fox Hills in center and left 0 ee) 27. Reindeer River Valley east of Fox Hills Photographs 24 to 27 Yukon River Port to Donlin Creek Mine to Flat T042003003ANC_PhotoLog.indd 12/22/03 cts 28. Looking east across south side of Fox Hills, Mosquito Mountain on skyline right 29. Looking southeast from Iditarod River Valley 30. Looking east toward Donlin from Return Creek 31. Return Creek Photographs 28 to 31 Yukon River Port to Donlin Creek Mine to Flat T042003003ANC PhotoLog.indd 12/22/03 cts 32. Donlin Creek Mine exploration 33. Snow Gulch Placer Mine 34. Donlin Creek Valley looking toward Flat, winter trail in center left 35. Swinging Dome Photographs 32 to 35 Yukon River Port to Donlin Creek Mine to Flat T042003003ANC PhotoLog.indd 12/22/03 cts 36. Chicken Mountain 38. Looking east-northeast, Chicken Mountain on left, Iditarod Valley in center, Takotna toward distant right 37. Chicken Mountain, looking across the Iditarod Valley 39. Chicken Mountain Road Photographs 36 to 39 Yukon River Port to Donlin Creek Mine to Flat 40. Willow Creek Mine 41. Chicken Mountain Road 43. Gold dredge at Flat 8 8 8 3 z 3 g 2 2 = g 3 8 8 8 3 é Photographs 40 to 43 Yukon River Port to Donlin Creek Mine to Flat T042003003ANC_PhotoLog.indd 12/22/03 cts 44. Looking east, ridge system near Chicken Mountain. Iditarod Valley is behind the ridge. 45. Iditarod Valley looking east-northeast toward Takotna, Iditarod Trail in valley, ridge route on left Photographs 44 to 45 Yukon River Port to Donlin Creek Mine to Flat 46. Sterling Landing 47. Takotna Road g 8 48. Takotna Mountain Installation 49. Takotna Road crossing of Takotna River T042003003ANC_Photol Photographs 46 to 49 Sterling Landing to Takotna to Ophir and Takotna Road to McGrath T042003003ANC PhotoLog.indd 12/22/03 cts 50. Takotna Road crossing of Takotna River 51. Innoko River Valley between Takotna and Ophir Photographs 50 to 51 Sterling Landing to Takotna to Ophir and Takotna Road to McGrath 52. Ruby to Poorman existing road 53. Ruby to Poorman existing road 54. Material site, Ruby-Poorman Road 55. Ruby Airport on right, Ruby in center, with Yukon River in background 8 z § 3 3 2 é 2 3 3 8 3 é Photographs 52 to 55 Cripple Creek Mountains to Poorman to Ruby T042003003ANC PhotoLog.indd 12/22/03 cts 56. Looking west, Ruby in center 58. Looking west, Ruby in center 59. Looking west, Ruby in center Photographs 56 to 59 Yukon River Near Ruby T042003003ANC PhotoLog.indd 12/22/03 cts 60. Ruby in center, airport above and on left, barge landing in foreground 62. Ruby from the south 61. Ruby looking from the west a” 63. Existing Ruby-Poorman Road, looking south Photographs 60 to 63 Poorman to Ruby T042003003ANC PhotoLog.indd 12/22/03 cts 64. Maintenance roadside clearing. Road extends left to Ruby and right to Poorman. 65. Monument Creek, end of road maintenance, looking south Photographs 64 to 65 Poorman to Ruby T042003003ANC PhotoLog.indd 12/22/03 cts 66. Looking south, south of Poorman, Cripple Creek Mountain in distant left 67. North Fork of Innoko River Valley looking south toward Takotna Mountain 68. Cripple Creek Mountains on left in distance, typical hills north of Cripple Mountains, looking south 69. Cripple Creek Mountains on left, Takotna Mountain in distance Photographs 66 to 69 Cripple Creek Mountains to Poorman T042003003ANC PhotoLog.indd 12/22/03 cts 70. Hills between Cripple Creek Mountains and Ophir, looking south 72. Hills between Cripple Creek Mountains and Ophir, looking south 71. Hills between Cripple Creek Mountains and Ophir, looking south 73. Hills between Cripple Creek Mountains and Ophir, looking south Photographs 70 to 73 Ophir to Cripple Creek Mountains T042003003ANC PhotoLog.indd 12/22/03 cts 74. Innoko River near Ophir, looking east Photograph 74 Ophir to Cripple Creek Mountains Fuel Facility Port Photographs Bethel Bethel has fuel storage capacity of 10.2 million gallons. Saint Michael Saint Michael has storage capacity of approximately 0.9 million gallon. Nenana Nenana has storage tank capacity of 0.8 million gallon. In addition to river barge service, deliveries of freight and fuel to the community arrive by the Alaska Railroad and the Parks Highway. ec Le TECHNICAL MEMORANDUM CH2MHILL Field Trip Report— Yukon Port Locations and Road Alignment PREPARED FOR: RTA Record PREPARED BY: Jeff Baker, Steve Jochens, John Aho DATE: August 4, 2003; amended December 22, 2003 TRIP DURATION: July 22 to 26, 2003 TRIP PARTICIPANTS: Steve Jochens, P.E., CH2M HILL Jeff Baker, P.E., CH2M HILL Tom Bundtzen, Pacific Rim Geological Consulting, Inc. Chris Mauer, Alpine Air Pilot This trip report first presents brief summaries of activities for each day of the trip, then provides site-specific observations and discussion. The purpose of the trip was to perform reconnaissance observations for port locations at Holy Cross and Ruby and for associated road network in the region. Steve Jochens is the lead engineer. Jeff Baker is a Hydraulics/ Hydrology Engineer and assisted in observations of all segments, discussions of suitability, photography, and guidance within his specific field. Tom Bundtzen is a Geologist who has conducted extensive geologic mapping within the project region and provided information on material sites, geologic history and regional mineralization, mining history, and other regional knowledge. A vicinity map of the project area is presented in Figure 1. Activities by Day July 22 We traveled to Aniak on July 22, planning to arrive in the early afternoon and begin investigations of the Yukon River near Holy Cross. Steve Jochens flew to Aniak ona commercial plane flight while Jeff Baker flew on the chartered helicopter out of Girdwood. Due to mechanical problems with the helicopter, Jeff Baker and the helicopter did not arrive in Aniak until approximately 9:30 p.m. July 23 (Figure 2) Steve Jochens and Jeff Baker departed Aniak at approximately 8:15 a.m. to begin field reconnaissance for port sites along the Yukon River near Holy Cross and road routes to Donlin and Flat. The main goals of the day were to look at the Yukon River, Red Wing Slough, and Innoko Slough for potential port sites and to follow the proposed road alignments between the port sites and Donlin Mine, recording the conditions at each location. The weather was rainy and windy with patches of low clouds. We were able to ANC/TRIPREPORT 122303AMENDED.DOC/032370001 PAGE 1 OF 22 FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT travel to the designated areas, but low clouds and fog caused some detours and alternate flying routes. We reconnoitered both a southern route and a northern route around Fox Hills, the southern route being a new variation to the routes previously considered. After looking and photographing the Yukon River potential port sites, we flew the southern proposed alignment from the Yukon River toward Donlin. We attempted a landing in a wetland area west of Reindeer Lake but could not find ground solid enough to support the helicopter. We completed the southern route to Donlin in marginal visibility conditions, then returned to Aniak to refuel. We then flew the northern route, which begins on the Yukon River and crosses the Innoko River wetlands, then climbs up into the rolling Fox Hills. Tom Bundtzen arrived in Aniak during the afternoon. July 24 Steve Jochens and Tom Bundtzen departed Aniak in the morning via helicopter to fly the proposed alignments between Donlin, Flat, Takotna, and McGrath. Due to the limitations of the helicopter, Jeff Baker flew the proposed alignments via a charted airplane and met up with Steve and Tom in McGrath. In the afternoon Jeff Baker and Steve Jochens investigated the existing gravel road and proposed alignment corridors between the Sterling Landing on the Kuskokwim River, the village of Takotna, and the Ophir mining area. That evening we drove to the Noir Hill Limestone Quarry and observed the material there, the existing 9- mile road, the large sand dune area that the road passes through, and a burn area a couple years old. We remained in McGrath for the night. July 25 Steve Jochens and Tom Bundtzen departed McGrath at approximately 8:00 a.m. to perform a reconnaissance for the proposed alignments between McGrath and Ruby as well as investigate the existing roads in the area and port sites on the Yukon River at Ruby. Jeff Baker departed McGrath in the morning for Anchorage. Steve and Tom flew from McGrath to Ophir, then followed ridge lines north to the Cripple Creek Mountains and Poorman. From Poorman, Steve and Tom flew more or less the old road alignment to Monument Creek (now abandoned except for winter use). Monument Creek is the end of the maintained dirt road that begins in Ruby. We then followed the existing road to Ruby. Once at Ruby, we flew up the Yukon River a few miles and then made a pass along the river downstream of the village to make observations and take photographs. We then flew to Galena to refuel and returned to Ruby. Tom Bundtzen was dropped off at the Ruby airport for his charter back to Fairbanks. Steve Jochens and the pilot proceeded south, generally following the road to Monument Creek, then over a different set of ridges to the Ophir valley, then back to McGrath via potential road corridors. July 26 Steve Jochens and the pilot demobilized by flying back to Girdwood. ANC/TRIPREPORT122303AMENDED.DOC/032370001 PAGE 2 OF 22 2 4G60 4 . reek CNN er We Lay Red Devil s+ Seah 5d EN na Mee Sleetmute > aN) 2 YUKON RIVER PORTS AND ROADS Trip Report Vicinity Map Figure 1 a URES ‘a Wand cd lau Ra ES S AY ee eas ae wa se) Sh Ny Y nee ROY S Fu ay SDK YES 3 LoS E wy LAN et = Alternative Road Figure 2 @ CH2MHILL yy, 2003 ’ YUKON RIVER PORTS AND ROADS August, Segments Considered Apparent Best Corridor based on field observations. as” 15 20 N wae S 10 Miles 2.5 FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT Trip Observations Yukon River Port Sites (Figure 3) We observed the east bank of the Yukon River near Holy Cross from Cottonwood Slough north to Lucky Point. Throughout this reach of river, the bank is generally uniform and straight. The ground is flat with very little variation in elevation. Timber grew to the edge of the bank in most locations, with these areas being slightly higher in elevation than areas without timber (on the order of a few feet). In areas without timber the vegetation was mostly willow with areas of long grass and other types of brush. The bank is generally steep, and erosion could be seen. Fallen timber could be seen in the river, indicating periodic block collapses of the bank material. Bank heights were estimated to range from 10 to 20 feet (Photos 1 to 4). No actual measurements were taken. The east banks of Red Wing Slough and the Innoko Slough had characteristics similar to the main Yukon River east bank except the banks were slightly lower, on the order of 5 to 10 feet. Erosion was observed; however, the magnitude appeared to be less than at the Yukon River, likely the result of the shallower banks. Timber and other vegetation patterns were also similar. (Photos 5 to 9). Potential port sites were the initial focus of our efforts near the end of the two potential road alignments, along Red Wing Slough, and at Railroad City on the Innoko Slough (Figure 1). We also flew several miles upstream on the Yukon, observing the river, riverbanks, and upland/ wetland conditions toward the east. In addition to the bank characteristics, the road alignments and the type of terrain they crossed were considered when evaluating potential port sites. A port site near the end of the northern alignment appeared to be the most appropriate location of the area we investigated. Coordinates of a GPS waypoint taken while flying over this area are N62°12.965’, W159°43.946’ (WGS 1984 datum). In this location there is a large section of timbered bank potentially suitable for facility construction, and the main channel of the Yukon River appeared to run along this bank, which would help to ensure adequate depths. The timbered bank also appeared suitable for roadway construction, allowing a higher percentage of alignment and thus avoiding the more open, wetter areas and minimizing crossings of the Innoko River meanders. Maneuvering room for barge access is unrestricted in this location of the main channel. There are no discernable bars or other navigational obstructions within the immediate reach of the river at this location. The banks near the proposed southern alignment did not have as much timbered area although construction of a port facility still appears feasible. The area to the east appeared to be swampy and wet, presenting difficulties for roadway construction. In addition, barge access into the slough (east of the island below Red Wing Slough) would be more constrained and possibly difficult for large barges (250-foot class or greater). Port facility construction on Red Wing or the Innoko Sloughs (Railroad City) would also be feasible, but barge access would again be limited by the entrance constrictions. Tight turns for large barges would be required at both the southern and northern entrances to Red Wing Slough. Shallow, sloping western banks indicate that some portion of the slough is probably relatively shallow, and barge maneuverability would be of concern. ANC/TRIPREPORT122303AMENDED.DOC/032370001 PAGE 5 OF 22 Figure 3 ) CH2MHILL S/S = YUKON RIVER PORTS AND ROADS August, 2003 Apparent Best Corridor based on field observations. Segments Considered Alternative Road ae au™ E N wo Ss 10 05 5 Miles 1.25 25 NN FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT The potential road corridors running east from the Southern Corridor or from the Red Wing Slough area involve extensive submerged wetlands and would encounter numerous meanders of the Innoko River and abandoned sloughs of both the Innoko and Yukon Rivers. We also observed the Yukon River and the existing barge landing at Ruby. The existing barge landing and road system appear to be adequate for the present and probably for the near- and mid-term, unless a large development is identified. Road Alignments 1. Yukon River to Donlin Mine Northern Alignment-This section of alignment passes through the Innoko River flats before reaching drier uplands to the east. The area between the Yukon and these uplands is very wet and swampy. Timbered areas offer the highest and driest ground, and a section of timbered ground extends inland from the northern port site. (Photo 10). The alignment crosses the Innoko River and many smaller tributary streams and sloughs. This area has much standing water in the form of small ponds and abandoned channels. (Photos 11 to 13). The Innoko River is the largest river requiring bridging; however, other rivers or sloughs would likely require some bridging. The final number of bridges would depend on a final alignment location. Because of the extremely wet ground, road construction and drainage will be the biggest challenges for this section of alignment. Relatively straight river reaches were observed, and no major obstacles were identified for bridge design. The foundation material is likely river-deposited silt. Approximately 10 miles east of the Yukon, this alignment reaches a ridge where the ground rises in elevation and becomes much drier. The terrain was recently burned by a wildfire. The ground consists of typical high tundra with sparse spruce trees. (Photos 14 and 15). As the alignment moves east, toward and around the Fox Hills and into the Donlin area, the terrain relief increases, and the timbered areas become denser. (Photos 16 to 18). Road design will need to consider the terrain relief and location of water bodies and rivers for optimum configuration, but no major obstacles were observed to significantly hinder road design. The Fox Hills are a granitic bedrock structure. Shallow bedrock overlain by weathered bedrock fragments is expected. An alternative alignment cutting south of the Fox Hills was identified during our flights. While both the northern and southern routes around Fox Hills appear to be suitable for road construction, the southern variation would reduce the overall length of the alignment. This new alignment will be considered to replace the eastern portion of the route. 2. Yukon River to Donlin Mine Southern Alignment-From a design standpoint this alignment is very similar to the northern alignment for most of its length. The disadvantages to this alignment are the longer lengths through the Innoko flats areas and the less desirable port sites along the Yukon River and Red Wing Slough. Extremely wet ground extends from the Yukon approximately 15 miles to a point southeast of Reindeer Lake, where the terrain transfers to more typical tundra uplands. Major river crossing of both the Innoko and Paimiut Sloughs, as well as of smaller streams, would be required. Once the area of Saddle Mountain is reached, the alignment runs through both areas of open and timbered uplands for its length to Donlin Mine. ANC/TRIPREPORT 122303AMENDED.DOC/032370001 PAGE 7 OF 22 FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT 3. Donlin Mine to Flat-This alignment runs through both timbered hills and open tundra areas with the majority of the alignment in the timbered areas. Open terrain with less relief occurs near Bonanza Creek. (Photo 19). No apparent obstacles for building a road were observed along this alignment. Some of the existing 30 miles of mining road were observed in the Flat mining area. These roads appeared very serviceable, stable, and minimal as far as roadway and cut/ fill slopes. 4. Flat to Takotna and McGrath-From Flat this alignment follows Bonanza Creek to its headwaters and then over a divide into Fourth of July Creek. An old cat trail was observed on the south side of Bonanza Creek, and the location of this trail appeared as a good choice for the road alignment along the majority of its length. (Photo 20). No apparent obstacles for building a road were observed along this alignment. Bridge crossings will be required on Bonanza Creek, the Takotna River, and the Tatalina River, at a minimum. The corridor between Flat and Takotna runs along or parallel to the Iditarod-Nixon Fork Fault, , and the valley is a distinct linear geomorphologic feature in the region. The ridge lines north of the valley were used in early mining days as a transportation route. These ridges appear to offer good potential for a high road route that would avoid or minimize contact with the valley floor and the associated wetlands, streams, permafrost, and poor foundations. Our observations of the upper ridges were limited by the low overcast conditions. 5. Existing Road, Sterling Landing to Takotna and Ophir-The existing road originates from Sterling Landing on the Kuskokwim River southwest of McGrath and leads to the village of Takotna, and on to Ophir. The road passes though rolling terrain similar to many of the alignments in the project area. The road appeared to have a relatively low height of embankment of 1 to 3 feet for much of its length. The road appeared to be in good condition, having very few potholes and ruts , indicating the road material and underlying gravels are sufficient for construction in this area. (Photos 21 to 26). 6. From Ophir there appear to be numerous possibilities for road routes toward Poorman and the end of the existing road (to Ruby) at Monument Creek. The existing road north of Monument Creek appeared to be in very good condition. It also appeared that the construction of this road has had a minimum footprint on the land and that the construction involved very little earthwork. We observed ADOT&PF crews on the road performing clearing, hauling culverts for replacement, and screening road topping material. The predominant surficial soils in the area are wind-transported silts. The old road portion between Monument Creek and Poorman runs through some low-lying areas and is in poor condition in some areas due to settlement. 7. Because of time and weather constraints, observation were not made of a potential road segment between Takotna and the Nixon Fork and Reef Ridge mining areas. Material Sites Limitations of our trip precluded on-the-ground observation of material sites; however, observations from the air support geologic and materials information previously provided by Tom Bundtzen, Pacific Rim Geological Consulting, Inc. (Annotated Summary of Aggregate Materials Availability and Mineral Resource Potential in Yukon Ports and Roads Project Area, provided in Appendix B). The segment from Holy Cross to Donlin/ Flat has material ANC/TRIPREPORT122303AMENDED.DOC/032370001 PAGE 8 OF 22 FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT available at Holy Cross and the Fox Hills (bedrock) and large deposits of gravels at and around Flat and Donlin. The area between the Yukon River and Fox Hills is expected to require large amounts of material because of subsidence of in situ foundation soils. From Flat to Takotna the ridge routes would require minimal cut and fill and imported material. Bedrock is shallow or exposed along much of the route. Gravel sources are available at Flat and along the route. The section from Takotna to Poorman appears to have ample potential for material in outwashes and tailings along many of the upland corridors. Road construction and material needs for roads in this area could be very inexpensive per mile, depending on the design standards used and the route chosen. Several material sources are in place along the existing road between Monument Creek and Ruby. ANC/TRIPREPORT122303AMENDED.DOC/032370001 PAGE 9 OF 22 FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT Photo 1: Yukon River-facing northwest from the vicinity of the northern port site. Photo 2: Yukon River-facing north towards the southern tip of the sandbar off of Red Wing Slough. ANC/TRIPREPORT122303AMENDED.DOC/032370001 PAGE 10 OF 22 FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT MUL 23 20035 Photo 3: Facing north towards the southern entrance of Red Wing Slough. Note island on left and main channel on the far left. Photo 4: East bank of the Yukon River near the northern port site. The bank is approximately 15 feet above the current water level. ANC/TRIPREPORT122303AMENDED.DOC/032370001 PAGE 11 OF 22 FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT Photo 5: Facing west at the southern entrance to Red Wing Slough. Photo 6: Facing south at the southern entrance to Red Wing Slough. ANC/TRIPREPORT122303AMENDED.DOC/032370001 PAGE 12 OF 22 FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT Photo 7: East bank of Red Wing Slough with heavy timber. The bank is approximately 10 feet above the current water level. Photo 8: Facing upstream (east) on the Innoko Slough where it enters Red Wing Slough. Note cloudy water from Red Wing Slough in foreground. ANC/TRIPREPORT122303AMENDED.DOC/032370001 PAGE 13 OF 22 FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT Photo 9: Facing south towards Railroad City and Red Wing Slough. Photo 10: Facing east from the northern port site. ANC/TRIPREPORT122303AMENDED.DOC/032370001 PAGE 14 OF 22 FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT Photo 11: Typical wetland terrain east of the main Yukon River and west of Reindeer Lake. Photo 12: Typical wetland terrain east of the main Yukon River and west of Reindeer Lake. Terrain is very wet, and a helicopter landing was not possible. ANC/TRIPREPORT 122303AMENDED.DOC/032370001 PAGE 15 OF 22 FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT Photo 13: Approximately 10 miles east of the Yukon River and Holy Cross facing west. The beginning of the higher ground can be seen in the foreground, and the Yukon River can be seen in the distance. Photo 14: Area west of Fox Hills. ANC/TRIPREPORT122303AMENDED.DOC/032370001 PAGE 16 OF 22 FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT Photo 15: Typical upland (high tundra) terrain. Photo 16: Typical terrain west of Saddle Mountain. ANC/TRIPREPORT122303AMENDED.DOC/032370001 PAGE 17 OF 22 FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT Photo 17: Area west of Mosquito Hills. Photo 18: Typical terrain in the vicinity of Donlin Creek. ANC/TRIPREPORT122303AMENDED.DOC/032370001 PAGE 18 OF 22 FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT Photo 19: Typical terrain near Bonanza Creek, south of Flat. Photo 20: Bonanza Creek-Cat trail can be seen running on far side of creek. ANC/TRIPREPORT 122303AMENDED.DOC/032370001 PAGE 19 OF 22 FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT Photo 21: Sterling Landing on the Kuskokwim River. ? Photo 22: Takotna Road near Sterling Landing. ANC/TRIPREPORT 122303AMENDED.DOC/032370001 PAGE 20 OF 22 FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT Photo 23: Takotna Road Photo 24: Takotna Road ANC/TRIPREPORT 122303AMENDED.DOC/032370001 PAGE 21 OF 22 FIELD TRIP REPORT—YUKON PORT LOCATIONS AND ROAD ALIGNMENT ees et Photo 25: Takotna Road Fa Seed 118) Photo 26: Takotna River bridge ANC/TRIPREPORT122303AMENDED.DOC/032370001 PAGE 22 OF 22 \ PORT AND ROAD COST ESTIMATES Segment No. 1 2 Termini Holy Cross Donlin Flat Ophir Poorman Takotna McGrath Tokotna Yukon River Ports and Roads Road Segment Costs Preliminary Estimates Donlin Flat Ophir Poorman Ruby Nixon Fork Takotna Ophir 7-10-03 Construction AASHTO Pioneer Design Standard Standard $ X 1,000,000 $9.00 $100.00 NA $4.50 $55.00 $32.00 $10.00 $134.00 $75.00 $9.50 $110.00 $75.00 $6.50 $84.00 $40.00 $9.50 $100.00 $60.00 $3.50 $28.00 $21.00 $2.25 $20.00 $11.00 Yukon Ports and Roads Road Network Segment Cost Estimates, Grouped by Stage Segment Design & ROW Cost Segment Alternative Length Environmental Estimate (Miles) Cost (millions) (millions) Construction Cost | Total Estimated Estimate (millions) | Cost (millions) 1 - Holy Cross to Donlin Estimate 2 - Donlin to Flat Estimate 3 - Flat to Ophir Stage Il Estimate Stage Il Stage Il 4 - Ophir to Poorman Estimate Stage Ill 5 - Poorman to Ruby Estimate : Stage Ill 6 - Takotna to Nixon Fork Estimate : Stage Ill 7 Mcgrath to Takotna Estimate Pmt 87 $28.3] $32.4) Stage Il 8 - Takotna to Ophir Estimate T-O $2.7 $20.4 $23.5] Stage Il | Yukon River Ports and Roads Road Segment Costs, Preliminary Estimates 7-10-03 plus 40% CS Constr Total Cost $ Segment Descriptor |Length Eniro. No. {Termini Code Miles Pioneer_|Doc/Permits |Design 1 Holy Cross _{Donlin NA $4.00 $5.00 NA $4.00 $5.00 2 Donlin $2.50 $2.00 $2.00 $2.00 Flat $63.36 $4.00 $2.00 $92.86 $4.00 $6.00 $74.59 $4.00 $6.00 4 Ophir Poorman O-P 87.8 75.5 12.3 0 = 76 $109.15 | $74.12 $4.00 $5.50 5 Poorman Ruby P-R 49.77 0 37.3 12.47 4 18 $83.62 [ $40.05 $4.00 $2.50 6 Takotna Nixon Fork _|NF-1 75 50 5 1 70 $99.12 $60.62 $4.00 $5.50 PR Segment_|Nixon Fork _|NF-2 73 30 13 0 80 $105.28 | $55.58 $4.00 $5.50 - McGrath Takotna M-T 17.5 15.2 2.3 0 2 13 $28.31 $21.38 $1.00 $1.50 8 Takotna [Ophir T-O 15.2 145-<]1-0 1) ov 0 10 $20.41 | $11.20 $0.75 $1.50 per mile each Cost Values Used: AASHTO $0.75 $1.00 $1.50 $3.00 $0.04 = plus 40% CS Cost Values Used: Pioneer $0.50 $3.00 $0.04 = ENVIRONMENTAL AND REGULATORY CONSIDERATIONS APPENDIX F. ENVIRONMENTAL AND REGULATORY CONSIDERATIONS Introduction This appendix provides an assessment of the potential environmental topics associated with port and road development. Conducted as a planning-level analysis, the review of environmental topics is intended to assist the Alaska Department of Transportation and Public Facilities (ADOT&PF) in determining the feasibility of a potential project and identifying data gaps and topics for which technical analyses might be required for a future project. It also provides a preliminary evaluation of the level of environmental documentation and permitting effort that might be required. The research was based primarily on reviews of resource agency Web sites, Internet searches into relevant subject areas, review of readily available documents and information, and community and economic development information from the online community databases prepared by the Alaska Department of Community and Economic Development (DCED) (2003). Technical and in-depth analyses of the potential topics discussed in this appendix would be advanced as the next phase to comply with the National Environmental Policy Act (NEPA). . During the NEPA scoping process, a more comprehensive understanding of topics areas would be identified. The scoping process would also help determine the level of NEPA environmental documentation required. The format for this review of environmental topics generally follows the guidance for an outline provided by the Federal Highway Administration (FHWA) Technical Advisory, dated October 30, 1987, for use in development of an Environmental Impact Statement (EIS). Environmental documentation The following information is based on telephone interviews with regulatory agency staff members; information posted on regulatory agency Web sites, permitting information gathered for the Resource Transportation Analysis Phase I|—Dalton Highway to Nuiqsut and NPR-A Access study (CH2M HILL, 2003), and conversations with professionals who have had experience with other permitting projects throughout Alaska. Because this study predates the decision to move forward with a project and definitions of that project, it is important to note hat the permitting requirements outlined below are preliminary and speculative. Exact permitting and regulatory requirements that would be applicable for any development project and the length of time the permitting process would require are not yet known. A more detailed and specific list of permitting requirements would be developed as explicit projects are proposed to move forward and submitted to the agencies to begin the permitting and environmental documentation process. The discussion below summarizes the NEPA compliance process and likely permits for a potential Yukon River port and road network project. The information presented is based on projects of similar size and complexity associated with a FINAL DRAFT ANC/030990015 Ft YUKON RIVER PORT AND ROAD NETWORK potential project. Possible opportunities for streamlining some activities are noted. However, to proceed to road or port construction, required processes and permits would be set forth into a comprehensive approach or strategy that results in a clear and defensible NEPA process, compliance with environmental regulations, and receipt of pertinent approvals and permits before construction activity begins. The NEPA process is the set of procedures used by a federal agency to analyze and document potential environmental considerations of a proposal and its alternatives. The process requires the following: e Development of a clear and defensible purpose and need statement e Identification of reasonable and feasible alternatives, including the no action alternative e Description of the affected environment and an evaluation of potential consequences of the proposed action and no action alternatives e Efforts to inform and seek input from the public, state and local agencies, and other federal agencies. The NEPA process varies in complexity, depending on the project. A less complex process could be documented under an environmental assessment or categorical exclusion. Larger, more controversial projects usually require additional environmental documentation through completion of an EIS. Opportunities do exist in the NEPA process, however, to structure the environmental documentation in a way that allows for phased or incremental analysis of the project or to define the project in a way that expedites review. Identification of the lead agency under NEPA is a key early action. Typically the lead agency is the one with significant ownership, permitting responsibilities, or is the source of funding. In addition, NEPA allows a cooperating agency or agencies to be designated if one or more agencies have special knowledge or expertise on an issue or additional permitting requirements. There are several separate actions associated with a potential Yukon river port and road network project: e Development of a port e Development of a fuel transfer and storage facility (tank farm) e Development of new roads Identifying the federal lead agency would likely focus on the extent of permitting responsibility (for example, the U.S. Army Corps of Engineers [COE] for wetlands permitting) or the funding source (FHWA). The development of port and road projects have different permitting and regulatory requirements. Therefore, co-leads may be required if a combined port and road project is advanced as a single proposed action. The U.S. Environmental Protection Agency and the Alaska Department of Environmental Conservation (ADEC) would be integral in the NEPA process for a new fuel transfer and storage facility. FHWA, COE, or both would be involved in the NEPA process for a roadway network. FINAL DRAFT ANC/030990015 F-2 YUKON RIVER PORT AND ROAD NETWORK The design of and approach to environmental documentation is important for expediting the process. Following are several areas in which clarity and thoroughness can help the overall review process. Purpose and need and the alternatives. NEPA requires a discussion of the purpose and need of a proposed action. This component is directly related to the definition of the alternatives and a discussion of a distinct and focused set of objectives that provides boundaries on the required analysis. Drafting a clear purpose and need for a project is important to defining a finite number of reasonable and feasible alternatives. A clear up-front strategy on alternatives is important to cost controls and meeting schedule. NEPA requires consideration of alternatives to a proposed action or project. These alternatives would need to meet the “reasonable and feasible” NEPA requirement for adequate consideration of alternatives. Proposed action or project description. A key objective of preparing the NEPA project description early in the NEPA process is to minimize design changes that require environmental analysis, which reduces the potential for reanalysis of revised features. To the extent practicable, a project description should include avoidance and minimization of identified impacts. Another way to expedite the NEPA process is to provide a comprehensive project description that also incorporates what otherwise might be mitigation measures. Cumulative impacts. The combined or cumulative impacts are considered. Public outreach. The ways in which public outreach is approached and managed in environmental documentation directly affect the schedule. Public perception of a potential project influences the extent to which the process for environmental documentation can be expedited. A key consideration is the way in which the opportunities for public input can be designed to obtain valuable input, but also structure those opportunities so that the NEPA process and schedule are maintained to the degree possible including the following: — Developing a concise public outreach plan with clear milestones tied directly to expediting the process and building a defensible procedural record of adequate outreach — Managing public scoping to maximize its role in identifying major areas of concern to address in environmental documentation so that the Administrative Record demonstrates responsiveness to public concerns — Integration of traditional knowledge and environmental justice. Alaska is unique in that environmental documentation incorporates consideration of traditional knowledge. Environmental documentation in Alaska is receiving increased scrutiny from federal agencies relevant to traditional knowledge, environmental justice, and subsistence. — Structuring public hearings to obtain project-specific comments and expedite the response to comment process FINAL DRAFT ANC/030990015 F-3 YUKON RIVER PORT AND ROAD NETWORK NEPA approval and permitting requirements. Table F-1 lists federal and state agencies that are expected to have NEPA document review, approval, and permitting responsibilities for a potential Yukon River port and road network. Local agencies would also be involved, depending on the potential to affect designated communities. Table F-1 Summary of agency NEPA responsibilities and permitting requirements Regulation or Agency requirement Description Alaska Federation of Natives Alaska Native Claims Coordination between Native villages and lead Settlement Act of 1971 agency(ies) to ensure protection of Native Alaska Native Villages lands; recognized by the federal ; : government Village of Aniak Village of Galena Village of Holy Cross Village of Kaltag Village of McGrath Village of Ruby Village of Takotna Federal Energy Regulatory FERC license AFERC license may be needed for power Commission (FERC) license generation facilities related to port development. U.S. Environmental Overall compliance with NEPA document review COE Section 404 (b) Protection Agency federal environmental laws _ permit review Clean Water Act Federal Storm Water General Permit Resource Conservation ADEC permitting of a fuel transfer, and storage and Recovery Act oversight _ facility. Clean Air Act Review of ADEC permitting process U.S. Army Corp of Engineers Authority to regulate work in waters of the U.S. Section 10 Permit Permit and condition structures and work in navigable waters Section 404 Permit Permit and condition filling or excavation of wetlands Other Notify the Coast Guard, National Oceanic and Atmospheric Administration, and National Ocean Service about new bridges FINAL DRAFT ANC/030990015 F-4 YUKON RIVER PORT AND ROAD NETWORK Table F-1 Summary of agency NEPA responsibilities and permitting requirements Bureau of Land Management Federal land ownership Right-of-way permit, if applicable Probable consultation level on the environmental documentation U.S. Fish and Wildlife Service Authority to uphold Endangered Species Act and Migratory Bird Act Review and approve NEPA outcome and place conditions on federal permits. National Oceanic and Atmospheric Administration, National Marine Fisheries Service Authority to uphold Endangered Species Act Review and approve NEPA outcome and place conditions on federal permits. Magnuson-Stevens Act (Essential Fish Habitat) Fish habitat protection for identified species U.S. Coast Guard Navigational jurisdiction Permit bridges over navigable waterways Department of Natural Resources—Office of Project Management and Permitting Coastal Zone Management Plan consistency Responsible for the overall administration and operation of the ACMP Large projects coordinator This is a relatively new office and new responsibility. There is uncertainty regarding how this project would be handled within the Office of Project Management and Permitting. Department of Natural Resources—Office of Habitat Management Fish and wildlife habitat protection reviews and compliance monitoring. Fishway Act Issues permits under Title 41.14.840 for work related to any fish streams Anadromous Fish Act Issues permits under Title 41.14.870 Permit to work within any cataloged anadromous streams Department of Fish and Game Title 16 Habitat Permits Special area permit to work within State of Alaska refuges, critical habitat areas, and sanctuaries. (Not anticipated at this time.) State Historic Preservation Officer Section 106 of the National Historic Preservation Act Through the NEPA process, an analysis of potential cultural resources FINAL DRAFT ANC/030990015 YUKON RIVER PORT AND ROAD NETWORK Table F-1 Summary of agency NEPA responsibilities and permitting requirements Department of Environmental Clean Water Act Short- term variance from Water Quality Conservation—Division of , Standards for runoff or work in waters of the Environmental Health and Clean Air Act state. Division of Air and Water Quality General permit for remote worker camps Permit and approval of the fuel transfer and storage facility under Resource Conservation and Recovery Act regulations. Develop and gain approval of an oil discharge prevention and contingency plan for the transport of fuels by barge. Review of potential for hazardous waste sites along routes (resulting from historical exploration wells) Determination of compliance with National Ambient Air Quality Standards (NAAQS) for particulate generation and emissions from construction equipment and vehicles. An operating permit may be needed. Approval of the specific plans developed under Federal Storm Water General Permit. Affected environment This section discusses the environment that would be affected by potential road and port projects that may be advanced as a result of this study. Lands within the study area consist of two national wildlife refuges (NWRs); federal, state, and private lands; and military land. The military land consists of a Department of Defense radar site at Takotna Mountain, near McGrath. The following elements are not affected and would not require assessment: = Farmlands = Relocation = Coastal barriers The following topics are included in this planning-level analysis: = Socioeconomic considerations » Land use = Air quality = Aquatic resources = Threatened and endangered species = Wildlife refuges FINAL DRAFT ANC/030990015 F-6 YUKON RIVER PORT AND ROAD NETWORK = Water quality = Wetlands = Noise = Coastal zones = Water body modification and wildlife = Floodplains = Wild and scenic rivers Socioeconomic considerations Community profiles for Ruby, Holy Cross, Takotna, Crooked Creek, McGrath, Flat, Galena, and Kaltag show a high percentage of Native populations that rely heavily on subsistence resources (DCED, 2003). These Native communities include Athabascan Indians and Yupik Eskimos. Many of these communities are not connected by road systems, but are served by local roads and trails. Many also rely on barges to receive goods and services. Community profile information was not available for the communities of Poorman and Ophir, which are also part of this study area. Complete profiles are included in Appendix H of this report. Summaries are provided below. Ruby The City of Ruby consists of approximately 170 people populating a land area of 7.4 square miles. The Alaska Native population represents 74.1 percent of the total population and includes Koyukon Athabascans of the Nowitna-Koyukuk band. The traditional Athabascan culture and subsistence practices are focal points of village life. These subsistence practices provide most of the food for the community. Salmon, whitefish, moose, bear, ptarmigan, waterfowl, and berries are consumed. Eight residents hold commercial fishing permits. Ruby is accessibly by air and water. Although there are no docking facilities in Ruby, a boat launch and barge off-loading area are available. Floatplanes land on the Yukon River, and barges make about four deliveries each summer. Local transportation consists of trucks, snowmachines, all-terrain vehicles (ATVs), and riverboats. Numerous trails and the 35-mile road to Long Creek Mine to the south are used for subsistence and wood cutting. Holy Cross Holy Cross has a current population of 227 people of which 96 percent are Alaska Native or part Native, spread over an area of 31.3 square miles of land. Holy Cross is an Ingalik Indian village. Subsistence and fishing-related activities are important to this community. FINAL DRAFT ANC/030990015 F-7 YUKON RIVER PORT AND ROAD NETWORK Nine residents hold commercial fishing permits, resulting in a seasonal economy. Subsistence hunting, fishing, trapping, and gardening supplement incomes. Holy Cross is dependent on air and boat transportation, with barge service provided in the summer. Local roads extend for 7.5 miles are used by three-wheelers, motor bikes, snowmachines, and dog teams. Takotna Takotna encompasses an area of 23.5 square miles. The mixed population of 50 includes non-Natives, Ingalik Indians, and Eskimos. Subsistence is important to the economy, and 80 percent of the residents are involved in subsistence activities. Access to Takotna is by air or water. The community is served by 80 miles of local roads and a winter trail that is marked to McGrath. Takotna is a checkpoint for the Iditarod sled dog race. Crooked Creek Crooked Creek has a current population of 137 people spread over an area of 101.1 square miles of land and 7.4 square miles of water. This mixed Eskimo and Ingalik village relies heavily on subsistence activities. Salmon, moose, caribou, and water fowl are consumed. The Calista Corporation, Kuskokwim Corporation, and Placer Dome U.S. signed an exploration and mining lease for Donlin Creek, north of Crooked Creek. The Kuskokwim River is the local highway for both summer and winter travel. Residents use ATVs and snowmachines for transportation, and skiffs and barges provide supplies during summer months. McGrath McGrath currently has a population of 401 people spread over an area encompassing 48.9 square miles of land. Almost half the population is Athabascan, Eskimo, or Aluet. McGrath is a regional center providing a variety of employment opportunities and functioning as a transportation, communications, and supply center in Interior Alaska. Subsistence is an important part of the local culture, and salmon, moose, caribou, bear, and rabbits are consumed. Approximately 10 families have dog teams that they enter in high-profile dog races such as the Iditarod and Kuskokwim 300. There are no road connections to McGrath, but local roads are used by ATVs and trucks. Winter trails are marked to Nikolai and Takotna. Residents rely on air service and barges to deliver supplies. Flat According to the 2000 U.S. Census, Flat has a current population of four. There are three homes in the community, but the only family living in Flat resides there seasonally. The Iditarod Mining District, in which Flat is located, is still actively producing gold. There are no public facilities or road access, but a gravel airstrip is available. FINAL DRAFT ANC/030990015 F-8 YUKON RIVER PORT AND ROAD NETWORK Galena Galena encompasses 17.9 square miles of land and 6.1 square miles of water. The Galena population of 713 is mixed Athabascan and non-Native. Subsistence is important to the economy and includes harvesting salmon, whitefish, moose, and berries. Galena serves as the transportation, government, and commercial center for the western portion of Interior Alaska, and is a regional transport center for surrounding villages. Commercial fishing permits are held by 31 residents. River barges bring supplies from mid-May through mid-October. Local travel consists of pickups, cars, snowmachines, skiffs, and ATVs. During winter, the frozen rivers are used for travel to Ruby, Koyukuk, Kaltag, and Nulato. A winter trail is available to Huslia. Kaltag Kaltag has a population of 223 and is located in Koyukon Athabascan territory that had been used as a cemetery for surrounding villages. Many neighboring villagers are drawn here for the Stick Dance Festival, a 1-week festival sponsored by relatives of the recently deceased, in appreciation of those who helped during their time of mourning. Subsistence is important to the local economy. Salmon, whitefish, moose, bear, waterfowl, and berries are consumed. Kaltag is accessible by air year-round. Barges typically deliver heavy cargo three times per year. Local travel is by snowmachine, ATV, and riverboat. The frozen river, local trails, and the 90-mile Old Mail Trail to Unalakleet are used during the winter for wood cutting and trap lines. Subsistence Subsistence is both economically and culturally important to every community in the study area. Subsistence resources consist of a wide variety of wildlife and selective vegetation. Salmon, whitefish, moose, caribou, bear, rabbits, waterfowl, ptarmigan, and berries are harvested, and reeds, grasses, and other vegetation are used in basket making. Most of the communities in the study area are not connected by a road system, but are served by local roads and trails. The trails, both summer and winter, are used for subsistence activities as well as for wood cutting and trapping. Land use The study area covers a wide range of federal, state, and private lands. Two NWRs, Nowitna NWR and Innoko NWR, exist within the study area. Lands tentatively approved for conveyance under the Alaska Native Claims Settlement Act (ANSCA) lies along the outskirts of the study area. Other landowners include the Bureau of Land Management (BLM) and State of Alaska lands. FINAL DRAFT ANC/030990015 F-9 YUKON RIVER PORT AND ROAD NETWORK Air quality Air Quality in the study area is generally considered to be good. The State Implementation Plan for air quality does not contain any transportation control measures applicable for the study area. Therefore, the conformity procedures of Title 23, Part 770, of the Code of Federal Regulations (CFR) would not apply. Aquatic resources The major river system under consideration in this study is the Yukon River. The Yukon River originates in Canada and flows westward through Alaska to the Bering Sea. Major tributaries include the Koyokuk and Tanana rivers. The Yukon River Delta ecosystem is an important habitat for waterfowl and other migratory shore birds. The Yukon is North America's third longest river (after the Missouri-Mississippi and Mackenzie). It flows about 2,000 miles, draining much of the land west of the continental divide in Yukon Territory, Canada, then runs westward across Alaska to the Bering Sea. Following are additional details about the Yukon River: = Ofits total drainage area of 327,600 square miles, 126,300 square miles is in Canada. = The Yukon River has an average annual discharge more then 225,000 cubic feet per second. = Average flow is west-northwest, with the headwaters in the Coastal Mountains at roughly 60° North, 134° West, and the mouth at Norton Sound, 63° North, 165° West. * Only four bridges cross the Yukon River: (1) at the foot of Marsh Lake, (2) in downtown Whitehorse, (3) at Carmacks, and (4) on the Dalton Highway north of Livengood. The Yukon River extends through 20 diverse ecoregions. The population of the Yukon River watershed is approximately 130,000 people, with many of them living a subsistence lifestyle. The Yukon River watershed is home to a very wide variety of animals, fish, and birds, including sheep, moose, mountain goat, caribou and grizzly, eagles, ducks and swans, salmon, and trout (Yukon River Inter-Tribal Watershed Council, 2003). Chinook, summer chum, and fall chum salmon in the Yukon River drainage are of concern to fisheries resource managers because of low returns the past couple of years. The Yukon River was declared a fisheries disaster in 2000 by both state and federal agencies. Subsistence fishing in various districts was restricted (U.S. Fish and Wildlife Service, 2002). A fisheries update for 2002 shows Yukon River fall chum salmon were assessed as weak, and the coho salmon runs were described as average in strength (Alaska Department of Fish and Game [ADF&G], 2002). The potential road system considered in this study includes many stream crossings, some of which are anadromous fish streams that would require resource agency coordination during preparation of the environmental document. FINAL DRAFT ANC/030990015 F-10 YUKON RIVER PORT AND ROAD NETWORK A more thorough discussion of general habitat of the study area, including terrestrial and aquatic habitats and wetlands, would be researched and coordinated with the resource agencies during the NEPA process. Threatened and endangered species The spectacled eider (Somateria fischeri) and Steller’s eider (Polysticta stelleri) are known to use a wide range of habitat types located near water, including the Yukon-Kuskokwim Delta. These birds inhabit the delta during the summer breeding season, mid-May to late June. During their breeding season, these diving ducks feed on aquatic insects and plants. The current Endangered Species Act (ESA) Status of the spectacled eider is threatened throughout its range (Federal Register, May 10, 1993). The ESA status of the Steller’s eider is threatened within the Alaskan breeding population (Federal Register, June 11, 1997). Wildlife refuges The Innoko NWR consists of two separate sections that total 4.25 million acres. The NWR was established to protect waterfowl nesting and breeding habitat. About 80 percent of the Innoko NWR is wetlands, providing nesting habitat for at least 250,000 waterfowl. This NWR provides year-round habitat for wolf, black bear, grizzly bear, and furbearers. Caribou inhabit the NWR during their winter migration. Moose there are abundant and flourish off the abundant willow growth along streams. In addition, the Innoko NWR supports up to 40 percent of the annual beaver trapped in Alaska (USFWS, 2001a). The Nowitna Refuge also lies within the study area and is bisected by the Nowitna River,. King and chum salmon, northern pike, and one of only three resident sheefish populations in Alaska can be found in the Nowitna River. White spruce grow abundantly throughout the forested lowlands of the NWR. These forests provide valuable cover and den sites for marten, which support a significant trapping economy for local residents. Other mammals in the area include moose, wolves, lynx, wolverine, and black and grizzly bear (USFWS, 2001b). Water quality Quantitative water quality data in the study area are lacking; however, water quality is generally considered to be in its natural pristine state because of the largely undeveloped environment. Further research and coordination with the ADEC and ADF&G would be required to determine water quality parameters of importance and water bodies where water quality changes would be of significance. More information on current water quality would be needed for use as a baseline for analysis. Coordination with resource agencies would be necessary as a next step. Wetlands Many of the potential road stages under consideration in this study pass through wetlands. Further research and coordination with the COE and USFWS would be needed to determine the amount of wetlands that would be affected, the significance or value of the wetlands, and any avoidance and mitigation measures that may need to be taken. FINAL DRAFT ANC/030990015 F-11 YUKON RIVER PORT AND ROAD NETWORK Noise The study area has no sensitive noise receptors, as identified by FHWA and State of Alaska noise policies. Coastal zones The western edge of the study area potentially crosses the Cenaliulriit Coastal Resource Service Area (CRSA). A CRSA is an organization created to cover people living in coastal resource districts outside the boundaries of local governments. The CRSA provides opportunities for people living in rural Alaska the to affect the management of their coastal resources. Cenaliulriit CRSA The Cenaliulriit CRSA is located in the Yukon-Kuskokwim Delta. The inland coastal zone boundary is defined as follows on the State of Alaska, Alaska Coastal Management Program, Web site (www.alaskacoast.state.ak.us/ Explore/nwccrsa.htm): 1. All lands and waters within the 200-foot elevation contour, isolated hills, and all islands; 2. All water bodies designated in the Catalog of Waters Important for Spawning, Rearing, and Migration of Anadromous Fish (ADFG 1999), plus a corridor extending from ordinary high water on each bank landward one mile or to the highest surrounding contour, whichever is less; and 3. All tributaries to these aforementioned designated water bodies, plus a corridor extending from ordinary high water on each bank landward 200 feet. An exception is made for tributaries whose confluence with an anadromous stream is located inland from any coastal district boundary... To advance plans for a potential project, the Cenaliulriit CRSA representative would need to be contacted to determine whether a barge dock would be compatible with its Coastal Zone Management Plan. More precise information about boundaries relevant to anadromous streams would also be sought. Water body modification Further research and coordination with COE and ADF&G are needed to determine the extent of river bank and channel modifications caused by development of port facilities. Wildlife Concentrations of moose, caribou, bear, and other large mammals exist within the study area. Coordination with ADF&G, USFWS, and local residents would be necessary to identify the locations of these concentrations and their migration routes. FINAL DRAFT ANC/030990015 F-12 YUKON RIVER PORT AND ROAD NETWORK Floodplains Many of the potential road alignments under consideration in this study are located within or near the floodplains of rivers. Many of the rivers within the study area have not had floodplains specifically defined, however, it is likely that the estimation of floodplain extents would be required to support an impact analysis. Further research would be needed to confirm exact locations and impacts after location of road stages have been specifically identified. Wild and scenic rivers The Nowitna River—located within the Nowitna NWR—was designated as a wild river by the Alaska National Interest Lands Conservation Act (ANILCA). Of the 283-mile-long river, 223 miles is designated as a wild river. The river corridor includes approximately 142,400 acres. The Nowitna River was designated to protect its water quality, wildlife, geology, and primitive setting, and like all wild and scenic rivers, to protect its natural, free-flowing condition. With the exception of the 15-mile canyon area, where peaks up to 21,000 feet border the river, the surrounding terrain is flat or has low, rolling hills. Numerous lakes and sloughs provide excellent fish and wildlife habitat adjacent to the river. Riparian vegetation consists of willow, alder, aspen, birch, and spruce. The abundant fish species that use the river include sheefish, whitefish, sucker, northern pike, king salmon, chum salmon, burbot, and arctic grayling. The lower portion of the river meanders through one of the most productive waterfowl nesting areas in the state. The Nowitna River is some 200 miles from the nearest road access and population centers. Environmental consequences The environmental consequences of actions that may be proposed should be determined and documented in an environmental document after specific road and port locations have been identified for further development. For this planning-level effort, environmental consequences are looked at in very general terms for the whole study area. Land use A small amount of military land exists within the study area. State patented land or BLM land is also present within the study area. ADOT&PF would likely need to apply for ROW over these lands. Social considerations Both beneficial and negative impacts could occur to communities along the Lower Yukon River near the potential port sites. Construction of the port facilities would bring local jobs and economic vitality to these communities by bringing more money to the area. At the same time, development of port-side fuel facilities would also bring the potential for fuel spills. The development of roads means easier access to these communities, including access to hunting and fishing grounds and increased potential for hunting and tourism exploitation. An influx of new people brings new FINAL DRAFT ANC/030990015 F3 YUKON RIVER PORT AND ROAD NETWORK ideas, and the potential for outside concepts and ways of life to change from traditional methods. Some residents have expressed concern about road development providing improved access to hunting grounds (ADOT&PF, 2002). Subsistence is an important topic. Road development may affect subsistence resources. The number of small barge businesses would likely increase if fishing industry declines shift small fishing entrepreneurs to barging interests (Alaska Journal of Commerce, 2001). This transition occurred to some extent during the fishing industry crash of 2000. Economic considerations Donlin Creek Mine is a major gold exploration project near the Kuskokwim River, 280 miles west of Anchorage and 12 miles from the village of Crooked Creek. Placer Dome Exploration, Inc., operated the project from 1995 to 2000 under an Exploration and Mining Lease with Calista Corporation, on land owned by Calista Corporation and Kuskokwim Corporation. In 2001, Placer Dome assigned the Donlin Creek lease to NovaGold Resources, Inc., the current operator working on the property (Calista Corporation, 2002).The Donlin Creek project has been the single largest economic stimulus in the Yukon-Kuskokwim region. Joint development Communities located throughout the study area would benefit from joint development of roads and placer mining sites that would bring income and jobs to the area. The ADOT&PF Yukon-Kuskokwim Delta Transportation Plan, an element of the Alaska Statewide Transportation Plan, was prepared in March 2002. The planning team discovered that a long-term project to build a road that completes the Ruby-to-McGrath link could significantly contribute to economic development for the entire Yukon-Kuskokwim region, by providing access to minerals in the area, including access to mineral deposits at Reef Ridge and Donlin Creek. Air quality Emissions from power-generation facilities and major construction equipment would likely require analysis during the environmental process. Dust from potential roads may present another air quality topic for analysis. Noise A noise study may need to be conducted for development in areas close to the Innoko NWR or Nowitna NWR. Flexibility in road alignment to avoid and minimize noise would offer potential mitigation. Water quality Port and road development could affect water quality during construction and operation. Efforts to minimize any identified change in water quality through mitigation would be coordinated with the appropriate resource agencies. FINAL DRAFT ANC/030990015 F-14 aN a my YUKON RIVER PORT AND ROAD NETWORK Wetlands Many of the potential roads under consideration pass through wetlands in low-lying areas. National Wetland Inventory maps are lacking for the study area. Further research would be needed to discuss the magnitude of wetland areas affected by road development. Water bodies and wildlife Further research and coordination with the COE and ADF&G are needed to determine the extent of river bank and channel modifications. The ADF&G and USFWS would be contacted for information on wildlife types, concentrations, and migration corridors. Floodplains Many of the potential road segments are located within or near the floodplains of rivers. Further research would be needed to confirm exact locations and effects to floodplain areas. Wild and scenic rivers The Nowitna River is within the boundaries of the Nowitna NWR. Although this NWR is within the proximity of the study area, the Nowitna River is not expected to be affected by a potential port or road development. The Nowitna River is approximately 200 miles from the nearest road access and population centers. Coastal zone The Cenaliulriit CRSA in the Yukon-Kuskokwim Delta declares an extended boundary from ordinary high water on each bank landward 1 mile or to the highest surrounding contour, whichever is less; and all tributaries to the aforementioned designated water bodies, plus a corridor extending from ordinary high water on each bank landward 200 feet. An exception is made for tributaries whose confluence with an anadromous stream is located inland from any coastal district boundary. Because of the large number of stream crossings identified in the potential road development sites, some of which are anadromous, coordination with the Cenaliulriit CRSA representative will be necessary to determine whether any of these streams are within these coastal zone boundaries, and whether a barge dock would be compatible with the Coastal Zone Management Plan. Threatened or endangered species As described above, the spectacled eider is listed as threatened throughout its range and the Steller’s eider is listed as threatened within the Alaskan breeding population. Further coordination with USFWS would be necessary to determine the exact range of the spectacled eider and Steller’s eider to determine whether these populations would be affected by a potential port and road development project. FINAL DRAFT ANC/030990015 F-15 YUKON RIVER PORT AND ROAD NETWORK Historic and archaeological preservation Consultation with appropriate agencies and landowners and compilation of historical and archaeological information would be completed in future phases of project development. Hazardous and solid wastes The ADEC leaking underground storage tank (LUST) (2003b) and contaminated sites (2003a) databases were reviewed to determine the status of the communities in the study area. The communities of Takotna and Galena are listed for LUSTs. The communities of Ruby, Holy Cross, Galena, McGrath, and Kaltag are listed in ADEC’s contaminated sites database. Further research would be needed to determine how a project may affect these sites, and whether wastes would be generated as a result of port and road development in the study area. Visual quality Interviews with locals as well as field visits would be required to determine the visual quality of the study area and how the area is managed in relation to visual quality. Energy Energy requirements are being considered with respect to shipping and construction costs. Construction Construction related topics may include permanent or temporary loss of habitat or disturbance of habitat. Relationship between local short-term uses of human environment and the maintenance and enhancement of long-term productivity The short-term uses of the Yukon River port and roads would mean economic benefit for the communities within the study area, but could also result in a loss of traditional ways of life. Long-term productivity of the area would be enhanced by port and road development, but could also result in a reduction of wildlife habitat and subsistence uses. References Alaska Department of Community and Economic Development (DCED). 2003. <http:/www.dced.state.ak.us/cbd/commdb/CF_COMDB.htm>. Accessed April 2003. Alaska Department of Environmental Conservation (ADEC). 2003a. Contaminated Sites Database. <http:/www.dec.state.ak.us/spar/cs/search/csites/csites_search.asp>. Accessed March 2003. FINAL DRAFT ANC/030990015 F-16 if on fe YUKON RIVER PORT AND ROAD NETWORK Alaska Department of Environmental Conservation (ADEC), Spill Prevention and Response Division. 2003b. UST/LUST Database. <http://(www.state.ak.us/dec/dspar/stp/search.htm>. Accessed March 2003. Alaska Department of Fish and Game (ADF&G), Habitat and Restoration. 1996. Title 16: Fish Habitat Permit. <http://www.state.ak.us/adfg/habitat/geninfo/permitforms/title16.htm>. Accessed on March 4, 2003. Alaska Department of Fish and Game (ADF&G). 1999. Catalog of Waters Important for Spawning, Rearing, and Migration of Anadromous Fish. Alaska Department of Fish and Game (ADF&G). 2002, September 17. “Yukon Area Fall Salmon Update #9.” Yukokn Salmon Fishery Updates. <http://www.cf.adfg.state.ak.us/region3/finfish/salmon/02yuksal.htm>. Accessed on March 17, 2003. Alaska Department of Transportation & Public Facilities (ADOT&PF). 2002, March. Yukon-Kuskokwim Delta Transportation Plan. g Alaska Journal of Commerce. 2001, July 27. “In Bush, Barges Have Growing Shipping Niche.” Calista Corporation. 2002, November. Minerals—Donlin Creek. <http://www.calistacorp.com/resdev2a.html>. Accessed 2003. CH2M HILL. 2003, November. Resource Transportation Analysis Phase |I|—Dalton Highway to Nuiqsut and NPR-A Access. Prepared in association with Northern Economics, Inc. Prepared for Alaska Department of Transportation and Public Facilities. Federal Highway Administration (FHWA). 1987, October 30. Guidance for Preparing and Processing Environmental and Section 4(f) Documents. Technical ! Advisory T6640.8A. U.S. Army Corps of Engineers (COE), Alaska District. 1997, September. Expedited t Reconnaissance Report and GIS Database, Kuskokwim River.. U.S. Fish and Wildlife Service (USFWS). 2001a, March. Innoko National Wildlife Refuge. <http://www.'7.fws.gov/nwr/innoko/innwr.html>. Accessed March 2003. U.S. Fish and Wildlife Service (USFWS). 2001b, March. Nowitna National Wildlife Refuge. <http://www.r7.fws.gov/nwr/nowitna/nownwr.html>. Accessed March 2003. U.S. Fish and Wildlife Service (USFWS), Federal Subsistence Management Program. 2002. Yukon River Region, 2002 Fisheries Resource Monitoring Plan, Review Draft. <http:/www.r7.fws.gov/asm/pdf/2002drft/yukon.pdf>. Accessed March 17, 2003. U.S. Fish and Wildlife Service (USFWS), Fairbanks Fisheries Resource Office. 2003. “Cyber Salmon.” <http://cybersalmon.fws.gov/csamhabitat.html>. Accessed February 24, 2003. FINAL DRAFT ANC/030990015 F-17 YUKON RIVER PORT AND ROAD NETWORK Yukon River Inter-Tribal Watershed Council. 2003. <http://www.yritwc.com/menu.htm>. Accessed February 24, 2003. Whiteford, Richard. 1999, March/April. “A Diversity of Ecosystems.” Endangered Species Bulletin. Vol. XXIV, No. 2. <http://endangered.fws.gov/ESB/99/03-04/6- 7.pdf>. Accessed March 2003. FINAL DRAFT ANC/030990015 F-18 GENERAL GEOTECHNICAL CONSIDERATIONS EINEUIN IRE OU AIIGPAN RA APPENDIX G. GENERAL GEOTECHNICAL CONSIDERATIONS A common denominator in all resource and industrial development is the need for granular material; gravel is used worldwide for construction projects and transportation routes. In the Alaska Interior, the presence of discontinuous permafrost creates special construction problems that place additional demands on the supply of gravel. The study area is located in the Yukon Region of Alaska (Selkregg, 1975). The Yukon Region consists of the area drained by the Yukon River and its tributaries. Because the study area encompasses discontinuous permafrost areas and numerous silty soils, frequent instances of ice-rich, non-thaw-stable soils can be anticipated. These occurrences often depend on the local microclimate, including factors of northern exposure, shade, and presence of an undisturbed moss mat. The permafrost temperature in Interior Alaska is typically near 30°F or higher. The active layer is often relatively thick; for example, 5 to 10 feet. To address long-term geotechnical impacts to design and construction, judicious routing is usually the best approach. Figures G-1 and G-2 summarize the general bedrock and surficial geology of the study area. This information is helpful in determining initial transportation corridors by allowing identification of problematic geological features early in the design process. Frequent alignment adjustments during the design process should be anticipated, however, as site specific information is obtained through further investigation. The following sections identify methods for obtaining more detailed site information. Remote sensing and imagery The size of the study area, its remoteness, and climatic considerations combine to make detailed field studies very difficult and expensive. Consequently, much of the available literature often deals with large areas and presents generalized findings and conclusions not often supplemented by subsurface exploration or ground truthing. The extremely high cost associated with conducting either summer or winter field studies in remote areas of the Interior requires maximum utilization of available research data and methods. The initial formulation of accurate hypotheses about borrow source locations serves to significantly defray these costs. By effectively using available data and information sources, and applying adaptive field exploration tools and hardware, efficient use of personnel and equipment can be realized. Photogrammetric study is intended to provide information about characteristics of past and present depositional environments. Both oblique stereo-pair black-and- white photographs and satellite imagery in the form of color infrared (CIR) photographs serve this purpose. Patterns of river and stream migration, variations in depositional characteristics, and migration of coastal features are often determined through photograph analysis. Relief analysis allows determination of features undergoing contemporary erosion. In addition, sediment plumes and FINAL DRAFT ANC/ G1 YUKON RIVER PORT AND ROAD NETWORK subaqueous features not discernable in the field can often be made through aerial photograph analyses. CIR information is useful in that vegetation variations, and thus different soil types, can often be delineated. CIR analysis often allows preliminary distinction between coarse and fine-grained sediments near bodies of water resulting from variable evapotranspiration rates. A useful tool for landform interpretation and sediment analysis has been the shuttle imagery radar technique SIR-B. The system uses National Aeronautics and Space Administration (NASA) space shuttles as observation platforms for selected imagery coverage of the earth. NASA operates the Earth Resource Technology Satellites, which provide satellite imagery capable of providing photographs. False color provides more information than black and white, and various image enhancements are also available. CIR photography from U-2 aircraft provides more detail, but satellite photography can be repeated every 18 days, a big advantage where environmental changes are being monitored. Built by NASA and operated by the USGS, the first Landsat satellite, Landsat 1, was launched in 1972. The most recent, Landsat 7, was launched in 1999. Modern high-resolution satellite imagery can be enhanced by manipulating and filtering the spectral data. Space Imaging’s IKONOS satellite was launched in 1999. Although somewhat expensive and providing less-than-complete coverage, the IKONOS imagery is 1-meter panchromatic and 4-meter multispectral imagery. The four channels may be combined into either a true color or a CIR presentation. The pan can then be colorized to produce a nice-looking product. The combined use of the available geologic literature, landform analysis through photogrammetric techniques, and review of remote imagery data serve as a foundation for selecting prospective material sites for field exploration. This procedure is extremely important for effective use of exploration budgets for borrow sources. Reconnaissance techniques Preliminary field reconnaissance is likely the most important step in locating sources of quality borrow material. Because actual exploration drilling is so expensive, it is imperative to either confirm or eliminate potential sites identified during literature and remote imagery studies. It also allows for a reprioritization of sites. Preliminary field reconnaissance is typically conducted during the summer months between mid-July and early September. Primitive roads and trails are available in many of the areas for site access. Sites could also be accessed by boat or helicopter. It is generally advantageous to observe each identified selected site from the air and take oblique aerial photographs for later use. Aerial geophysics has been used in Canada to locate aggregates and gravel deposits in remote areas. With a helicopter-mounted electromagnetic surveying tool, the Saskatchewan Department of Transportation used 3,000 line kilometers (1,860 line miles) to locate aggregates along highways. FINAL DRAFT ANC/ G-2 Legend AA Proposed Connecting Roads Bedrock Description setae Jurassic, Triassic, and Permian Volcanic Rocks Jurassic Volcanic Rocks cae Cretaceous Sedimentary Rocks Se Cretaceous and Jurassic Volcanic Rocks as Cretaceous Intrusive Rocks Cretaceous Volcanic Rocks [EE Mesozoic and Paleozoic Sedimentary Rocks [ERI Mesozoic Metamorphic Rocks Paleozoic Sedimentary Rocks 4 Ee) Jurassic, Triassic, and Permian Ultramafic Rocks | Cretaceous and Jurassic Metamorpic and Sedimentary Rocks Quatemary Deposits | Quatemary and Tertiary Volcanic Rocks Tertiary and Cretaceous Intrusive Rocks Tertiary and Cretaceous Volcanic Rocks Tertiary Intrusive Rocks Tertiary Volcanic Rocks Lower Cretaceous Sedimentary Rocks | Lower Cretaceous Volcanic Rocks | Lower Paleozoic Metamorphic Rocks | Unknown Age, Ultramafic Rocks ee Lower Paleozoic and Precambrian Metamorphic Rocks Middle Tertiary Continental Sedimentary Deposits Upper Cretaceous Continental Sedimentary Deposits Source: U.S. Geological Survey, "Geologic Map of Alaska,” 1997, after Beikman, H.M. 1980. "Geologic Map of Alaska.” US. Geological Survey Map SG0002-1T and 2T Alaska Department of Natural Resources, Land Records Information Section, 1990 Alaska Geographic Alliance, Institute of the North, 2000 Figure G-1 Study area bedrock geology Deposit Type ieee Water Coastal Glacial Moraines & Drift Eolian Glacio-Fluvial Fluvial Mountain Alluvium & Colluvium am A ie Undifferentiated Alluvium & Colluvium /N/ Potential Connecting Roads Qaf -- Alluvial Fan Qm1 -- Highly Modified Moraine Qat -- Alluvial Terrace Qm2 -- Moderately Modified Moraine Qcc -- Old Marine & Alluvium Qm3 -- Lightly Modified Moraine Qcd -- Coastal Delta Qra -- Bedrock & Coarse Rubble Qe -- Upland Loess Qrb -- Coarse & Fine Rubble Qed -- Sand Dune Qrc -- Fine Rubble Qes -- Valley Loess & Alluvium — Qrd -- Volcanic a ps — eg 3109}, Qfp — Floodplain Qu -- Undifferentiated Mosaic Qi -- Glacier Qw1 -- Old Glacial Outwash Source: US. National Park Service, "A Surficial Geology of Alaska,” 1999 Fig ure G-2 Alaska Department of Natural Resources, Land Records Information Section, 1990 Alaska Geographic Alliance, Institute of the North, 2000 Study area surficial geology YUKON RIVER PORT AND ROAD NETWORK overbank flows associated with periodic flooding. Test pits or borings from several locations within the site should be analyzed to determine deposit quality. Groundwater table. It is important to establish the depth to the groundwater table together with spatial and temporal variations in this parameter. Because groundwater conditions may vary widely throughout the year in response to changing river levels, several measurements are preferable. The dates of measurements should be carefully recorded. Extent of permafrost. Although permafrost occurrence in the vicinity of rivers and streams can be highly erratic, it should be anticipated. The presence or absence of permafrost can be an important factor in developing a gravel removal site. Fluvial sites. To minimize disturbance to the river system, gravel should be removed selectively. Figure G-3 depicts preferred areas for mining in a generic braided system. ‘TO42003003ANC_fig3_3ai 12/18/03 Source: McLean, 1993. Figure G-3 Schematic diagram of general locations suitable and not suitable for floodplain gravel mining Field techniques Both borings and test pits can be used for geotechnical exploration. Although test pits are generally preferred in granular soils because of the difficulty of drilling and sampling in small-diameter borings, borings can provide a good indication of overburden thickness, water table, permafrost conditions, and presence and extent of unacceptable materials (such as silty materials). These borings or test pits FINAL DRAFT ANC/ G-4 YUKON RIVER PORT AND ROAD NETWORK should extend to the depth of the anticipated gravel removal. The number of pits or borings depends on the size and variability of the site. Laboratory testing The laboratory testing effort required for a materials site investigation varies. Sieve analyses are needed, as a minimum, to classify the material and establish its suitability for its intended use. For these tests, rather large bulk samples (110 to 220 pounds) are desirable. Other tests that may be needed include hydrometer tests (if frost susceptibility is a concern) and compaction tests if the gravel would be used to support structures. Site-specific investigation Following the summer field reconnaissance outlined in Section 6.5 above, a full- scale exploration program is necessary to determine both potential borrow material quality and quantities. Upland areas may be explored during summer months. A winter season exploration program may be advantageous in low-lying, marshy areas because drill rigs can operate on the frozen ground or on ice that forms over bodies of water. A winter exploration program may improve overland travel to the exploration sites because of extensive wetland and bog areas in the study corridor. Conventional hollow-stem auger drilling techniques are typically employed during exploration; however, heating of the augers can be required to prevent ice buildup. Standard penetration test (SPT) and larger-diameter split-spoon samplers are used for sample recovery. A water supply and water swivel are needed to prevent heaving sands which are otherwise often encountered (see Williams et al., 1985). These materials are difficult to sample. References Bunditzen, T.K., G.M. Laird, and Dianne Pinney. 1997. Geologic Map of the Opher C-1 and Western Medfra C-6 Quadrangles, Alaska. Alaska Division of Geological and Geophysical Surveys Public Data File Report. Karlstrom, T.N.V. 1964. A Surficial Geology of Alaska. U.S. Geological Survey Miscellaneous Geologic Investigations Map I-357. Digital data prepared by U.S. National Park Service. 1999. <http:/www.nps.gov/akso/gis/Alaska/ alaskaPhys.htm#surfgeol>. Accessed March 19, 2003. McLean, Robert. 1993. North Slope Gravel Pit Performance Guidelines. Alaska Department of Fish and Game, Habitat Restoration Division. Technical Report 93-9. Osterkamp, T.E., R.W. Jurick, G.A. Gibson, and S.I. Akasofu. 1980. Electrical Resistivity Measurements in Permafrost Terrain at the Engineer Creek Road Cut, Fairbanks, Alaska. Cold Regions Science and Technology. Vol. 3. Pp. 277-286. Selkregg, Lidia L. 1975. Alaska Regional Profiles. Vol. V|, Yukon Region. University of Alaska, Arctic Environmental Information and Data Center, Anchorage, Alaska. Williams, D.C., A.R. Zeman, and D.B. Holten. 1985. Borrow Resource Studies in Near-Shore Areas of Alaska’s North Slope. Civil Engineering in The Arctic FINAL DRAFT ANC/ G5 YUKON RIVER PORT AND ROAD NETWORK Offshore: Proceedings of American Society of Civil Engineers Specialty Conference. Woodward-Clyde Consultants. 1980. Gravel Removal Guidelines Manual for Arctic and Subarctic Floodplains. Prepared for U.S. Fish and Wildlife Service. FWS/OBS- 80/09. FINAL DRAFT ANC/ G6 COMMUNITY PROFILES APPENDIX H. COMMUNITY PROFILES Source for the following information: Alaska Department of Community and Economic Development, Alaska Community Database, Detailed Community Information, http://www.dced.state.ak.us/cbd/commdb/CF_BLOCK.htm. Accessed from March to December 2003. Aniak, Alaska Community overview Current Population: 539 (2002 DCED Certified Population) Incorporation Type: 2nd Class City Borough Located In: Unorganized School District: Kuspuk Schools Regional Native Corporation: Calista Corporation Location Aniak is located on the south bank of the Kuskokwim River at the head of Aniak Slough, 59 miles southwest of Russian Mission in the Yukon-Kuskokwim Delta. It lies 92 air miles northeast of Bethel and 317 miles west of Anchorage. It lies at approximately 61.578330° North Latitude and -159.52222° West Longitude. (Sec. 12, T017N, RO57W, Seward Meridian.) Aniak is located in the Kuskokwim Recording District. The area encompasses 6.5 sq. miles of land and 2.3 sq. miles of water. Climate is maritime in the summer and continental in winter. Temperatures range between -55 and 87. Average yearly precipitation is 19 inches, with snowfall of 60 inches. The Kuskokwim is ice-free from mid-June through October. History Aniak is a Yup'ik word meaning "the place where it comes out," which refers to the mouth of the Aniak River. This river played a key role in the placer gold rush of 1900-01. In 1914, Tom L. Johnson homesteaded the site and opened a store and post office. The Yup'ik village of Aniak had been abandoned long before this time. Eskimos Willie Pete and Sam Simeon brought their families from Ohagamuit to Aniak, which reestablished the Native community. A Russian-era trader named Semen Lukin is credited with the discovery of gold near Aniak in 1932. A Territorial school opened in 1936. Construction of an airfield began in 1989, followed by the erection of the White Alice radar-relay station in 1956, which closed in 1978. The City was incorporated in 1972. Culture Aniak's population is primarily Yup'ik Eskimos and Tanaina Athabascans. Subsistence foods contribute largely to villagers' diets. Many families travel to fish camps each summer. FINAL DRAFT ANC/032530001 HA YUKON RIVER PORTS AND ROADS STUDY Economy The economy of Aniak is based on government, transportation and retail services. As the largest city in the area, Aniak is a service hub for surrounding villages. Subsistence activities supplement part-time wage earnings, and some commercial fishing occurs. Poor fish returns since 1997 have affected the community. Fourteen residents hold commercial fishing permits. The School District, Kuskokwim Native Assoc., Bush-Tell Inc., and the Aniak Subregional Clinic provide most year-round employment. Salmon, moose, bear, birds, berries and home gardening provide food sources. Facilities The majority of homes (155) are plumbed and have individual wells. A central well was completed in 1988 by the village corporation; there are also wells at Auntie Marie Nicoli School and the Joe Parent Voc Ed Center. Only 21 households haul water. A central piped sewage system serves most residents, with the exception of the school, the clinic and the Napat subdivision across Aniak Slough. The system has four lift stations, and wastewater is treated in a lagoon. Some homes use individual septic tanks, but permafrost has caused drainfield problems, so most of the unserved homes use pit privies. The City provides septic pumping services. Funds have been provided to replace failing drainfield systems by expanding the piped sewer to serve the remainder of the City and the school. A washeteria is operated by the Village Council. Aniak Power & Light is a privately-owned company. Transportation Access to Aniak is limited to air and water. The State-owned airport is 6,000' of asphalt and is lighted, and is equipped for instrument approaches. Regular flights are provided by several carriers, including charter operators. Major airport improvements were recently completed. Float planes can also land on Aniak Slough. Fuel and supplies are brought in by barge during the summer; other goods are delivered by air year-round. There is no road connection to other villages, although trails and the frozen river are used by snowmachines during winter. A winter trail is marked to Kalskag (15 mi.) The community has requested construction of a road to Chuathbaluk. Climate Climate is maritime in the summer and continental in winter. Temperatures range between -55 and 87. Average yearly precipitation is 19 inches, with snowfall of 60 inches. The Kuskokwim is ice-free from mid-June through October. Crooked Creek, Alaska Community overview Current Population: 137 (2000 U.S. Census) Incorporation Type: Unincorporated Borough Located In: Unorganized FINAL DRAFT ANC/032530001 H-2 YUKON RIVER PORTS AND ROADS STUDY School District: Kuspuk Schools Regional Native Corporation: Calista Corporation Location Crooked Creek is located on the north bank of the Kuskokwim River at its junction with Crooked Creek. It lies in the Kilbuk-Kuskokwim Mountains 50 miles northeast of Aniak, 141 miles northeast of Bethel, and 275 miles west of Anchorage. It lies at approximately 61.87° N Latitude and -158.11083° W Longitude. (Sec. 32, T021N, R048W, Seward Meridian.) Crooked Creek is located in the Fairbanks Recording District. The area encompasses 101.1 sq. miles of land and 7.4 sq. miles of water. A continental climate prevails in the area. Snowfall measures 85 inches per year, with total precipitation averaging 17 inches per year. Temperatures range from -59 to 94. High winds often cause flight delays in the fall and winter. The Kuskokwim is ice-free from mid-June through October. History It was first reported in 1844 by the Russian explorer Zagoskin, who recorded the name of the creek as "Kvikchagpak," or "great bend" in Yup'ik, and as "KhottyIno," or "sharp turn" in Ingalik Indian. He noted that the site was used as a summer fish camp for the nearby villagers of Kwigiumpainukamuit. In 1909, a permanent settlement was established as a way station for the Flat and Iditarod gold mining camps. The USGS reported it in 1910 as "Portage Village" because it was at the south end of a portage route up Crooked Creek to the placer mines. In 1914, Denis Parent founded a trading post upriver from the creek mouth, in what would become the "upper village" of Crooked Creek. A post office was opened in 1927 anda school was built in 1928. The "lower village" was settled by Eskimos and Ingalik Indians. By the early 1940s, there was a Russian Orthodox Church, St. Nicholas Chapel, and several homes. The upper and lower portions of the village remain today. Gold production continued through the late 1980s, when Western Gold Mining and Exploration went out of business. Culture Crooked Creek is a mixed Eskimo and Ingalik village with a lifestyle reliant on subsistence activities. Economy The economy is focused on subsistence activities. Salmon, moose, caribou and water fowl are staples of the diet. There are a few year-round positions with the school and store. Some residents trap and sell pelts. The Calista Corp., Kuskokwim Corp., and Placer Dome U.S. signed an exploration and mining lease for Donlin Creek, north of Crooked Creek. The site is very promising. Facilities All homes lack plumbing; residents haul water and honeybuckets. A new well provides treated water, and a new washeteria has been completed. The school, store, and three homes have individual wells, septic tanks and plumbing. The FINAL DRAFT ANC/032530001 H-3 YUKON RIVER PORTS AND ROADS STUDY school septic drainfield is failing. The community needs a new water tank and landfill with access road. Transportation The Kuskokwim River is the local highway in both summer and winter. ATVs and snow machines are used by residents. The frozen river becomes an ice road in winter. Skiffs and barges provide cargo in summer. A State-owned and operated 2,000' gravel airstrip is southwest of the village, with scheduled weekday air services. A suspension bridge over Crooked Creek connects the upper and lower villages with the airport. Climate A continental climate prevails in the area. Snowfall measures 85 inches per year, with total precipitation averaging 17 inches per year. Temperatures range from -59 to 94. High winds often cause flight delays in the fall and winter. The Kuskokwim is ice-free from mid-June through October. Flat, Alaska Community overview Current Population: 4 (2000 U.S. Census) Incorporation Type: Unincorporated Borough Located In: Unorganized School District: Iditarod Area Schools Regional Native Corporation: Not Applicable Location Flat is located on Otter Creek, 7 miles east of its junction with the Iditarod River. It lies 59 miles northeast of Holy Cross, 8 miles east of Iditarod, in the Kilbuck- Kuskokwim Mountains. It lies at approximately 62.45361° N Latitude and - 158.0075° W Longitude. (Sec. 4, T027N, RO47W, Seward Meridian.) Flat is located in the Kuskokwim Recording District. The area encompasses 161.1 sq. miles of land and 0.0 sq. miles of water. The area has a cold, continental climate. Summer temperatures average from 42 to 80, winters can range from -62 to 0. Annual precipitation is 67 inches, with average snowfall of 110 inches. History Gold was discovered in Flat on Christmas Day in 1908 by John Beaton and his associate. It became the widest pay streak ever found in Alaska. Peter Miscovich (Croatia), Lars Ostnes (Norway) and David Strandberg (Sweden) were also founding fathers, and have been inducted into the Alaska Mining Hall of Fame. Flat became a mining and supply camp, first reported in 1910 by A.G. Maddren of the USGS. A tramway was built between Iditarod and Flat. A post office opened around 1912. Between 1910 and 1914, about 6,000 people had moved to the community. Flat had an elementary school, a telephone system, two stores, a hotel, restaurant, pool hall, laundry and jail. By World War I, the population had dramatically declined. The population was 158 in 1920 and 124 in 1930. By the end of World War Il, only FINAL DRAFT ANC/032530001 H-4 YUKON RIVER PORTS AND ROADS STUDY about 15 people lived there year-round. In 1937, Peter Miscovich purchased a large excavator, increasing production. Culture Only one family lives seasonally in Flat—John and Mary Miscovich. There are three homes in the community. Economy The Iditarod Mining District still produces gold today. Facilities There are no public facilities. Transportation There is no road access. A 4,045' turf and gravel airstrip is available. Climate The area has a cold, continental climate. Summer temperatures average from 42 to 80, winters can range from -62 to 0. Annual precipitation is 67 inches, with average snowfall of 110 inches. Galena, Alaska Community overview Current Population: 713 (2002 est. by State Demographer, DOL/WD) Incorporation Type: 1st Class City Borough Located In: Unorganized School District: Galena City Schools Regional Native Corporation: Doyon, Limited Location Galena is located on the north bank of the Yukon River, 45 miles east of Nulato and 270 air miles west of Fairbanks. It lies northeast of the Innoko National Wildlife Refuge. It lies at approximately 64.73333° North Latitude and -156.9275° West Longitude. (Sec. 06, TOO9S, RO10E, Kateel River Meridian.) Galena is located in the Nulato Recording District. The area encompasses 17.9 sq. miles of land and 6.1 sq. miles of water. The area experiences a cold, continental climate with extreme temperature differences. The average daily high temperature during July is in the low 70s; the average daily low temperature during January ranges from 10 to below zero. Sustained temperatures of -40 degrees are common during winter. Extreme temperatures have been measured from -64 to 92. Annual precipitation is 12.7 inches, with 60 inches of snowfall annually. The River is ice-free from mid-May through mid-October. FINAL DRAFT ANC/032530001 H-5 YUKON RIVER PORTS AND ROADS STUDY History The area's Koyukon Athabascans had spring, summer, fall, and winter camps, and moved as the wild game migrated. In the summer many families would float on rafts to the Yukon to fish for salmon. There were 12 summer fish camps located on the Yukon River between the Koyukuk River and the Nowitna River. Galena was established in 1918 near an old Athabascan fish camp called Henry's Point. It became a supply and trans-shipment point for nearby lead ore mines. In 1920, Athabascans living 14 miles upriver at Louden began moving to Galena to sell wood to steamboats and to work hauling freight for the mines. A school was established in the mid-1920s, and a post office opened in 1932. The Galena Air Field was constructed in World War Il. In 1945, the community suffered a major flood. During the 1950s, military facilities at the Galena and Campion Air Force Stations, airport and road developments, sparked growth in the community. Due to another severe flood in 1971, a new community site was developed at Alexander Lake, about 1 1/2 miles east of the original townsite. City offices, the health clinic, schools, washeteria, store, and more than 150 homes were constructed at "New Town," and a City government was formed. The Air Force Station was closed in 1993, and the facilities are currently being used by the Galena School District as a Boarding School. The Base facilities are maintained under contract by the Chugach Development Corp. Culture The population is mixed Athabascan and non-Native, and traditional festivals attract visitors from other river villages. The establishment of the Galena and Campion Air Force Bases in the 1950s brought growth and change to Galena. Many of Galena's residents were originally from Louden or are descendants of Louden. Subsistence food sources include salmon, whitefish, moose and berries are harvested. Economy Galena serves as the transportation, government and commercial center for the western Interior. Federal, state, city, school and village government jobs dominate, but Galena has many other jobs in air transportation and retail businesses. 31 residents hold commercial fishing permits. Other seasonal employment, such as construction work and BLM fire fighting, provide some income. The Illinois Creek gold mine, 50 miles southwest of Galena, has closed due to low market prices. Facilities Water is derived from wells and is treated. 28 residences and the school are connected to a piped water and sewer system. 110 households now use a flush/haul system. 20 households use honeybuckets, and others have individual septic tanks. Construction of a new well, water treatment system, storage tank and washeteria are underway. Additional homes are being added to the piped water system. Refuse collection and a landfill are provided by the City. The City began operating the landfill, located on the former Campion AFS grounds, in 1997. Improvements are needed. FINAL DRAFT ANC/032530001 H6 YUKON RIVER PORTS AND ROADS STUDY Transportation Galena serves as a regional transport center for surrounding villages. The State- owned Edward G. Pitka Sr. Airport provides the only year-round access. There is a paved, lighted 7,254’ runway and a 2,786' gravel ski strip adjacent to the main runway. The rivers allow access by cargo barges from mid-May through mid- October. A boat launch was recently completed. Pickups, cars, snowmachines, skiffs and ATVs are used for local travel. During winter, the frozen rivers are used for travel to Ruby, Koyukuk, Kaltag and Nulato. A winter trail is available to Huslia. Climate The area experiences a cold, continental climate with extreme temperature differences. The average daily high temperature during July is in the low 70s; the average daily low temperature during January ranges from 10 to below zero. Sustained temperatures of -40 degrees are common during winter. Extreme temperatures have been measured from -64 to 92. Annual precipitation is 12.7 inches, with 60 inches of snowfall annually. The River is ice-free from mid-May through mid-October. Holy Cross, Alaska Community overview Current Population: 232 (2002 DCED Certified Population) Incorporation Type: 2nd Class City Borough Located In: Unorganized School District: Iditarod Area Schools Regional Native Corporation: Doyon, Limited Location Holy Cross is located in Interior Alaska on the west bank of Ghost Creek Slough off the Yukon River. It is 40 miles northwest of Aniak and 420 miles southwest of Fairbanks. It lies at approximately 62.199440° North Latitude and -159.77139° West Longitude. (Sec. 05, T024N, RO57W, Seward Meridian.) Holy Cross is located in the Kuskokwim Recording District. The area encompasses 31.3 sq. miles of land and 6.2 sq. miles of water. The climate of Holy Cross is continental. Temperature extremes range from -62 and 93. Snowfall averages 79.4 inches, with 19 inches of total precipitation per year. The Yukon river is ice-free from June through October. History Holy Cross first had contact with Europeans in the early 1840s, when Russian explorers led by Lt. Zagoskin traveled the Yukon River. They reported "Anilukhtakpak," with 170 people. In 1880, the village was reported as "Askhomute," with 30 residents. A Catholic mission and school were established in the 1880s by Father Aloysius Robaut, who came to Alaska across the Chilkoot Trail. Ingalik Indians migrated to Holy Cross to be near the mission and school. A post office was opened in 1899 under the name "Koserefsky." In 1912, the name of the town was changed to "Holy Cross," after the mission. In the 1930s and 40s, FINAL DRAFT ANC/032530001 H-7 YUKON RIVER PORTS AND ROADS STUDY sternwheelers brought the mail and supplies two or three times a year. The course of the River changed during the 1930s, and by the mid-40s, the slough on which the village is now located was formed. The mission Church and many additional buildings were torn down after the boarding school ceased operations in 1956. The City government was incorporated in 1968. Culture Holy Cross is an Ingalik Indian village. Subsistence and fishing-related activities are important to residents. The sale of alcohol is banned in the village. Economy Holy Cross is characterized by a seasonal economy. Nine residents hold commercial fishing permits. Subsistence hunting, fishing, trapping and gardening supplement income. Facilities Water is derived from a deep well and is treated. A new backup well, new pump house and water treatment facility have been completed. 71 households and the school are connected to the piped water and sewer system, with a plumbed kitchen. A number of residents in the community still haul water from the washeteria and use honeybuckets or outhouses. A Master Plan is underway to examine and engineer expansion of the system. Landfill improvements are needed. Transportation The community is dependent upon air and boat transportation. The State owns and operates a 4,000' gravel airstrip. Holy Cross is serviced by barge in the summer. Residents use boats for fishing, subsistence and recreation. 7.5 miles of local roads are used by 3-wheelers, motor bikes, snowmachines and dog teams. Climate The climate of Holy Cross is continental. Temperature extremes range from -62 and 93. Snowfall averages 79.4 inches, with 19 inches of total precipitation per year. The Yukon river is ice-free from June through October. Kaltag, Alaska Community overview Current Population: 223 (2002 est. by State Demographer, DOL/WD) Incorporation Type: 2nd Class City Borough Located In: Unorganized School District: Yukon/Koyukuk Schools Regional Native Corporation: Doyon, Limited Location Kaltag is located on the west bank of the Yukon River, 75 miles west of Galena and 335 miles west of Fairbanks. It is situated on a 35-foot bluff at the base of the FINAL DRAFT ANC/032530001 H-8 YUKON RIVER PORTS AND ROADS STUDY Nulato Hills, west of the Innoko National Wildlife Refuge. It lies at approximately 64.32722° North Latitude and -158.72194° West Longitude. (Sec. 29, T013S, ROO1E, Kateel River Meridian.) Kaltag is located in the Nulato Recording District. The area encompasses 23.3 sq. miles of land and 4.1 sq. miles of water. The area experiences a cold, continental climate with extreme temperature differences. The average daily high temperature during July is in the low 70s; the average daily low temperature during January ranges from 10 to below zero. Sustained temperatures of -40 degrees are common during winter. Extreme temperatures have been measured from -55 to 90. Annual precipitation is 16 inches, with 74 inches of snowfall annually. The River is ice-free from mid-May through mid-October. History Kaltag is located in Koyukon Athabascan territory, and was used as a cemetery for surrounding villages. It was located on an old portage trail which led east through the mountains to Unalakleet. The Athabascans had spring, summer, fall, and winter camps, and moved as the wild game migrated. There were 12 summer fish camps located on the Yukon River between the Koyukuk River and the Nowitna River. The village was named by Russians for the Yukon Indian named Kaltaga. A smallpox epidemic, the first of several major epidemics, struck the Koyukon in 1839. A military telegraph line was constructed along the north side of the Yukon around 1867. Missionary activity was intense along the Yukon, and a Roman Catholic Mission and school opened upriver in Nulato in 1887. Steamboats on the Yukon, which supplied gold prospectors, peaked in 1900 with 46 in operation. During 1900, food shortages and a measles epidemic struck down one-third of the Native population. Kaltag was established shortly thereafter, when survivors from three nearby seasonal villages moved to the area to regroup. A post office opened in 1903, but closed in 1904. Gold seekers left the mid-Yukon after 1906, but other mining activity, such as the Galena lead mines, began operating in 1919. Asa downriver village on a major transportation route, Kaltag witnessed rapid economic change. The post office reopened in 1909 and operated until 1920. Kaltag's first school opened in 1925. The post office reopened again in 1933. The old cemetery, which was located on Front Street, caved into the River around 1937. A watering point, airport and clinic were constructed during the 1960s. The City government was incorporated in 1969. Culture Kaltag's residents are Koyukon Athabascans. The Stick Dance Festival draws visitors from many neighboring villages. This one-week festival of potlatches is sponsored by relatives of the recently deceased, in appreciation of those who helped during their time of mourning. Economy Subsistence is an important part of the local economy. Salmon, whitefish, moose, bear, waterfowl and berries are harvested. Most cash jobs are with the school, local government, BLM fire fighting, commercial fishing or fish processing. 18 residents hold commercial fishing permits. FINAL DRAFT ANC/032530001 H-9 YUKON RIVER PORTS AND ROADS STUDY Facilities Piped water and sewer has existed since 1982 in Kaltag. A circulating water and gravity sewage system is used. Water is derived from a well and is treated. The majority of households are fully plumbed. A new 13-unit HUD subdivision was recently connected to the system, and an extension to 6th Avenue is under construction. A new washeteria was completed in January 1998. Transportation The State-owned 5,000' lighted gravel airstrip provides Kaltag with year-round air service. Barges typically deliver heavy cargo three times a year. Snowmachines, ATVs and riverboats are used for local transportation. The frozen river, local trails and the 90-mile Old Mail Trail to Unalakleet are used during the winter for woodcutting and trap lines. Climate The area experiences a cold, continental climate with extreme temperature differences. The average daily high temperature during July is in the low 70s; the average daily low temperature during January ranges from 10 to below zero. Sustained temperatures of -40 degrees are common during winter. Extreme temperatures have been measured from -55 to 90. Annual precipitation is 16 inches, with 74 inches of snowfall annually. The River is ice-free from mid-May through mid-October. McGrath, Alaska Community overview Current Population: 401 (certified December 2001, by DCED) Incorporation Type: 2nd Class City Borough Located In: Unorganized School District: Iditarod Area Schools Regional Native Corporation: Doyon, Limited Location McGrath is located 221 miles northwest of Anchorage and 269 miles southwest of Fairbanks in Interior Alaska. It is adjacent to the Kuskokwim River directly south of its confluence with the Takotna River. It lies at approximately 62.95639° N Latitude and -155.59583° W Longitude. (Sec. 18, TO33N, RO33W, Seward Meridian.) McGrath is located in the Mt. McKinley Recording District. The area encompasses 48.9 sq. miles of land and 5.7 sq. miles of water. The McGrath area has a cold, continental climate. Average summer temperatures range from 62 to 80, winters temperatures can range from -64 to 0. Precipitation is light, averaging 10 inches per year, including an average snowfall of 86 inches. The Kuskokwim River is generally ice-free from June through October. History McGrath was a seasonal Upper Kuskokwim Athabascan village which was used as a meeting and trading place for Big River, Nikolai, Telida and Lake Minchumina FINAL DRAFT ANC/032530001 H-10 YUKON RIVER PORTS AND ROADS STUDY residents. The Old Town McGrath site, was originally located across the river. In 1904, Abraham Appel established a trading post at the old site. In 1906, gold was discovered in the Innoko District, and at Ganes Creek in 1907. Since McGrath is the northernmost point on the Kuskokwim River accessible by large riverboats, it became a regional supply center. By 1907, a town was established, and was named for Peter McGrath, a local U.S. Marshal. In 1909, the Alaska Commercial Company opened a store. The Iditarod Trail also contributed to McGrath's role as a supply center. From 1911 to 1920, hundreds of people walked and mushed over the Trail on their way to the Ophir gold districts. Mining sharply declined after 1925. After a major flood in 1933, some residents decided to move to the south bank of the River. Changes in the course of the River eventually left the old site on a slough, useless as a river stop. In 1937, the Alaska Commercial Company opened a store at the new location. In 1940, an airstrip was cleared, the FAA built a communications complex, and a school was opened. McGrath became an important refueling stop during World War Il, as part of the Lend-Lease Program between the U.S. and Russia. In 1964, a new high school was built, attracting boarding students from nearby villages. The City was incorporated in 1975. Culture A little less than half of the population are Athabascans, Eskimos or Aleuts. As a regional center, McGrath offers a variety of employment opportunities, but subsistence remains an important part of the local culture. About 10 families in town have dog teams which they enter into the Iditarod, Kuskokwim 300, and Mail Trail 200 sled dog races. Economy McGrath functions as a transportation, communications, and supply center in Interior Alaska. It has a diverse cash economy, and many families rely upon subsistence. Salmon, moose, caribou, bear, and rabbits are utilized. Some residents trap and tend vegetable gardens. The Nixon Fork gold mine located 30 miles northeast of McGrath ceased operations in May 1999 due to low gold prices. 45 year-round employees were laid off, and 5 caretakers remain on the property. Facilities McGrath operates a piped water system that serves nearly all 178 households; a few homes have individual wells or haul water. The FAA operates its own water system. Individual septic tanks are used by the majority of residents; a limited City sewage system serves approximately 34 homes. Funds have been requested to expand the piped sewer system to the 144 houses and businesses currently using septic tanks. A private firm, McGrath Trash & Refuse, collects refuse for disposal at the City landfill. Transportation There are no road connections to McGrath, but local roads are used by ATVs and trucks. Winter trails are marked to Nikolai (50 mi.) and Takotna (20 mi.) Residents rely on air service and barges to deliver cargo. Air facilities include a State-owned FINAL DRAFT ANC/032530001 H-11 YUKON RIVER PORTS AND ROADS STUDY 5,435’ paved runway with a 1,700’ crosswind landing strip, and a seaplane base on the Kuskokwim River. The airport is currently undergoing major improvements. There is no dock, however, a boat launch ramp is available. Climate The McGrath area has a cold, continental climate. Average summer temperatures range from 62 to 80, winters temperatures can range from -64 to 0. Precipitation is light, averaging 10 inches per year, including an average snowfall of 86 inches. The Kuskokwim River is generally ice-free from June through October. Ophir, Alaska Nothing listed in Community Database. Poorman, Alaska Nothing listed in Community Database. Ruby, Alaska Community overview Current Population: 195 (2002 DCED Certified Population) Incorporation Type: 2nd Class City Borough Located In: Unorganized School District: Yukon/Koyukuk Schools Regional Native Corporation: Doyon, Limited Location Ruby is located on the south bank of the Yukon River, in the Kilbuck-Kuskokwim Mountains. It is about 50 air miles east of Galena and 230 air miles west of Fairbanks. Ruby lies adjacent to the Nowitna National Wildlife Refuge. It lies at approximately 64.739440° North Latitude and -155.48694° West Longitude. (Sec. 04, TOO9S, RO17E, Kateel River Meridian.) Ruby is located in the Nulato Recording District. The area encompasses 7.6 sq. miles of land and 0.0 sq. miles of water. The area experiences a cold, continental climate with extreme temperature differences. The average daily high temperature during July is in the low 70s; the average daily low temperature during January ranges from 10 to below zero. Sustained temperatures of -40 degrees are common during winter. Extreme temperatures have been measured from -53 to 98. Annual precipitation is 17 inches, with 66 inches of snowfall annually. The River is ice-free from mid-May through mid-October. History Ruby's current residents are Koyukon Athabascans of the Nowitna-Koyukuk band, a nomadic group who followed game with the changing seasons. There were 12 summer fish camps located on the Yukon River between the Koyukuk River and the Nowitna River. Ruby developed as a supply point for gold prospectors. It was FINAL DRAFT ANC/032530001 H-12 YUKON RIVER PORTS AND ROADS STUDY named after the red-colored stones found on the riverbank which were thought by prospectors to be rubies. A gold strike at Ruby Creek in 1907, and another at Long Creek in 1911, attracted hundreds of prospectors to the area. At one time, over 1,000 white miners lived in Ruby and the nearby creeks. Placerville, Poorman, Sulatna Crossing, Kokrines and Long Creek were some of the area's boom settlements. A post office was established in 1912, and Ruby incorporated as a city in 1913. Initially, the City was governed by miner's meetings, then later by Pioneer Igloo Number 5. After the gold rush, the population declined rapidly. By 1939, there were only 139 residents. During World War II the mining operations were shut down and most of the white residents left. After the war, the remaining residents of nearby Kokrines relocated to Ruby, and the population began to increase. Ruby incorporated as a second class city in 1973. A clinic, watering point and schools were constructed in the 1970s. During the 1980s, telephones and television services were provided. Culture The traditional Athabascan culture and subsistence practices are the focal point of village life. Economy The City, Tribe, school, tribal council, Dineega Corp. and clinic are the largest employers. Ruby also has a number of small, family-operated businesses. BLM fire fighting, construction work, Native handicrafts and trapping are part-time cash sources. Subsistence activities provide some food sources. Salmon, whitefish, moose, bear, ptarmigan, waterfowl, and berries are utilized. Eight residents hold commercial fishing permits. Facilities Approximately 65% of residents haul water from the washeteria and use outhouses. Individual wells and septic systems are also used. A new water source, water treatment plant and washeteria are under construction. The school operates its own well. Transportation Ruby is accessible by air and water. A State-owned 4,000’ lighted gravel airstrip is available. There are no docking facilities, but a boat launch and barge off-loading area are available. Barges make several deliveries each summer. Float planes land on the Yukon River. Trucks, snowmachines, ATVs and riverboats are used for local transportation. Numerous trails and the 35-mile road to Long Creek Mine to the south are used for subsistence and wood cutting. Climate The area experiences a cold, continental climate with extreme temperature differences. The average daily high temperature during July is in the low 70s; the average daily low temperature during January ranges from 10 to below zero. Sustained temperatures of -40 degrees are common during winter. Extreme temperatures have been measured from -53 to 98. Annual precipitation is 17 FINAL DRAFT ANC/032530001 HA3 YUKON RIVER PORTS AND ROADS STUDY inches, with 66 inches of snowfall annually. The River is ice-free from mid-May through mid-October. Takotna, Alaska Community overview Current Population: 50 (2000 U.S. Census) Incorporation Type: Unincorporated Borough Located In: Unorganized School District: Iditarod Area Schools Regional Native Corporation: Doyon, Limited Location Takotna is located in Interior Alaska on the north bank of the Takotna River in a broad scenic river valley, 17 air miles west of McGrath in the Kilbuck-Kuskokwim Mountains. It lies at approximately 62.98861° N Latitude and -156.06417° W Longitude. (Sec. 35, T034N, RO36W, Seward Meridian.) Takotna is located in the Manley Hot Springs Recording District. The area encompasses 23.5 sq. miles of land and 0.0 sq. miles of water. Takotna has a cold, continental climate. Summer temperatures average 42 to 80, winter temperatures range from -42 to 0. The Takotna River is generally ice-free from June through October. History Takotna has been known as Berry Landing, Portage City, Takotna City, Takotna Station, and Tocotna. In 1908, merchants in Bethel hired Arthur Berry to bring supplies up the Takotna River. The village was founded at the farthest point on the river Berry's small sternwheeler was able to reach. By 1912, the community had several stores which supplied miners. Gold discoveries in the upper Innoko Region enabled the town to prosper. By 1919, there were several commercial companies, roadhouses, a post office, and about 50 houses. In 1921, the Alaska Road Commission improved the Takotna-Ophir road, and an airfield was constructed. In 1923, a radio station began broadcasting in Takotna, and the town had its own newspaper, The Kusko Times. Low waters at times precluded the arrival of steamboats, so the Takotna-Sterling Landing road was constructed to the Kuskokwim River in 1930. During the 30s, however, McGrath became the more dominant supply center, and the ACC store closed. In 1949, construction was begun on nearby Tatalina Air Force Station. It was the site of a White Alice communications system, but operations were phased out during the 1980s. Culture Takotna is a mixed population of Non-Natives, Ingalik Indians and Eskimos. Subsistence is a prevalent activity. The sale of alcohol is prohibited in the village. Economy Takotna has a combined cash and subsistence economy. Employment is through the school district, post office, clinic, local businesses and seasonal construction. A lodge is currently under construction. 80 percent of residents are involved in FINAL DRAFT ANC/032530001 H-14 YUKON RIVER PORTS AND ROADS STUDY subsistence activities. Moose and salmon are the primary meat sources. Many residents garden during the summer. Facilities Water from Gold Creek is treated and hauled by residents from the washeteria. Water is also hauled from the Takotna Waterworks. Approximately 20 percent of homes have storage tanks with running water for the kitchen, but no homes are completely plumbed. Community buildings use individual wells and septic tanks. Honeybuckets and outhouses are used for sewage disposal. A feasibility study for water and sewer improvements is complete, but funds have not been secured for construction. The high school has no running water or restrooms. Transportation Access to Takotna is by air or water. There is a State-owned 1,717’ gravel airstrip, and a 3,800' gravel runway at Tatalina Air Force Station 10 miles southeast of town. Cargo is offloaded at Sterling Landing, 24 miles southeast of Takotna. The community has 80 miles of local roads that connect with Tatalina AFS, Sterling Landing and existing mines. A winter trail is marked to McGrath (20 mi.) It is a check point for the Iditarod sled dog race. Climate Takotna has a cold, continental climate. Summer temperatures average 42 to 80, winter temperatures range from -42 to 0. The Takotna River is generally ice-free from June through October. FINAL DRAFT ANC/032530001 H-A5 Se iliih TRANSPORTATION COST CALCULATIONS PINECi sie LARISA OPTS APPENDIX I. TRANSPO TION COST CALCULATIONS Tables in this appendix were prepared by Northern Economics, Inc. Waterway and highway distances Seattle to Anchorage 1,428 Seattle to Bethel 2,065 Seattle to Yukon River mouth 2,213 Anchorage to Bethel 1,109 Anchorage to Yukon River mouth 1,257 Yukon River mouth to Railroad City (near Holy Cross) 256 Yukon River mouth to Ruby 525 Bethel to Crooked Creek 152 Dalton Highway Bridge to Ruby 208 Dalton Highway Bridge to Railroad City (near Holy Cross) 477 Nenana to Tanana 133 Tanana to Ruby 102 Nenana to Railroad City (near Holy Cross) 504 seer ena Anchorage to Dalton Highway Bridge 487 Anchorage to Fairbanks 358 Anchorage to Nenana 305 Crooked Creek to Donlin Creek Mine 23 North Pole to Dalton Highway Bridge 141 North Pole to Nenana 75 Railroad City (near Holy Cross) o Donlin Creek Mine 64 Ruby to Donlin Creek Mine 253 Source: Distances calculated by Northern Economics, Inc., from data in U.S. Department of Commerce, National Ocean Service (2002a) and DeLorme Mapping (1998). FINAL DRAFT ANC/030990015 1 YUKON RIVER PORT AND ROAD NETWORK Annual trips by barges and trucks to support Donlin Creek Mine operations Ocean barge tows* 20 Yukon river barge tows—large barges through mouth? 60 Yukon river barge tows—small barges from Fairbanks area® 197 Kuskokwim river barge tows® 118 Truckloads® 4,539 Ocean barge tows! 10-15 Yukon river barge tows—large barges through mouth? 45 Yukon river barge tows—small barges from Fairbanks area” 332 Kuskokwim river barge tows! 73 Truckloads—48 million gallons! 3,200 Truckloads—10 million gallons! 667 Ocean barge tows 30-35 Yukon river barge tows—large barges through mouth 105 Yukon river barge tows—small barges from Fairbanks area . 529 Kuskokwim river barge tows 191 Truckloads—with 48 million gallons of fuel 7,739 Truckloads—with 10 million gallons of fuel 5,206 * Assumes 12,000 tons per barge ° Assumes 4,110 tons per tow ° Assumes 1,200 tons per tow ? Assumes 2 barge tow of 2,000 tons per tow ° Assumes average load of 52 tons using Super-B-train equipment ‘ Assumes 5.0 and 3.3 million gallons per tow ° Assumes 1.1 million gallons per tow * Assumes 145,000 gallons per tow ' Assumes 2 barge tow of 650,000 gallons per tow ) Assumes 15,000 gallons per load using Super-B-train equipment Source: Values calculated by Northern Economics, Inc., from data on annual supply requirements for proposed Donlin Creek Mine provided by Ridley (2003a). FINAL DRAFT ANC/030990015 1-2 YUKON RIVER PORT AND ROAD NETWORK Annual and hourly operating cost for towboats 2003 dollars for horsepower of: Annual costs 800° 2200° 3500° 7200 Replacement 78,713 232,183 320,452 783,862 Boat 165,120 256,598 293,733 430,170 Crew 131,607 175,583 200,840 978,320 Administration 65,122 101,025 105,952 183,104 Fuel 285,374 463,827 569,260 4,052,891 Total annual costs 724,936 1,229,216 1,490,236 6,428,346 Average hourly cost 248 488 591 765 * Costs are estimates for dedicated equipment operations on Kuskokwim or Yukon rivers. Sources: Values estimated by Northern Economics, Inc., by using formulas from COE, Institute for Water Resources (2000). Values for 2003 were calculated by inflating 2002 costs by 3.2 percent as recommended by Office of Management and Budget (2003b). Hourly operating costs for deck and fuel barges Deck barge Fuel barge Capacity Hourly operating Capacity Hourly operating (short tons) cost (2003 $) (gallons) cost (2003 $) 1,000 8° 290,000 33° 2,500 17° 700,000 61° 4,000 95°” 1,100,000 215% 12,000 28 3,300,000 83 18,000 42 5,000,000 125 * Costs are estimates for dedicated equipment operations on Kuskokwim or Yukon rivers. » Construction costs estimates from Bringloe (2003). Sources: Values estimated by Northern Economics, Inc., are based on cost per ton of capacity from COE, Institute for Water Resources (2000) and Bringloe (2003). Values were updated to 2002 price levels by using U.S. Department of Labor, Bureau of Labor Statistics (2003b). Values for 2003 were calculated by inflating 2002 costs by 3.2 percent as recommended by Office of Management and Budget (2003b). FINAL DRAFT ANC/030990015 YUKON RIVER PORT AND ROAD NETWORK Fuel and freight trucking costs Freight trucking costs* Fuel trucking costs” (2003 $) (2003 $) One-way* distance Annual cost Cost Cost Annual cost Cost Cost Segment (miles) per truck per ton per mile per truck per gallon per mile Crooked Creek to Donlin Creek Mine 23 257,774 6.55 6.23 259,968 0.03 6.28 Railroad City (near Holy Cross) to 64 336,008 11.39 4.38 324,042 0.06 4.22 Donlin Creek Mine North Pole to Nenana 75 365,180 12.38 4.06 347,934 0.07 3.87 North Pole to Dalton Highway Bridge 141 353,246 23.95 4.18 338,160 0.10 4.00 Ruby to Donlin Creek Mine 253 334,019 43.88 4.40 322,413 0.16 4.25 Anchorage to Nenana 305 368,495 48.40 4.03 350,649 0.18 3.83 Anchorage to Dalton Highway Bridge 487 489,161 64.25 3.35 449,475 0.22 3.08 * Super B Train configuration (tractor and two semi trailers; trailers connected to each other by a three-axle platform) with 52 tons of freight per load. ° Super B Train configuration with 15,000 gallons of fuel per load. Highway loads from Anchorage could be restricted to smaller, more expensive configurations. ° Calculated from DeLorme Mapping (1998). Source: Values calculated by Northern Economics, Inc., from data in Trimac Logistics Ltd. (2002). Labor costs were updated by using data from Alaska Department of Labor and Workforce Development (2002). Equipment costs were updated to 2002 levels by using U.S. Department of Labor, Bureau of Labor Bureau of Labor Statistics (2003a, 2003c). Values for 2003 were calculated by inflating 2002 costs by 3.2 percent as recommended by Office of Management and Budget (2003b). FINAL DRAFT ANC/030990015 1-4 YUKON RIVER PORT AND ROAD NETWORK Annual costs of fuel delivery to Donlin Creek Mine by alternative routes Base case: Alternative 1a: shipments on shipments through Alternative 1b: Alternative 2a: Kuskokwim River Yukon River mouth shipments through shipments through through Crooked and port near Holy Yukon Rivermouth Nenana and Ruby Creek port Cross and Ruby port ports Transport item $ million $/gallon $million $/gallon $million $/gallon $million $/gallon Ocean barge 3.4 0.07 4.3 0.09 3.7 0.08 0.0 0.00 Lighter barges/tugs 3.0 0.06 5.3 0.11 7.0 0.15 9.4 0.20 Truck highway 0.0 0.00 0.0 0.00 0.0 0.00 21 0.04 Truck off road 0.3 0.03 0.6 0.06 7.1 0.15 7A 0.15 Handling and 5.4 0.11 wharfage costs 2.7 0.06 2.8 0.06 2.7 0.06 Total cost 12.1 0.25 13.0 0.27 20.7 0.43 21.3 0.44 Note: All values are provided in 2003 dollars. Source: Values estimated by Northern Economics, Inc. Marine vessel costs were calculated by using formulas from COE, Institute for Water Resources (2000). Vessel costs were updated to 2002 price levels by using the U.S. Department of Labor, Bureau of Labor Statistics (2003b, 2003d). Costs for ocean tugs and barges are based on 350-day operation and assume vessels would move to other work sites during winter freezeup and spring breakup. Costs for river tugs and barges are based on dedicated fleet operations and assume vessels are winterized for storage during winter freezeup and spring breakup. Ocean shipping distances were calculated from U.S. Department of Commerce, National Ocean Service (2002a). Trucking costs were calculated by using data from Trimac Logistics Ltd. (2002). Motor carrier labor costs were updated with data from Alaska Department of Labor and Workforce Development (2002). Equipment costs were updated to 2002 levels by using U.S. Department of Labor, Bureau of Labor Statistics (2003a, 2003c). Values for 2003 were calculated by inflating 2002 costs by 3.2 percent as recommended by Office of Management and Budget (2003b). Handling and wharfage costs were based on average values from tariffs for Vancouver, Seattle, Anchorage, Bethel, Nome, and Dutch Harbor. FINAL DRAFT ANC/032530002 15 YUKON RIVER PORT AND ROAD NETWORK Annual costs of freight delivery to Donlin Creek Mine by alternative routes Base case: Alternative 1a: shipments on shipments through Alternative 1b: Alternative 2a: Kuskokwim River Yukon Rivermouth shipmentsthrough shipments through through Crooked and portnear Holy Yukon Rivermouth Nenana and Ruby Creek port Cross and Ruby port ports Transport item $million $/fon $million $/ton $million $/ton $million $/ton Ocean barge 9.6 40.6 10.2 43.1 10.2 43.1 49 0.0 Lighter barges/tugs 5.3 22.5 6.9 29.1 10.3 43.7 6.2 26.3 Truck highway 0.0 0.0 0.0 0.0 0.0 0.0 11.4 48.4 Truck off road 1.5 6.6 2.7 11.4 10.4 43.9 10.4 43.9 Handling and 8.9 37.9 wharfage costs 8.4 35.6 8.4 35.6 9.7 41.0 Total cost 25.4 107.5 28.1 119.2 39.2 166.2 42.5 180.2 Note: All values are provided in 2003 dollars. Source: Values estimated by Northern Economics, Inc. Marine vessel costs were calculated by using formulas from COE, Institute for Water Resources (2000). Vessel costs were updated to 2002 price levels by using the U.S. Department of Labor, Bureau of Labor Statistics (2003b, 2003d). Costs for ocean tugs and barges are based on 350-day operation and assume vessels would move to other work sites during winter freeze and spring breakup. Costs for river tugs and barges are based on dedicated fleet operations and assume vessels are winterized for storage during winter freezeup and spring breakup. Ocean shipping distances were calculated from U.S. Department of Commerce, National Ocean Service (2002a). Trucking costs were calculated by using data from Trimac Logistics Ltd. (2002). Motor carrier labor costs were updated with data from Alaska Department of Labor and Workforce Development (2002). Equipment costs were updated to 2002 levels by using U.S. Department of Labor, Bureau of Labor Statistics (2003a, 2003c. Values for 2003 were calculated by inflating 2002 costs by 3.2 percent as recommended by Office of Management and Budget (2003b). Handling and wharfage costs were based on average values from tariffs for Vancouver, Seattle, Anchorage, Bethel, Nome, and Dutch Harbor. FINAL DRAFT ANC/032530002 16 YUKON RIVER PORT AND ROAD NETWORK Net present value road, dock, and storage construction and maintenance costs by stage of construction, 2003 to 2029 Base case: shipments on Alternative 1a: Kuskokwim shipments Alternative 1b: = Alternative 2a: River through through Yukon shipments shipments Crooked Creek _— River mouth and through Yukon through port port near Holy River mouth Nenana and Component Cross and Ruby port Ruby ports Road Stage |* 75.8 135.4 364.1 364.1 Stage II? 152.3 152.3 0 0 Stage III° 286.2 286.2 150.2 150.2 Dock 5.9 5.9 5.9 11.8 Fuel storage 51.9 51.9 77.8 103.8 Power line 7.9 24.9 - - Construction costs total 580.0 656.6 598.0 629.9 Road Stage |? 20.5 37.2 105.1 105.1 Stage IP 41.9 41.9 0 0 Stage III° 74.6 74.6 31.9 31.9 Dock 1.3 1.3 1.3 25 Fuel storage 15.4 15.4 23.2 30.9 Power line 0.2 0.7 - - Maintenance costs total 153.9 171.1 161.5 170.4 Construction and maintenance 733.9 costs total 827.7 759.5 800.3 * Holy Cross to Flat for Alternative 1a; Crooked Creek to Flat for Kuskokwim River; and Ruby to Donlin Creek Mine for Alternatives 1b and 2a. > Flat to Ophir, McGrath to Takotna, and Takotna to Ophir for Alternative 1a and Kuskokwim River; no additional segments for Alternatives 1b and 2a. ° Ophir to Poorman, Poorman to Ruby, Takotna to Nixon Fork for Alternative 1a and Kuskokwim River; connections to McGrath and Nixon Fork for Alternatives 1b and 1c. Note: All values are provided in 2003 dollars. Source: Values calculated by Northern Economics, Inc., based on estimates provided by Jochens (2003) FINAL DRAFT ANC/032530002 1-7 YUKON RIVER PORT AND ROAD NETWORK References Alaska Department of Labor and Workforce Development. 2002. 2001 Alaska Wage Rates: Statewide. <http://www.labor.state.ak.us/research/wages/swoes.htm>. Accessed June 2003. Bringloe, J. Thomas. 2003, August 20. Personal communications with Ken, Lemke, Northern Economics, Inc. DeLorme Mapping. 1998. Alaska Atlas & Gazetteer. Jochens, Steve, P.E., CH2M HILL. 2003, September 29. Personal communication with Ken Lemke, Northern Economics, Inc. Office of Management and Budget. 2003b, January 30. 2003 Discount Rates for OMB. Circular No. A-94. <www.whitehouse.gov/omb/memoranda/m03-08.htmI>. Accessed July 2003. Ridley, Richard, Placer Dome. 2003a, March 14. Personal communication with Ken Lemke, Northern Economics, Inc. Trimac Logistics Ltd. 2002. Operating Costs of Trucks in Canada - 2001, Final Study Report. Prepared for Transport Canada. <http:/Awww.tc.gc.ca/pol/en/Report/ OperatingCost2001 .pdf>. Accessed March 2003. U.S. Army Corps of Engineers (COE), Institute for Water Resources. 2000, April. Economic Guidance Memorandum 00-05, FY 2000 Shallow Draft Vessel Operating Costs. <http://www.iwr.usace.army.mil/iwr/pdf/egm051.pdf>. Accessed March 2003. U.S. Department of Commerce, National Ocean Service. 2002. Distances Between United States Ports, 2002. 9th edition. <http://chartmaker.ncd.noaa.gov/nsd/ distances-ports/distances.pdf>. Accessed March 2003. U.S. Department of Labor, Bureau of Labor Statistics. 2003a. Producer Price Index Series WPU1414 Transportation Equipment: Truck Trailers. <http://data.bls.gov/cgi-bin/srgate>. Accessed June 2003. U.S. Department of Labor, Bureau of Labor Statistics. 2003b. Producer Price Index Series WPU1431, Transportation Equipment: Ships. <http://data.bls.gov/cgi- bin/srgate>. Accessed June 2003. U.S. Department of Labor, Bureau of Labor Statistics. 2003c. Producer Price Index Series WPU141106 Transportation Equipment: Trucks, over 10,000 Ibs GVM. <http://data.bls.gov/cgi-bin/srgate>. Accessed June 2003. U.S. Department of Labor, Bureau of Labor Statistics. 2003d. Producer Price Index Series PCU4492#P(N), Tugging and Towing Services. <http://data.bls.gov/cgi- bin/srgate>. Accessed June 2003. FINAL DRAFT ANC/032530002 1-8 MINERAL POTENTIAL CALCULATIONS APPENDIX J. MINERAL POTENTIAL CALCULATIONS New* mineral development activity in Tintina Gold Belt from Yukon port and river network development Placer mines Small mines Large mines Construction Production Construction Production Construction Production Year Discovered phase phase Discovered phase phase Discovered phase phase 2011 0 0 0 1 0 0 1 0 0 2012 0 0 0 0 1 0 0 1 0 2013 0 0 0 0 0 1 0 1 0 2014 1 0 0 0 0 1 0 0 1 2015 0 1 1 0 0 1 0 0 1 2016 0 0 1 1 0 1 0 0 1 2017 1 0 1 0 1 1 0 0 1 2018 0 1 2 0 0 2 0 0 1 2019 0 0 2 0 0 2 0 0 1 2020 1 0 2 0 0 2 0 0 1 2021 0 1 3 1 0 2 0 0 1 2022 0 0 2 0 1 2 0 0 1 2023 1 0 2 0 0 2 0 0 1 2024 0 1 3 0 0 2 0 0 1 2025 0 0 2 0 0 2 0 0 1 2026 1 0 2 1 0 1 0 0 1 2027 0 1 3 0 1 1 0 0 1 2028 0 0 2 0 0 2 0 0 1 2029 0 0 2 0 0 2 0 0 0 * Does not include employment or production activity at Donlin Creek Mine. Source: Scenario developed by Northern Economics, Inc., based on information from Glavinovich (2003a, 2003b, 2003c). FINAL DRAFT ANC/030990015 J YUKON RIVER PORT AND ROAD NETWORK Total and net present value of new’ mineral development activity, 2012 to 2029 After tax rate of Government Mine revenues return (2003 $ revenues Landowner revenues Year (2003 $ million) million) (2003 $ million) (2003 $ million) 2012 - - - - 2013 27.9 2.9 0.1 0.1 2014 129.8 13.5 0.4 0.5 2015 130.4 13.6 0.4 0.5 2016 126.3 13.1 0.4 0.5 2017 122.4 12.7 0.4 0.5 2018 146.6 15.2 0.5 0.6 2019 142 14.8 0.4 0.6 2020 137.6 14.3 0.4 0.6 2021 137.2 14.3 0.4 0.6 2022 129.2 13.4 0.4 08 2023 125.2 13 0.4 0.5 2024 124.8 13 0.4 0.5 2025 1176 12.2 0.4 0.5 2026 95.4 9.9 0.3 0.4 2027 95.6 9.9 0.3 0.4 2028 107 11.1 0.3 0.4 2029 103.7 10.8 0.3 0.4 Total 1,998.6 207.9 6.2 8.3 ® Does not include employment or production activity at Donlin Creek Mine. > Real interest rate on 30-year bonds from Office of Management and Budget (2003a). ° Discount rate established by U.S. Army Corps of Engineers (COE), Directorate of Civil Works Planning and Policy (2003) for use in evaluation of plans for water and related land resources. * Real discount rate suggested for use in internal planning of Executive Branch agencies by Office of Management and Budget (2003b). Source: Scenario developed by Northern Economics, Inc. based on information from Glavinovich (2003c). FINAL DRAFT ANC/032530002 J-2 YUKON RIVER PORT AND ROAD NETWORK New* mineral development activity direct impacts on local resident employment and wages Local resident jobs Local resident wages (2003 $ million) Year Production phase Constructionphase Productionphase Construction phase 2011 0 0 : - 2012 0 390 0 14.2 2013 75 300 2.7 10.6 2014 375 0 12.8 0 2015 384 6 12.6 0.1 2016 384 0 12.2 0 2017 384 90 11.8 2.8 2018 468 6 13.9 0.1 2019 468 0 13.4 0 2020 468 0 13 0 2021 477 6 12.7 0.1 2022 468 90 12.2 2.4 2023 468 0 11.8 0 2024 477 6 11.6 0.1 2025 468 0 WA 0 2026 393 0 9 0 2027 402 96 8.8 2.1 2028 468 0 10.1 0 2029 468 0 9.8 0 Total 189.7 32.5 * Does not include employment or production activity at Donlin Creek Mine. > Real interest rate on 30-year bonds from Office of Management and Budget (2003a). ° Discount rate established by U.S. Army Corps of Engineers for use in evaluation of plans for water and related land resources. COE, Directorate of Civil Works Planning and Policy (2003). ¢ Real discount rate suggested for use in internal planning of Executive Branch agencies by Office of Management and Budget (2003b). Source: Scenario developed by Northern Economics, Inc., based on information from Glavinovich (2003c). FINAL DRAFT ANC/032530002 J-3 YUKON RIVER PORT AND ROAD NETWORK References Glavinovich, Paul S., Minerals Consultant. 2003a, March 18. Personal communication with Ken Lemke, Northern Economics, Inc. Glavinovich, Paul S., Minerals Consultant. 2003b, March 24. Personal communication with Ken Lemke, Northern Economics, Inc. Glavinovich, Paul S., Minerals Consultant. 2003c, March. Potential Mineral Resources of the Proposed Land Route Poorman, AK, to Crooked Creek, AK. Prepared for Northern Economics, Inc. Office of Management and Budget. 2003a, January. Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs. Circular No. A-94 Revised. <www.whitehouse.gov/omb/circulars/a094/a094.html>. Accessed July 2003. Office of Management and Budget. 2003b, January 30. 2003 Discount Rates for OMB. Circular No. A-94. <www.whitehouse.gov/omb/memoranda/m03-08.html>. Accessed July 2003. U.S. Army Corps of Engineers (COE), Directorate of Civil Works Planning and Policy. 2003, July. Economic Guidance Memorandum 03-02, Federal Discount Rate FY 2003. <http:/Mwww.usace.army.mil/inet/functions/cw/cecwp/ General_guidance/egm03-02.pdf>. Accessed July 2003. FINAL DRAFT ANC/032530002 J-4 sale | a a — | TRANSPORTATION DEMAND CALCULATIONS FOR THE STUDY AREA APPENDIX K. TRANSPORTATION DEMAND CALCULATIONS FOR THE 8] A715 Estimates of fuel and freight demands for study area communities Fuel demand Freight demand Gallons (000) Tons (000) Tons (000) Bypass Year Population High Low High Low High Low (tons 000) 2000 5,726 5,250.7 3,435.6 18.9 12.4 19.5 2.9 5.8 2001 5,777 5,297.5 3,466.2 19.1 12.5 19.6 2.9 5.8 2002 5,828 5,344.3 3,496.8 19.2 12.6 19.8 2.9 5.9 2003 5,880 5,392.0 3,528.0 19.4 12.7 20.0 29 5.9 2004 5,932 5,439.6 3,559.2 19.6 12.8 20.2 3.0 6.0 2005 5,985 5,488.2 3,591.0 19.7 12.9 20.3 3.0 6.1 2006 6,061 5,557.9 3,636.6 20.0 13.1 20.6 3.0 6.1 2007 6,137 5,627.6 3,682.2 20.2 13.2 20.9 3.1 6.2 2008 6,214 5,698.2 3,728.4 20.5 13.4 21.1 3.1 6.2 2009 6,292 5,769.8 3,775.2 20.8 13.6 21.4 3.1 6.3 2010 6,371 5,842.2 3,822.6 21.0 13.8 21.7 3.2 6.4 2011 6,442 5,907.3 3,865.2 21.2 13.9 21.9 3.2 6.4 2012 6,514 5,973.3 3,908.4 21.5 14.1 22.1 3.3 6.5 2013 6,586 6,039.4 3,951.6 21.7 14.2 22.4 3.3 6.6 2014 6,659 6,106.3 3,995.4 22.0 14.4 22.6 3.3 6.6 2015 6,733 6,174.2 4,039.8 22.2 14.5 22.9 3.4 6.7 2016 6,808 6,242.9 4,084.8 22.5 14.7 23.1 3.4 6.8 2017 6,884 6,312.6 4,130.4 22.7 14.9 23.4 3.4 6.8 2018 6,961 6,383.2 4,176.6 23.0 15.0 23.7 3.5 6.9 2019 7,038 6,453.8 4,222.8 23.2 15.2 23.9 3.5 6.9 2020 7,116 6,525.4 4,269.6 23.5 15.4 24.2 3.6 7.0 2021 7,195 6,597.8 4,317.0 23.7 15.5 24.5 3.6 7A 2022 7,275 6,671.2 4,365.0 24.0 15.7 24.7 3.6 7A 2023 7,356 6,745.5 4,413.6 24.3 15.9 25.0 3.7 7.2 2024 7,395 6,781.4 4,437.1 24.4 16.0 25.1 3.7 7.2 2025 7,467 6,847.8 4,480.6 24.6 16.1 25.4 3.7 7.3 2026 7,540 6,914.2 4,524.0 24.9 16.3 25.6 3.8 74 2027 7,612 6,980.6 4,567.4 25.1 16.4 25.9 3.8 74 2028 7,684 7,046.9 4,610.9 25.3 16.6 26.1 3.8 75 2029 7,757 7,113.3 4,654.3 25.6 16.7 26.4 3.9 7.6 2030 7,829 7,179.7 4,697.7 25.8 16.9 26.6 3.9 7.6 Source: Values calculated by Northern Economics, Inc., by using projections through 2020 found in ADOT&PF (2002c). Population estimates from 2000 through 2020 are based on Wang (2002). Population estimates from 2020 to 2030 are linear extrapolations of earlier estimates. Transportation demand values were calculated using per capita demand averages from Tetra Tech Inc. (2001). FINAL DRAFT ANC/032530002 K-1 YUKON RIVER PORT AND ROAD NETWORK References Alaska Department of Transportation and Public Facilities. 2002c, March. Yukon- Kuskokwim Delta Transportation Plan. <http://www.dot.state.ak.us/>. Accessed March 2003. Tetra Tech Inc. 2001, July. Yukon-Kuskokwim Delta Coast Regional Port Study. Prepared for U.S. Army Corps of Engineers, Alaska District. Wang, Meifu. 2002. Appendix A Y-K Delta Population Projection Using a Cohort- Survival Model, 1995-2020. FINAL DRAFT YUKON_APPJANDK.DOC 1/12/04 K-2