s 363.738 H2CNRD STATE OF MONTANA 1995 NATURAL RESOURCE DAMAGE PROGRAM COMPENSABLE NATURAL RESOURCE DAMAGE DETERMINATION UPPER CLARK FORK RIVER NPL SITES JANUARY 1995 MONTANASTATELUIBBRRAARnYv S363.738H2cn,d,995c.1Role mmilmi'iT'">*""cedama9ede,e 3 0864 00092706 4 COMPENSABLE NATURAL RESOURCE DAMAGE DETERMINATION FOR THE UPPER CLARK FORK RIVER NPL SITES COMPENSABLE NATURAL RESOURCE DAMAGE DETERMINATION FOR THE UPPER CLARK FORK RIVER NPL SITES STATE OF MONTANA NATURAL RESOURCE DAMAGE LITIGATION PROGRAM Prepared by: RCG/Haglcr Bailly P.O. Drawer O Boulder, Colorado 80306-1906 (303) 449-5515 Primary Authors: Robert D. Rowe R Edward Morey William D. Schulze Contributing Author: William S. BrefTle JANUARY 1995 COMPENSABLE NATURAL RESOURCE DAMAGE DETERMINATION FOR THE UPPER CLARK FORK RIVER NPL SITES STATE OF MONTANA NATURAL RESOURCE DAMAGE LITIGATION PROGRAM Prepared by: RCG/Hagler Bailly P.O. Drawer O Boulder, Colorado 80306-1906 (303) 449-5515 Expert Witnesses: Robert D. Rowe t /X.frlv Signature R <^~ Edward Morey Signature William D. Schulze l(/2/^: 2x Signature JANUARY 1995 Digitized by the Internet Archive in 2011 with funding from Montana State Library http://www.archive.org/details/compensablenatur1995rowe CONTENTS INTRODUCTION AND SUMMARY OF RESULTS 1.0 1 INTRODUCTION 1.1 1 NATURAL RESOURCE INJURIES AT THE CLARK FORK NPL 1.2 SITES 3 SUMMARY OF RESULTS 1.3 3 ORGANIZATION OF THIS REPORT 1.4 5 2.0 ECONOMIC CONCEPTS, METHODS, AND STUDIES 6 CONCEPTS 2.1 6 2.1.1 Valuation Concepts 6 2.1.2 Illustration of Past, Interim, and Residual Damages 8 2.2 THE DAMAGE VALUATION STUDIES 11 2.2.1 Introduction 11 2.2.2 The Recreation Valuation Study 13 2.2.3 The Contingent Valuation Study 17 2.2.4 Correspondence Between the Recreation Valuation and Contingent Valuation Studies 19 DETERMINATION OF COMPENSABLE DAMAGES 3.0 21 3.1 PAST DAMAGES 21 3.2 INTERIM DAMAGES WHILE COMPLETE CLEANUP IS UNDERTAKEN 23 3.3 INTERIM AND RESIDUAL DAMAGES WITH PARTIAL CLEANUP 25 . RESmUAL DAMAGES NO ADDITIONAL CLEANUP 3.4 IF IS UNDERTAKEN 27 DAMAGE DETERMINATION FOR DIFFERENT TIME PERIODS OF 3.5 PAST DAMAGES AND FUTURE CLEANUP 28 4.0 REFERENCES 29 APPENDLX A DETAILED CALCULATIONS RCG/Hagler Bailly