- 23 -
but small enough to have an impact on the rate of production
since smaller operators use lower-volume equipment and are
somewhat less efficient. We found credible the evidence Terrene
offered that one nearby quarry produces at about 25,000
tons/month on a 28-acre parcel, and that one large operator whom
Ebanks interviewed estimated 40,000 tons/month would be
reasonable for an operator working on the Hamblen Road property.
The 30,000 tons/month that Terrene suggests seems, in these
circumstances, to be reasonable. We therefore find for Terrene
on this point, and will use a 30,000 tons/month extraction rate.
This amount could have easily been absorbed into the Houston
market, where annual consumption of sand and gravel exceeded 60
million tons in the late 1990s. Cf. Cloverport, 6 Cl. Ct. at
199. Given our prior finding of 2,754,111 tons of recoverable
materials, extraction at this rate would mean that the operation
would take place over 92 months.12
3. Royalties
The royalty rates for sand and gravel in the Houston area
are not uniform. Some operators pay a single rate based on
volume; others pay different rates for the different materials
(e.g., concrete sand, masonry sand, etc.). Local operators
around Houston paid anywhere from $0.25 to $1.00/ton to
12 2,754,111 divided by 30,000 equals 92 months with
rounding. If production began after a three-month delay for site
preparation, the hypothetical income stream begun in 1998 would
peter out by the end of 2006.
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Last modified: November 10, 2007