- 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.Page: Previous 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: November 10, 2007