Quantification of Lost Human Use: Proposed Work Plan and Budget
Chalk Point Oil Spill
June 30, 2000

Overview

The assessment of lost human use for the Chalk Point oil spill will cover recreational
fishing, recreational boating, and public and private shoreline use (including swimming,
picnicking, wildlife viewing, etc.). The assessment will occur in two phases. Phase One
will entail initial damage assessment planning activities, literature research, fieldwork.
and collection of secondary data, to be completed by early fall. At that point, preliminary
results will be compiled and the need for additional assessment activities will be
evaluated. Phase Two will include any additional assessment work and production of the
final report. The assessment activities outlined in this Work Plan may be modified as
additional information becomes available.

The Available Data and Methods

For each damage category to be investigated, the same basic method will be applied to
the available data. First, the percent reduction in the specified recreational activity will be
estimated using historical participation data from sites where records are maintained.
Examples of such sites include the Golden Beach private recreation area, Greenwell State
Park and several shoreline fishing intercept points monitored by the National Marine
Fisheries Service (NMFS). Effects due to factors other than the spill, such as year-to-year
differences in weather, can be accounted for based on control sites elsewhere in the
region that were unlikely to be affected by knowledge of the spill. Second, the full extent
of current recreational participation will be estimated by observing current use levels.
This will be accomplished using aerial observation and site visits and by conducting
actual counts of the number of people using selected recreational access points.

Finally, the percent reduction will be applied to the estimated total participation to
determine the reduction in recreational use due to the spill. Lost recreational value will be
quantified, at least initially, using the benefits transfer approach: dollar figures regarding
the value people place on specific recreational activities will be drawn from the
economics literature.

One additional issue involves the extent of losses beyond the immediate impact zone.
Referred to as “tainting,” a decline in recreational activity beyond the immediate impact
zone may result in substantial losses. The geographical boundaries of the zone where
tainting occurred will be estimated from on-site interviews and available records of
recreational use. The size of the drop-off in recreational activity due to the spill will
likely be assumed to decrease at a linear rate from the edge of the immediate impact zone
to the boundary of the tainting effect.

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Task Description (Phase One Only)

The following sections describe the activities and budget projections for Phase One, due
to be completed by early fall. The Phase Two portion of the Work Plan will be developed
at the completion of Phase One.

1. Recreational Fishing

The Marine Recreational Fishing Statistical Survey is conducted annually by NOAA to
record shoreline fishing activity at several sites along the Patuxent River. Data for the
May-June period will be available by the end of August. By comparing fishing activity at
these sites in 2000 to activity in past years, while making any necessary adjustments ,
based on control-site data, the effect of the spill on the level of activity will be estimated.

The total amount of shoreline fishing on the Patuxent will be estimated using boat-based
field observation to identify fishing access points and their relative size and extent of use
combined with formal user counts at selected sites.

The value of a fishing trip will be determined using figures from previous studies. Should
the total estimated fishing losses be large enough to justify additional research, an
existing University of Maryland recreational fishing model may be modified to produce a
site-specific value for fishing on the Patuxent River. This additional work would be
described in the Work Plan for Phase Two.

2. Recreational Boating

Recreational boating includes water skiing, pleasure boating, canoeing and other
activities. Boat-based fishing will be counted under recreational fishing. The reduction in
boating participation will be determined using records from Golden Beach, which
maintains five recreational sites a few miles downstream from the Chalk Point power
generation facility. The sites include boat ramps and mooring facilities. Additional data
may also be available from other boat ramps and private marinas along the Patuxent
River. The total amount of boating participation affected will be estimated by conducting
a count of boaters using marinas and boat ramps throughout the impact zone and area of
tainting. The value of a boating trip will be assessed using the relevant economics
literature.

3. Public Shoreline Use

The waterfront access at Golden Beach offers a mix of shoreline activity including
swimming, picnicking and sunbathing. The percent decline in recreational use at a typical
public shoreline facility will likely be based on the Golden Beach data (and other sources
if available). The total amount of public shoreline use throughout the affected area will be
determined using boat-based field observation to identify access points and their relative
size, combined with formal user counts at selected sites. Literature-based values will be
applied to the estimated decline in activity.

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4. Private Shoreline Use

Households living on or near the shore of the Patuxent Rivet suffered additional losses
beyond the diminished use of local access facilities. The oiling of the river may have
diminished the use and enjoyment of residential outdoor property.

To asses losses to private shoreline use, the number of houses surrounding the impact
zone will be determined from town and county records. The typical rate of backyard use
will be drawn from a previous study assessing damages for the 1989 Presidente Rivera oil
spill on the Delaware River in New Jersey. The decline in use will be based on the
Golden Beach data and other records that become available. If preliminary damage
estimates warrant it, Phase Two will include a survey of local residents to better estimate
the decline in use. Finally, the value of backyard use will be drawn from the relevant
economics literature.

Budget (Phase One Only)

The activities described above will take place throughout the summer and early fall. It is
anticipated that 984 hours of labor will be required, including fieldwork, analysis, and
coordination with case team and trustees. Total projected cost is $72,647. A more
detailed breakdown of budget items is available upon request.

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