The Affected Environment and Consequences

3-8.3. Timber Production 3-8.3.1. Affected Environment The Forest administers approximately 1,246,985 acres of which approximately 92 percent is forested. Approximately 89 percent of the forested land is ponderosa pine. The 1999 Forest Inventory and Analysis (FIA) conducted by the Rocky Mountain Research Station and the Black Hills NF estimated net volume of sawtimber (i.e., growing stock greater than 9-inch dbh) presently stocked on the Forest is about 6.1 billion board feet (International One-Quarter Scale). The Black Hills NF estimates that approximately 5 billion board feet have been harvested since the completion of the first federal timber sale (Case No. 1) in 1899 on the Black Hills Forest Reserve (now the Black Hills NF). Case No. 1 timber sale is documented in the Journal of Forestry (Ball and Schaefer 2000) and Evergreen magazine (1999).

Table 3-54. Black Hills National Forest Timber Inventory Harvest volume Year Billion Bd.Ft. Source Remarks Year / Bd.Ft. Black Hills NF 50th 1897 1.5 saw lumber anniversary

Black Hills 50th 1948 2.3 trees 10 inches and larger 1947 1 billion anniversary

1963 2.9 1977 TM Plan growing stock volume 1969 2 billion

1977 4.5 1977 TM Plan growing stock volume 1979 3 billion

FP1996 Final EIS app. 1987 5.1 trees greater than 8 inches dbh 1987 4 billion G-2

1999 6.1 1999 FIA report p.5 growing stock trees >9.0 dbh 1997 5 billion

The timber production section of the Final EIS for the 1997 Revised LRMP (USDA Forest Service 1996a p. 111-447) provides an overview of timber production and the timber industry in the Black Hills through 1995. Table 3-55 depicts timber production volumes on the Forest since 1997. “Sawtimber offered” is advertised for sale. “Sawtimber sold” is a contract award. Occasionally sawtimber is offered during one fiscal year but not awarded until the next fiscal year.

III-382 Black Hills National Forest The Affected Environment and Consequencies

Table 3-55. Annual Volume of Sawtimber Offered, Sold, Cut on the Black Hills National Forest Sawtimber Sawtimber Sold Sawtimber Cut Year Offered (MMBF) (MMBF) (MMBF) 1998 77.0 78.6 62.0

1999 82.7 73.5 73.0

2000 2.8 36.2 65.7

2001 36.5 38.2 75.4

2002 49.5 52.3 62.4

2003 70.5 40.8 67.7

2004 74.5 84.9 75.3 Source: Black Hills NF

In the Black Hills region, there are currently 22 firms involved in processing forest products, distributing and selling forest products, or using forest products to manufacture secondary products. Thirteen firms are primary producers, firms that directly process raw logs purchased from the Forest, other agencies and private landowners, nine of which are sawmills (i.e., dimension product producers). Nine firms are secondary producers, which process sawn timber or mill residue (i.e., cants, wood chips, pellets). The wood product industry has an annual capacity of approximately 190 million board feet (MMBF). Three major mills, Pope and Talbot in Spearfish, South Dakota and Neiman Timber Company in Hulett, Wyoming and Hill City, South Dakota, make up 90 percent of this capacity. Refer to Forest Product Industry Market Study (Teasley 2004).

3-8.3.2. Direct And Indirect Effects There is no change in ASQ among alternatives. The ASQ for the decade in all alternatives is 83.8 MMBF of sawtimber and 2.7 million cubic feet of products other than logs (POL). The ASQ is a maximum. Annual timber sale offer may vary depending on funding but the decadal total may not exceed the ASQ. The 1997 Forest Plan Decision documented the last ASQ calculation. These figures are annual totals for the first decade. See tables in Appendix B for resource estimates If the relevant objectives, standards, and guidelines within any alternative are followed and met, harvest volumes up to the ASQ could be offered in any of the alternatives that may be implemented. The 1996 Final EIS (USDA Forest Service 1996a) discloses the effects of roads relating to timber.

Final Environmental Impact Statement Phase II Amendment III-383 The Affected Environment and Consequences

3-8.3.2.1. Effects Of Species-viability Management On Timber Production The effects of species viability on timber production are addressed within specific species assessments relative to their desired habitat. For example, greater annual treatment acres will have a greater effect on some species than others. Likewise, less annual treatment acres will have a greater effect on some species than others. Structural stage is a key variable for effects on specific species for viability. The structural stage percentages in Alternatives 3 and 6 are directed at displaying the best range of all structural stages that will accommodate all species given the objectives of each alternative. Requirements for late successional species limit the amount of certain treatments in structural stage 4C and 5. Thinning structural stage 4C or 5 to basal area 50 or 60 may be too open to meet late successional habitat requirements for some species; thus more trees would be retained. Consequently these stands will retain their high insect and fire hazard, and loss to fire or insects is more probable. Some plant or animal species require an open grown forest. Management options for those species may compliment Forest Plan goals to reduce insect and fire hazard.

3-8.3.2.2. Effects Of Research Natural Area Management On Timber Production RNAs could be established with the implementation of Alternatives 3, 4, or 6. RNA establishment would preclude harvest within the boundary, and those lands would be reclassified into a research natural area management emphasis. Alternative 3 would include consideration of 4 candidate RNAs: Canyon City, Fanny Boles, Geis Springs and Sheep Nose Mountain. Alternative 6 would consider 4 candidate RNAs: North Fork Castle Creek, Fanny/Boles, Geis Springs, and North Fork Castle. See Section 3-6.2 and Appendix G for candidate RNA locations and additional information. If all nine candidate RNAs were designated, as is proposed in Alternative 4, their total area would be less than 1 percent of the Forest. Some of the RNAs have very little suitable forest land.

3-8.3.2.3. Effects Of Fire-hazard And Insect-risk Management On Timber Production Fire-hazard and insect-risk ratings were evaluated by linking them to structural stages. FVS strata by structural stage were reviewed to arrive at ratings (Appendix B). The fire-hazard rating scheme is integrated into the national growth and yield process (FVS). One variable output of FVS is the fire-hazard rating. The insect-risk rating scheme is based upon the database protocol directed by Region 2. The insect-risk rating is also output through FVS.

III-384 Black Hills National Forest The Affected Environment and Consequencies

Table 3-56. Fire-hazard Rating And Insect-risk Rating By Structural Stage Ponderosa Pine Spruce Structural Fire Insect Structural Fire Insect Stage Rating Rating Stage Rating Rating

1 Low Low 1 Low Low

2 Medium Low 2 Medium Low

3A Medium Low 3A Medium Low

3B High Medium 3B High Medium

3C Very high High 3C Very high High

4A>9” Medium Medium 4A High Low

4A<9” Very high Medium 4B Very high Medium

4B>9” High High 4C Very high High

4B<9” Very high High 5 Very high High

4C>9” Very high High

4C<9” Very high High

5 Very high High

These ratings were used as indicators for treatment levels. Reducing forest density to reduce fire and insect hazard could be lower than the optimum basal area for wood fiber production. Stocking level graphs for optimum wood fiber and insect management in the 1997 LRMP Appendix H illustrate this difference. It is estimated that management for a more open forest under all alternatives may slightly reduce cubic volume production. This loss of wood fiber production would be a tradeoff for reducing the probability of insect and fire mortality.

3-8.3.3. Cumulative Effects Alternative 1, 3 and 6 have the same estimated commercial harvest acres and volume based upon the goals/objectives/standards & guidelines. The mix of harvest-treatment types will be specific at the project level. Harvest types are predicted to be relatively the same from Alternatives 1, 3 and 6 as displayed in Section 3-1. Forested Ecosystems Table 3-10, which is from the 1996 Forest Plan. Also, based upon the goals/objectives/standards and guidelines, the estimated commercial harvest acres and volume are less for Alternatives 2 and 4. Since all alternatives have the same estimated commercial timber harvest acres, the emphasis is placed on the importance of determining structural stage distribution across a landscape to meet the habitat needs of species and lower fire-hazard and insect-risk ratings. The art of balancing these areas directly affects the level of timber volume for the Forest.

Final Environmental Impact Statement Phase II Amendment III-385 The Affected Environment and Consequences

3-8.4. Livestock Grazing

3-8.4.1. Affected Environment The Black Hills is a highly productive area from the standpoint of forage resources with an average of approximately 466 million pounds of forage produced across the Forest each year. At an average proper- use level of 50 percent, up to 233 million pounds of forage is available for harvest each year by livestock and wildlife (USDA Forest Service 1996a p. III-174). Of the 233 million pounds of forage available for harvest, 127 million pounds within designated allotments is allocated to permitted livestock under Forest Plan direction. The remaining 106 million pounds is retained for use by various wildlife species. The non-harvested production (233 million pounds) is for long-term ecosystem health and sustainability, visual quality, flash fuel for planned fire use, and so forth. The levels of forage harvest currently available to livestock under established allowable use standards combined with forage-harvest levels for wildlife species are, in most instances, sufficient to ensure the health and sustainability of the rangeland resources. There are a few areas within the Forest where conflicts exist between livestock and wildlife species for forage or between livestock-forage harvest and the need to manage for other values and resources. Small areas within some allotments surveyed exhibited levels of utilization that exceeded allowable use guidelines (USDA Forest Service 1998 p. 10, 1999b p. 9, 2000a p. 15, 2001a p. 18, 2004a p. 35). However, these are generally small and localized and can be managed through project-level planning. There are approximately 128,000 animal unit months (AUMs) (USDA Forest Service 1996a p. III-174; USDA Forest Service 2001a p. 17) allocated for livestock under term grazing or other permits. From 1998 through 2002, actual annual authorized use varied from 84 to 93 percent of the permitted AUMs, meaning that actual harvest levels by livestock were significantly lower than levels that could be harvested under current permits. This results in additional production being available for other resource values including long-term health and sustainability. Actual use being lower than permitted use by livestock is relatively common.

3-8.4.2. Resource Conservation Measures Goals, objectives, standards, and guidelines Forest-wide and for specific MAs have been developed and are used to manage livestock use on the Forest.

• Goals, objectives, standards, and guidelines which do not change among alternatives are as follows: Forest-wide Objectives 301 and 301a; Forest-wide Guidelines 2503, 2505d, 2506, and 4107; MA Standards 1.1A-2501, 1.1A-2503, 1.1A-2504, 1.1A-5106, 1.1A-5107, 1.1A-8502, 3.1-2501, 3.2A- 2501, 5.4A-2501, 5.4A-2504, 5.4A-2505, and 5.4A-5106; and MA Guidelines 1.1A-2502, 1.1A- 2505, 4.1-2501, 4.2A-2502, 4.2B- 2501, 5.1A-2501, 5.1A-4102, 5.2A-2501, 5.3A-2501, 5.3B- 2501, 5.4-2502, 5.4A-2502, 5.43-2501, 5.6-2501, and 8.2-2501.

Under the Phase II Amendment alternatives, the following changes to livestock grazing management are being considered.

• A new Forest-wide Objective (200-03) under Alternatives 3, and 4 would target improved management of aquatic and shoreline vegetation relative to livestock grazing effects near 50 ponds or water catchments for the purpose of protecting habitat. In Alternative 6 this Objective reads “Manage and/or install structures to provide water for livestock and to protect the aquatic shoreline and upland vegetation around ponds or water catchments containing leopard frogs”

III-386 Black Hills National Forest Uses of the Forest

• New Objective 200-10, created under Alternatives 3 and 4, provides for enclosures on at least portions of five sites ofCarex alopecoidea. Alternative 6 instead has new Standard 2505f that provides for enclosures on at least portions of five sites ofCarex alopecoidea. These enclosures may alter livestock distribution and travel but are unlikely to affect total use on the allotments. • Under Alternatives 3, 4, and 6 management of hardwood communities is afforded additional protection relative to livestock grazing effects by changing Guideline 2207 regarding placement of new watering sites to a standard: “Locate new livestock/wildlife water sites outside of hardwood communities, except when no other option is available.” Alternative 1 as a guideline is as follows: “Locate livestock/wildlife water sites (i.e., drinking structures) outside of hardwood communities when feasible.” The wording ‘when feasible’ is deleted under Alternative 2, and it is treated as a standard. • Guideline 2501 under Alternatives 1 and 2 on achieving or maintaining satisfactory range condition is moved to Objective 302 in Alternatives 3, 4, and 6; also, Objectives 302.a and 302.b were added. In Alternative 3 and 4 the description of the objective was lengthened. • Under Alternatives 3 and 6, Forest-wide Guideline 2505 on residual levels (the end of season remaining stubble height of key riparian/wetland forage plant species) is changed to a standard and modified so that residual levels in riparian/wetland areas would have to be prescribed inAMPs or AOIs. Guidelines 2505a and 2505b from Alternatives 1, 2, and 4 on key areas and utilization are deleted in Alternatives 3 and 6 but covered in Guideline 2505. Guideline 2505c is re-worded in Alternatives 3 but will not affect range management. In addition, no authorized utilization by domestic livestock will be allowed on known occurrences of the three willow emphasis species (Standard 2505e) in Alternatives 3 and 6. • Alternatives 3 continue to allow livestock use of forage in fenced riparian pastures as designated in AMPs provided that objectives for maintaining, enhancing, or conserving the riparian ecosystem and species viability are progressively being met. Alternative 6 also continues to allow livestock use of forage in fenced riparian pastures as designated in AMPs provided that objectives for maintaining, enhancing, or conserving the riparian ecosystem but change species viability to emphasis species persistence (Standard 2507). • A new Forest-wide standard (3200-01) is created under Alternatives 3 and 6 to reduce potential conflicts between livestock and bighorn sheep during lambing seasonApril through at least mid- June; preference shall be given to bighorn sheep.

The following MA (MA) standards and guidelines for livestock grazing would be modified from the 1997 Revised LRMP.

• Livestock use of a candidate RNA under Alternatives 3, 4, and 6 would remain unchanged until an RNA management plan is developed (Rational for Standard 2.2-2501). The RNA management plan will determine acceptable levels and management of livestock, if any, within the specific RNA as appropriate to meet the stated objectives for the RNA (Standard 2.2-2501). • MA Standard 3.1-2503 protects plants under Alternative 2 would be modified under Alternatives 3, 4, and 6 to restrict access of domestic livestock use to protect the R2 sensitive and SOLC plant occurrences in designated BAs. • Under Alternatives 3, 4, and 6, Big-Game Winter Range MA Guideline 5.4-2501 focuses on ensuring that livestock management is conducted in a manner compatible with big-game habitat objectives. This would be changed from a guideline to a standard.

Final Environmental Impact Statement Phase II Amendment III-387 The Affected Environment and Consequences

3-8.4.3. Direct And Indirect Effects The amount of forage allocated to livestock in all alternatives is established on a project-specific basis after considering the amount of available forage; allowable use guidelines; wildlife use; the basic needs of the soils, plants, and other resources; and values (USDA Forest Service 1996a p. III-454). Current estimates of forage production as compared with current harvest levels show that herbaceous production significantly exceeds estimated forage needs for livestock and wildlife while ensuring that sufficient annual production is available for long-term health and sustainability of the rangeland resources. In addition, the forage estimates do not take into account forage production on private lands within the Forest, which is also utilized by wild ungulates. Within the current levels of forage production, the availability and location of water for livestock is likely more of a limiting factor to livestock forage harvest than forage abundance and production on the Forest. Impacts to forage production occur due to harvest by livestock and a wide variety of wildlife species, drought, conifer encroachment, increases in conifer-or-shrub canopy cover, noxious-weed infestation, and wildfire. Impacts to livestock production are linked to forage production but are also affected by changes in management.

3-8.4.3.1. Effects Of Species-viability Management On Livestock Grazing The estimated forage production exceeds the estimated forage requirements of livestock, wildlife, and the basic needs of the soil, vegetation, and other Forest resources. As a result, adverse effects from changes in livestock management to favor species-viability needs would occur on localized areas within individual livestock allotments. Active management for more diversity across the Forest may enhance forage conditions and availability for livestock under all alternatives. Under Alternatives 3 and 6, management to open the overstory and provide more early structural stages is expected to create an increase in the herbaceous and shrub components of the ecosystem. Livestock and wildlife are attracted to areas opened up in response to the increase in amount and improvement in forage quality (Council for Agricultural Science and Technology 1996). Additional hardwood, meadow, and grassland acreage created for species-viability management may locally increase available forage for livestock and wildlife, thus reducing grazing pressure on other areas. Increased focus on improving management of hardwood communities is afforded by placement requirements for new watering sites (Standard 2207). Hardwood communities are important sites for many species. Aspen being a special case because these stands often produce large quantities of forage and are valuable to wild and domestic ungulates and other users (Council for Agricultural Science and Technology 1996). Note that the creation of openings of the Forest may result in the need for additional fences to enable managers to better control livestock distribution and to comply with AMPs. Many known sensitive species locations are in areas not grazed or inaccessible by livestock (see Appendix C – Biological Assessment / Biological Evaluation for details by species). Alternatives 2, 3, 4, and 6 increase management focus on sensitive species relative to effects from livestock grazing in Botanical Areas (BAs) (Standard 3.1-2503). This could reduce the forage available to livestock on allotments with BAs. Carex alopecoidea has added emphasis in Alternatives 3, and 4, in new Objective 200-10 and in Alternative 6 with new Standard 2505f, with enclosures to protect some plants from livestock grazing. Livestock would be allowed grazing access in fenced riparian pastures under Alternatives 3 as long as species-viability standards are progressively met and livestock grazing would be allowed in fenced riparian pastures under Alternative 6 as long as emphasis species persistence standards are being met (Standard 2507). Under all alternatives, livestock grazing could be redistributed or reduced in allotments where emphasis snail species occur (Standard 3103).

III-388 Black Hills National Forest Uses of the Forest

3-8.4.3.2. Effects Of Research Natural Area Management On Livestock Grazing The designation of RNAs restricts the uses of the land, which in some instances can include livestock grazing. Currently the Forest has a designated RNA, the 948-acre Upper Pine Creek RNA, located within the Wilderness. This RNA would continue to exist under all alternatives. Under all alternatives the Upper Pine Creek RNA is designated as unsuitable for livestock grazing and is not permitted for livestock use. Incidental livestock use may occur because the area is not fenced. Under Alternatives 3, 4, and 6 livestock management and AUMs under grazing permits would be maintained until specific RNA management plans are developed for each candidate RNA (Standard 2.2-2501 Rational). The RNA management plan would consider the appropriateness of livestock grazing along with other uses when it is written. As shown in the following table, Alternative 3 would consider four of the nine candidate RNAs for designation. Under Alternative 3, five allotments would potentially be directly affected by RNA designation, possibly removing 2,485 acres or 3.2 percent of the total acres available for livestock grazing in those five allotments. Alternative 4 considers all nine candidate RNAs for designation, eight of which have allotments associated with them. The designation of these eight candidate RNAs could directly affect 10 of the 142 Forest grazing allotments by decreasing the amount of available land for livestock grazing. Approximately 3.4 percent of the total 218,200 acres available for grazing within the 10 allotments could be removed or use altered if the eight candidate RNAs were designated. Alternative 6 could impact four allotments (4) by placing livestock grazing restrictions on 2,276 acres (2.4 percent) of the 93,676 acres currently available in those four allotments.

Table 3-57. Grazing Allotments Potentially Impacted By Candidate Research Natural Area (RNA) Designations By Alternatives

Alternative Total Area Allotment Area Candidate RNA Allotment Allotment Potentially Potentially Impacted (Number and Name) (acres) Impacted (percent)

Alternative 3 Alternative 4 Alternative 6 (acres)

X X X 13-Canyon City Silver City (Active) 19,184 588 3.1

X X 15-Castle Creek Reynolds Prairie (Active) 32,182 798 2.5

X 20-Cranberry Springs Sand Creek (Active) 21,122 861 4.1

Idol* X 20-Cranberry Springs 25,644 979 3.8 (Active)

X X X 31-Fanny/Boles Lower Beaver (Active) 33,856 313 1.0

X X X 33-Geis Spring North Bearlodge (Active) 8,454 577 6.8

X 50-Iron Mtn. North None 0 0 0

X 57-Lemming Draw Darrow (Active) 15,296 1,466 9.6

X 86B-Sand Creek Sand Creek (Active) 21,122 145 0.7

Idol* X 86B-Sand Creek 25,644 695 2.7 (Active)

X X 89-Sheep Nose Mtn. Ogden (Active) 8,459 510 6.0

X X 89-Sheep Nose Mtn. Redwater (Active) 7,237 497 6.9 * The Idol Allotment was mistakenly identified as the Willow Spring Allotment in some analysis documents.

Final Environmental Impact Statement Phase II Amendment III-389 The Affected Environment and Consequences

3-8.4.3.3. Effects Of Fire-hazard And Insect-risk Management On Livestock Grazing As seen in 2000 and 2001, wildfires can and do alter livestock grazing management. In areas recently burned, livestock will be managed to enhance recovery from fire effects through site-specific evaluation and decisions. Actions may include but not be limited to changes in season of use, allowable use, or rest from grazing for a period of time until defined objectives are met or a trend toward those objectives is achieved. The number of acres that will burn from wildfire and the intensity of these fires are difficult to predict, so forage production resulting from fire is variable and unpredictable. In the short-term, fire may destroy current-year range forage but in the long-term fire enhances vegetation growth and increases production as the canopy is opened. Management actions that reduce fire hazard generally pertain to fuel-load reduction and thinning, which are accomplished through silvicultural treatments and prescribed burning. Again this will increase production and quality as the canopy is opened (Council For Agriculture Science and Technology 1996). Livestock grazing may influence vegetation and fire hazard. In the short term, concentrated livestock grazing at moderate or greater intensities can reduce light, flashy fuel and thus reduce the rate of spread in localized areas. In the long term, reduction of flash fuel can affect the rate of spread of small low- intensity fires, increase the shrub and conifer regeneration component, and increase localized fire intensity (Graham et al. 2004). Direct impacts to forage and potentially to livestock production from fire-hazard management actions will occur under all alternatives. In general fire-hazard management actions will be localized and therefore only affect specific allotments or areas within allotments. Fire-hazard silvicultural treatments increase forage production as stated earlier by opening the forest canopy and prescribed fires rejuvenate herbaceous growth. Alternative 6 predicts a reduction in the amount of high fire-hazard area (see Objective 10-01). The other four alternatives are predicted to reduce the high fire-hazard category but to a lesser degree. For this reason fire-hazard management actions underAlternative 6 are expected to have the most beneficial impact for livestock grazing. Silvicultural treatments and prescribed burns also create land disturbances, which have the potential to indirectly affect forage production primarily through noxious-weed introduction or spread. The greater the acres of disturbance, the greater the potential for indirect adverse impact from weeds on forage production. Because Alternative 6 would have the greatest reduction in fire hazard, this alternative also has the greatest potential for indirect adverse impact from these management actions. The benefits of opening the canopy would likely outweigh the adverse noxious-weed impacts. Mountain pine beetle outbreaks do not directly affect livestock production but can have an indirect effect on forage production in allotments where they occur by creating a more open canopy that increases forage production. Because the precise extent and location of insect outbreaks cannot be predicted, the effect of these outbreaks on forage production cannot be quantified. Large mountain pine beetle infestations can also increase the fire hazard in an area by creating an abundance of dry and dead fuel. Silvicultural treatments designed to reduce outbreaks can open the canopy and thereby potentially increase forage production. Based on the 1997 allowable sale quantity (ASQ), fire-hazard objective (10-01), structural stage objectives (MA Objectives 4,1-203, 5.1-204, 5.4-206, 5.43-204, and 5.6-204), other Phase II objectives, and the estimated treatment acres in Table B-1, all alternative management actions designed to open up the canopy would tend to increase forage. On the other hand, the higher the risk of mountain pine beetle outbreaks, the more likely an infestation outbreak would open the canopy and allow increased forage production.

III-390 Black Hills National Forest Uses of the Forest

3-8.4.4. Cumulative Effects Cumulative effects for livestock use result from the incremental impact (direct and indirect effects) associated with the alternatives when added to past, present, and reasonably foreseeable actions. The cumulative effects analysis area is bounded in time as the next 10 to 15 years. This temporal scale corresponds to projections for the desired future condition described for each alternative (Chapter 2). The spatial scale for the cumulative effects analysis generally encompasses the Black Hills Ecoregion as defined by Bailey (1995). Cumulative effects in some instances, such as where conifer canopy is opened up or removed entirely, there may be an increase in herbaceous vegetative productivity and complexity, thereby benefiting both the plant community and potentially providing increased forage productivity for wildlife and livestock. The forage available on the Forest has likely increased in the recent years from fires that have affected the Forest land base and the canopy cover that has been reduced by mountain pine beetle. These cumulative disturbances could be expected to benefit the amount of forage that is available to livestock use on the Forest currently and for several years out. There may also be beneficial effects as some sites impacted in years past by improper livestock management are allowed to recover relative to specific actions associated with management. Other than localized impacts to livestock grazing in Alternatives 3, 4, and 6 associated with exclusion of livestock from specific areas (some pond sites, some hardwood sites, some RNAs, some areas where management will focus on certain species), or intensification of livestock management (with associated costs), the overall cumulative effects of the alternatives will be minimal. Conservation-action effects, though minimal, would have the potential to reduce livestock numbers in localized areas, thus having the potential to negatively affect livestock producers. Because agriculture is a dominant private land use in and around the Forest, the future of open spaces on such land may depend to a large extent on what happens to agriculture. Many ranchers and their private ranch land rely on federal grazing, the ability for ranchers to graze federal lands is critical. Development of private land is likely to continue regardless of what happens on the National Forest. This could affect wildlife use and distribution patterns and thus forage use on the Forest, though wildlife numbers could suffer losses by private land development and negate the changes in use patterns. This effect would be similar across all alternatives with Alternative 4 having a slightly higher possibility to contribute due to additional acres of protection. Fuel treatment to reduce fire-spread rates on adjacent private lands thatAlternative 6 design could encourage might reduce the short-term forage loss from fires that originate off the Forest and burn onto the Forest.

Final Environmental Impact Statement Phase II Amendment III-391 The Affected Environment and Consequences

3-8.5. Locatable and Leasable Minerals

3-8.5.1. Affected Environment Mineral operations on the Forest are driven by market conditions and proponent developed plans of operations or lease applications. Historically the northern Black Hills has had extensive precious minerals extraction, and the southern Black Hills has had industrial mining activity. In recent years, there has been very little exploration or development activity of precious metals. There are no pending lease applications for oil and gas exploration or existing leases for oil and gas development. But there continues to be a consistent development of industrial minerals, specifically in the southern one-half of the Forest. During the past 2 years, the location of mining claims has increased in an area of the northern Black Hills known for precious metals deposits and rare earth minerals. There is also active location of claims in the southern part of the Black Hills that was extensively mined for uranium in the 1950s. The location of claims or the high potential for occurrence does not necessarily equate to economical operations being developed. It merely indicates there is an interest and a resource. Development of these mineral and energy resources is likely to increase over time as the nation shifts to alternative energy sources and market prices increase for other minerals. Much of the current activity in the Forest minerals program is focused on locatable operations (quartz, feldspar, mica, mica schist, etc.), some saleable minerals (slate, decorative rock, fill material, building stone, etc), and the reclamation of old abandoned mining sites (2,000 to 2,500 sites). Most mineral proposals approved on the Forest are exploration activities and extraction of mineral resources involving sites 10 acres or less with many being less than 5 acres. They are often a re-entry into an old site, utilize small cuts, use existing roads, and are easily reclaimed. The Forest has a number of gravel pits/quarries (10 to 20 sites active at one time) that supply gravel, riprap, and road base material for Forest and county roads and federal-aid highways within the Forest boundary. These pits are critical in the economics of maintenance and reconstruction of the road system. The Forest Service is also mandated to supply material in support of the federal highways system. Blasting and crushing are integral parts of the pit/quarry operation. The Final EIS for the 1997 Revised LRMP (USDA Forest Service 1996a) presented information on the affected environment for locatable and leasable minerals on pages III-441 to III-445 and in Appendices E and F. The EIS generally presented information on historical mining activities in and near the Forest and described the potential for occurrence and development of locatable minerals except in currently mined areas. The EIS also presented information on the low potential for oil and gas development, although it acknowledges the potential for development of exploratory wells. The Phase I Amendment to the 1997 Revised LRMP (USDA Forest Service 2001c) provides updated information on pages 189 and 190. A document that provides comprehensive geology, mining history, and potential for locatable, leasable, and salable minerals is USGS Bulletin 1580 (DeWitt et al. 1986). Refer to any of these documents for additional information on locatable, leasable, and salable minerals.

3-8.5.2. Resource Conservation Measures Objectives, standards, and guidelines for the Forest for specific MAs have been developed and are used to manage locatable, leasable, and saleable minerals on the Forest. The current standards and guidelines were discussed in the Final EIS for the 1997 Revised LRMP (USDA Forest Service 1996a) or in the Phase I Amendment (USDA Forest Service 2001c). Applicable changes to standards and guidelines associated with locatable and leasable minerals proposed in the Phase II Amendment are as follows.

III-392 Black Hills National Forest The Affected Environment and Consequencies

• Standard 2.2-1501 requires the withdrawal from mineral entry of all designated RNAs. All lease applications will have "no surface occupancy" (NSO) stipulation. No mineral material permits would be issued. • Standard 1511 states that “recreational panning and sluicing shall be allowed outside of Wilderness where such activities do not interfere with the rights of mining claimants protected under the 1872 Mining Law. These activities shall be evaluated by the authorized Forest Service official on a case-by-case basis following direction found at 36 CFR 228, Subpart A.” This is the current situation under Alternative 2. It is deleted in all other alternatives because current regulations provide sufficient direction. (Note rational inAppendix D.) • Standard 3108 under Alternatives require identification of Northern Goshawk nest areas around historically active nests; 180 acres best suited for nesting habitat within 0.5 mile of nests with at least 30 contiguous acres. Vegetation management activities shall be limited to those that maintain or enhance the stands’ value for goshawk. • Standard 3111 minimizes additional human-caused noise and disruption beyond that occurring at the time of goshawk nest initiation within 0.5 mile of all active goshawk nests from March 1 through August 31 in Alternatives 1, 2, 3, and 4, and from April 1 through August 15 in Alternative 6. Alternative 1 does not state a distance, Alternative 2 states 0.25 mile, and Alternatives 3, 4, and 6 state 0.5 mile. • Standard 3100-1 prohibits reclamation, gravel mining, oil and gas well drilling, and blasting within specified distances (0.125- to 0.5-mile radius depending on the species) of active raptor nests and winter roost areas during specified dates in Alternatives 3 and 4. • Standard 3100-7 prohibits the construction of oil and gas facilities, well drilling, seismic exploration, and gravel mining in mountain plover nesting areas or within 0.25 mile of plover nests from March 15 through July 31 in Alternatives 3, 4, and 6. • Standard 3204 calls for protection of raptor nests from disturbance. Alternative 1 focuses on active nests. Alternatives 3 and 6 specify R2 sensitive species and species of local concern measures but limit focus to known nests. Alternatives 2 and 4 focus on current and historic nests but do not specify R2 sensitive or species of local concern. Alternatives 2, 3, 4, and 6 call for consulting mitigation used by other agencies and the direction is a standard. Direction in Alternative 1 is a guideline. • Standard 3209 requires evaluation of abandoned mines for potential bat habitat prior to closure (Alternatives 2, 3, 4, and 6) and designing closures so that bat movement is not impeded (All Alternatives).

3-8.5.3. Direct And Indirect Effects Effects on locatable or leasable minerals will occur if mining or oil and gas exploration or production are limited or restricted by any of the Phase II Amendment alternatives. Alternatives 3, 4, and 6 are likely to limit or restrict leasable or locatable mineral exploration and production.

3-8.5.3.1. Effects Of Species-viability Management On Locatable And Leasable Minerals Mines or leases are located where the mineral deposits are present, and they cannot be moved. Most locatable mining operations on the Forest are small, and generally mitigation measures can be applied to meet the intent of the standards. Imposing mitigation in most instances will increase costs of mining operations, thus affecting economic viability. The opportunity for negative impacts arises solely from additional timing or area restrictions. These standards would affect relatively small portions of the Forest and would not be intended to affect active locatable sites or existing claims.

Final Environmental Impact Statement Phase II Amendment III-393 The Affected Environment and Consequences

Standards 1308, 3111, 3100-1, and 3100-7 prohibit gravel mining, oil and gas facility construction, and reclamation within varying distances of active goshawk, raptor, or mountain plover nests. The majority of currently active or proposed gravel pits or quarries have locations that do not conflict with known goshawk nests. (No inventory of other raptors or mountain plover nests can be applied to this analysis.) When gravel pits or quarries are actively crushing rock, there is a bi-weekly blasting frequency. Generally enough material is stockpiled at each site to last 3 to 5 years. Because goshawks have multiple nests within an area and the timing of gravel mining activities (crushing, blasting) are somewhat flexible, the conflicts appear to be minor across the Forest. In the future, as additional goshawk, raptor, and mountain plover nests are located, the effect of these restrictions on mining and construction activities will increase. To requirement to “minimize” additional human-caused noise and disruption is very subjective. No oil and gas development currently occurs on the Forest, and the expectation for future development is low-to-moderate, so the potential impacts to leasable minerals are small. There are 2,000 to 2,500 abandoned mine sites across the Forest. The strategy for closure and reclamation of these sites is flexible, as the Forest first focuses on those sites with public or employee safety issues. Abandoned mine reclamation work would be affected by access or timing limitations from the standards listed above. The evaluation of abandoned mines for bat habitat has been implemented for several years. The level of site reclamation is reduced when the presence of bat habitat is identified. Objectives, standards, and guidelines relating to species-viability management would, in general, have some but anticipated minor effects on mineral development or oil and gas leases.

3-8.5.3.2. Effects Of Research Natural Area Management On Locatable And Leasable Minerals The presence of existing claims was a screening criteria considered in the selection of candidate RNAs. The majority of the candidate RNAs do not have existing claims. Since the screening was completed, status has changed. The proposed Upper Sand Creek RNA has current claims and the Canyon City RNA has claims adjacent if not within the boundary. The Forest Service can recommend areas for withdrawal, but a recommendation does not guarantee a withdrawal from mineral entry will be granted. The decision for withdrawal rests with the Bureau of Land Management. This decision is based on a number of factors including the presence of valuable mineral resources and the economics of their development. If and when any candidate RNAs are selected for designation, land would be proposed for withdrawal from mineral entry and an additional stipulation of NSO would be applied to any new leases. No mineral material permits would be issued (Standard 2.2- 1501). The effects of withdrawing land from mineral entry will vary by alternative corresponding to the acres of the candidate RNAs and their corresponding mineral potential. Withdrawal proposals include as follows: Alternative 3, approximately 2,500 acres; Alternative 4, approximately 7,800 acres (candidate Iron Mountain RNA is already withdrawn); and Alternative 6, approximately 2,300 acres. Withdrawal from mineral entry does not prevent mining on existing valid mining claims as in the case of the proposed Upper Sand Creek RNA.

III-394 Black Hills National Forest The Affected Environment and Consequencies

The RNA designations presented in Alternative 4 could have some effect by limiting mineral-resource development beyond the existing claims in the proposed Upper Sand Creek RNA. It is anticipated that the designation of RNAs in Alternative 3 and 6 will have very little, if any, effect on locatable and leasable mineral management. Imposing a NSO for new leases within the RNAs would bring much higher costs to find and/or develop potential resources.

3-8.5.3.3. Effects Of Fire-hazard And Insect-risk Management On Minerals Neither fire-hazard nor insect-risk management under any Phase IIAmendment alternatives would affect production of any locatable-or-leasable minerals.

3-8.5.4. Cumulative Impacts Cumulative effects mineral extraction results from the incremental impact (direct and indirect effects) associated with the alternatives when added to past, present, and reasonably foreseeable actions. The cumulative effects analysis area is bounded in time as the next 10 to 15 years. This temporal scale corresponds to projections for the desired future condition described for each alternative (Chapter 2). The spatial scale for the cumulative effects analysis generally encompasses the seven counties affected by activities on the Forest for social and economic effects.. Although mineral activities are influenced to a great degree by market prices, Forest Plan direction such as surface occupancy restrictions, mineral withdrawals in RNAs, and added costs to comply with Forest species-viability requirements result in increased production costs and the removal of areas of the Forest from the location and development of the mineral resources. The NFMA generally requires that permits, contracts, and other instruments for use and occupancy of NFS land be consistent with the land-management plans (16 USC 1604j). However, this requirement is not absolute. NFMA specifically conditions the requirement in three ways: these documents must be revised only when necessary; these documents must be revised only as soon as practicable; and any revisions are subject to valid existing rights (Phase I Amendment to the 1997 Revised LRMP, Decision Notice, USDA Forest Service 2001). Because the General Mining Law of 1872 provides for the location and mining of known mineral deposits as well as the development of future finds, the application of new standards and guidelines will have limited effect on existing locatable (there are no existing mineral leases on the Forest) mineral operations (“subject to valid existing rights” would apply to existing locatable mineral operations). The application of new standards and guidelines to the development and operation of new mineral operations and existing gravel pits is of some concern. The application of surface occupancy restrictions (raptor distance standards) and mineral withdrawals for RNAs will have a direct effect on lands available for mineral activities. The potential exists to limit the dates of mining and construction activities resulting in increased exploration and production costs and the potential loss of the opportunity to discover and develop valuable minerals resources from the Forest. Alternative 1 will have the least impact on the opportunity to discover and develop minerals followed by Alternatives 2, 6, 3, and 4.

Final Environmental Impact Statement Phase II Amendment III-395 The Affected Environment and Consequences

3-9. Social Environment This analysis provides a description of the social and economic environment and trends in the area surrounding the Forest. The area includes the seven counties: Custer, Fall River, Lawrence, Meade, and Pennington Counties in South Dakota; and Crook and Weston Counties in Wyoming. By understanding trends, changes, and growth in an area, dynamic not static conditions of the human environment are highlighted. The 1996 Final EIS (USDA Forest Service 1996a) presented information on the social environment and counties in the Black Hills area of South Dakota and Wyoming on pages III-457 to 459 and III-489 to 506. The EIS presented information on growth and development of the counties and communities in the area; social and economic processes; social groups; and values and attitudes of the residents. Additional information was provided in the 1997 Revised LRMP (USDA Forest Service 1997a) that focused more on the specifics of the timber industry in the counties in the Black Hills region.The seven counties included in the analysis area represent the region of direct economic and social relationships and interactions with the Forest and its management policies.

3-9.1. Affected Environment

3-9.1.1. Counties In The Black Hills Study Area The Forest has an effect on the social environment of each of the seven counties within the study area: Crook and Weston Counties in Wyoming; and Custer, Fall River, Lawrence, Meade, and Pennington Counties in South Dakota. There are people outside the seven county area who use the Forest and are interested in future management of the Forest resources, especially members of Indian Tribes who have historically used the area. The Heritage Section (3-10), American Indian Issues and Tribal Consultation, highlights the effects and importance of future management of the Black Hills National Forest to the Indian Tribes and tribal members living both within and outside of the seven county area. The Social Environment section focuses on those seven counties most likely to be directly effected by changes in Forest management because of their proximity to the Forest. There are approximately 15,000 Native Americans living in Rapid City and within the seven counties of concern considered in this social analysis. The potential changes in use and opportunity by the Native American Indian population are discussed as appropriate in the Social, Heritage, and Economic sections of this Final EIS and Appendix B. Table 3-58 displays the land ownership for each of the affected counties. The Forest covers just over 1.5 million acres or about 15 percent of the land within the seven county area. Most of the land in Lawrence County (54 percent) is within the Forest whereas only 1 percent of Weston County and 2 percent of Meade County is in the Forest. Thirty percent of the Forest is in Pennington County, while 11 percent of the Forest is in Fall River County. About 18 percent of the land within the overall boundaries of the Forest is privately owned. About 60 percent of the Forest in Fall River County is privately owned whereas private land represents about 12 to 18 percent of Forest land in the other counties, with the exception of Weston County that has no private land within the Forest.

III-396 Black Hills National Forest The Affected Environment and Consequencies

Table 3-58. Forest And Private Ownership By County Gross Private Net National Private National Land National Forest Land within County Forest within Forest County Acres in National Area (acres) Area per National per County Forest County Forest County (percent) (percent) (acres) (acres) (acres) Custer, SD 994,302 373,329 65,566 307,763 31 18

Fall River, SD 1,122,791 118,611 72,309 46,302 4 61

Lawrence, SD 514,367 331,137 55,851 275,286 54 17

Meade, SD 2,215,598 45,128 5,581 39,547 2 12

Pennington, SD 1,813,824 456,361 56,282 400,079 22 12

Crook, WY 1,820,151 196,390 26,070 170,320 9 13

Weston, WY 1,537,094 8,714 0 8,714 1 0

Total 10,018,127 1,529,670 281,659 1,248,011 - - 18 Source: USDA Forest Service 2000b

Interspersed within the Forest boundary is over 280,000 acres of private land, including several small towns including Hill City, Custer, Pringle, and Keystone are accessed by major highways. The 1996 Final EIS pointed to a trend (which continues) for development of private land. Because private land is interspersed throughout the Forest and these areas are developing, WUI issues are increasing. Following are descriptions of each county in the analysis area that highlight the lifestyle, quality of life, economy, and level of interest and issues associated with Black Hills Forest management. The Social and Economic section of the 1996 Final EIS (pages III-457 to III-459 and pages III-464 to III-469) contains a more extensive description of the area.

3-9.1.1.1. Custer County, South Dakota Custer County is located in the southwestern part of South Dakota on the Wyoming border. U.S. Highways 16 and 385 run through the County along with State Highways 36, 40, 79, 87, and 89. About 31 percent of the County is National Forest, and 18 percent of the land within the National Forest boundary is privately owned. Custer County experienced an almost 18-percent increase in population between 1990 and 2000, growing faster than any of the other counties in the Black Hills region. With a high median age, some growth is attributable to immigration of retirees and empty nesters rather than reproductive growth.

Final Environmental Impact Statement Phase II Amendment III-397 The Affected Environment and Consequences

Attractions of Custer State Park, Wind Cave National Park, and Jewel Cave National Monument, support tourism as a leading industry. Major employment sectors in the County include federal government (primarily USDA Forest Service), education, and health care, and food services. There are three small sawmills, a post and pole manufacturer, and a log building construction company operating in the County. A medium sized sawmill closed in 1989. Fire burned over 100,000 acres in Custer County since 1997 (over one-tenth of the County), mostly during the large Jasper Fire in 2000. This fire burned the land within Jewel Cave National Monument, although facilities (and the caves) were spared. On a regional level, the fires affected the timber industry through the loss of harvestable timber. In Custer County, the fires may have had more effect on tourism in the short term, with forest closures and the imminent dangers during the fire season. However, the fire induced changes in the landscape that may have a long- term influence on where people choose to vacation or recreate.

3-9.1.1.2. Fall River County, South Dakota Fall River County is located in the extreme southwestern South Dakota. U.S. Highways 18 and 385 run through the County, as does Primary State Highway 71. About 4 percent of the County is National Forest, and 61 percent of the land within the National Forest boundary is privately owned. Much of the County is in the Buffalo Gap National Grassland. The county had relatively little population growth between 1990 and 2000. This is consistent with its demographic structure, with higher than average median age (45 years) and a large portion (almost 23 percent) of persons who are 65 years of age or older. Major employment sectors in the County include government, health care, education, retail, and food services. Railroading and ranching have historically contributed to its settlement and growth.

3-9.1.1.3. Lawrence County, South Dakota Lawrence County is located in the extreme western part of the State on the Wyoming border. Interstate 90 runs through the County, along with U.S. Highways 14 and 85. About 54 percent of the County is National Forest, and 17 percent of the land within the National Forest boundary is privately owned. Most of the county social and economic conditions are interrelated to Forest activities. The County experienced slower population growth than the State over the decade from 1990 to 2000, yet its age structure is similar to the State as a whole. Mining has been the most important employer in the past, both in terms of number of jobs and pay scales, but this industry declined during the 1990s. One of the three major wood products producers, the Pope and Talbot Sawmill, is located in Spearfish. This mill is one of the largest ponderosa pine mills in the United States, producing boards and dimension lumber. Other major employment sectors in the County include health care, education, and retail. The economy has been diversifying during the 1990s, stimulated somewhat by the growth in legalized gambling in Deadwood. In 1996, Lawrence County developed a Land Use Plan to establish a process to coordinate with federal and state agencies on their proposed actions that may affect management of private and public land and natural resource uses. The Lawrence County Land Use Plan states that maintaining and revitalizing various uses of federal lands is a guiding principle for the county in order to preserve the customs, culture, and economic stability of its citizens, while protecting and using their environment. The Plan articulates the County’s position on what this means for its citizens for a range of resources including (but not limited to) wildlife, air quality, energy and mineral production, forest resources, agriculture and ranching, culture, and recreation.

III-398 Black Hills National Forest The Affected Environment and Consequencies

The Grizzly Gulch Fire in 2002 burned over 11,600 acres in Lawrence County, mostly private land. The fire burned near the towns of Lead and Deadwood, requiring the evacuation of Deadwood.This has heightened public awareness of wildlfire, particularly in the WUI.

3-9.1.1.4. Meade County, South Dakota Meade County is located in western South Dakota and encompasses the Ellsworth Air Force Base. Interstate 90 runs through the County as does U.S. Highway 212 and State Highways 34 and 73. About 2 percent of the county is National Forest, and 12 percent of the land within the National Forest boundary is privately owned. A cursory review of statistics can be misleading when reviewing the importance of federal government decision-making with regard to facilities and land within the county. Ellsworth Air Force Base lies mostly in Meade County; however, the access points, off-base housing, and service providers are almost exclusively outside Meade County. Airbase jobs are important to the entire area, but adding value to resources makes air bases possible. While only 2 percent of the County is National Forest, Forest Service decisions affect a large number of county residents due to the irregular boundary shape and the extensive WUI. Sturgis, the county seat, is heavily influenced by the motorcycle rally economy. Sturgis hosts the well- known Sturgis Motorcycle rally, where over 500,000 bikers gather annually. The event has stimulated a transition of the Sturgis downtown with new shops and businesses that cater to bike week and the biker market. The Sturgis area and the I-90 corridor are developing as “bedroom” communities for county residents who commute to Spearfish and Rapid City for a wider range of jobs.The National Forest interface is being developed for primary and secondary homes. Beyond this more developed area, the County’s year-round economy is mostly influenced by agricultural activities in the greater geographic area. Wood production industries are dependent on Forest Service decisions making related to timber harvest activities.

3-9.1.1.5. Pennington County, South Dakota Pennington County is located in southwestern South Dakota on the Wyoming border. Pennington County has a larger population and work force than all the other counties in the Black Hills region combined. It is home to Rapid City, the second largest city in South Dakota, Wall Drug, and Mt. Rushmore National Memorial. Interstate 90 runs through the County along with U.S. Highway 16 and State Highways 44, 79, and 240, making it very accessible to local and regional markets and suppliers. County population grew at a slightly higher rate than the State as a whole, while its age, structure is comparable to the rest of the State. Major employment sectors in the County include federal and state government, health care, military, and professional services. It is the regional center for services and retail shopping and supports a growing tourist industry. About 25 percent of the County is National Forest, and 12 percent of the land within the National Forest boundary is privately owned. With a relatively large population base, the County’s economy is more diversified, and somewhat less dependent on the timber industry than other counties. One of the large mills, Rushmore Forest Products, is located in Hill City, and there are other smaller mills in the County. The Battle Creek Fire of 2002 burned over 13,000 acres within the County, mostly on federal land.

Final Environmental Impact Statement Phase II Amendment III-399 The Affected Environment and Consequences

3-9.1.1.6. Crook County, Wyoming Crook County is located in the far northeast corner of Wyoming it contains the Bearlodge Ranger District within its boundary. About 9 percent of the County is National Forest, and 13 percent of the land within the National Forest boundary is privately owned. Natural resource-based industries, including ranching, mining and logging, continue to significantly affect the custom, culture, and economy of Crook County (Crook County 1998). Neiman Sawmill in Hulett is a major employer. Home to Devils Tower National Monument, government and services are also major components of the County’s economic base. Crook County has experienced somewhat higher growth than the State as a whole between 1990 and 2000, and has a slightly older population. The 1998 Land Use Plan and Amendment for Crook County was developed to establish a process for Crook County to coordinate with federal and state agencies on their proposed actions that may affect management of private and public land and natural resource use. The Plan states that maintaining andrevitalizing various uses of federal lands is a guiding principle for the County in order to preserve the customs, culture, and economic stability of its citizens, while protecting and using their environment. The Plan articulates the County’s position on what this means for its citizens for a range of resources including (but not limited to) wildlife, air quality, energy and mineral production, forest resources, agriculture and ranching, culture, and recreation.

3-9.1.1.7. Weston County, Wyoming About 1 percent of the county is National Forest, and none of the land within the National Forest boundary is privately owned. It is less likely to be affected by Forest activities than other Black Hills counties, but Weston County was directly impacted by the reduction in federal timber supply when a major sawmill located in Newcastle was closed in 2000. Weston County’s economy is dependent upon resource-based activities, namely oil and gas extraction/processing and agricultural enterprises. The county experienced relatively little growth between 1990 and 2000 and has a somewhat older population than the State as a whole.

3-9.1.2. Population and Racial Diversity The Final EIS for the Forest LRMP (USDA Forest Service, 1996a) presented information on population and racial diversity for the seven counties in the Black Hills on pages III-461 to 469 (Population and Its Effect on Land Use); III-471 (Racial Diversity); and III-507 to 509 (American Indian Social and Economic Conditions). The EIS provides information on population and race by county using the 1990 and 2000 Census.

3-9.1.2.1. Population Population is important to consider. The structure of the area’s population can influence the ability of the area to absorb or adapt to changes. It is important to consider any potential changes within the context of trends occurring outside Forest planning activities. In general, the population within the seven county area of the Forest has been increasing since 1990. The early 1990s saw rapid growth while more recently the rate of growth has leveled off, but the population is still increasing as a whole. Figure 3-25 displays the population for the study area over the past decade.

III-400 Black Hills National Forest The Affected Environment and Consequencies

Figure 3-25. Total Population for the Seven County Analysis Area, 1990 – 2000

164,000 162,000 160,000 158,000 156,000 154,000 152,000

Population 150,000 148,000 146,000 144,000 142,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Source: U.S. Department of Commerce 2002

3-9.1.2.2. Racial Diversity The racial diversity of the population in South Dakota and Wyoming is limited. As displayed in Table 3-68, the counties in the study area show a similar low diversity with the exception of Meade and Pennington Counties. In Meade County, the Air Force Base provides a greater degree of diversity than seen in the general population. Rapid City, located in Pennington County, also has a greater level of diversity, often associated with larger cities and universities. Rapid City also has a large population of American Indians who move to and from the reservations in South Dakota, depending on current economic conditions and employment opportunities (USDA Forest Service 1996a).

Final Environmental Impact Statement Phase II Amendment III-401 The Affected Environment and Consequences

Table 3-59. Racial Diversity By County And State, 1990 And 2000 Black/ American Asian/Native Other/ Hispanic/ County/State Population White African Indian/ Hawaiian/ Two or Latino (Any American Native Alaskan Pacific Islander More Race)

1990

South Dakota 696,004 91.6 0.5 7.3 0.4 0.2 0.8

Custer County, SD 6,179 97.1 0.1 2.5 0.2 0.1 0.7

Fall River County, SD 7,353 92.6 0.4 6.1 0.4 0.5 1.6

Lawrence County, SD 20,655 96.6 0.1 2.6 0.3 0.4 1.6

Meade County, SD 21,878 94.4 2.4 1.8 0.8 0.6 1.8

Pennington County, SD 81,343 89.5 1.6 7.2 1.1 0.6 2.2

Wyoming 453,588 94.2 0.8 2.1 0.6 2.3 5.7

Crook County, WY 5,294 99.3 0.0 0.5 0.1 0.1 0.5

Weston County, WY 6,518 98.0 0.0 1.2 0.2 0.5 1.3

20001

South Dakota 754,844 89.9 0.9 9.0 0.9 0.7 1.4

Custer County, SD 7,275 96.0 0.5 4.5 0.6 0.6 1.5

Fall River County, SD 7,453 92.9 0.4 8.1 0.5 0.5 1.7

Lawrence County, SD 21,802 96.8 0.4 2.9 0.6 0.5 1.8

Meade County, SD 24,253 95.0 1.9 3.4 1.3 0.9 2.1

Pennington County, SD 88,565 89.2 1.4 9.9 1.4 1.0 2.6

Wyoming 493,782 93.7 1.0 3.0 0.9 3.2 6.4

Crook County, WY 5,887 98.6 0.2 1.5 0.3 0.5 0.9

Weston County, WY 6,644 97.4 0.2 2.3 0.3 1.4 2.1 Source: US Department of Commerce 1990a, b and 2000a, b 1 Percent of total population; totals may add to more than 100 percent because people can select more than one category

3-9.1.3. Environmental Justice Executive Order 12898 (February 11, 1994) directs federal agencies to focus attention on the human health and environmental conditions in minority communities and low-income communities. The purpose of the executive order is to identify and address, as appropriate, disproportionately high and adverse human health or environmental effects on minority populations and low-income populations. Table 3-59 above highlights the minority characteristics of the seven counties as compared to South Dakota and Wyoming. The following table (Table 3-60) displays county and state poverty statistics showing the number of persons living at or below the poverty level as defined by the U.S. Census Bureau. None of the counties in the project area contain low-income or minority populations as defined by Executive Order 12898. No additional outreach or analysis has been performed, as there will be no disproportionate negative effect on such communities under any of the alternatives.

III-402 Black Hills National Forest The Affected Environment and Consequencies

Table 3-60. Poverty By County And State, 1990 And 2000

Individuals at or Below Population County/State Poverty Level (Percent) 1990 2000 1990 2000 South Dakota 670,383 754,844 15.9 13.2 Custer County, SD 5,982 7,275 12.4 9.4 Fall River County, SD 6,690 7,453 14.5 13.6 Lawrence County, SD 19,957 21,802 14.0 14.8 Meade County, SD 20,424 24,253 10.4 9. Pennington County, SD 79,772 88,565 12.9 11.5 Wyoming 442,277 493,782 11.9 11.4 Crook County, WY 5,231 5,887 13.5 9.1 Weston County, WY 6,423 6,644 9.8 9.9

Source: US Department of Commerce 1990a, b and 2000a, b While there are no environmental justice concerns as defined by the Executive Order, Table 3-61 displays the percent of county populations by race that are at or below the poverty level. In most cases, there has been a decline in poverty between 1990 and 2000, but generally the majority of poverty in the analysis is within minority populations.

Table 3-61. Population At Or Below Poverty Level For Counties And States, For 1990 And 2000

1990 Percent of Total Population Race Custer Fall River, Lawrence, Meade, Pennington, Crook, Weston, SD WY SD SD SD SD SD WY WY

White 9.1 9.5 8.6 8.5 9.2 8.1 8.2 11.0 7.8

Black 10.3 0.0 0.0 62.5 0.0 9.7 24.4 0.0 0.0

American Indian, 53.5 24.2 55.9 31.7 8.1 43.4 40.2 33.3 25.0 Eskimo, or Aleut

Asian or Pacific 23.6 0.0 0.0 0.0 0.0 24.7 15.0 0.0 0.0 Islander

Other Race 30.4 0.0 60.0 28.6 22.0 28.1 26.3 0.0 0.0

2000 Percent of Total Population

Custer Fall River Lawrence Meade Pennington Crook Weston Race SD WY SD SD SD SD SD WY WY

White 6.7 5.5 6.1 9.2 7.2 5.6 7.2 7.9 6.4

Black 15.5 0.0 0.0 0.0 3.4 0.0 13.5 0.0 0.0

American Indian, 44.5 20.8 43.2 25.6 33.6 44.9 31.8 0.0 0.0 Eskimo, or Aleut

Asian or Pacific 39.8 0.0 0.0 0.0 0.0 29.9 26.6 0.0 0.0 Islander

Other Race 38.6 27.9 7.5 26.4 31.4 39.9 44.5 25.0 16.3

Source: US Department of Commerce 1990a, b and 2000a, b

Final Environmental Impact Statement Phase II Amendment III-403 The Affected Environment and Consequences

3-9.1.4. Social Organization The social organization of a community or county includes infrastructure required for services— buildings, local staff, volunteers, and open space. In much of the study area, a downward trend in school enrollment is a great concern. Most funding for public schools is associated with head counts; it is difficult to keep school facilities open as classroom size and budgets dwindle. Reasons for school-enrollment decline demographics can be found in recent trends. The Black Hills region is becoming an attractive place to retire. The State of South Dakota has several programs in place to encourage retirees to settle, and both South Dakota and Wyoming have no income taxes. Retirees can be an asset to a community as they bring in outside money; have time and energy for volunteer activities; and local health care and other services often increase to meet retiree needs, thus increasing opportunities for the rest of the community. However, retirees do not enroll children in schools. As retiree populations increase, community financial resource allocations for a wider range of needed community services results in a smaller share for schools. A second trend in the Black Hills area is a decline in manufacturing employment, which is consistent with national declines of manufacturing industries. In the study area, manufacturing jobs are associated with mining and wood products and tend to have higher wages and benefits.As these job opportunities disappear, people are forced to move in search of new employment to support their family. Often, as manufacturing leaves a community, tourism-related businesses grow to fill the hole in the economy. Many tourism-related jobs are seasonal and do not pay a wage or have benefits that would attract families.As families move on, school enrollment is reduced. Forest management likely contributed to this downward trend in school enrollment from declines in timber supply and resulting mill closures in Custer and Newcastle. Counties are concerned that the loss of timber-mill and related jobs will cause additional reductions in school enrollment and further reduce state funds available for local school support. Spearfish School District experienced school enrollment and state funding reductions following the closure of the Homestake Mine.

3-9.1.4.1. Values, Attitudes, And Beliefs Generally, people in the study area are in favor of continued timber-management activities on the Forest. They enjoy the benefits of the Forest road network for recreation and would prefer to have most roads maintained and open. Many of the communities are supportive of the wood products industry; their local economies are linked to the industry, as are their social connections and infrastructure. Newer residents to the area include a large retiree population who are generally in support of continued timber management and wood production. Another group of residents with specific interest in Forest management are those people who have recently built homes that border or are within the WUI. These people and communities have a desire to see the Forest surrounding them managed for safety and reduced large-fire risk.

3-9.1.4.2. Lifestyle The region around the Black Hills is rural and has historically benefited from the wood-products industry. Tourism has become a large part of the region’s lifestyle in that local residents prepare for summer tourist traffic by altering their travel routes and activities or opening businesses to capture visitor spending. Residents are aware of the natural resources and beauty by which they are surrounded and are protective of their area while generally agreeing that some active management is also compatible with their lifestyles. In the case of forest fire, they are interested in management of theWUI to reduce the stand- replacing fire risk.

III-404 Black Hills National Forest The Affected Environment and Consequencies

3-9.1.5. Wildland-urban Interface The EIS for the Forest LRMP (USDA Forest Service 1996a) presented information on the urban interface and public safety on pages III-511 to 520. Issues surrounding the vulnerability of private and developed lands adjacent to NFS land are increasingly in the forefront due to the large fires in recent years and the prevailing drought throughout the west. The Forest experienced wildfires that burned nearly 93,000 acres of land in 2000. An additional 25,000 acres burned in 2001. In response to wildfire risks and forest conditions conducive to stand-replacing fires, Forest fuel-reduction activities that simultaneously restore forest to previous low-intensity, frequent fire regimes while improving forest health have received increased attention over the past several years. The Jasper Fire burned 83,500 acres in the Black Hills in 2000, including 4,000 acres of non-NFS land. On a smaller scale but close to the Deadwood and Spearfish communities was the Grizzly Gulch Fire in 2002 that burned 11,600 acres, of which over 70 percent was non-NFS land. Between 1997 and 2003, a total of 160,600 acres have burned in the Black Hills region or just over one -tenth of the forested land. The counties in the study area are concerned about the increasing costs of fighting fire and the ability of the forest to be adequately prepared for defending communities on its borders. Also, concerns about the indirect effects of fires on the local economy have been raised, primarily adverse effects on tourism and property values. Some observers note that immediately following fires, there can be surges in tourism as people are curious about the changes wrought by the event. However, long-term changes in landscape can change people’s preference to recreate or vacation in the area. Property values may go down following a fire because people have heightened concern about the dangers of living on the edge of forests or a burned landscape. A slump in buyer activity can cause prices to drop. However, the longer-term market trends have shown an increase in property values in the Black Hills area, particularly as the supply of private land is limited. Monetary amounts have not been established for the cost of fire-prevention work versus firefighting costs. Information from local residents and administrators indicates that recent large fires carry higher costs than just fighting the fire and the lost resources; resources lost within the area can be significantly impact tourism. Many hotels and businesses in the analysis area received cancellation notices once news of large fires in the Forest began to spread. Media coverage of these events can be devastating for businesses. Evacuation and closure of a major town, such as Deadwood during the Grizzly Gulch Fire in 2002, can cost millions in lost revenues (Harstad 2003). While these costs are not quantitatively compared among alternatives, it is important to consider such effects.

3-9.2. Social Effects

3-9.2.1. Effects On Counties Counties may be differentially affected by changes in timber production levels and resulting job opportunities. Changes in jobs at the community level can contribute to trends in community composition that have complex social and economic implications. In addition, sudden or broad-based impacts resulting from large fires can impact local economies and social organization. Counties recovering from recent fires and mill closures are more susceptible to these impacts. For additional discussion about effects to the wood products industry and surrounding communities, see Section 3-11.2.

Final Environmental Impact Statement Phase II Amendment III-405 The Affected Environment and Consequences

There would be fewest job opportunities in the wood-products industry under Alternative 2, and the most under Alternatives 1, 3, and 6 (see Section 3-11.2 for details about impacts to jobs and income). Alternative 2 could have 12 percent fewer Forest-related jobs compared to current levels of Forest- related jobs. Where there are existing concerns about changes resulting from an erosion of manufacturing jobs, this trend is most likely to continue under Alternative 2. The most positive outlook for maintaining manufacturing jobs (primarily in wood products) would be under Alternatives 1, 3 or 6. For additional discussion regarding effects to the wood products industry and communities, see Section 3-11.2. Risk of fire to ARCs and in the WUI are a greater concern for counties with a high percentage of private land within the Forest (Fall River County), or with a high portion of Forest land (Lawrence and Custer Counties), or with a lot of development on private lands within the Forest boundary (Lawrence, Meade, Pennington, Custer and Fall River Counties). While all alternatives reduce fire hazard in proximity to structures, 50 to 75 percent of the WUI would be managed for low-to-moderate fire hazard under Alternative 6. This would provide reduce fire hazard to over 220,000 acres in and around communities and privately developed parcels throughout the Forest. Alternatives 3 and 4 would have only 50 percent of approximately 120,000 acres managed to low-to-moderate fire-hazard ratings in theWUI. Lower risk of fire increases community stability and may indirectly contribute to trends for developing these areas.The economic and social effects of these trends are mixed in terms diverse community values and beliefs.

3-9.2.2. Demographic Effects Other social and economic factors, such as available private lands, national economic trends, technology, and transportation, will play a larger role in the future growth of the study area’s population. It is unlikely any of the alternatives would have a significant impact on county populations. Some individuals and communities may be directly affected by some decisions, but it is unlikely that these decisions would influence overall population trends.

3-9.2.3. Environmental Justice Effects None of the counties in the Black Hills contain low-income or minority populations as defined by Executive Order 12898, so no additional outreach or analysis has been performed, as there would be no disproportionate negative effect on such communities under any of the alternatives. However, minorities hold jobs in the wood-products industry in much higher portion than the portion of minorities in the population of the study area or region. Because minorities also tend to be the population with high levels of low-income persons, these jobs are a positive benefit for minority persons.

3-9.2.4. Social Organization Effects Social and economic effects are difficult to separate. In this case, those alternatives that maintain or increase the forest-products industry will continue to support the counties and communities with full- time salary positions. All alternatives would continue to support activities related to recreation, tourism, and livestock grazing at their present levels; no change is immediately evident or quantifiable in terms of these Forest outputs, but changes in species viability and diversity or other ecosystem conditions may have beneficial affects on some activities that are difficult to define. In other cases, individuals or groups might find specific places, roads, or other resources altered due to Forest management that would cause displacement and the need for people to find substitute sites or resources. Mining, oil, and gas activities are not expected to change by alternative, but all alternatives will increase the cost and complexity by imposing restrictions on mining. In addition, mineral withdrawals in RNAs will remove potentially valuable mineral resources for future production although the total acreage, even if all candidate RNAs were designated, is less than 8,000 acres on a 1,200,000-acre Forest.

III-406 Black Hills National Forest The Affected Environment and Consequencies

Much of the social impact related to any of the alternatives would likely be indirect or increase an already existing trend. Mill closures would 1) reduce the number of wood industry jobs, 2) exacerbate trends in declining school enrollment, 3) limit the infrastructure for processing that would pay for WUI projects, and 4) potentially change the community leadership if forest-product workers move out of the area in search of stable employment. While closure of specific mills cannot be predicted, a stable and adequate timber supply will assist mills to remain in business and create more stability for area families. Alternatives 1, 3, and 6 are most likely to support existing timber mills, while Atlernative 2 is least likely to support existing timber mills. However, there are significant national and regional trends unrelated to Forest management that will continue to create jobs, income base, and age structure in the analysis area.

3-9.2.5. Wildland-Urban Interface Effects Fire risk to ARC and the WUI are a greater concern for counties with a high percentage of private land within the Forest (Fall River County), or with a high portion of Forest land (Lawrence and Custer counties), or with significant private-land development within the Forest boundary (Lawrence, Meade, Pennington, Custer, and Fall River counties). Under Alternative 6 (and Alternatives 3 and 4 to a lesser degree –119,000 acres in the WUI), the Forest would emphasize protection of the WUI, providing added protection to over 221,000 acres in and around communities and privately developed parcels throughout the forest (see frequency fire-hazard rating spreadsheet (USDA Forest Service, 2005j)). Lower fire risk increases community stability and may indirectly contribute to trends for developing these areas. All efforts to reduce fire risk in the WUI in all alternatives would have varied success depending on the commitment of surrounding land owners, continued drought, insect mortality, and continued budget to support a fuel-reduction program. Those alternatives with a lower risk of mill closure would likely better support fuel reduction via funding and continued operation of local logging and milling than alternatives where risk of mill closure increases.

3-9.2.6. Cumulative Social Effects If communities lose their local mills and associated employment opportunities, it is likely that school enrollment, taxes, property values, and community leadership would also decline as people leave the area to search for employment elsewhere. There may, however, be other opportunities for entering the market to replace the wood-products industry, lessening these effects. The loss of sawmills could hamper the ability of the Forest to implement management decisions such as fuel reduction in the ARC and WUI and other vegetative-manipulation projects across the Forest that rely on services provided by sawmills. None of the counties in the Black Hills contain low-income or minority populations as defined by Executive Order 12898, so no additional outreach or analysis has been performed, as there would be no disproportionate negative effect on such communities under any of the alternatives. However, minorities hold jobs in the wood-products industry in much higher portion than the portion of minorities in the population of the study area or region. Because minorities also tend to be the population with high levels of low-income persons, these jobs are a positive benefit for minority persons. Historic activities have influenced minority and low-income populations within the cumulative effects study area and are encompassed in the existing conditions against which projected changes are measured for each alternative. Current public and private social and economic programs exist and are expected to continue in the foreseeable future within the cumulative effects study area for the Phase II Amendment. The incremental effects of Forest resource management and other activities on public and private lands are expected to continue influencing minority and low-income populations in the area.

Final Environmental Impact Statement Phase II Amendment III-407 The Affected Environment and Consequences

The incremental effect of Phase II Amendment alternatives when added to the impacts from all past, present, and reasonably foreseeable future projects comprises cumulative effects. The foreseeable cumulative effects analysis area would be bounded in time and space by the next 10 to 15 years (corresponds with projections for desired future conditions) in the seven county Black Hills region. However, there is little evidence that incremental effects will differ from what has already been discussed about effects on counties, demographics, environmental justice, social organization, and WUI in sections above, when considering other reasonable foreseeable projects or trends without the benefits of project- specific details. As noted above, Alternatives 1, 3, and 6 are most likely to dampen trends associated with decreasing manufacturing employment, while Alternative 6, and to a lesser extent Alternatives 3 and 4, may help mitigate increasing concerns about risk of fire in WUIs in light of housing development trends. Conversely, alternatives that promote protection of certain types of wildlife habitat may have the potential to benefit changing or expanding wildlife-related tourism markets within the region, although some wildlife populations increase and others decrease depending on the type of habitat arrangement created in the varied alternatives. The existence of county land use plans that encourage the maintenance and revitalization of uses of forest lands may provide a collaborative mechanism for mitigating adverse social effects and/or facilitating beneficial social effects associated with any of the alternatives. Each Phase II Amendment alternative is expected to have beneficial and adverse effects; however, the nature, extent, duration, and intensity of these effects would likely vary across alternatives. Because the Phase II Amendment is a programmatic document and does not analyze or authorize site-specific projects, it does not analyze the site-specific cumulative effects of site-specific projects.

III-408 Black Hills National Forest Heritage Resources

3-10. Heritage Resources Heritage resources are any district, site, building, structure, landscape, context, object, or conceptual content considered important to a culture, subculture, or community for scientific, traditional, religious, or other purposes. The potential for adverse effects to significant heritage resources is considered for each proposed undertaking. Significant heritage resources are either listed in or eligible for listing on the National Register of Historic Places (National Register) and labeled as “historic properties”. Indian tribes or other groups identify significant traditional cultural properties (TCP’s) that also may be eligible for or listed on the National Register. Heritage resources are managed for the following reasons: to prevent loss or damage until they can be evaluated for significance, to be retained for appropriate uses, to provide opportunities for scientific study about past human behavior and environments, or to provide interpretive opportunities to offer the public a better understanding of its collective human heritage (USDA Forest Service 1996a p. III-115). 3-10.1. Affected Environment The extensive historic and contemporary cultural use of the Black Hills is described in Appendix F of the 1997 Revised LRMP Final EIS (USDA Forest Service 1996a). Over 6,000 heritage resources have been identified on the Forest to date (USDA Forest Service 2005m). Over 11,000 heritage resources, including archaeological and historic sites, are expected to exist on the Forest, which is about one site for every 110 acres (USDA Forest Service 1996a p. III-116). Approximately 40 sites are presently listed in the National Register (USDA Forest Service 2005m), and hundreds more are eligible. When inventory of the Forest is complete, it is anticipated that more than 1,300 sites will be eligible for listing on the National Register (USDA Forest Service 1996a p. III-116). A range of traditional American Indian resources has been identified within the Forest. American Indian groups throughout the region consider the Black Hills a source of spiritual importance (USDA Forest Service 1996b p. 1b-37; p. 3a-1 through 3a-16). Sacred places can include topographic features such as buttes, mountains, valleys, rocks, springs, and caves. People who use sacred places often consider them sensitive, so the specific names and locations of sacred places are not always released to the public.The Black Hills also is recognized as a special resource base for traditional activities such as plant gathering. Ethnobotanical research efforts have been initiated on the Forest to identify traditional plants (McKee 2002). As part of its unique government-to-government relationship with the tribes, the Forest holds biannual consultation meetings with interested tribal groups to discuss Forest plans and programs. Tribal representantives are also consulted when specific sites are identified during the course of heritage resource inventories for proposed undertakings. 3-10.2. Resource Conservation Measures Both Forest-wide and MA standards, guidelines, goals, and objectives have been developed to manage and protect heritage resources on the Forest. The following captures the heritage-resource management in the Phase II Amendment alternatives:

• Objective 10-03 (Alternatives 3 and 6) within 5 years of formal designation manages for a moderate-to-low fire hazard between RNAs and heritage resources except those designated in wilderness areas and prioritizes treatments around RNAs found in areas of high hazard, high risk, and high value.

Final Environmental Impact Statement Phase II Amendment III-409 The Affected Environment and Consequences

• Standard 7103 (all alternatives) recognizes American Indian traditions of gathering herbs, medicinal and edible plants, and other materials for religious purposes, and makes provisions for those who wish to gather such plants and materials. Where conflicts occur over traditional plant use and R2 sensitive and SOLC plants, the Forest will consult with tribes to conserve species viability and recognize traditional plant use (Standard 3100-19 Alternatives 3 and 6). • Objective 403 improves heritage-resource management and integrates the resources with recreation and education while providing for compliance with all applicable laws and regulations and increases numbers and types of heritage-resource interpretive sites and opportunities. The objective provides for five projects per year during the Plan period; conducts six heritage-resource stabilization and rehabilitation projects per year during the Plan period; nominates eligible sites (approximately five per year in the Plan period) to the National Register; and inventories 50,000 acres each year in the Plan period for heritage-resource sites. • Objective 404 conducts three research projects each year to support heritage-resource management. • Objective 405 manages all heritage sites listed in the National Register of Historic Places in consultation with the State Historical Preservation Officer (SHPO) and the President’s Advisory Council on Historic Preservation (ACHP). • Guideline 4102 protects heritage resources from wildfire-suppression-effort degradation. (a) Avoid the use of earth-moving equipment within National Register-eligible heritage-resource sites (all alternatives). • Guideline 6101 considers long-term Forest management needs in determining appropriate use of effects mitigation or avoidance of heritage resources during project planning. • Guideline 6102 issues appropriate authorizations to qualified persons or entities for the study, research, interpretation, tourism, adaptive use, other cultural activities, or effects mitigation at National Register-listed or eligible heritage sites. • Guideline 6103 uses cooperative programs, agreements, and other partnerships to further heritage- resource management goals. • Guideline 6105 supports Windows on the Past, Passport in Time, or other USDA Forest Service heritage-management emphasis programs whenever possible. • Guideline 6106 during all planning and implementation activities incorporates information, data, and ideas in the Black Hills Heritage Resources Overview and the Forest Heritage Resources Database. • Standard 7101 requires that sensitive information about American Indian religious sites and sacred areas be kept confidential. • Standard 7102 recognizes American Indian religious and spiritual beliefs regarding the disposition of human remains and makes provisions for their proper reburial and treatment according to applicable FSM. • Guideline 8101 classifies lands or interest in lands for acquisition where lands are valuable for NFS purposes based on the following: on lands having historical or significant heritage resources; when usage changes threaten these resources; or when public ownership may enhance management. • Guideline 8103 classifies lands for conveyance based on the following: when critical or unique resources exist (historical or heritage resources) but only when reserving interests to protect the resource lessens effects; or by exchange where other critical resources to be acquired are considered to be of equal or greater value on a Forest-wide basis.

III-410 Black Hills National Forest Heritage Resources

• Guideline 1.1A-6101 does not provide interpretive facilities at heritage-resource sites and does not restore or enhance heritage resources for recreational purposes; however, the guideline authorizes continued maintenance of the Harney Peak Lookout Tower, which is listed on the National Register. • Guideline 1.1A-6102 provides for heritage-resource inventory. • Guideline 3.2A-6102 does not provide interpretive facilities at heritage-resource sites and does not restore or enhance heritage resources for recreational purposes.

3-10.3. Direct And Indirect Effects Effects analysis for heritage resources considers both direct and indirect effects. Direct effects can result from natural events and from human activities that: 1) physically alter, damage, or destroy all or part of a resource; 2) alter characteristics of the surrounding environment that contribute to the resource’s significance; 3) introduce visual or audible elements out of character with the property or that alter its setting; or 4) resource neglect to the extent that it deteriorates or is destroyed. Actions that can affect heritage resources include surface disturbance, soil compaction, erosion, heating and freezing, wildfire, prescribed burning, livestock trampling, reseeding, and vegetation removal. Indirect effects can result from heritage-resource neglect due to reduced access, cultural-material removal, inadvertent damage or fires, and reduced access when it limits traditional use of an area. Direct and indirect effects are assessed by comparing the types and locations of proposed activities with identified heritage resources that could be affected within this area or in nearby areas. The assessment of significance and potential affects is conducted in consultation with the appropriate State Historical Preservation Office,Tribal Governments, and other interested parties pursuant to Section 106 of the National Historic Preservation Act. In addition, direct or indirect effects to traditional resources are identified in consultation with affected American Indian or other traditional user groups. Direct effects to heritage resources can be reduced by: 1) modifying projects to avoid the resources, 2) increasing monitoring or law enforcement, 3) fencing or other physical protection measures, and 4) scheduling projects when the ground is frozen to reduce or eliminate soil compaction. When direct effects cannot be avoided, conservation measures can include data recovery through archeological excavation, on-site documentation, and historical research. Additional protection or conservation measures may be identified in consultation with traditional user groups such as American Indians. If heritage resources are inadvertently disturbed during Forest actions, further activity that may damage the resource’s value is halted. A heritage-resource specialist makes a professional assessment of the situation and in consultation with the appropriate State Historic Preservation Office, IndianTribes, and other interested parties identifies alternative courses of action. Indirect effects to heritage resources can be reduced by 1) monitoring sites; 2) properly designing adjacent projects to minimize scenic, auditory, or atmospheric intrusions; 3) rerouting trails, constructing barriers, and concealing sites; 4) interpreting resources; and 5) undertaking the methods listed above for direct effects. Cumulative effects can be reduced through resource recording; interpretation; using state of the art research techniques; and site stabilization and restoration.

Final Environmental Impact Statement Phase II Amendment III-411 The Affected Environment and Consequences

Under all alternatives, protection measures for heritage resources would essentially remain unchanged from the 1997 Forest Plan. Planned heritage-resource inventories of approximately 50,000 acres per year would continue. Although inventories would take place, the potential exists under all alternatives for inadvertent heritage-resource discovery during project implementation. All alternatives could result in some irreversible heritage-resource commitments such as those inadvertently damaged or destroyed, vandalized or looted, or unrecorded and ultimately lost as a result of natural processes. All alternatives are designed to minimize such losses through inventory and evaluation; resource monitoring; and improved project implementation.

3-10.3.1. Effects On Heritage Resources From Species-viability Management Species-viability management actions that include ground disturbance could adversely affect heritage resources under all alternatives. Effects could result from wildlife and fish habitat improvement; livestock-watering structure installations; aspen, bur oak, grasslands, and meadow restoration; road construction; and pond excavations. Tree removal, reseeding, and other vegetation management tasks resulting from developing and maintaining tree-vegetation structural stages could cause effects. Timber management would be required to carry out management actions associated with habitat restoration. Timber management could adversely affect heritage resources under all alternatives through machinery surface disturbance, felling trees on certain types of sites, skidding logs or trees, erosion caused by vegetation removal or damage, and reducing trees available for traditional use. In addition, heavy-equipment fuel and oils can be spilled or dumped on heritage sites. Construction or reconstruction of permanent or temporary roads associated with timber management has the potential to adversely affect heritage resources that lie within the construction area. Surface disturbance associated with pre- haul maintenance on existing roads and scarification (preparation of seedbeds) can also affect heritage resources. To carry out management actions associated with habitat restoration and greater structural-diversity development in ponderosa pine, road construction and reconstruction would be required. Although not limited to actions intended solely for these purposes (roads could also be constructed or reconstructed for fire-hazard management when associated with commercial timber sales), construction and maintenance actions could adversely affect heritage resources under all alternatives. All alternatives would include the same miles of road construction, reconstruction, and obliteration as these levels were determined in the 1997 Forest Plan and are not changed by the Phase II Amendment. The obliteration of National Register- eligible historic roads constitutes an adverse effect on the resource. Limited habitat restoration plans under Alternatives 1, 2, and 4 have less overall potential for adverse heritage-resource impacts. Beneficial effects to American Indian traditional resources could occur under Alternative 4 because it manages for additional mature forest. Habitat restoration actions under Alternatives 3 and 6 have a greater potential for adverse impacts to heritage resources among the alternatives. Compliance with Section 106 of the National Historic Preservation Act would take place prior to implementing species-viability management projects. Adverse effects to National Register-eligible resources would be reduced through avoidance and mitigation measures. Consultation with interested American Indian groups regarding potential effects of species-viability management on traditional resources is ongoing.

III-412 Black Hills National Forest Heritage Resources

3-10.3.2. Effects On Heritage Resources From Research Natural Area Management Beneficial effects to archeological resources can result from RNA management when it reduces the surface-disturbance acreage. For example, road closures, land removal from the suited timber base, and restrictions or possible restrictions on mineral leasing (Standard 2.2-2501), motorized or mechanized travel (Standard 2.2-9101), and grazing (Standard 2.2-2501) all limit the potential for direct and indirect adverse effects to archeological resources. Nonstructural projects such as noxious-weed treatments and livestock grazing can affect heritage resources. A grazing-effects study on heritage resources conducted in Forest Service Region 5 identified a link between vegetation reduction through grazing and the incidence of vandalism and artifact collection (Forest Service 1997a p. III-121). Road and area closures could result in indirect adverse effects to historic buildings and structures in areas with little management activity. Such effects could include resource neglect leading to deterioration or destruction, fire damage, and potential vandalism or theft. Other potential adverse effects to heritage resources could occur from vegetation actions resulting in ground disturbance including such actions as seeding, planting, or vegetation removal. RNA management could have both beneficial and adverse affects on American Indian traditional resources. Beneficial effects could include an increase in the feeling of solitude and an enhancement of the resource setting for traditional-resource areas. At the same time, road closures could limit access to American Indian traditional-resource locations. The American Indian Religious Freedom Act reinforces the policy of providing access and use of Forest lands to American Indians for traditional rites and ceremonies. The Forest Service would continue to consult with American Indian groups to identify and resolve potential access and traditional-use issues under all alternatives. Both beneficial and adverse effects of RNA management would be greater under Alternative 4 because it includes nine candidate RNAs. Potential beneficial and adverse impacts would be less underAlternatives 1 and 2. Beneficial and adverse impacts under Alternatives 3 and 6 would fall in the middle range. Compliance with Section 106 of the National Historic Preservation Act would take place prior to RNA- management actions. Adverse effects to historic properties would be reduced through avoidance and mitigation measures. Consultation with interested American Indian groups regarding potential effects of RNA management on traditional resources is ongoing.

3-10.3.3. Effects On Heritage Resources From Fire-hazard And Insect-risk Management Fire- and insect-management actions that include ground disturbance or changes to historic buildings or structures could affect heritage resources under all alternatives. Prescribed burns and fire-hazard treatments have the potential to directly affect heritage resources by burning historic structures and damaging or destroying artifacts and features of archeological sites, respectively. Emergency activities to control wildfire, including construction of fire lines, can also directly damage heritage resources. Fire management indirect effects relate primarily to the lower wildfire probability. Wildfires cause erosion through vegetation-cover loss, artifact deterioration and weathering of artifacts damaged by extreme temperatures, and changes in the landscape adjacent to significant resources. In addition, fuel treatments

Final Environmental Impact Statement Phase II Amendment III-413 The Affected Environment and Consequences

such as tree thinning and the creation of fuel breaks can affect heritage resources through surface disturbance and heavy-equipment use. Adverse effects to heritage resources tend to be greater in wildfire situations because of extreme temperatures, an inability to control the effects, and because resource inventories cannot be conducted in advance. Some inventories may be conducted on fire lines, and fire effects can be determined and lessened if a complete inventory of the burned area is conducted shortly after the fire has been controlled. However, this is not always possible, and potentially adverse effects from wildfire could occur under all alternatives. Compliance with Section 106 of the National Historic Preservation Act would take place prior to fire- hazard and insect-risk management projects with the potential to affect heritage resources and under wildfire situations when possible. Adverse effects to historic properties would be reduced through avoidance and mitigation measures. Consultation with interested American Indian groups regarding potential effects of fire management is ongoing. The Oglala Sioux Tribal Council has indicated that the Jasper Fire area is within an area with “ancient sacred cultural significance” and has requested that it be set aside as a bison sanctuary and traditional use area (Oglala Sioux Tribe 2002). 3-10.4. Cumulative Effects Cumulative effects for heritage resources result from the incremental impact (direct and indirect effects) associated with the alternatives when added to past, present, and reasonably foreseeable actions. The current heritage situation describes past actions. The foreseeable cumulative effects analysis area is bounded in time as the next 10 to 15 years. This temporal scale corresponds to projections for the desired future condition described for each alternative (Chapter 2). The spatial scale for the cumulative effects analysis generally encompasses the Black Hills Ecoregion as defined by Bailey (1995). Cumulative effects could include the incremental loss of the heritage-resource base, the loss of resources prior to better research technique development, the interpretive-value loss, and the loss of federal protection for resources on lands transferred to private ownership. Future Forest-management projects could cause surface disturbance, bring additional people in contact with heritage resources, or affect the fabric of historic structures. Cumulative effects to heritage resources could also result from non- sanctioned activities such as site vandalism. Efforts to control and monitor these activities on the Forest would be similar under all alternatives and are likely to result in an overall low cumulative-effects level. Additional cumulative effects could occur to heritage resources on land transferred from federal to state or private ownership. Cumulative effects to resources on non-federal lands can be greater than on federally administered properties because 1) of the higher likelihood that significant heritage resources occur on these lands (resulting from historic environmental and settlement patterns), 2) there would be few heritage-resource inventory or evaluation requirements, and 3) protection or mitigation measures would be less likely to be implemented. For the Phase II alternatives, the total cumulative effects are a function of ground disturbance and the potential that some heritage resources may be lost or damaged no matter how thorough the heritage survey or how careful design criteria are carried out. Alternative 6 would have the greatest potential effect followed by Alternatives 3, 1, 2, and 4.

III-414 Black Hills National Forest Heritage Resources

3-10.5. American Indian Issues And Tribal Consultation The Final EIS for the 1997 Revised LRMP described the long-standing importance of the Black Hills in the spiritual and everyday lives of American Indians and how these values are generally aligned with management providing for a less productive and more “natural” condition of the forest. Many American Indians have a strong cultural affinity with the Black Hills landscape and consider it sacred both as a place and for the resources it contains (Forest Service 1996b p. 3c1-19). Issues of concern for tribes in the area include timbering, mining, development, and access to traditional-use areas and resources. Today the tribes use many areas of the Forest for a variety of traditional uses including but not limited to religious ceremonies, tipi-pole collection for personal use, and collection of other native plants for traditional use. American Indian groups believe certain forms of development adversely affect the Black Hills environment. Of specific concern are timbering priorities, the lack of old growth trees in the Black Hills, the presence of only one wilderness area in the Black Hills, certain kinds of mining such as cyanide-heap leaching, and other forms of development American Indian groups consider to be under- regulated. Because of these concerns, American Indian groups have expressed a desire to participate in collaborative decision-making with the Forest Service regarding area management. Appendix A contains information on American Indian consultation.

3-10.5.1. Ongoing Consultation The Forest is engaged in an active and extensive consultation process with 17 tribal governments and one cultural society located in South Dakota, North Dakota, Montana, Wyoming, Nebraska, and Oklahoma. Tribal governments that receive notification and are invited to public and specific tribal consultation meetings as part of all Forest project planning efforts include: the Cheyenne-Arapaho Tribes of Oklahoma, Cheyenne River Sioux Tribe, Crow Creek Sioux Tribe, Crow Tribe, Eastern Shoshone Tribe, Flandreau Santee Sioux Tribe, Lower Brule Sioux Tribe, Northern Arapaho Tribe, Northern Cheyenne Tribe, Oglala Sioux Tribe, Rosebud Sioux Tribe, Santee Sioux Tribe of Nebraska, Sisseton-Wahpeton Sioux Tribe, Spirit Lake Sioux Tribe, Standing Rock Sioux Tribe, Three Affiliated Sioux Tribe, Yankton Sioux Tribe, and the Gray Eagle Society. Additional tribal governments and traditional societies will be added to the contact and consultation list as requests for participation are made. Bi-annual meetings are also held with Tribal Historic Preservation Office (THPOs) of the Cheyenne River and Standing Rock Sioux Tribes. With the establishment of new THPOs on several reservations in 2005, it is anticipated that these THPO meetings will increase in frequency. Consultation efforts are based on four guiding principles including the following:

• Maintain a governmental relationship; • Implement programs and activities honoring Indian Treaty Rights and fulfill legally-mandated trust responsibilities as determined applicable on NFS lands; • Administer programs and activities to address and be sensitive to traditional native religious beliefs and practices; and • Provide research, transfer of technology, and technical assistance to Indian governments (special programs).

Final Environmental Impact Statement Phase II Amendment III-415 The Affected Environment and Consequences

3-10.5.2. Tribal Issues In Regard To The Phase Ii Amendment Since October 1999, the Forest has held two general consultation meetings each year with tribal representatives. The agendas have included upcoming-project discussion, Forest-planning efforts, special cooperative project development, as well as LRMP Phase I and Phase II Amendment processes. Notes from each meeting and attendee lists are on file with the Forest tribal liaison. Heritage Resource Inventory reports are submitted to two certified Tribal Historic Preservation Offices (THPOs) including the THPOs for the Cheyenne River and Standing Rock Sioux Tribes for review and comment. In 2004, bi-annual meetings between the Forest heritage resource staff and the THPOs were initiated to review the findings of completed heritage inventories and discuss future inventories. Informal comments received from tribal representatives on Phase II include the following:

• Concern with expenditure of Federal money to protect isolated homes in the Black Hills from wildfire (a treaty/land claim-based view) and associated concern for potential environmental effects from WUI projects; • Concern for cultural-site protection; • Concern for plant and animal protection; • Concern for timber-resource over-cutting; • Need for a good and continuous tipi-pole supply; • Concern over the “Daschle legislation” on Beaver Park that will set a precedent for reduced NEPA analysis and either reduced or no consultation with affected tribes; • Opposition to mineral activities and the mining laws in general; • Strong opposition to any land exchanges; • Concern for lack of formal consultation; • Concern that too much development (housing and otherwise) exists surrounding the Forest; and • Concern for maintaining water quality/fish habitat. The Forest received a copy of a formally passed and signed tribal resolution from the Oglala Sioux Tribe supporting the establishment of a buffalo commons area in the Jasper burn area. This area was considered in the selection of RNAs under the LRMP Phase II Amendments.

3-10.5.3. Effects On Tribes Overall those alternatives tend to limit vegetation management and ground disturbance from timber harvest, restoration treatments, and fire-hazard and insect-risk reduction align closest with tribal concerns. Management under Alternative 4 would allow natural processes to determine Forest structure over the long term. While Alternative 4 would impact the fewest acres, Alternatives 1 and 2 are estimated to impact only 2 percent more acres. Ground disturbing impacts are least for Alternative 4 followed closely be Alternatives 1 and 2, then Alternative 3, and Alternative 6 will have the greatest impact. Job opportunities in the wood-products industry held by a higher percentage of minorities than in the local or regional population are greatest under Alternatives 1, 3, and 6. It is likely that many of these minority workers are American Indian. These well-paying jobs are a positive economic opportunity for tribal members whose populations have high levels of low-income persons. Alternative 6 has the greatest potential of provide jobs for American Indians followed by Alternatives 3, 1, 4, and 2.

III-416 Black Hills National Forest The Affected Environment and Consequencies

3-11. Economic Environment

3-11.1. Affected Environment The study area for the economic analysis is the same seven counties used in the social analysis. These are the counties most likely to be directly affected by changes in Forest management in terms of wood production, livestock grazing, tourism, and minerals. As mentioned in the social analysis, counties in which Indian reservations exist were not considered as part of the study area for either the social or economic analyses. There are few direct ties from the reservations to the Forest in terms of economic activities that would be influenced by future Forest management; wood products, grazing, tourism, or minerals.The majority of the reservations with interest and connection to the Black Hills are not within an easy commuting distance, and would be unlikely to be economically dependent on the Forest resources. Several tribes do have cooperative agreements for forestry work that results in 3 to 10 full-time equivalent jobs. Also a Tribal Youth Conservation Corps program employs up to 25 youth for 8 weeks annually. Tribes provide firefighters for local and out of area fire assignments for up to 300 persons annually. These firefighters work on Black Hills fires, but primarily work on fires out of the area.The Phase II alternatives are not likely to significantly affect these tribal employment opportunities. Many Indian tribes have significant cultural and sacred ties to the Forest. These are discussed in Section 3-10.5 American Indian Issues and Tribal Consultation.

3-11.1.1. Employment And Income The Final EIS for the 1997 Revised LRMP (USDA 1996a) presented information on employment and income for the Black Hills region on pages III-473 to 480 and III-489 to 506. The Phase I Amendment Environmental Assessment (EA) provided additional information about the timber industry in the region in Section 3-5.2 Processors of Black Hills Timber and Section 3-5.3 Timber Economy Effects on Mills. The following section provides updated information for the Black Hills region using US Census data (US Department of Commerce 2000a, 2000b, 2000c) and 2002 Regional Economic Information System data, and shows some of the major economic trends for the region.

3-11.1.1.1. Employment Trends The general trends in employment and income of a region provide context for the potential impacts of changes in Forest management. In this section, general and specific trends occurring in those sectors that may be affected by changes in Forest Service management are discussed. Along with population changes and growth, employment within the analysis area has also been changing. Figure 3-26 highlights the change in employment by sector between 1991 and 2000 for all counties in the analysis area combined (separate county analyses are available in the Planning Record). Individual counties within the analysis area show some degree of variability, but several trends are consistent.

Final Environmental Impact Statement Phase II Amendment III-417 The Affected Environment and Consequences

Figure 3-26. Employment Change By Industry Sector Between 1991 And 2000 For The Analysis Area Counties.

Government

Services

F.I.R.E.

Retail Trade

Wholesale Trade*

T.P.U.C.

Industry Sector Industry Manufacturing

Construction

Mining*

A.F.F.*

-20% 0% 20% 40% 60% 80%

Percent change in employment, 1991-2000

Source: U.S. Department of Commerce 2002 * = data not available due to disclosure regulations of employment and income data. Sectors defined according to Standard Industry Classification Manual, 1987: A.F.F. (agricultural, forestry, and fishing services) includes all farming activity as well as businesses engaged in agricultural production, forestry, commercial fishing, hunting and trapping, and related services. Mining includes the extraction of minerals occurring naturally, quarrying, well operations, milling, preparation at the mine site, and exploration and development of mineral properties. Construction includes new work, additions, alterations, reconstruction, installations, and repairs of structures. Manufacturing includes the processing of materials (products of agriculture, forestry, fishing, mining, and quarrying) into new products. Examples include food, textiles, mineral processing, lumber, wood products, furniture, paper, machinery, and appliances. T.P.U.C. (transportation, public utilities, and communications) includes passenger and freight transportation, communications services, electricity, gas, steam, water and sanitary services and all establishments of the United States Postal Service. Wholesale trade includes the selling of goods to retailers or other wholesalers. Wholesalers maintain inventories of goods, extend credit; physically assemble, sort, and grade goods in large lots; break bulk goods into smaller lots and advertise. Retail trade includes the selling of goods for personal or household consumption and rendering services incidental to the sale of the goods. Examples include groceries, hardware, drug store, and other specialty stores. F.I.R.E. (finance, insurance, and real estate) includes business that operate in the fields of finance, insurance, and real estate, such as banks, investment companies, insurance agents and brokers; real estate buyers, sellers, and developers. Services include businesses engaged in providing a wide variety of services for individuals, business, government, and other organizations. Examples include hotels; health, legal, engineering, and professional services; and educational institutions. Government includes all Federal, state, and local government employees involved in executive, legislative, judicial, administrative and regulatory activities.

III-418 Black Hills National Forest The Affected Environment and Consequencies

Mining activity analysis for the study area is difficult due to disclosure regulations. Mining has declined significantly in those South Dakota counties with available data due to mine closures in the 10-year period. Mining employment has increased in both Wyoming counties as bentonite mining and production as well as oil and gas activity continues. The largest growth within the seven-county study area was in the finance, insurance, and real estate (F.I.R.E.) and construction sectors. These sectors are associated with increasing population and overall growth of the area, residential and commercial building construction and sales, and the development of infrastructure required to accommodate population increases. In several counties, the growth in vacation and second homes also increased the demand for construction and F.I.R.E. Also associated with population growth of the study area, employment in the retail trade and service sectors has grown over the 10-year period. Much of this growth is in health care services and tourism. While services increased in all counties, Lawrence, Fall River, and Weston Counties saw a small decline in trade employment. Transportation, public utilities, and communications employment increased overall; only Fall River County showed a decline. In contrast, Meade County had significantly higher growth over the 10-year period than the seven-county analysis area. Manufacturing includes logging, sawmills, and wood production, which are dependent on Forest outputs. Food and other product processing is also included within this sector. The study area showed a small overall increase in manufacturing employment, with Fall River County having a significantly higher growth and both Custer and Lawrence Counties declining in manufacturing employment. Similar to mining, the A.F.F. sector is difficult to analyze due to the limited data that have been disclosed by county. Recent trends in which smaller farm/ranch operations are being purchased and consolidated under management of a larger corporation may account for some of the reductions in A.F.F. employment. The information gathered does not account for seasonal trends nor parttime labor within the agriculture sector. Government employment has declined in many of the South Dakota counties in the analysis area. Crook and Weston Counties in Wyoming saw small increases over the 10-year period. The decline of government employment in the study area was likely associated with the changes at Ellsworth Air Force Base in Meade County. Table 3-62 highlights differences in the composition among the counties’ economies. The table displays the percent of total employment (all full-time, part-time, and seasonal jobs) within each industry sector by county for 2000. Much of the employment for all counties is within the trade and services sector as well as the government sector (local, state, and federal).

Final Environmental Impact Statement Phase II Amendment III-419 The Affected Environment and Consequences

Table 3-62. Percent Employment By Industrial Sector, 2000 Industrial Custer, Fall River, Lawrence, Meade, Pennington, Crook, Weston, Sector SD SD SD SD SD WY WY A.F.F. D 11% 3% D 2% D D

Mining D D 4% D 0% 6% 13%

Construction 7% 5% 6% 7% 7% 6% 5%

Manufacturing 3% 1% 5% 4% 7% 8% 6%

T.P.U.C. 4% 7% 3% 6% 4% 6% 6%

Wholesale Trade D D 1% 3% 4% D D

Retail Trade 19% 20% 19% 15% 21% 14% 16%

F.I.R.E. 7% 4% 6% 7% 8% 5% 8%

Services 29% 24% 38% 26% 31% 15% 21%

Government 19% 27% 14% 21% 15% 19% 16% Source: U.S. Department of Commerce 2002 D = data not available due to disclosure regulations of employment and income data.

3-11.1.1.2. Personal Income Personal income comprises earnings (non-farm and farm income), transfer payments, and property income. The largest component is generally income from non-farm earnings, which includes all wages and salaries not directly associated with farming activity. Farm income includes proprietors’ net farm income, wages, and payments-in-kind for farm labor, and corporate-farm officer salaries. Transfer payments include retirement, disability, income maintenance, and unemployment payments made to individuals. Property income includes all dividends, rent, and interest earned. Figure 3-27 highlights the percentage change in personal income (labor and non-labor) by industrial sectors, with transfer payments and property income combined into the non-labor sector between 1991 and 2000 for the study area.

Figure 3-27. Change In Personal Income By Source Between 1991 And 2000

Non Labor Government Services

F.I.R.E. Retail Trade Wholesale Trade*

T.P.U.C. Manufacturing Source of Personal Income Personal of Source Construction* Mining* A.F.F.*

0% 20% 40% 60% 80% 100% 120% 140% 160% 180%

Percent change in personal income, 1991-2000, nominal dollars

Source: U.S. Department of Commerce 2002 * = data not available due to disclosure regulations of employment and income data.

III-420 Black Hills National Forest The Affected Environment and Consequencies

Similar to the employment comparison, several trends are consistent across the study area counties (individual county analyses are available in the Planning Record). Non-labor income showed growth in all counties. The majority of transfer payments are associated with retirement benefits, which is consistent with population and age trends within the study area. “Because non-earned sources of income do not depend on the local job market like wage and salary earnings, they act as a buffer against local economic downturns by providing a source of income, and hence spending, removed from the fluctuations of the local economy” (Black 2001). “Counties with a high percentage of non-earned sources of income will be less vulnerable to local economic shocks but may well be more vulnerable to national economic shocks” (Black 2001). The F.I.R.E. sector saw the largest growth in earnings over the 10-year period. Construction, manufacturing, TPUC, government, and services also saw consistent growth in all analysis area counties. Retail trade earnings saw some increase, with only Lawrence and Weston Counties showing a decline. Similar to employment data, mining data on earnings by county are not available for all counties in the study area due to disclosure regulations. As with employment, mining earnings increases in both Crook and Weston Counties are associated with bentonite, oil, and gas activity. It is important to compare the employment in an industry with the associated earnings. Table 3-63 highlights the percent of earnings (farm and non-farm) by sector for each county in 2000. Considering Table 3-62, the percentage of the work force in each sector by county and the income by sector, the level of earnings to employment can be compared. In the study area, several of the sectors with the highest employment have much lower earnings associated with them. This is generally due to low wages and seasonal or parttime employment. These trends are seen in the retail trade and F.I.R.E. sectors. Conversely, there are several sectors that have higher wages and fulltime jobs, so that the percentage of earnings is higher than the percentage of employment. In the study area, the mining, manufacturing, and government sectors show this trend. The State of Wyoming has recently adopted the “Wyoming Self- sufficiency Standard” (Pearce 2005) that calculates how much money working adults need to meet their basic needs without subsidies. The noted higher wage employment sectors are more likely to meet these basic needs.

Table 3-63. Earnings By Sector By County For 2000 Custer, Fall River, Lawrence, Meade, Pennington, Crook, Weston, Industrial Sector SD SD SD SD SD WY WY A.F.F. D 4% 1% D 1% D D Mining D D 9% D 0.1% 12% 21% Construction 10% 4% 8% 9% 9% 11% 7% Manufacturing 2% 2% 8% 4% 8% 10% 8% T.P.U.C. 8% 17% 3% 10% 5% 13% 11% Wholesale Trade D D 2% 3% 6% D D Retail Trade 13% 12% 13% 9% 13% 9% 10% F.I.R.E. 4% 3% 4% 4% 7% 3% 4% Services 24% 15% 33% 19% 28% 10% 15% Government 38% 44% 19% 37% 24% 29% 19% Source: U.S. Department of Commerce 2002 D = data not available due to disclosure regulations of employment and income data.

Final Environmental Impact Statement Phase II Amendment III-421 The Affected Environment and Consequences

3-11.1.2. Forest Service Related Employment And Income Industries that use forest-related resources include wood products, mining/processing/oil/gas, recreation and tourism, and livestock grazing. These are the four industries that are directly dependent on forest- related resources and are the most likely to be affected (positively or negatively) by Forest management. These industries’ production activities occur inside and outside the Forest, and in many cases the Forest is not the only source of forest-related resources. Based on regional economic impact modeling results for the seven-county area (MIG 2002), as summarized in the Draft EIS for the Phase II Amendment, Forest- related resources are estimated to be responsible for approximately 1,600 jobs and $43 million per year in labor income. The majority of these jobs occur in recreation and tourism (42 percent) and wood products (53 percent). Livestock and mining sectors account for the remaining 5 percent. This contribution is associated with resource outputs from the Forest only; those activities or resources supplied outside the Forest are not included. Each industry is described below in terms of dependence on Forest outputs. For more resource information concerning each industry, please refer to each individual resource section in this document.

3-11.1.2.1. Livestock Grazing Ranching is a major part of the custom, culture, and economic base of the communities and counties in the study area. To those ranching operations under permit with the Forest Service, the continued opportunity to graze is important and can be vital to their year-round operations. The Forest maintained 130 allotments for 257 permittees in 2002. The annual number of AUMs offered remains constant and consists of only livestock operations (refer to Section 3-8.4.). Ranch operations with federal grazing permits depend on forage for summer pasture, and without that resource such operations would need to find alternative sources of forage or reduce their herd size. Studies in Wyoming have shown that such expenses can create serious problems for businesses that operate close to the margin, as many ranches do. If an operation cannot be made profitable, the property may be subdivided and sold. Subdivided ranches are of concern at the county level, as county services for them on average cost more than the county collects in taxes. Communities are also concerned about the loss of open space or undeveloped lands, which provides quality of life benefits.

3-11.1.2.2. Locatable And Leasable Minerals A significant portion of the mineral activity in South Dakota occurs in the counties within and surrounding the Black Hills NF. Construction-grade crushed aggregate is processed in Custer, Meade, Fall River, and Pennington Counties. Both gold and silver are actively mined in Lawrence County, and several older mines are undergoing reclamation. Besides sand and gravel, Pennington County mines crushed stone, gypsum, and common clay, and produces cement and lime. Custer County has diverse mineral production, with gemstone, feldspar, mica mining operations, and with recent mineral claims being staked for uranium and cement quality limestone. In Crook and Weston Counties in Wyoming, crushed stone and bentonite are mined. Bentonite is further processed in Crook County (US Geological Survey, 2000 (a)(b)). A number of large-scale gold mines operated in the Black Hills within the past decade. The largest operations were the Gilt Edge Mine, Anchor Hill Mine, Wharf Resources, and Homestake Mine. The Homestake Mine in Lead, South Dakota is located on private land within the Black Hills. The mine ceased operations in December 2001 after operating for 125 years, and after producing over 40 million ounces of gold. It was once the largest gold mine in the western hemisphere. The mine operation was a significant part of the regional economy; the effects of the closure will likely take some time to ripple through the area. Currently, the only large-scale, heap-leach gold mine operating on the Black Hills is

III-422 Black Hills National Forest The Affected Environment and Consequencies

Wharf Resources, located on private property near Lead, South Dakota. Currently, the majority of gold mining activity on the NFS lands includes recreational gold panning and a few placer or small-scale gold operations. In addition, sand and crushed gravel are taken from the Forest, as well as mica and feldspar. All alternatives would increase the cost and complexity of future mining by imposing additional restrictions on the miner. In addition, mineral withdrawals within RNAs would remove potentially valuable mineral resources from future production, however the total acres in the candidate RNAs, even if all were designated is relatively small (less than 0.6 percent of all NFS lands). The presence or lack of claims given the current economic outlook for mining is not a good indication of mineral potential. For instance, although the Southern hills have remained largely unclaimed in the past decades, there have been numerous claims staked for uranium and cement grade limestone in the past 2 years. In terms of oil and gas production, Weston and Crook Counties produce both gas and oil with a gas production plant located in Weston County. Fall River County produces a small volume of oil. Currently, there are no oil and gas leases or exploration on the Forest.

3-11.1.2.3. Recreation/Tourism Recreation and tourism activities are an important part of the study area economy. Defining tourism is a difficult task as the outputs associated with the industry are more abstract than extraction or manufacturing industries. Tourism is not a single sector that can be looked at for trends – activity occurs in many sectors, often the same sectors in which local residents purchase goods and services for their own use, adding to the complexity of the evaluation. There are several measures that can be used to highlight the current tourism activity in the study area. “Probably the most direct indicator of the tourism industry is hotel and lodging. While only part of the expenditure, it most directly reflects the industry since a majority of visitors will need overnight accommodations” (Foulke 2002). Sales taxes associated with lodging as well as food services can be used as a proxy of tourism trends in an area. Because the study area counties are in two different states, direct comparison among counties is difficult, but general trends can be highlighted. In both Wyoming and South Dakota, there is a 4-percent sales tax and an additional 1-percent tourism tax. Both states report different levels of information, but the following tables highlight recent trends in sales tax. Because percentages collected can vary, it is difficult to display a longterm trend. But,Table 3-64 displays the magnitude of taxable sales for the South Dakota counties and the change between fiscal years 2001 and 2002. While Meade County declined, and Fall River had limited growth, the time period for data collection includes some difficult times for the tourism industry nationally (terrorism events, high gas prices) as well as locally (large forest fires) affecting the number of potential visitors.

Final Environmental Impact Statement Phase II Amendment III-423 The Affected Environment and Consequences

Table 3-64. South Dakota Counties Taxable Sales, Fiscal Years 2001 And 2002 FY01 FY 02 Percent Change Custer $62,443,202 $64,241,305 2.9

Fall River $50,821,760 $50,937,784 0.2

Lawrence $260,224,729 $270,359,452 3.9

Meade $143,503,626 $141,780,699 -1.2

Pennington $1,689,557,796 $1,811,305,083 7.2

South Dakota $11,369,578,068 $11,491,333,487 1.1 Source: South Dakota Department of Revenue and Regulation 2001 and 2002 FY = fiscal year

Table 3-65 displays the actual revenues collected in three sectors for the Wyoming counties. Similar to the South Dakota counties, most change has been positive with some declines. There are few national attractions in these counties, but they facilitate visitors on their way to and from other attractions and for smaller groups have specific draws such as snowmobiling, hunting, and fishing opportunities.

Table 3-65. Sales Tax Revenue For Crook And Weston Counties, Fiscal Years 2001 And 2002 Crook County Weston County

Sector Percent Percent FY01 FY02 FY01 FY02 Change Change Restaurants $163,813 $179,646 9.7 $215,196 $241,601 12.3

General retail $13,184 $13,886 5.3 $241,690 $230,510 -4.6

Lodging $39,125 $38,548 -1.5 $25,427 $26,119 2.7 Source: Wyoming Department of Revenue 2002 FY = fiscal year

3-11.1.2.4. Wood Products The following is a summary of the report completed for the Phase II Amendment, Black Hills NF – Forest Product Industry Market Study (Teasley 2004). The Phase I Amendment EA (USDA Forest Service 2001c p. 67-84) also contains wood-products information that has been updated here. Wood products industries have been using and managing forest resources in the Black Hills for more than 100 years. The need to harvest trees for wood products began shortly after the gold rush near the City of Custer City in the 1870s. From that time to the present, these industries have contributed materially to the local economy and affected forest environmental conditions. Today, trees are harvested for lumber, and the sawmill by-products are used for products such as wood pellets, paper, particleboard, and decorative bark. The wood products industry currently includes more than 20 firms in the seven-county area of the Black Hills, directly employing about 1,600 people - about 1.5 percent of total jobs in the area (including all jobs, not just those associated with Forest outputs). Three major mills make up about 90 percent of the total sawmill capacity, with the remaining 10 percent being smaller operations – many are family-owned and operated. The industry is highly integrated, with some firms fully reliant upon the byproducts of others.

III-424 Black Hills National Forest The Affected Environment and Consequencies

The industry is reliant on timber supply from the Forest, which was reduced in 1997 in the revised Forest Plan from an allowable sale quantity of 128 MMBF to 83.8 MMBF. Based on this reduction, industry invested in new technology, closed one large sawmill in Newcastle, Wyoming, and made other production adjustments for efficiency. But, industry remains dependent on a steady and reliable supply of timber from the Forest for production. The Forest had significant reductions in 2000, but steady increases in recent years. During that period industry relied more on other sources of timber supplies. The supply of state and private timber within the Black Hills region is finite and can not be utilized at current rates indefinitely. Firms in the Black Hills forest-products industry have tended toward either large or small operations, with a shrinking number of medium-sized operations. The larger firms are very efficient and productive, utilizing a strong existing employee base, capital improvements, and technological improvements to remain competitive. Smaller firms do not have the advantage of capital improvements and technology but are able to quickly adapt to market changes. Smaller firms target niche markets as a strategy to remaineconomically viable. Table 3-66 contains the results of the Forest Wood Products Market Survey (Teasley 2004). The results include data reported by companies for 2002. The value and volume of secondary wood products produced includes a conservative estimate of Merillat’s contribution to the industry ($62 million and 96 MMBF).

Table 3-66. Summary Of Black Hills Region Wood Products Industry 2004 Primary Secondary Total Number of Producers (firms) 12 9 21

Annual Operating Expense (millions of dollars) 84.3 70.78 155.08

Number of Direct Employees (jobs) 721 474 1,195

Annual Payroll (millions of dollars) 25.1 18.72 43.83

Number of Loggers (jobs) 359 0 359

Payments to Loggers (millions of dollars) 25.98 - 25.98

Number of Contract Employees (jobs) 63 - 63

Payments to Contractor (millions of dollars) 6.07 - 6.07

Value of Wood Products (millions of dollars 108.92 134.91 243.83

Volume of Product Produced (mmbf) 230.1 113.8 343.9 Source: Teasley 2004

Over the past 11 years, nine wood production companies have closed, eight of which were primary producers and one a secondary producer. A list of forest products companies and status of operations is provided in the Forest Product Industry Market Study (Teasley 2004). Primary producers have seen extensive contraction in their numbers, yet the production capacity is at one of its highest levels due to increased productivity and investments in manufacturing technologies. The primary producers are critical to the forest-products industry in the region largely because the majority of the materials produced by the primary producers are sold to secondary producers in the Black Hills and the Pacific Northwest region. Without primary producers, several of the secondary producers (particle board, bark, pellets) dependent on local sources of material would likely close.

Final Environmental Impact Statement Phase II Amendment III-425 The Affected Environment and Consequences

A portion of the raw materials needed by the secondary producers comes from the Forest, with additional raw materials supplied from local, state, and private forests. Many producers of millwork and moldings have identified, and in some cases utilized overseas sources to provide a percentage of their raw material requirements. This decision is primarily based on cost: in some cases, foreign raw wood material producers can offer prices, including delivery, more competitive than purchasing the same materials from local sources.

3-11.1.3. Black Hills National Forest Budget Alternatives were evaluated as if the goals, objectives, standards, and guidelines, as defined, were met. Environmental effects are not analyzed by different budget levels. Table 3-67 indicates an estimated annual budget by program area by alternative; those categories that vary across alternatives are in bold. These are estimates, for comparative planning purposes, to meet the goals and objectives, generally within a 10-15 year period. Higher budgets would reduce the time taken to meet goals, and conversely lower budgets would likely increase the time taken to meet goals. Generally, National Forests have been funded at levels less than shown in Forest Plans, and allocations shift up or down depending on priority of budget categories.

Table 3-67. Estimated Annual Budget By Alternative - Black Hills NF 3-year Alt 1 Alt 2 Alt 3 Alt 4 Alt 6 General Budget average Categories Thousands of dollars Recreation $1,159 $1,159 $1,159 $1,159 $1,159 $1,159

Timber $7,543 $12,950 $7,800 $12,950 $10,200 $12,950

Thinning and Mechanical $2,445 $2,131 $2,131 $4,788 $3,404 $4,788 Fuels Treatment1

Fuels (prescribed fire) 2 $5,897 $3,807 $3,807 $1,904 $952 $2,855

Vegetation Mgt/Restoration $1,565 $464 $464 $2,226 $626 $1,974

Soil, Water, and Air $1,128 $1,128 $1,128 $1,128 $1,128 $1,128

Range $1,884 $1,884 $1,884 $1,884 $1,884 $1,884

Minerals $335 $335 $335 $335 $335 $335

Wildlife and Fish $290 $290 $290 $290 $290 $290

Planning $1,689 $1,689 $1,689 $1,689 $1,689 $1,689

Administration-Facilities $8,135 $8,135 $8,135 $8,135 $8,135 $8,135

TOTAL $32,072 $33,973 $28,823 $36,489 $29,803 $37,188

1 Includes pre-commercial thinning, thinning products-other-than-logs, and mechanical fuel treatment (not prescribed fire). 2 The 3-year average includes pre-suppression and fuels budgets. The dollars indicated by alternative include only the estimated cost of using prescribed fire. Thus, comparison of the cost for each alternative to the 3-year average would be erroneous. Cost of suppressing wildland fires is not included in any of the figures.

The level of budget appropriated to the Forest and the timber receipts received each year and projections for outyears will guide the actual level of output and services the Forest provides. Over the last 6 years, 97 percent of total Forest receipts have been timber receipts (USDA Forest Service 2005d) that may be used for sale area improvement projects, commonly referred to as KV collections. While other Forest

III-426 Black Hills National Forest