May 2012

April, 2012Walk – ins: 332Phone calls: 339Mail outs: 23Visits to member web pages: 5,141

Chamber of Commerce:(970) 824-5689

Sportsman information:(970) 824-3046

Visitor center: 1-800-864-4405

Staff & board of directors:Visit www.craig-chamber.comand click “about the Cham-ber” for a listing of the cur-rent board of directors.

Your Chamber at work

In this issue:

Contact us:

ConnectionChamberYour guide to the business community & the Craig Chamber Of Commerce

Member News . . . . . . . .2

Ribbon cuttings . . . . . .4

Events . . . . . . . . . . . .2-4

New members, member spotlight . . .4,5

Economic indicators . . .7

Oil and gas impacts . . .7

Legislative update . . . . . . . . . . .9-11

11 E. Victory Way, Craig, CO(970) 824-7000

See all listings at www.remax.com

THE DATESave

May 26-28 • Grand Olde WestDaysJune 7 • Business After-hoursmixer hosted by Ginos Neigh-borhood GrillJune 9 • Wild West weekendJune 16 • Whittle the WoodRendezvous and Young Life carshowOngoing • Norman RockwellexhibitSee pages 2-3 for more events or go towww.craig-chamber.com/events.

CarnivalBrown’s Amusement Carnival will be in Craig over

Memorial Weekend, coinciding with Grand Olde WestDays. Advance tickets are $20 and available until theyare sold out, which we expect to happen Wednesday af-ternoon or Thursday morning at the latest.

Carnival hours are:Thursday: 5 p.m. to 11 p.m.Friday: 4 p.m. to midnightSaturday: 11 a.m. to midnightSunday: Noon to 9 p.m.Monday: Noon to 9 p.m.

Member directoryFor the first time ever, the Craig Chamber of Com-

merce is printing a Membership Directory and Commu-nity Guide. This glossy publication will include avacation and activity guide, an alphabetical and a cate-gory-based business directory that will include onlyChamber members and community and relocation infor-mation. It will be distributed to our member businesses,through the visitor center, in all of our mailings and atvisitor centers across the state. It will be available inJune.

Member directory,carnival, Channel 17focus for the Chamber

Continued on Page 3.

May 26-28 ● Grand Olde WestDaysCarnival, concert, vendors, dance,car show, parade, draft horseshow and jackpot feed competi-tion.Website:www.grandoldewestdays.comLocation: See website for detailsTime/date details: See websiteor call the Craig Chamber of Com-merce for a schedule, (970) 824-5689.Fees/Admission: Dance - $5

May 27 & June 3, 10, 17, 24 ●VFW BingoBingo games held every Sundayat the VFW Post. Variety ofgames, food, drink and fun.Time:1 p.m.Location: VFW Hall, 419 E. Vic-tory WayContact: Dave Walters @ 824-2923

June 7 ● Chamber mixer hostedby Gino's Neighborhood Pizze-ria & GrillThe Craig Chamber of CommerceAmbassadors invite you and yourstaff to a Business After-hoursMixer hosted by Gino's Neighbor-hood Pizzeria & Grill.Time: 5 to 7 p.m.Location: 572 Breeze St. Contact: RSVP by calling (970)824-5689

June 9 ● Wild West Weekend Barbecue, ranch bronc riding, am-ateur bronc riding, sheep hookingand dance to the music of TrainWreck.All proceeds will be given to FFAAlumni and Wyman Museum.Time: 5 p.m. to midnightWebsite: www.rmbra.comLocation: Moffat County Fair-

withclass

Hair, nails,esthetics535 Yampa Ave.970.824.0341

www.stylz5thavenue.com

Page 2 May 2012

EVENTSCalendar of

Horizons works with AgingWell to expand classes

Horizons Special-ized Services is join-ing NorthwestColorado VNA’sAging Well classes.As part of our effortsto be healthy, active and integrated within thecommunity, Moffat County Adult Day Programclients and counselors will participate in Intro-duction to Movement and Exercise on Wednes-days from 10:30-11:30 a.m. and ArthritisFoundation Exercise on Mondays from 10:30-11:30 a.m. Classes are ongoing and are held atthe Journey, 1150 9th St. in Craig.

Classes help people with various arthritis con-ditions or physical limitations feel better throughlow impact, joint-safe exercises that improverange of motion, strengthen muscles and en-courage proper body mechanics and relaxation.The cost is $3 per class.

VNA sponsors elk hunt auctionto benefit The Haven

Bid on the world-class bow, elk hunt offeredby Topgun Outfitters and support The HavenAssisted Living in Hayden. The starting bid is$1,500 and bids will increase incrementally inamounts of $100.

To bid on this one-of-a-kind item or to viewthe current winning bid, visit our website atwww.havenseniorliving.com/fundraiser. Bidamounts will be updated regularly.

This online auction closes at 5 p.m. (MST)on June 22, so please make sure that your bidsfor this exciting item are received before thistime. The winner of this incredible hunt will beannounced at the 3rd Annual Haven barbecueand barn dance on June 23 at 8 p.m.

If you have any questions, please contactCassandra Vigil, program assistant for TheHaven at 970-276-4484 or by email atcvigil@nwcovna.org .

NEWSBusiness

More than 1,000 Coloradans gathered inApril to discuss their values, learn about issuesimportant to the future of the state, and identifypossible directions for solutions.

The next regional meetings are devoted toconsidering 18 possible policy issues that havebeen developed based on the input from theApril meetings. The results of those meetingsare available at www.tbdcolorado.org

In June, several summits will be held opento the public to discuss these issues and possi-ble solutions.

At the summits, participants will build onthe work of the regional meeting groups bycontinuing to identify priorities and makechoices to inform policy recommendations.However, we will be adding a new dimensionto the summits: accountability! The summitswill feature a new version of Backseat Bud-geter (see the 9News story) that will includeTBD Colorado options in an interactive simu-lation of the state budget. This award-winningpublic service tool presented by Engaged Pub-lic allows users to learn about state expendi-tures and revenues and to make choices aboutwhat they would like to see. By the end of thesummit, participants will have had a chance toreview new TBD Colorado options, includingtheir proposed project cost or revenue, and willbe required to create a balanced budget. They

will also have to contend with the same set ofConstitutional requirements as lawmakers.

Please participate in one of the summits.Space is limited, so please RSVP today or nolater than May 29. RSVP at www.tbd.com.

Click on the link of the Summit you wouldlike to attend: ( Please RSVP for only onesummit)

Durango: Saturday, June 9, 2012 (9 a.m. –3 p.m.)

Glenwood Springs: Saturday, June 9, 2012(9 a.m. – 3 p.m.)

Pueblo: Saturday, June 9, 2012 (9 a.m. – 3p.m.)

Colorado Springs: Saturday, June 23, 2012(9 a.m. – 3 p.m.)

Denver: Saturday, June 23, 2012 (9 a.m. – 3p.m.)

Greeley: Saturday, June 23, 2012 (9 a.m. –3 p.m.)

TBD Colorado is a nonpartisan, collabora-tive effort designed to create informed andconstructive conversations among Coloradansabout some of the biggest issues facing thestate. The program was initiated by the TBDColorado Board of Directors, Governor JohnHickenlooper and a group of nonpartisan ad-visors. No state dollars have been spent onTBD Colorado. For more information, visitour website at www.tbdcolorado.org.

Public asked to help in statewide planning

grounds, 640 E. Victory Way Contact: Glenda at (970) 824-8621Details: 5 p.m. barbecue6 p.m. Bronc riding, sheephooking9 p.m. - 1 a.m. Concert Admission:Event pass $15Individual event pricing as fol-lows: BBQ: $12/person (chil-dren under 5 free), main event:$5/person (children under 5free), dance/concert: $5/singleor $8/couple

June 13-16 ● Whittle theWoodWood carvers from across thenation turn tree stumps intoworks of art. On June 16 therewill be a festival where the en-tries are judged and food andcraft vendors will be on hand.The City of Craig provides afree concert in the park.Location: Loudy-Simpson Park,500 S. Ranney St.Contact: (970) 826-2029

June 16 ● Bear River YoungLife/Colorado Cruisers Car &Motorcycle Show

Time: 10 a.m. to 4 p.m.Website: www.younglife.orgLocation: 400 block of YampaAve. (or LoDo as they call them-selves)Contact: Call David at (970)629-9600 or Call George at(530) 515-8342Admission: Free for fans, carowners can check the website.

Ongoing ● Norman Rockwell323 Saturday Evening PostCovers ExhibitMuseum of Northwest Coloradowill host a FREE exhibit featur-ing all of Norman Rockwell’sSaturday Evening Post covers. Website:www.museumnwco.orgLocation: 590 Yampa Ave. Contact: Mary Pat Dunn at(970) 824-6360.

Every Saturday ● 8-Ball PoolLeagueAPA Pool League 8-ball pooltournaments, open to the pub-lic.Time: 7 to 9 p.m.Location: Mather's Bar, 420Yampa AveContact: (970) 824-9946Fees: $10

Get therecogni-tionyourevent de-serves. Post it onthe Craig Cham-ber of Commercecalendar of events- our secondmost viewedpage getting46,983 views ayear. Adding yourevent is easy!Log on towww.craig-cham-ber.com and click the“events” button.Choose “submit yourown event.”

YES, WE ARE LENDING. STOP IN AND MEET OUR QUALIFIED AND DEDICATED LENDERS TODAY.

May 2012 Page 3

508 Yampa Ave. ● 970.824.4455

Home of Moffat County’s #1 Realtor

EVENTSCalendar of

Contact Shannon Russell at (970) 824-5689if you’re not a Chamber member and wouldlike to be listed in the directory or if you’reinterested in advertising in this section. Addi-tional directories will be available at theChamber offices.

Member Appreciation DayChamber members are encouraged to mar-

ket their business by including their own cus-tom-printed materials in a gift bag Chambervolunteers will hand-deliver on Member Ap-preciation Day.

No business cards or flyers may be submit-ted, but any item (pens, notepads and otheritems are encouraged) with your business logoor information may be included. Craig Cham-ber of Commerce members Status SymbolLaser Engraving or Touchmark Promotionscan help you select and print items. Visitwww.craig-chamber.com and click “businessdirectory” for more information on these busi-nesses.

Submit 400 items to the Chamber by June22. Call (970) 824-5689 for more information.

Chamber takes position on BLM decision

The Craig Chamber of Commerce took theposition of supporting local government inputon the Bureau of Land Management’s plan-ning process. The BLM is again revising itsoil shale energy impact statement. Its first ver-sion was created using input from cooperatingagencies and local governments. The Cham-ber asked that the BLM continue give weightto the opinions of those groups.

Channel 17Optimum customers can find the most cur-

rent information on local events on Channel17. Tune in for local calendar listings, infor-mation on area attractions and business infor-mation.

If you would like your event featured onChannel 17, make sure that you’ve listed it onthe Craig Chamber of Commerce calendar ofevents at www.craig-chamber.com under the“events” key. Information from that calendaris used to create the programming for Channel17. Contact the Chamber for more informa-tion.

Community encouraged to submit events for Channel 17Continued from Page 1.

Business SPOTLIGHT CUTTINGS

RibbonPage 4 May 2012

Community BudgetCenter

555 Yampa Ave. (970) 824-7898

Number of employees: 7Number of years in business: 30

What is your specialty?Community Budget Center is a non-profit thrift store. We carry a widevariety of gently used merchandise.We have lots of clothing, dishes,furniture, books, household items,sporting goods, and misc.

What is your business or organization philosophy?We provide low cost items to thecommunity and provide a place todrop the things people no longeruse in their homes. We use theprofits to assist the needy in ourcommunity with shelter, clothing,utilities, rent insurance, transporta-tion, medical needs and many othervarious needs.

Is there something your business or organization offers that people don’tseem to know about?We have many brand names andoften have antique and collectibleitems. The inventory changes daily.We also sell cotton rags.

Anything else you would like toadd?We offer seasonal items such asValentines, Easter, Halloween andChristmas items. We put theseitems out before each season. Theclothing is always out for the sea-son we are in currently. The secondSaturday of each month we try tohave a ½ price sale storewide de-pending on the amount of inventorywe have available. The last Fridayand Saturday of each month wehave a “Sack Sale”. This consists ofall the clothing you can fit into apaper bag for $5. This is always abig draw for the community.

M & D’s Handmade Gifts

Craig Chamber of Commerce photo

Chamber of Commerce board members and ambassadors gathered for a ribbon cutting ceremonyfor M-n-D’s Handmade Gifts, located in the Centennial Mall. Find crochet creations like hats,bags, scarves, kitchen items and more. Stop by and see their selection.

Wild Country Security

Craig Chamber of Commerce photo

Wild Country Security is the newest member of the Craig Chamber of Commerce and celebratedwith a ribbon-cutting ceremony at the Chamber offices. Call owner Bill Chase, (970) 620-5054, foraffordable security for your home, cabin or business.

The House Small Business Committee,led by Chairman Sam Graves (R-MO),held a hearing to examine the relationship

between high fuel costs and small busi-nesses.

Persistently high gasoline prices andthe volatility of the oil market are drain-ing family budgets and putting increasedstress on small businesses. According to arecent survey by the Small Business andEntrepreneurship Council, 72 percent ofsmall businesses report they are affectedby high energy prices. Of these busi-nesses, 41 percent report that they havealtered hiring plans and another 22% re-port reducing employee hours because ofhigh energy costs.

“Small businesses are the historicsource of new job creation in the econ-omy, but are currently facing many chal-lenges, including the burden of high fuel

prices,” said Chairman Graves. “While itis good to see the price of gasoline fallingin recent weeks, $3.75 per gallon gas isnothing to celebrate, especially consider-ing it was under $2 per gallon a few yearsago. Oil is a volatile commodity and gasprices will go back up, it’s just a matterof time. It is important to have hearingslike this to discuss the need to increasedomestic supplies before we are facing $4gallon gas again.

Small businesses need certainty to runtheir businesses, hire more employees,and plan for the future, and they can’t dothat if they are consistently subject to thevolatile global oil market.” For relatedhearing documents, visit www.smallbusi-ness.house.gov.

ANNIVERSARIESTLC Carpet One 1992Black Mountain Glass 1997Storage and U-Haul 1998Downtown Business Association 2002Strata Networks 2003Roberts S. Ralston & Associates 2004Chaos Ink 2004Moffat County Fair Board 2006LPL Financial 2006

BeautiControl/ Tammie Hanel 2007Colorado Hunting Club 2007Colorado Lending Source 2007Westward Motel 2007Craig Sea Sharks 2007Epp & Associates, Inc. 2008Jones & Associates, Inc. 2008New Creation Church 2008Northwest Auto Glass 2008

Wild Skies 2008Coding Sense, LLC 2009Quality Plus One-Hour Photo 2011Cramer Flooring 2011Holistic Health & Fitness 2011Northwest ColoradoChapter of Parrot Heads 2011Allie Ooop Studio 2011The Dog & I 2011

May

Welcome

Echo Transportation, LLC Tanner WestP.O. Box 914Craig, CO(970) 756-1200Echo Transportation provides trans-portation services for the oil & gas in-dustry including daily employeetransportation, airport shuttles, char-ters, tours and VIP transportation.

Wild Country Security Bill Chase1125 W. 6th St. #201Craig, CO(970) 620-5054A locally owned and operated securitycompany that offers affordable secu-rity for your home, cabin and business.Providing peace of mind about thesafety of your property.

Dry Creek Enterprises Chuck Grobe980 E. 9th St. Craig, CO(970) 824-4940Electrical contractor serving residentialand commercial needs in NorthwestColorado.

NEW MEMBERS

May 2012 Page 5

(970) 824-3445105 E Victory Way,Craig, CO 81625

www.americannorthwestrealty.com

Committee examines effect of high gas prices on business

Protect Local Character and ProsperityCraig, Colorado is unlike any other city in the world. By choosing tosupport locally owned businesses, you help maintain our diversity anddistinctive flavor. Moffat County businesses offer shoppers uniqueproducts and services. Independent shops create distinctive shoppingexperiences and respond more quickly to the need of local customers,stocking products to meet the changing population needs.

For more reasons toshop local, log on to www.craig-chamber.com

By Jennifer ShaheenCourtesy of the U.S. Chamber

of Commerce

It was a little more than 10 years ago thata national conversation started about “thedigital divide,” the fact that not everyonehad the same access to digital technology.With time, that gap has narrowed. Advancesin technology have made it possible fornearly everyone to have reliable access tothe web. The playing field may not beentirely level, but it’s a lot smoother than itused to be.Yet the digital divide hasn’t goneaway; it’s changed. We’re divided, not bytechnology, but by understanding. There is afundamental disconnect in our culture wheretechnology is involved. The Internal DivideOn one side, we have older entrepreneurs

struggling to integrate technology; on theother side, we have a generation that needsno integration, a community that doesn’t seewhy this conversation is even necessary.Bring that disconnect into your corporateculture and something as simple as lettingyour team know that you’ll be fifteenminutes late to a meeting due to a masstransit delay becomes a legalistic minefield:is notifying via text message appropriate, or

does this situation require a phone call?There are two immediately obvious answersto that question—and your answer willreveal which side of the digital divide you’reon.Bridging the Gap with Your TeamBringing your entire team onto the same

side of the digital divide yields manybenefits, including enhanced organizationalefficiency, better communication, andimproved corporate culture. Start theprocess with employee education and smartpolicies. Then, create an ongoing process ofimplementation and evaluation.Open the discussionHave your team discuss, regularly and in

depth, changes in technology and socialmedia. This can be done as part of regularstaff meetings or trainings. It’s essential thateveryone in your organization operates onthe same basis of understanding. Whilesome team members may be early adoptersor super users, you can expect all employeesto have or gain a certain level ofunderstanding.

Integrate Technology in HR PoliciesNow, more than ever, businesses areintegrating social media and technologycomponents into their HR policies andprocedures. This is an ideal point to

encourage the appropriate use of technology,and educate new staff about collectiveexpectations and individual responsibilities.The External DivideThe divide goes deeper than a gap in

understanding between employees andemployer or manager. Entrepreneurs andsmaller organizations are struggling to usetechnology effectively to connect with theircustomers, build brand equity, and competemore successfully against companies thathave harnessed the expertise found only onthe digital-native side of the divide.

It doesn’t matter what industry you’re inor what market you serve: many of yourcustomers are on the cutting edge of thedigital divide. Here, the view ofrelationships and online connections isinherently expansive. Customers aresocialized to expect easy, immediate accessto the companies and brands they dobusiness with. This is not a population thattolerates frustration well: if they can’tconnect with your organization, they’ll findanother company that’s more receptive totheir overtures.

Read more about briding the digitaldivide with your customers at:https://uschambermagazine.com/new-digital-divide

Page 6 May 2012

News forBUSINESS

From the U.S. Chamber of Commerce

Running a small business ischallenging, and keeping up with the ever-changing tax policies can add to the list ofthings owners don’t have time to thinkabout. As April 15 quickly approaches,FOX Business created a guide to taxcredits specifically designed for smallbusinesses.

Health Care Tax CreditsSmall businesses can claim tax credits

for providing health insurance coverage totheir employees. Businesses can deduct upto 35% of employee premium costs, andthat rate will increase to 50% by 2014.Small businesses that wish to claim thiscredit must cover a minimum of 50% ofthe cost of single health care coverage to

employees, and must have fewer than 25full-time employees with average wages ofless than $50,000 a year. Self-employedindividuals can deduct 100% of insurancecosts for themselves and their families.

Retirement Plan Tax CreditsSmall businesses can claim credits for

starting a retirement plan for employees,including simple employee pension (SEP)plans, SIMPLE plans, and Qualified plans,such as a 401(k). Each plan comes with itsown set of rules and tax rates, which isoutlined in detail on the IRS Publication560. To qualify, a small business musthave fewer than 100 employees.

5-Year Carryback of General BusinessCredits

The Small Business Jobs Act offersopportunities for small businesses to

increase their refunds by allowing them toapply their tax credits back as long as fiveyears. This is particularly helpful duringtough times because it allows businessesto offset losses against a profit fromprevious years.

General Business Credit Not Subject ToAlternative Minimum Tax

General business credits apply tobusinesses of all sizes, and cover a widerange of available credits. The alternativeminimum tax is an added tax intended toprevent individuals and businesses fromexploiting tax breaks. The Small BusinessJobs Act now allows small businesses toapply the general business credit to thealternative minimum tax liability.

Click here to read the full tax guide: ASmall Business Guide to Tax Credits

Start planning now: A small business guide to tax credits

Businesses change strategies as they encounter the new ‘Digital Divide’

In theECONOMY

May 2012 Page 7

COURTESY OF YAMPA VALLEYDATA PARTNERS

For more Fast Facts or other economicindicators, visit

www.yampavalleypartners.com

EmploymentThe employment picture in both Moffat

and Routt counties decreased in Marchwhen compared to the March of 2011.Most likely this can be attributed to the de-cline in the number of late winter seasonvisitors as the snow conditions were lessthan ideal. The decreases were not signifi-cant and we are forecasting a rebound dur-ing the summer season Jun-Sep.

The number of active unemploymentclaims has remained static for severalmonths. This most likely represents a largenumber of individuals that have been re-ceiving extended emergency unemploy-ment benefits that have yet to find work.The Colorado Workforce Center projects asindividuals begin to approach the end oftheir extended benefits they are broadeningthe type of work they are willing to con-sider.

Retail TradeRetail sales in December 2011 were up

about 11% in Routt County over the prioryear. However, retail sales in Moffat in De-cember 2011 declined by 4%. The declinedoes not appear to be due to a downwardturn in general merchandise sales but due toa decline in Food/Beverage sales.

General merchandise sales were up inboth counties which were likely due to anactive holiday shopping season.

Construction/Real Estate/Foreclosures

In March 2012, there were three new sin-gle family residential construction permits is-sued in Routt County. All of the newresidential construction permits (Jan-Decem-ber / 2011) have been for single-familyhomes averaging about $1 million each inconstruction values. It appears that this trendis continuing into 2012.

The pace of sales of existing homes inMarch 2012 increased over the previousmonth and this result was identical to March2011. There were only 17 single familyhome sales. This number is important be-cause the ratio of single family homes sold tothe number of homes listed for sale in RouttCounty is a key future construction predictor.The ratio for April was 1.7%. The ratio needsto be 2.5%+ on a sustained basis for 18months before noticeable construction activ-ity begins.

During March 2012, there was a declinein the number of foreclosure notices filed onRoutt County homes compared to the annualaverage for 2011. The pace of foreclosure inFebruary nationally, statewide and locallyslowed from the activity during the last sixmonths of 2011. Foreclosure Ratio (February 2012)Nationally 1 in 662Colorado 1 in 591Moffat 1 in 885Routt 1 in 679Eagle 1 in 384Garfield 1 in 259La Plata 1 in 1,175Summit I in 1,243

The stabilization in median listing price ofhomes in the last quarter of 2011 has contin-ued into the first three month of 2012. Themedian listing price of a home in MoffatCounty in April was $188,000 and in RouttCounty it was $499,000. Both counties areseeing a modest increase in median listingprice when compared to last April

EnergyIn February 2012 the three coal mines in

northwest Colorado accounted for almost50% of the state’s total coal production of 2.1million tons of coal. The employment at the

mines has increased by 34 full time employ-ees since February of 2011.

The number of wells producing in Janu-ary 2012 in Moffat County has declined from714 to 703 compared to January 2012. In thesame period the number of producing wells inRoutt County declined from 41 to 30. It isimportant to remember that the number ofwells in Routt County is a fraction of thenumber of wells in Moffat County. MoffatCounty the number of producing wells at 707is 96% greater than Routt County. For en-ergy production comparison, in Decemberthe average well in Moffat County produced2.4 Million BTUs compared to 2.5 MillionBTUs for the same period in 2011. In RouttCounty, the numbers are .8 Million BTUscompared to 0.70.

New Data This Month –The Bureau of Economic Analysis (BEA)

data has been updated. Since this data is based on the tax returns

of Moffat and Routt county’s residents it pro-vides valuable insights to local economy. Percapita personal income is simply a measure-ment of all the income from all sources re-ported by the residents of the county dividedby the population. The 2010 per capita in-come for Moffat County is $36,579 and$42,295 for Routt County. Out of the 64counties in the state of Colorado, Moffatranks 33nd and Routt ranks 9th. Rankings in2009 were 23rd and 4th respectively. Of thecomparable mountain resort communitiesonly Pitkin (Aspen) and San Miguel (Tel-luride) have a higher per capita personal in-come at $76,318 and $50,481

Area Median Income (AMI) andFair Market Rents (FMR)

The US Department of Housing andUrban Development (HUD) released onApril 25 the estimate of the 2012 AMI andFMR data for Moffat and Routt counties.This data is important because a number ofgovernment programs use the AMI and FMRto establish qualification guidelines. TheAMI for Moffat County is $63,800 and forRoutt County $81,200. In both counties thisrepresents about a 1.5% increase over 2011amounts. The FMR by type is shown in thedata table.

April Fast Facts: Regional economic indicators

Page 8 May 2012

COURTESY OF YAMPA VALLEYDATA PARTNERS

For more Fast Facts or other eco-nomic indicators, visit

www.yampavalleypartners.com

The focus of this economic spotlightwill be on the economic impact of out-side crews that come to the area when awell is in development. The approval ofa drilling permit does not necessarilymean the well will be drilled. In the pastthe trend has been about a third ofdrilling permits will be become wells.Recognizing that there is no such thingas an “average” well cost, here in ourarea the cost to develop a well roughlyruns about $2.5 to $3 million per well.The energy companies outsource variousparts of the well development process.

The development process has threephases. The first phase involves the con-struction of roads and the infrastructureto support the well drilling process suchas a concrete drilling pad. The construc-tion crew is typically comprised of be-tween 6 to 10 workers that will be on sitefor about 30 days. During this period,weather and light permitting may work10- to 12-hours per day non-stop for 14days.

The next phase is the drilling phasewhich begins once the drilling rig arriveson the well site. Once the rig is installedon site it will operate 24/7 until the wellis completed. There are typically fourcrews associated with the drilling. Eachcrew is comprised of 7 to 8 workers.Each crew works 12 hours shift for 14days straight. At the end of the 14 dayperiod they get two weeks off and thereis a crew swap with another crew. It typ-ically takes about 40 days to completethe drilling phase.

Once the well has been drilled thedrilling rig crew will move on to the nextproject. At this point the completionphase begins. It is during this phase thatthe production infrastructure of the wellis put in place which includes pumps,tanks, etc. This phase also takes about 30days and involves 6 to 8 employees that

work 12-hour shifts for 14 days and thenrotate with another crew. Depending onthe location of the well and dependingon the wells in the area these efforts canbe combined.

For discussion purposes it is safe toassume that it takes about 90 to 100 daysfrom start to finish for a well to be com-pleted. The crews associated with the de-velopment of the well do not live in thearea. This means that the wage/salarybenefit of the crews is manifested out-side of the Yampa Valley. The crews,however, do have impact while they arehere. These crews are visitors withunique spend-ing patterns.

If drilling activity is similar to that of2006 there will be at any given time 10wells in some phase of development inRoutt and Moffat counties. Assuming thenumbers above, the maximum crew sizefor each well would involve 1,180 work-days or 11,800 workdays for projectedactivity.

Most of the crews receive a per diemallowance for food and lodging whilethey are on the well site. The per diemcreates a great incentive for the crews tospend as little as possible while they are

in the community. So for economic pro-jections it has been assumed that theirdaily spending will be allocated as fol-lows: Total per diem per person = $85,Lodging $30, Food $25, In their Pocket$30

At this level of spending the well de-velopment crews have essentially mini-mum economic benefit to thecommunity. Using the economic devel-opment model developed by YVDP it isprojected that on an annual basis 10wells in development would result in thefollowing benefits:

Sales Tax CollectionsState of Colorado $18,221Moffat County $12,980City of Craig $18,821Moffat Lodging Tax $3,637

Activity at this level would supportthe equivalent of 6.2 jobs split almostequally between the industry sectors ofAc-commodations/Food Service and Re-tail Trade (grocery store). In summaryalthough the presence of a drilling crewis very apparent, their economic impactis very modest. The crews are visitorsthat spend very little in the community.

Spotlight on oil and gas development for Moffat, Routt

More economic data is available at www.yampavalleypartners.com. Email kate@yampavalleypart-ners.com to subscribe and receive the Yampa Valley Data Partners economic forecast newsletter each

quarter. Sponsorship & advertising opportunities are available.

May 2012 Page 9

BY CHUCK BERRY Colorado Association of Commerce

and Industry President

For CACI and the statewide businesscommunity that it represents, the outcomeof the 2012 session strengthens the Col-orado business climate for continued eco-nomic recovery.

There were two keys to the success ofCACI’s advocacy under the Gold Dome:its experienced lobbying team and the ac-tive participation of CACI members inCACI’s five Councils (Governmental Af-fairs, Energy and Environment; Health-care; Labor and Employment; and Tax).

First, CACI’s widely respected, effec-tive lobbying effort was headed up byLoren Furman, CACI Senior Vice Presi-dent, State and Federal Relations, and in-cluded Carly Dollar, CACI GovernmentalRelations Representative, and Larry Hud-son, CACI Governmental Relations Con-sultant.

Second, CACI Council members pro-vided valuable insight into how proposedlegislation would affect their companiesand, in some instances, testified for CACIbefore legislative committees.

CACI lobbied to successfully pass pro-business legislation, including the follow-ing:

HB-1272, which extends enhanced Un-employment Insurance (UI) benefits forqualified out-of-work individuals partici-pating in approved training programs;

HB-1002, the “Creating Level Expecta-tions for Application Review (CLEAR)Act”;

HB-1022, which concerns water re-placement because of mining operations;

HB-1312, which tells the Public Utili-ties Commission that it need not considerlocal land-use issues when decidingwhether or not to grant a certificate to siteelectrical transmission lines; and

HB 1241, which establishes an Enter-prise Zone Taskforce who would evaluatethe State’s Enterprise Zone Program andprovide recommendations to the GeneralAssembly.

The Legislature’s stalemate on the civil-union bill, however, resulted in the deathof two bills that CACI had advocated, in-cluding the following:

SB-177, which concerned employers’unemployment-insurance (UI) ratings andwould have reduced those ratings whenColorado issues bonds to repay its FederalUI debt. This issue will be re-addressedduring the 2012 Special Session, andCACI will strongly advocate for its pas-sage during the Special Session;

SB-27, which would have required stateagencies to notify legislative sponsors andlegislative “committees of reference” ofrules issued by the agencies because of en-acted legislation.

CACI worked hard to successfully de-feat measures that would have harmedbusinesses, including:

The session’s worst bill for business,SB-153, which would have turned upsidedown the state’s product liability law andwhich would have particularly harmedmanufacturers;

Four bills that would have restricted oil-and-gas “fracking” beyond the regulationsestablished by the Colorado Oil and GasConservation Commission;

Three protectionist bills (HB-1113, SB-1 and SB-4) that would have made stategovernment purchasing more costly fortaxpayers and harmed companies seekingstate contracts;

And SB-3 which would have restrictedan employer’s ability to use importanttools during the hiring process.

2012 legislative session: Key wins for businessChamber gives its members a voice

As a member of Colorado Associa-tion of Commerce and industry, theCraig Chamber of Commerce and itsmembers has an important voice on thepositions this lobbying powerhousetakes on legislative issues. If you aretracking issues that will affect our com-munity or your business, let us knowand we’ll put the Craig Chamber andCACI to work for you.

GovernmentAFFAIRS

Key billsHB 1022 – Establish Mines Water ReplacementCACI Position: Support Bill Status: Signed by GovernorHouse Bill 1022 bill specifies that min-ing operators will not be required to re-place the amount of historic naturaldepletion to stream water that is attrib-utable to preexisting natural evapotran-spiration within the mined area.

HB 1277 – Local Control Oil & GasRegulations CACI Position: Oppose Bill Status: Bill died in House Commit-tee on Local Government House Bill 1277 would have given localgovernments the same authority to reg-ulate oil and gas operations as the Col-orado Oil & Gas ConservationCommission (COGCC), allowing all 64counties and hundreds of towns andcities to enact rules that are entirely theirown regarding oil and gas operations. Concerns were raised by CACI mem-bers that the legislation would have cre-ated confusion and uncertainty.

HB 1312 – Transmission Siting PUC CACI Position: Support Bill Status: Signed by Governor House Bill 1312 specifies that the Col-orado Public Utilities Commission(PUC), when determining whether togrant a certificate of public convenienceand necessity (CPCN) for the siting ofproposed electric transmission lines orassociated facilities, should not considerlocal land use issues. Issues such as thelocation or alignment of the proposedlines or facilities are to be addressedthrough a local government’s land useregulations. CACI’s Energy & Environment Coun-cil supported the bill on the basis thatstreamlining the process for buildingtransmission lines is helpful to eco-nomic development and job growth ef-forts in Colorado.

Continued on Page 10.

SB 107 – Oil & Gas FrackingCACI Position: Oppose Bill Status: Bill Died Without Hearing inSenate Committee on Appropriations As introduced, SB 107 was comprised ofmany components, including a section onfracking near radioactive materials, a prohi-bition on use of chemicals that cause cancer,a requirement that operators that engage in“high-risk fracking” take out an additionalenvironmental bond that would be forfeitedif the operator’s operations cause any dam-age to water, a definition of “high risk frack-ing” that would have included essentially allfracking in the state, and a presumption thatan operator is responsible for any pollutionnear a fracking site. An amendment wasadopted in the Senate Agriculture, NaturalResources and Energy Committee but thelanguage did not alleviate concerns raised byCACI members on the bill. CACI’s Energy & Environment Council op-posed the bill as an unnecessary overstep intothe existing Colorado Oil & Gas Conserva-tion Commission (COGCC) process, under-mining the existing process that encouragesinvestment in Colorado.

SB 1 – Contracting PreferencesCACI Position: Oppose Bill Status: Bill died in House Committee onState, Veterans & Military Affairs on 4/25/12 Senate Bill 1 stated that a company who bidswith the State for products or services couldreceive a 5% bid preference on state con-tracts above $1 million if 90% of the com-pany’s workers are Colorado residents, and ifthe company provides health insurance ben-efits as well as retirement benefits for theiremployees. The bill also stated that con-struction companies had to provide an ap-prenticeship program for their employees. CACI’s Governmental Affairs Council iden-tified the bill as a priority bill to defeat basedon concerns that the bill would drive up costsand limit bids for Colorado companies.

SB 3 – Use of Credit Information by EmployersCACI Position: Oppose Bill Status: Bill died in House Committee onLocal Government Senate Bill 3 prohibited an employer fromusing a credit report in their hiring processunless the applicant would be handlingmoney or do asset management. The bill waslater amended to only exempt occupationsthat involve defense or security contracts. CACI’s Governmental Affairs Council iden-

tified the bill as a priority bill to defeat.

SB 153 – Sunshine Litigation ActCACI Position: Oppose Bill Status: Bill died in Senate Committee onJudiciary SB 153 defined a public hazard as any de-vice, instrument, or product, or any condi-tion of a device, instrument, or product thathas caused injury and may cause injury in thefuture. The bill also barred a court from keeping confi-dential, during the discovery phase of a civillawsuit, information from a company aboutits product if the company could not provethat the information is not related to a “pub-lic hazard.” CACI members raised concerns that the billwould have exposed trade secrets and pro-priety information used in developing aproduct. The bill was deemed as one of theworst bills for business during the 2012 Ses-sion.

SB 53 – Repeal of Colorado Health Benefit Exchange CACI Position: Oppose Bill Status: Died in Senate Committee onHealth & Human Services on 2/2/12 Senate Bill 53 would have repealed the Col-orado Health Benefit Exchange Act if thefederal Patient Protection and AffordableCare Act is ruled unconstitutional, in full orin part, by the United States Supreme Courtor is repealed by Congress. CACI’s Health Care Council opposed thisbill based on CACI’s support of SB 200(Creation of CO Health Benefit Exchange),which was adopted during the 2011 Legisla-tive Session.

HB 1061 – Skills for Jobs ActCACI Position: Support Bill Status: Signed by Governor on 4/2/12 House Bill 1061 requires that the ColoradoDepartment of Higher Education, in consul-tation with the CO Department of Labor &Employment and the CO Department ofRegulatory Agencies, produce an annual re-port projecting workforce needs, number ofdegrees, certificates and other post second-ary credentials that they anticipate to issue.The intent of the bill is to align workforceneeds with higher education graduates.

HB 1082 – Prevailing Compensation on Public Works Projects CACI Position: Oppose Bill Status: Died in House Committee on

Local Government on 1/25/12 House Bill 1082 required a contractor whois awarded a public works contract at$100k or more to pay their workers pre-vailing wages and fringe benefits. The billpenalized a contractor if they failed to fol-low the requirements and allowed for a pri-vate right of action. Concerns were raised by CACI membersthat the bill limited the amount of moneythat can be used for construction projectsbecause those funds will be used to payhigher wages and benefits. Addition con-cerns were that a private right of action suitcould bankrupt small/midsize constructioncompanies, and that the bill would limitcompetition among construction firms.

HB 1272 – Enhanced Benefits UI Training CACI Position: Support Bill Status: Bill was sent to the Governor House Bill 1272 extends enhanced unem-ployment insurance benefits for unem-ployment insurance claimants who areengaged in an approved training programprovided by CO employers. The bill au-thorizes $8 million by the Department ofLabor & Employment that can be used totrain individuals to get them back into theworkforce. CACI members stated that they would liketo provide skilled training to individualsseeking employment since many applicantsdo not have the training they need to behired.

SB 177 – Administration of Unemployment Insurance FundCACI Position: Support Bill Status: Bill died on House SecondReading Calendar Senate Bill 177 allows employers to re-ceive credit within their individual unem-ployment insurance accounts for paymentsmade for repayment of principal relatedbond amounts to resolve the insolvency ofthe Colorado Unemployment InsuranceTrust Fund. The bill allows dedication of premiums forthe repayment of principal on the revenuebonds and creates flexibility to ensure thatColorado employers receive beneficial pre-mium rates. The issue in SB 177 will be brought backduring the 2012 Special Session.

Oil fracking, health exchange repeal, prevailing wage bills diePage 10 May 2012

Continued on Page 12.

.

CNCC Craig Campus

North of Memorial Hospital Registration:824-1100 Information: 824-1101 Bookstore: 824-1124

CNCC Nursing Program’s Joe (Joseph) Lawrence Army National Guard Veteran Seeks Retraining to become Registered Nurse

Originally from Appleton, Wisconsin, Joe joined the Army National Guard May 10, 2005. After completing six months training to

become a medic, he served in the HHC 2-127 Infantry out of Appleton Wisconsin. During this time he took general education

community college course-work at University of Wisconsin -Fox Valley, and University of Wisconsin -Stevens Point. He was

mobilized to training in Fort Bliss, Texas.

Deployment sent Joe to Iraq in 2009. It was then that Joe decided he wanted to pursue a medical career. He enjoyed making

people feel better and helping people who came to him with a need; it felt good to be able to help. He found satisfaction in medical

knowledge and sharing what he learned with soldiers who benefited from the information.

Joe returned stateside in 2010.

While vacationing in Colorado, a friend in Steamboat Springs told him about a nursing program in Craig, 45 miles west. After

talking with the nursing program assistant, Darby McDermott, he transferred to the C CO 1-157 Infantry National Guard Unit in

Grand Junction and registered for classes at Colorado Northwestern Community College (CNCC) to work towards the completion

of his RN in Nursing. He started taking nursing pre-requisite classes fall semester 2010, officially becoming a first year nursing

student fall semester 2011. He was honorably discharged from the Army National Guard in May 2011, departing with the rank of

Sargent. Joe then married his sweetheart, Crystal, also from Wisconsin, and they purchased a house in Craig.

After he graduates from the CNCC, Joe plans to return to Wisconsin, to be near family, and practice nursing. Joe describes

himself as pretty laid back. Military training prepared him to understand how important proper medical care is, including treatment

and education, to maintain and better the wellness of people and communities. After leaving the National Guard, Joe realized how

the structure of military life taught him to maximize all of his day through organization and prioritization. These skills have been

invaluable to him as a student in the rigorous CNCC Nursing Program. He knows what to do with his time, and Joe's service to

our country and progress towards becoming a nurse is testament to this discipline.

Colorado Northwestern Community College congratulates Joe on the completion of his first year of nursing studies and is

appreciative of his service.

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May 2012 Page 11

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HB 1029 – Economic StimulusBusiness Personal Prop Tax CACI Position: Support Bill Status: Signed by Governor House Bill 1029 changed the capfor statutory business incentiveagreements for counties, munici-palities, and special districts.Under current law, each of thoselocal government entities has au-thority to give incentive paymentsor tax credits of up to 50% of ataxpayer’s business personalproperty liability. This new lawincreases the incentive to 100%. CACI’s Tax Council took a posi-tion in support of this bill basedon the interest in providing morerelief to businesses who pay busi-ness personal property tax.

HB 1241 – Enterprise ZoneDesignationsCACI Position: Support Bill Status: Bill was passed byboth chambers and sent to Gover-nor

House Bill 1241 as introducedwould have changed the criteriafor qualification of an enterprisezone within Colorado. It was de-termined that this would haveeliminated a significant numberof enterprise zones within thestate. CACI and other business andeconomic development groupsworked with the House sponsorRep. Mark Ferrandino (D – Den-ver) to amend the bill to eliminatethe changes to the criteria and in-stead, create a taskforce within theOffice of Economic Development& Information Technology(OEDIT). Based on the amendedlegislation, the taskforce is nowcharged with reviewing the enter-prise zone program and recom-mending any changes if necessaryto the General Assembly by No-vember 1, 2013. CACI’s Tax Council opposed theoriginally introduced bill and latersupported the bill once theamendments were adopted.

Enterprise zone task force createdContinued from Page 11.