of  crushed  stone,  and  therefore,
producers that are closest to markets have
a significant advantage.  Sophisticated
equipment backed by technical knowledge
combined with solid sales expertise are
becoming very important.   For this
reason, large companies are better able to
compete in the crushed stone business,
especially when there is a need for a wide
variety of products.   Smaller, less
efficient  operations  become   less
economical as operating costs, as well as
costs associated with meeting various
Federal, State, and local regulations,
continue  to increase.    The  only
alternatives these producers have are to
supply local markets with a limited
number of products. The gradual trend
toward larger operations has continued,
mostly because the stone industry is
capital intensive, and it is becoming less
economical to operate small quarries.
The viability of small operations is
dependent on the demand in the local
markets, mining costs, and the degree of
processing required to supply the final
product.
A 5% depletion allowance based on
gross income is allowed for crushed stone
used   in  construction,  including
aggregates. The depletion allowance for
chemical and metallurgical crushed stone
is 14%.
Operating Factors
Many States, counties, and cities in the
United States have zoning laws, and land
within each governmental unit is usually
zoned to indicate acceptable land uses. If
mining is permitted in a zone and a
crushed stone company owns or leases
land within that zone, the company may
apply for a use permit or its equivalent to
begin an operation. If the parcels to be
quarried are on lands under both city and
county jurisdiction, permits usually must
be obtained from each. An acceptable
reclamation plan that meets the guidelines
or regulations of the appropriate
governmental agency also must be
approved. Environmental concerns such
as noise, dust, beautification, and storage
of wastes must be accounted for in a
manner satisfactory to the governmental


entity involved. Wastewater discharge
requirements must be planned for and
met. If the deposit to be worked is on
land controlled by a State or Federal
agency, that agency's requirements also
must be satisfied.
In most States, permits for crushed
stone operations require an Environmental
Impact Report (EIR) or Environment
Impact Statement (EIS). A reclamation
plan and a use permit application also
may be required, with considerable
overlap of subject matter with the EIS.
A complete EIS may cover all the
problem areas at once and facilitate
acceptance.
Environmental    Requirements.
Many of the environmental problems
facing crushed stone producers arise
because a great number of stone quarries
and processing plants are in suburban
areas near the major crushed stone
markets.     Major   environmental
considerations that must be dealt with in
mining and processing of crushed stone
are emission of particulate matter into the
air, discharge of processing water, noise
abatement, and employee and public
health  and  safety.  Air pollution
constitutes a major problem in processing
plants, especially in the drying and
packaging stages of fine particle products
such as limestone used as fillers or
extenders. Both wet and dry methods of
dust control are used.   The most
important water pollutant is clay in
suspension that results from washing and
screening crushed stone. Because of the
large quantities of water used to process
stone and the need for compliance with
often stringent regulations, the treatment
of discharge water by crushed stone
producers is becoming a necessity that
may require sophisticated and expensive
processing methods. Significant progress
has been made in reducing noise pollution
both inside and outside of the quarries,
including noise and vibration produced by
blasting and movement of heavy trucks.
Therefore,  the  industry  must  be
concerned first about any practices that
can affect the community environment.
An effective effort must be made to
reduce noise, air, and water pollution and


to improve the overall appearance of the
operating mine, processing plant, and
transportation facilities.  Second, the
industry and community must recognize
the time and costs required to protect the
environment and the importance of
agreeing   on   fair  and   realistic
environmental  standards.    Because
crushed stone is a local industry, the
effect of supply deficiencies and cost of
material will affect the local community
first. Undue delay and unreasonably high
cost can strongly affect the movement of
crushed stone into the marketplace.
Also, stringent controls by the local
governments that prevent permits being
issued to operators can have adverse
economic effects on the communities
around them. These conditions can make
it difficult to assess the timing and even
the possibility of plants going on-stream
and can therefore affect the supply of
crushed stone into the marketplace.
Although much progress is being made
through premining planning, the crushed
stone industry continues to have problems
with environmental controls, land use
conflicts, and reclamation practices.
Many   of these problems are    acute
because extraction areas and plants must
be reasonably near to consumers who are
largely in metropolitan areas.
Transportation.-Transportation is a
major factor in the delivered price of
crushed stone.  The cost of moving
crushed stone from the plant to the
market often equals or exceeds the sale
price of the product at the plant. Because
of the high cost of transportation and the
large quantities of bulk material that have
to be shipped, crushed stone is usually
marketed locally.  The high cost of
transportation is responsible for the wide
dispersion of quarries around the country,
usually near highly populated areas.
However, increasing land values
combined with local environmental
concerns are moving crushed stone
quarries farther from the end-use
locations, increasing the price of
delivered material. Economies of scale,
which might be realized if fewer, larger
operations served larger marketing areas,
would probably not offset the increased


CRUSHED STONE-1993




1113