215 lines
8.8 KiB
TeX
215 lines
8.8 KiB
TeX
\documentclass{beamer}
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\usepackage[style=apa,natbib=true]{biblatex}
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\bibliography{Supporting/Beamer.bib}
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\setbeamercovered{transparent=25}
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%Information to be included in the title page:
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\title{Should We Always Aim for Higher Quality?}
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\subtitle{The Impact of the Groundwater Restoration Framework in In-Situ Uranium Recovery in Wyoming}
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\author{Alexander Gebben}
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\institute{Center for Business and Economic Analysis, University of Wyoming}
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\date{2024}
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\begin{document}
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%%%%%%%%%%%%%%%%%%%%
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\frame{\titlepage}
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%%%%%%%%%%%%%%%%%%%%%%
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\begin{frame}
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\frametitle{Ranger Open Pit Uranium Mine, Australia}
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\includegraphics[width=\textwidth]{Images/Ranger_Uranium_Mine_01.jpg}
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\end{frame}
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%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
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\begin{frame}
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\frametitle{Smith Ranch-Highland ISL Uranium Mine, Wyoming}
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\includegraphics[width=\textwidth]{Images/Smith-Ranch-Highland.jpg}\footnote{\tiny Image used with permission from Cameco Corporation}
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\end{frame}
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%%%%%%%%%%%%%%%%%%%%%%
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\begin{frame}
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\frametitle{In Situ Operation}
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\includegraphics[width=\textwidth]{Images/Process_Facility.png}
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\end{frame}
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%%%%%%%%%%%%%%%%%%%%%%
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\begin{frame}
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\frametitle{Uranium Extraction Wells}
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\includegraphics[width=\textwidth]{Images/Recovery_Well.png}
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\end{frame}
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%%%%%%%%%%%%%%%%%%%%%%
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\begin{frame}
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\frametitle{In Situ Site Boundaries}
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\includegraphics[width=\textwidth]{Images/Boundry.png}
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\end{frame}
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%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
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\begin{frame}
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\frametitle{Do In Situ Operations Create Externalities?}
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\begin{itemize}
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\item{\footnotesize If a mine is \emph{not restored}, pollutants move \(\approx\) 500 feet in 100 years.}
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\end{itemize}
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\begin{columns}
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\begin{column}{0.5\textwidth}
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\begin{figure}[ht]
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\includegraphics[width=\textwidth]{Images/Pollution1.png}
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\caption{\footnotesize Intial TDS (\(\frac{650 mg}{L}\))}
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\end{figure}
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\end{column}
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\begin{column}{0.478\textwidth}
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\begin{figure}[ht]
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\includegraphics[width=\textwidth]{Images/Pollution2.png}
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\caption{\footnotesize 100 Years later:TDS \(\frac{400 mg}{L}\)}
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\end{figure}
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\end{column}
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\end{columns}
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\end{frame}
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%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
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\setbeamercovered{transparent}%still covered={\opaqueness<1->{0}},again covered={\opaqueness<1->{10}}}
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\begin{frame}
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\frametitle{Regulation of In Situ Mines: Aquifer Exemption}
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\only<1>{\onslide<1>\begin{quote}``Any underground injection, except into a well authorized by rule or except as authorized by permit issued under the UIC program, is prohibited.'' \tiny-- 40 CFR \(\textsection\) 144.11
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\end{quote}}
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\only<2->{\onslide<2->\textbf{To start a in situ mine the aquifer must be exempt by the EPA}\footnote{\tiny \citep{cheung2014,usepa2015a}}
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\begin{enumerate}
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\onslide<3->\item{Must not currently serve as a source of drinking water}
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\onslide<3->\item{Will not serve as a source of drinking water in the future}
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\begin{itemize}
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\onslide<4->\item{Already highly contaminated (TDS above 10,000 \(\frac{mg}{L}\))}
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\onslide<4->\item{Low population: unlikely to use the groundwater in the foreseeable future.}
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\end{itemize}
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\end{enumerate}
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}
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\end{frame}
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\begin{frame}
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\frametitle{Regulation of In Situ Mines: Aquifer Restoration}
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\only<1>{\begin{quote}``The primary goal of a restoration program is to return the water quality within the exploited production zone and any affected aquifers to pre-operational (baseline) water quality conditionsd''\tiny--NRC Licensing Standards \citep{luthiger2003}\end{quote}}
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\only<2->{\textbf{Aquifers must be restored to a pre-mining state}
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\begin{enumerate}
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\onslide<2->\item{Show all constituents (uranium, selenium, TDS ect.) are returned to original levels}
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\onslide<3->\item{Sample groundwater before starting}
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\onslide<4->\item{Sweep the aquifer after completion}
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\begin{itemize}
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\onslide<4->\item{Filter the water and use for irrigation}
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\onslide<4->\item{Inject the water into deeper formation}
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\end{itemize}
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\onslide<5->\item{Filter the water that flows in to replace the mined water}
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\onslide<6->\item{Monitor acidity and constituent in water}
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\end{enumerate}
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% \onslide<7->\textbf{Once exempt a aquifer can never be used as a public drinking water source.}
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}
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\end{frame}
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\begin{frame}
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\frametitle{Regulation of In Situ Mines: Economic Consequences}
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\only<1>{Mines are required to spend more resources to clean aquifers with a low economic value}
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\onslide<2-3>\textbf{Aquifer Exemption Rule}
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\begin{enumerate}
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\onslide<2-3>\item{Removes reservoirs from uranium production}
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\onslide<2-3>\item{Uranium can only be extracted from low value aquifers}
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\onslide<2-3>\item{Removes reservoirs from use as a drinking water source (even after restoration)}
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\onslide<2-3>\item{Does not consider opportunity costs}
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\begin{itemize}
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\onslide<3>\item{Is the aquifer best used as a mine or for drinking water?}
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\onslide<3>\item{Are there substitute sources of drinking water?}
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\onslide<3>\item{What is the expected value of the groundwater?}
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\end{itemize}
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\end{enumerate}
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\onslide<4->\textbf{Aquifer Restoration Rules}
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\begin{enumerate}
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\onslide<4->\item{Resources must be spent to restore aquifers not used for drinking water}
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\onslide<4->\item{Marginal abatement costs higher than marginal benefits }
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\end{enumerate}
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\end{frame}
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%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
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\begin{frame}
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\frametitle{Comparing Restoration Benefits and Costs}
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\only<1>{
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Areas with high TDS (in red) have a \emph{low cost} of restoration.
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\includegraphics[width=0.9\textwidth]{Images/TDS_Wyoming.jpeg}\footnote{\tiny Data used comes from \citep{eia2020a,wyomingstategeologicalsurvey2024}. TDS is interpolated with regional smoothing.}
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}
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\only<2>{
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Uranium resources are typically in rural parts of the State.
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Low land prices in these areas suggest mining is the highest values use.
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\centering
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\includegraphics[width=0.6\textwidth]{Images/Price_Histogram.png}}
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\only<3-4>{
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\textbf{Results}
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\onslide<3>{Operating plans of five mines were reviewed.
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\begin{itemize}
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\item{Adds \$4.3 dollar's per pound produced.}
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\begin{itemize}
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\item{Cost vary by geology. \$1.6-\$10.84 per pound}
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\end{itemize}
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\item{Average of \$15 million per project}
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\item{A discount of 10\% was assumed which reduces industry estimates of cost}
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\end{itemize}}
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\onslide<4>{
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Wyoming land values over a uranium resource.
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\begin{itemize}
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\item{Weighted average price of \$239 per acre}
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\item{Average mine lease area of 13,750 acres}
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\item{Total expected value of land of \$3.29 million dollars}
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\end{itemize}
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}
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}
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\only<5>{Average restoration costs are \emph{4.5 times larger} than the value of land for a typical in situ mine.
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\newline
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Even under the strongest assumptions it is not plausible that the restoration costs are efficient.
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\newline
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Hedonic models predict land value changes between 0.3\% and 15\% of total value\footnote{\tiny\citep{guignet2015,mukherjee2014}}.
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}
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\only<6>{
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Other factors suggest the actual cost is nearly zero.
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\begin{itemize}
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\item{Most mines are on ranches, not farms or urban areas}
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\item{High groundwater quality provides alternative sources}
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\item{Water is restored naturally over time}
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\item{Home filtration may be more cost effective}
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\end{itemize}
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}
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\end{frame}
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\begin{frame}
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\frametitle{Mining Model }
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\only<1>{
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\tiny
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\begin{equation}
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\label{EQPROFITALL}
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\pi=\sum_{t=0}^{T}\left[\left( P_{ur} \cdot \left(W_{t}^{\alpha}-W_{t-1}^{\alpha}\right)-\left(C_{Drill}+C_{Res}\right)\cdot\left(W_{t}-W_{t-1}\right)\right)\frac{1}{(1+r)^t}\right]-C_{Facility}
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\end{equation}
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Subject to: \(\beta\cdot C_{Facility}\ge W_{t}^{\alpha}-W_{t-1}^{\alpha}\), and \(\gamma_{Drill}\ge W_{t}^{\alpha}-W_{t-1}^{\alpha}\)
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\newline
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\normalsize
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Where \(P_{ur}\) is the price of uranium, \(W_{t}\) is the total number of wells drilled in a aquifer at time \emph{t}, \(\alpha\) is a constant between zero and one representing the decline in ore grade across the reservoir, \(C_{Drill}\) is the cost to drill a well, \(C_{Res}\) is the cost to restore the water affected by a well, \emph{r} is the yearly discount rate of the firm, \(C_{Facility}\) is the investment cost in the uranium processing facility, \(\beta\) is a factor that converts the dollars spent to construct a uranium processing facility to output capacity, and \(\gamma_{Drill}\) is the maximum available drilling capacity in the region.
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}
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\only<2>{
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\begin{equation}
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\label{EQPROFIT}
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\pi_{w}=\int_{t=0}^{T}\left[ \left(P_{ur}\cdot q_{i}\cdot e^{-Dt}-C_{op}\right)e^{-rt}\right] \,dt-C_{Drill}-C_{Res}\cdot e^{-rT} \
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\end{equation}
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Where \emph{D} is the decline rate of the well, and r is the instantaneous private discount rate. Since the terminal time \emph{T} is a choice variable the optimal time to operate the well can be found with:
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}
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\only<3>{
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\begin{equation}
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\label{EQINFWELL}
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T^{\star}=\frac{\ln(P_{ur})+\ln(q_{i})-\ln(C_{op}-r C_{Res})}{D}
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\end{equation}
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\begin{equation}
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\label{TIMEDIFF}
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\Delta T^{\star}=\frac{\ln(C_{op}-r C_{Res})-\ln(C_{op})}{D}
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\end{equation}
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}
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\end{frame}
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\end{document}
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