CostBenefit Analysis: Kingsford Manufacturing Company Parsons, WV

1
Cost-Benefit AnalysisKingsford Manufacturing
Company Parsons, WV

• Joseph Dillon
• Thomas Hogdahl
• Nic Moore
• Han Nguyen

2
Introduction

• Kingsford Manufacturing Company
• 100,000 tons of charcoal per year
• Provides 23 Million directly to
• Parsons economy per year
• Parsons, West Virginia
• Rural coal-mining town
• Problem for KMC
• Plant located in 100-year flood plain
• Flood mitigation

3
Economic StatisticsShowing importance of KMC
plant
factfinder.census.gov
factfinder.census.gov
factfinder.census.gov
4
Flood History

• 3 Major Floods
• November 1985
• From impact of Hurricane Juan
• 11 million in flood damage
• Flood of 1996
• From Blizzard of 1996
• 3 million in flood damages
• May 1996
• 1 million in flood damages

fema.gov
5
Peak Flow Analysis
Daily
Yearly
usgs.gov
usgs.gov
6
Plant Location
maps.google.com
7
FEMA Insurance Rate Maps (FIRM)
fema.gov
8
Mitigation Analysis

• Diversion Swale
• Long grass covered channel
• 2-foot deep by 2-foot wide

http//www.cep.unep.org/pubs/Techreports/tr32en/fi
g5.gif
9
Mitigation Analysis

• Levee
• 3,400-foot earthen levee 6 to 12 feet high
• Three sides of compound

http//www.design.upenn.edu/landscape/student/miss
issippi/hydraulics/levee/images/aerial20levee.jpg
10
Mitigation Analysis

• Cut-off wall and toe drain
• Impermeable 2-foot barrier
• Drain collects accumulation

11
Mitigation Analysis

• Pumping Stations
• 10 thousand gallons per minute
• Lower elevations of compound
• Total Mitigation
• 2.85 million
• Saves 4 million in damages

12
Possible Mitigation

• Relocation
• Flood Wall
• Elevating Equipment
• Hardening equipment

13
Costs

• Costs were analyzed for the four tactics used at
  the site.
• The total cost for implementing these systems in
  2008 came to about 7.7 million.
• This number was generated by using values
  provided by FEMA, the EPA, and various other
  sources.

14
Benefits

• The value of the protection provided by these
  tactics in 1985 was approximately 3.9 million
  dollars.
• Adjusting this value to 2008, the values because
  roughly 8 million.

15
Cost-Benefit AnalysisConclusion

• Costs 7.7 Million
• Benefits - 8 Million
• ...it is clear that the measures taken by
  Kingsford Manufacturing Company to protect its
  manufacturing facilities in Parsons, West
  Virginia were cost effective and worthwhile.