**3. Sublette County, Wyoming**

*Perspectives on Economic Development - Public Policy, Culture, and Economic Development*

**Table 1** shows that in Sublette and Sheridan counties, average annual pay (reported in nominal dollars) in the upstream oil and gas sector is significantly higher than in the sectors of hospitality and recreation, and agriculture. Teton County does not have pay information in upstream oil and gas due to the lack of petroleum activity, but its hospitality and recreation workers earn slightly more

**Table 2** shows employment by sector for the civilian employed population over

Small communities in the Northern Rockies often rely on the natural resources available in the county for developing their economic base. This dependence can lead to an uncertain economic climate and cyclical employment, regardless of the natural resources that are being developed. By diversifying their economies,

Construction 8.80% 8.50% 13.30% 10.10% 8.7% Manufacturing 1.50% 4.80% 1.40% 1.70% 5.00% Wholesale trade 1.70% 2.70% 0.80% 0.70% 2.20% Retail trade 11.90% 12.30% 8.60% 8.70% 11.20%

Information 1.80% 1.90% 2.30% 1% 1.70% Finance, insurance, real estate 6% 5.69% 7.66% 2.30% 4.42%

Public administration 5.53% 4.71% 3.17% 4% 4.26% Other services 4.89% 6.11% 2.13% 4.90% 6.41%

**Sheridan Montana Teton Sublette Wyoming**

20.9% 7.10% 3.60% 32.70% 11.8%

8.60% 5.00% 3.90% 5.60% 6.60%

3.88% 8.14% 10.97% 6.20% 6.55%

18.78% 22.42% 17.17% 15.50% 21.96%

5.59% 10.57% 25.11% 6.50% 9.25%

age 16 in Sheridan, Teton, and Sublette counties. Employment in oil and gas is included in the agriculture, forestry, fishing and hunting, and mining sector. As the table shows, Sublette County has the highest percentage employed in this sector. Sheridan County's employment is more mixed, while Teton County has the highest percentage (25.11%) employed in the arts, entertainment, recreation, accommoda-

than workers in this same sector in Sublette and Sheridan counties.

tion, and food services sector.

Agriculture, forestry, fishing and hunting, and mining (oil and gas is included in this

*Employment and average annual pay.*

Transportation, warehousing,

Professional, scientific management, administrative

Arts, entertainment, recreation, accommodation,

and food services

Educational services, health care, and social assistance

*Percent of the civilian population employed by sector.*

sector)

**Table 1.**

utilities

**24**

**Table 2.**

Sublette County residents are experiencing the benefits and challenges that come with developing energy and amenity resources in a -rural economy. Surrounded on three sides by wilderness and national forest lands, Sublette County has many amenity opportunities. The county also has concentrated pockets of oil and gas drilling. Both of these industries contribute to the economy, albeit in different ways. County Commissioner Joel Bousman describes the current economic climate of Sublette County as both "exciting and challenging" [19].

Sublette is a small ranching community southeast of Jackson Hole. It has only 6000 residents [20]. The county is part of rural Wyoming—there are no stoplights anywhere in the county—where suburban developments are separated by hundreds of miles. A petroleum boom in the county has driven economic growth. While some drawbacks have accompanied this growth, including a reliance on a non-resident workforce and rising costs of living, Sublette County demonstrates the important role that the oil and gas industry can play in providing tax revenue and boosting the economy.

Oil and natural gas extraction occurs away from areas of the county where designated federal lands and wilderness amenities are located. Most extractive activities occur on lands administered by BLM and non-federal lands in the central and southern parts of the county. Parts of the Bridger Wilderness, Teton National Forest, Gros Ventre Wilderness, and Bridger National Forest are located within Sublette County, as well as some Bureau of Reclamation lands.

#### **3.1 Energy development**

The Pinedale Anticline Project Area consists of about 197,000 acres in central Sublette County and is the third largest gas field in the United States [21, 22]. The BLM operates 80% of the anticline's surface. The remaining 20% is divided between the State of Wyoming (5%) and private ownership (15%). Gas reserves in the field are estimated at 40 trillion cubic feet, and the area is one of the most productive fields in the United States [21]. Operators first drilled there in 1939 looking for oil, but abandoned the site when they found gas instead. Subsequent activity in the field was difficult because the tight sandstone formations made conventional drilling methods nearly impossible. However, thanks to improvements in technology and high prices for natural gas in the early 2000s, extraction in the Pinedale Anticline began to flourish. Today, Shell, Ultra Petroleum, and QEP Energy are primary leaseholders in the field. Shell alone has "drilled more than 400 natural gas wells, operating 21,000 acres and producing 350 million cubic feet of natural gas per day" [22].

The Jonah Field, near the Pinedale Anticline, has a similar geographical makeup and was rediscovered in the early 1990s. It is considered one of the most significant recent natural gas discoveries. Covering 21,000 acres, the field is estimated to contain approximately 10.5 trillion cubic feet of natural gas, with 98% of the field managed by the BLM and the remaining portion split between state and private ownership [21].

Production in the Pinedale and Jonah fields began slowly as pipelines and infrastructure were needed to support significant production. However, once the infrastructure was in place, there was a jump from 150 wells in 1999 to 300 wells

by July 2001 [21]. This, combined with advances in technology and new methods of extraction, such as hydraulic fracturing, created a boom in gas production from these previously unproductive fields. During the 2008 recession, natural gas prices fell, reducing drilling activities in a slowdown that has persisted since [21].

Oil production in the county grew steadily from 2000 until 2009, peaking just below 8 billion barrels in 2009. Production has dropped off since 2009 to 6.8 million barrels of oil in 2012 [23].

Gas production, has experienced growth similar to oil. Production grew from 2000 to 2010, peaking at 1.2 TCF. Production has since declined, falling to a little under 1.1 TCF in 2012 [23].

#### **3.2 Amenity development**

In addition to its oil and natural gas resources, Sublette County has numerous amenity opportunities. Over 80% of Sublette County's lands are public [24] Sublette County includes parts of the Bridger National Forest, Bridger Wilderness, Gros Ventre Wilderness, and the Teton National Forest. The Wind River Mountains are also part of the county. The highest peak in Wyoming, Gannett Peak, along with 14 of the state's highest peaks, provides ample opportunities for hiking and recreation [25].

Freemont Lake, Wyoming's second largest natural lake and the seventh deepest in the United States, is located in the county, along with nearly 1300 other lakes, providing fishing and water recreation opportunities. Sublette County is home to more active glacial fields in the contiguous United States than any other county [20]. Big game from the Yellowstone ecosystem winters in the northern part of the county [26]. The natural environment of the county is ideal for backpacking, hiking, biking, four-wheeling, snowmobiling, golfing, hunting, skiing, and wildlife viewing.

Built in 1897, the Gros Ventre Lodge is believed to have been the first full-time dude ranch in Wyoming. Ranching became an industry in Sublette County after 1877, once the railroad made the shipping of stock possible from Wyoming to Oregon [25]. Some of the rancher families that first settled Sublette are still ranching in the county today, five or six generations later [27]. Ranchers continue to walk their cattle along the Green River drift, in use since 1896, to move their herd from summer to winter grazing areas [27].

#### **3.3 Economic indicators**

Ranching remained the primary source of economic activity in Sublette County until recently, when the petroleum boom caused a shift in the economy. Today, the county describes its major industries as oil and gas, tourism, recreation, and government [28]. Oil and natural gas provide the largest share of the county's revenue.

Increasing demand for natural gas dramatically changed Sublette County's economy. From 2000 to 2005, Sublette County's permanent population grew by 20% and 500 new homes were built [29]. By 2007, 50% of those employed in the county worked in the natural gas industry. Of dollar spent in the county, 50 cents was directly tied to the natural gas industry [29]. This growth spiked the median household income to \$70,147 in 2010, 30% higher than the state average. This also reduced the poverty level to less than half of the state average [30]. Today, energy extraction remains an important economic base for Sublette County.

Between 2001 and 2006, sales tax revenue in Sublette County increased by 271%, while use tax revenue increased by over 300% [31]. The mining industry, which includes oil and gas activity, accounted for 51% of the sales tax revenue and 45.6%

**27**

data is available.

state [33].

**3.4 Development strategies**

*Developing Together? Understanding the Interaction between, Amenity-Based Tourism…*

of the use tax revenue [31]. In 2006, despite its low population, Sublette County ranked sixth in the state for tax revenue generation and fifth for total taxable sales transactions. Sublette County accounts for 6.5% of sales and use tax revenue in the

Sublette County sees large contributions to its budget from oil and gas companies. In 2012 oil and gas companies comprised the top 10 taxpayers in Sublette County, with a total assessed value of \$3.9 billion [31]. Energy companies in Sublette paid \$1.1 billion in taxes on oil and gas production in 2008 and Sublette County and its municipalities received 5.86% of that revenue [19]. Also in 2012, Sublette collected almost \$31 million in sales tax from the mining industry, which includes oil and gas. These revenues offset the costs associated with increased energy development. Funding for infrastructure improvements has been identified

as the biggest challenge facing local governments in Sublette County [19].

Tax revenue is also generated by the recreation and hospitality sector, though not to the same magnitude as the oil and gas industry. In 2012 agriculture, forestry, fishing and hunting contributed \$1523 in sales taxes to Sublette County [32]. The leisure and hospitality sector meanwhile contributed almost \$985,000 in sales taxes the same year (p. 27). In 2012 the retail trade, accommodation, and food services sector generated nearly \$8.3 million in sales tax revenue for the county [32]. Only Pinedale, Sublette County's seat, imposes a lodging tax, for which it collected about

Employment in upstream oil and gas, although only recently publicly available, is much higher than that of agriculture or hospitality and recreation. With over 1400 employees, upstream oil and gas employed 950 more people than did the hospitality and recreation sector in 2011. Employment in hospitality and recreation grew from 2001 to 2006 by 190 employees, but has since slightly declined, employing about 460 people in 2011. Employment in agriculture has been quite steady,

With the advent of energy extraction activity in Sublette County, the nature of employment and wages has changed drastically. For example, before the natural gas boom in the early 2000s, seasonal unemployment was high due to the county's focus on tourism, agriculture, and ranching. Since 2000, however, these fluctuations have been greatly reduced [34]. Sublette County's unemployment rate was has hovered around 4% Wages in the petroleum industry are now some of the highest in Sublette County, even for unskilled workers, and ample opportunities exist for wage advancement and overtime [34]. The cost of living in Sublette County, however, is about 19% higher than the rest of Wyoming, and second only to Teton County [35]. Those employed in upstream oil and gas make far more annually than those employed in amenity sectors—almost three times as much in years for which

Just over 32.7% of Sublette County's civilian population over age 16 is employed in agriculture, forestry, fishing and hunting, and mining, of which oil and gas is a subset. This percentage is much higher than the Wyoming average of 11.8% for employment in the same sector. Employment in arts, entertainment, recreation, accommodation, and food services at 6.6% is lower in Sublette County than in the

Sublette County is an example of an area with a booming energy industry that has not detracted from amenity development. The county retains its strong amenity sector thanks to its many natural attractions and its conscious development policies. Mary Lynn Worl, a board member of Wyoming's Citizens United for Responsible Energy

*DOI: http://dx.doi.org/10.5772/intechopen.92111*

\$200,000 in revenue in 2012 [32].

with an average of 75 employees [33].

state and 7.21% of total sales activity in the state [31].

#### *Developing Together? Understanding the Interaction between, Amenity-Based Tourism… DOI: http://dx.doi.org/10.5772/intechopen.92111*

of the use tax revenue [31]. In 2006, despite its low population, Sublette County ranked sixth in the state for tax revenue generation and fifth for total taxable sales transactions. Sublette County accounts for 6.5% of sales and use tax revenue in the state and 7.21% of total sales activity in the state [31].

Sublette County sees large contributions to its budget from oil and gas companies. In 2012 oil and gas companies comprised the top 10 taxpayers in Sublette County, with a total assessed value of \$3.9 billion [31]. Energy companies in Sublette paid \$1.1 billion in taxes on oil and gas production in 2008 and Sublette County and its municipalities received 5.86% of that revenue [19]. Also in 2012, Sublette collected almost \$31 million in sales tax from the mining industry, which includes oil and gas. These revenues offset the costs associated with increased energy development. Funding for infrastructure improvements has been identified as the biggest challenge facing local governments in Sublette County [19].

Tax revenue is also generated by the recreation and hospitality sector, though not to the same magnitude as the oil and gas industry. In 2012 agriculture, forestry, fishing and hunting contributed \$1523 in sales taxes to Sublette County [32]. The leisure and hospitality sector meanwhile contributed almost \$985,000 in sales taxes the same year (p. 27). In 2012 the retail trade, accommodation, and food services sector generated nearly \$8.3 million in sales tax revenue for the county [32]. Only Pinedale, Sublette County's seat, imposes a lodging tax, for which it collected about \$200,000 in revenue in 2012 [32].

Employment in upstream oil and gas, although only recently publicly available, is much higher than that of agriculture or hospitality and recreation. With over 1400 employees, upstream oil and gas employed 950 more people than did the hospitality and recreation sector in 2011. Employment in hospitality and recreation grew from 2001 to 2006 by 190 employees, but has since slightly declined, employing about 460 people in 2011. Employment in agriculture has been quite steady, with an average of 75 employees [33].

With the advent of energy extraction activity in Sublette County, the nature of employment and wages has changed drastically. For example, before the natural gas boom in the early 2000s, seasonal unemployment was high due to the county's focus on tourism, agriculture, and ranching. Since 2000, however, these fluctuations have been greatly reduced [34]. Sublette County's unemployment rate was has hovered around 4% Wages in the petroleum industry are now some of the highest in Sublette County, even for unskilled workers, and ample opportunities exist for wage advancement and overtime [34]. The cost of living in Sublette County, however, is about 19% higher than the rest of Wyoming, and second only to Teton County [35]. Those employed in upstream oil and gas make far more annually than those employed in amenity sectors—almost three times as much in years for which data is available.

Just over 32.7% of Sublette County's civilian population over age 16 is employed in agriculture, forestry, fishing and hunting, and mining, of which oil and gas is a subset. This percentage is much higher than the Wyoming average of 11.8% for employment in the same sector. Employment in arts, entertainment, recreation, accommodation, and food services at 6.6% is lower in Sublette County than in the state [33].

#### **3.4 Development strategies**

Sublette County is an example of an area with a booming energy industry that has not detracted from amenity development. The county retains its strong amenity sector thanks to its many natural attractions and its conscious development policies. Mary Lynn Worl, a board member of Wyoming's Citizens United for Responsible Energy

*Perspectives on Economic Development - Public Policy, Culture, and Economic Development*

fell, reducing drilling activities in a slowdown that has persisted since [21].

barrels of oil in 2012 [23].

under 1.1 TCF in 2012 [23].

**3.2 Amenity development**

summer to winter grazing areas [27].

**3.3 Economic indicators**

ation [25].

viewing.

by July 2001 [21]. This, combined with advances in technology and new methods of extraction, such as hydraulic fracturing, created a boom in gas production from these previously unproductive fields. During the 2008 recession, natural gas prices

Oil production in the county grew steadily from 2000 until 2009, peaking just below 8 billion barrels in 2009. Production has dropped off since 2009 to 6.8 million

Gas production, has experienced growth similar to oil. Production grew from 2000 to 2010, peaking at 1.2 TCF. Production has since declined, falling to a little

In addition to its oil and natural gas resources, Sublette County has numerous amenity opportunities. Over 80% of Sublette County's lands are public [24] Sublette County includes parts of the Bridger National Forest, Bridger Wilderness, Gros Ventre Wilderness, and the Teton National Forest. The Wind River Mountains are also part of the county. The highest peak in Wyoming, Gannett Peak, along with 14 of the state's highest peaks, provides ample opportunities for hiking and recre-

Freemont Lake, Wyoming's second largest natural lake and the seventh deepest in the United States, is located in the county, along with nearly 1300 other lakes, providing fishing and water recreation opportunities. Sublette County is home to more active glacial fields in the contiguous United States than any other county [20]. Big game from the Yellowstone ecosystem winters in the northern part of the county [26]. The natural environment of the county is ideal for backpacking, hiking, biking, four-wheeling, snowmobiling, golfing, hunting, skiing, and wildlife

Built in 1897, the Gros Ventre Lodge is believed to have been the first full-time dude ranch in Wyoming. Ranching became an industry in Sublette County after 1877, once the railroad made the shipping of stock possible from Wyoming to Oregon [25]. Some of the rancher families that first settled Sublette are still ranching in the county today, five or six generations later [27]. Ranchers continue to walk their cattle along the Green River drift, in use since 1896, to move their herd from

Ranching remained the primary source of economic activity in Sublette County until recently, when the petroleum boom caused a shift in the economy. Today, the county describes its major industries as oil and gas, tourism, recreation, and government [28]. Oil and natural gas provide the largest share of the county's revenue. Increasing demand for natural gas dramatically changed Sublette County's economy. From 2000 to 2005, Sublette County's permanent population grew by 20% and 500 new homes were built [29]. By 2007, 50% of those employed in the county worked in the natural gas industry. Of dollar spent in the county, 50 cents was directly tied to the natural gas industry [29]. This growth spiked the median household income to \$70,147 in 2010, 30% higher than the state average. This also reduced the poverty level to less than half of the state average [30]. Today, energy

Between 2001 and 2006, sales tax revenue in Sublette County increased by 271%,

while use tax revenue increased by over 300% [31]. The mining industry, which includes oil and gas activity, accounted for 51% of the sales tax revenue and 45.6%

extraction remains an important economic base for Sublette County.

**26**

Development, said, "We don't believe that public health and the quality of life in our communities need to be traded away for economic activity. We can have both" [36].

With the arrival of the oil and natural gas boom, Sublette County has seen many positive changes. The county has collected millions of tax dollars as a result of petroleum production, which is money that can be spent on community improvement projects and infrastructure—projects that improve the county now as well as help develop the area for future potential enterprises. Numerous jobs have been created for local residents, and companies active in Sublette County's gas fields have invested heavily in organizations serving the community and improving the environment [21]. Many of these activities have sprung up out of necessity to lessen the impacts of energy development on the environment. For example, a portion of the increased tax revenue the county receives is used to build infrastructure such as underground pipelines for material transport, lessening the need for above-ground transport and its impacts on the community [21].

Energy development has also brought changes to Sublette County's local community. Housing, schools, and public services like law enforcement and health care, have been stretched thin as a large, primarily non-resident and temporary workforce has moved into the community [21]. The county has been able to adjust fairly well to the increased non-resident and temporary workforce, however, and private sector housing and services have experienced rapid growth in response to the increased demand [21]. The petroleum companies operating in Sublette have contributed to the community by funding infrastructure such as road improvement, a drug counseling center, a domestic abuse shelter, a new sheriff's office and jail, and an indoor community swimming pool [26]. Further, natural gas workers book nearly 75% of hotel rooms, helping hoteliers during the winter months [29].

The natural gas boom in Sublette has impacted the environment, but the impacts are being addressed. Though air pollution has significantly increased since 2005 [37], air quality monitoring is now required and actions are in place to help reduce the problem. Companies have generally been responsive to the ozone advisories, reducing or suspending operations until the advisories end. Although natural gas production increased 8% from 2008 to 2010, emissions actually decreased, attributable to increased regulation and voluntary actions from the industry [38].

Wildlife in the county is also being impacted by the development. The Pinedale Anticline includes important migration corridors and habitat for species such as mule deer, pronghorn antelope, pygmy rabbits, sage grouse, and bald eagles [22]. To mitigate impacts, wells were initially required to be 80 acres apart. Since then however, spacing has been reduced to 5 acres between some wells [26]. Ongoing efforts to mitigate impact have led many companies to use directional drilling. Directional drilling concentrates several wells in a single site to reduce the need for roads and reduces the number of pad sites. These efforts have resulted in 70% fewer roads and 100 fewer well pads [21].

Sublette County has certainly faced, and will continue to face, tradeoffs between a healthy outdoor amenity sector and energy development. The advent of natural gas development in Sublette County has brought some challenges, but it has also greatly lifted the county's economy and led to many positive economic outcomes. Sublette County continues to learn how to manage the tradeoffs in order to continue to see energy and amenities develop together, bolstering the county economy.

#### **4. Sheridan County, Montana**

Sheridan County is a small, rural community located in the northeastern corner of Montana. Sheridan County's economy is focused on oil and gas and agriculture,

**29**

*Developing Together? Understanding the Interaction between, Amenity-Based Tourism…*

cyclical booms and busts of the local oil and gas industry [40].

and both are located in the southeastern portion of the county.

with a brief yearly economic boost during the hunting season. Flat and largely treeless, Sheridan County attracts few tourists. The majority of the land is private, with about 14% under the jurisdiction of the federal government or Native American Tribes [39]. The county's history demonstrates the vital role the oil and gas industry plays in rural communities, particularly where amenity development is not a viable economic option. The county population and employment trends closely follow the

Continued expansion of drilling in the Bakken Shale formation, which extends into Sheridan County, presents the single biggest potential for economic growth in the area. Very little of Sheridan County's land area is federally owned. Medicine Lake National Wildlife Refuge and Medicine Lake Wilderness are the exceptions,

Oil was first discovered in Sheridan County in 1951, and the county experienced its first oil boom from the late 1950s into the early 1960s. As demand later declined, so did the county's production. Oil output in Sheridan County flattened again through the late 1970s and then peaked in 1985. After 1985 the area's oil industry entered a period of long decline that has continued until the present day. The county's negative population growth correlates with the drop in oil production. Population peaked around 1985 at about 5800 people, fell to a low of approximately 3200 around 2007, and has since recovered slightly; the county population is now

Oil production varied slightly between 2000 and 2007 and declined after 2008, though there was slight growth from 2011 to 2012. In 2011 Sheridan County produced nearly 1.3 million barrels of oil and in 2012 production increased to 1.4 million barrels [40]. This accounted for about 5% of total oil production in Montana

Along with oil, Sheridan County also produces natural gas. Gas production reached a high, during the decade shown, of 997.6 million cubic feet of gas in 2002. Sheridan County's gas production has trended downward and substantially declined after 2007, reaching 511.3 million cubic feet in 2012, representing only

Sheridan County has limited amenity opportunities, though the county does have a few attractions. The county has the fifth largest population of white pelicans and 225 other bird species. Many of these bird species reside in Medicine Lake National Wildlife Refuge. The site is a sanctuary for duck and

Sheridan County is geographically similar to the neighboring counties of Daniels and Roosevelt, but has historically produced more oil and gas than either of them. In the past few years, however, Roosevelt County has significantly increased its production of oil, surpassing Sheridan County. This change is due to activity in Roosevelt County in the Bakken Shale formation. Though Sheridan County is also geographically part of the formation, County Commissioner Bill Nyby reports that they have not yet begun energy extraction operations in the county Companies, however, have already begun purchasing land in the area in preparation for future development, and one company has acquired as much as 24,000 acres there [41]. With farming and trade in decline, future expansion of Bakken Shale oil and gas extraction into Sheridan County is the single largest potential source of economic

about 2.5% of total gas production in the state that year [40].

*DOI: http://dx.doi.org/10.5772/intechopen.92111*

**4.1 Energy development**

about 3400 [39].

in 2012 [40].

growth for the county.

**4.2 Amenity development**

*Developing Together? Understanding the Interaction between, Amenity-Based Tourism… DOI: http://dx.doi.org/10.5772/intechopen.92111*

with a brief yearly economic boost during the hunting season. Flat and largely treeless, Sheridan County attracts few tourists. The majority of the land is private, with about 14% under the jurisdiction of the federal government or Native American Tribes [39]. The county's history demonstrates the vital role the oil and gas industry plays in rural communities, particularly where amenity development is not a viable economic option. The county population and employment trends closely follow the cyclical booms and busts of the local oil and gas industry [40].

Continued expansion of drilling in the Bakken Shale formation, which extends into Sheridan County, presents the single biggest potential for economic growth in the area. Very little of Sheridan County's land area is federally owned. Medicine Lake National Wildlife Refuge and Medicine Lake Wilderness are the exceptions, and both are located in the southeastern portion of the county.

#### **4.1 Energy development**

*Perspectives on Economic Development - Public Policy, Culture, and Economic Development*

Development, said, "We don't believe that public health and the quality of life in our communities need to be traded away for economic activity. We can have both" [36]. With the arrival of the oil and natural gas boom, Sublette County has seen many

Energy development has also brought changes to Sublette County's local community. Housing, schools, and public services like law enforcement and health care, have been stretched thin as a large, primarily non-resident and temporary workforce has moved into the community [21]. The county has been able to adjust fairly well to the increased non-resident and temporary workforce, however, and private sector housing and services have experienced rapid growth in response to the increased demand [21]. The petroleum companies operating in Sublette have contributed to the community by funding infrastructure such as road improvement, a drug counseling center, a domestic abuse shelter, a new sheriff's office and jail, and an indoor community swimming pool [26]. Further, natural gas workers book nearly 75% of hotel rooms, helping hoteliers during the winter months [29]. The natural gas boom in Sublette has impacted the environment, but the impacts

are being addressed. Though air pollution has significantly increased since 2005 [37], air quality monitoring is now required and actions are in place to help reduce the problem. Companies have generally been responsive to the ozone advisories, reducing or suspending operations until the advisories end. Although natural gas production increased 8% from 2008 to 2010, emissions actually decreased, attribut-

Wildlife in the county is also being impacted by the development. The Pinedale Anticline includes important migration corridors and habitat for species such as mule deer, pronghorn antelope, pygmy rabbits, sage grouse, and bald eagles [22]. To mitigate impacts, wells were initially required to be 80 acres apart. Since then however, spacing has been reduced to 5 acres between some wells [26]. Ongoing efforts to mitigate impact have led many companies to use directional drilling. Directional drilling concentrates several wells in a single site to reduce the need for roads and reduces the number of pad sites. These efforts have resulted in 70% fewer roads and

Sublette County has certainly faced, and will continue to face, tradeoffs between a healthy outdoor amenity sector and energy development. The advent of natural gas development in Sublette County has brought some challenges, but it has also greatly lifted the county's economy and led to many positive economic outcomes. Sublette County continues to learn how to manage the tradeoffs in order to continue to see energy and amenities develop together, bolstering the county economy.

Sheridan County is a small, rural community located in the northeastern corner of Montana. Sheridan County's economy is focused on oil and gas and agriculture,

able to increased regulation and voluntary actions from the industry [38].

positive changes. The county has collected millions of tax dollars as a result of petroleum production, which is money that can be spent on community improvement projects and infrastructure—projects that improve the county now as well as help develop the area for future potential enterprises. Numerous jobs have been created for local residents, and companies active in Sublette County's gas fields have invested heavily in organizations serving the community and improving the environment [21]. Many of these activities have sprung up out of necessity to lessen the impacts of energy development on the environment. For example, a portion of the increased tax revenue the county receives is used to build infrastructure such as underground pipelines for material transport, lessening the need for above-ground

transport and its impacts on the community [21].

**28**

100 fewer well pads [21].

**4. Sheridan County, Montana**

Oil was first discovered in Sheridan County in 1951, and the county experienced its first oil boom from the late 1950s into the early 1960s. As demand later declined, so did the county's production. Oil output in Sheridan County flattened again through the late 1970s and then peaked in 1985. After 1985 the area's oil industry entered a period of long decline that has continued until the present day. The county's negative population growth correlates with the drop in oil production. Population peaked around 1985 at about 5800 people, fell to a low of approximately 3200 around 2007, and has since recovered slightly; the county population is now about 3400 [39].

Oil production varied slightly between 2000 and 2007 and declined after 2008, though there was slight growth from 2011 to 2012. In 2011 Sheridan County produced nearly 1.3 million barrels of oil and in 2012 production increased to 1.4 million barrels [40]. This accounted for about 5% of total oil production in Montana in 2012 [40].

Along with oil, Sheridan County also produces natural gas. Gas production reached a high, during the decade shown, of 997.6 million cubic feet of gas in 2002. Sheridan County's gas production has trended downward and substantially declined after 2007, reaching 511.3 million cubic feet in 2012, representing only about 2.5% of total gas production in the state that year [40].

Sheridan County is geographically similar to the neighboring counties of Daniels and Roosevelt, but has historically produced more oil and gas than either of them. In the past few years, however, Roosevelt County has significantly increased its production of oil, surpassing Sheridan County. This change is due to activity in Roosevelt County in the Bakken Shale formation. Though Sheridan County is also geographically part of the formation, County Commissioner Bill Nyby reports that they have not yet begun energy extraction operations in the county Companies, however, have already begun purchasing land in the area in preparation for future development, and one company has acquired as much as 24,000 acres there [41]. With farming and trade in decline, future expansion of Bakken Shale oil and gas extraction into Sheridan County is the single largest potential source of economic growth for the county.

#### **4.2 Amenity development**

Sheridan County has limited amenity opportunities, though the county does have a few attractions. The county has the fifth largest population of white pelicans and 225 other bird species. Many of these bird species reside in Medicine Lake National Wildlife Refuge. The site is a sanctuary for duck and

geese populations, and serves as a breeding habitat for the migrating waterfowl [42]. Administered by the USFWS, the refuge reported 16,000 visitors in 2004 [43]. The refuge's most popular attractions are the nature trails and observation platforms. Hunting and fishing is also prevalent on the land, and attracted 3000 visitors also in 2004 [43].

Brush Lake State Park, also known as "Oasis on the Prairie," is a spring-fed lake that became a state park in 2003 [44]. The lake is less than 300 acres, but is popular with locals for water sports [45].

Because Sheridan County is very rural, it does not boast the same visitation as other counties profiled in this report. It is expected the county will have a difficult time attracting the large number of tourists seen in Teton County, for example, due to the lack of internationally—or even nationally—known landmarks.

Though the tourism industry is limited, Sheridan County does have agricultural activities. There were 1.06 million acres of land in farms in the county in 2007—almost 98% of the county's total 1.09 million acres [46]. Three quarters of the land in the county is tillable land, with soil that is of glacier origin, which makes it ideal for grain production Sheridan County's agricultural sector produces mostly durum wheat, which is used in pastas and cereals, and also has significant lentil and dry edible peas production. Each year the county hosts a Farm Expo, which brings together farmers from Montana and Canada for seminars, a Farm and Ranch Appreciation Breakfast, and a bread fair for kids [47].

#### **4.3 Economic indicators**

U.S. Census Bureau data shows that the number of individuals employed in the agricultural sector has decreased significantly over time, from 2352 individuals in 1978 (a full 40% of county residents at the time) to only 648 individuals in 2005 (only 18% of residents that year) [39].

Sheridan County has seen significant growth in tax revenues from the petroleum industry. Nyby reported that revenues have increased significantly in the past 10 years, despite a decrease in gas production. In 2003 Sheridan County received just over \$5 million in revenues from the petroleum industry, and by 2011 that number had increased to nearly \$11 million. Between 2003 and 2011, Sheridan County received a total of \$90 million in revenues from petroleum, \$23 million of which was specifically allocated to county schools Tax revenues represent an important benefit that oil and gas development bring to Sheridan County. Future development of the Bakken Shale formation would likely increase these revenues even more, bringing added benefits to the local economy.

The oil and gas industry makes up a small but significant portion of employment in Sheridan County. In Sheridan County nearly 21% of employment is in this sector. That number is nearly three times the state average of 7.10%, and reflects the importance of extractive industries and agriculture within Sheridan County. Only 5.59% of the county's employment was in arts, entertainment, recreation, accommodation, and food services; that number is much lower than the state average of 10.57%, reflecting the county's limited amenity development.

Oil and gas production has a significant impact on workers the county in the form of higher average annual pay. Average annual pay in the upstream oil and gas sector is much higher than annual pay in agriculture or hospitality and recreation. Hospitality and recreation saw a pay increase of about \$4000 from 2009 to 2011. In recent years, average annual pay in oil and gas has also moved upwards, increasing by \$6500 from 2010 to 2011, while pay has decreased slightly in agriculture. In 2011 average annual pay for upstream oil and gas workers was about three times the average annual pay for hospitality and recreation [48].

**31**

*Developing Together? Understanding the Interaction between, Amenity-Based Tourism…*

state for the effects of mineral development on public resources" [49].

development (e.g. in the Medicine Lake National Wildlife Refuge).

of extractive industries in the Bakken Shale formation.

Sheridan County has chosen a development path consistent with its resource endowments and has both energy and amenity development. The county participates in programs like the state-funded Reclamation and Development Grants Program (RDGP), a portion of which is funded by oil and gas taxes. The RDGP allows Montana communities, counties, universities, conservation districts, and others to apply for funding to complete projects that "indemnify the people of the

In Sheridan County, extractive industries have developed alongside the county's natural amenities, mainly its agricultural sector as Sheridan County's other amenity potential is limited. Some oil and gas development is occurring alongside amenity

Located in the northwestern corner of Wyoming, Teton County was established as a small ranching community at the base of the majestic Teton Mountain Range. The area remained primarily ranching land until the creation of Teton National Park in 1929, when economic focus shifted from ranching to tourism and recreation. The county contains many protected public lands, including national parks, national forests, wilderness areas, and a wildlife refuge. Federal lands, which include Grand Teton National Park, Targhee National Forest, Teton National Forest, the National Elk Refuge, Jackson Lake, the Gros Ventre Wilderness, the Teton Wilderness, and over 40% of Yellowstone Park are located in the county. These public lands comprise 97% of the county, private lands make up the remaining 3% [50]. Because Teton County is overwhelmingly owned by the federal government, county officials have limited influence over what happens in their county and instead are

Natural recreation sites within Teton County attract more than 2.7 million visitors each year, fueling the area's tourism and amenity-based economy [51]. During the winter, local ski resorts attract tourists; however, the majority of visitors come to Teton County in the summer months. This seasonal cycle of tourism can be difficult for the county economy; this is an issue that faces many counties with single-focus economies, including counties that focus exclusively on oil and gas development. While not as predictable as seasonal cycles, the oil and gas sector also faces boom and bust periods. Teton County has no active oil and gas activity, which

According to data from the Wyoming Oil and Gas Conservation Commission, there are no active oil and gas wells or visible potential for petroleum development in Teton County [23]. Additionally, even if gas and oil resources were found in Teton County, it could be difficult to access because 97% of Teton County consists

With little opportunity to develop amenities and decreasing trade, oil and gas production is expected to become more prominent in the Sheridan County economy. Oil and gas production brings in millions of dollars in tax revenue each year. Although decreased production in the past has proved challenging to the county, Sheridan potentially could gain enormously from expanding development

*DOI: http://dx.doi.org/10.5772/intechopen.92111*

**4.4 Development strategies**

**5. Teton County, Wyoming**

subject to decisions at the federal level.

is not surprising based on its land composition.

**5.1 Energy development**

of protected federal lands.

*Developing Together? Understanding the Interaction between, Amenity-Based Tourism… DOI: http://dx.doi.org/10.5772/intechopen.92111*

#### **4.4 Development strategies**

*Perspectives on Economic Development - Public Policy, Culture, and Economic Development*

visitors also in 2004 [43].

**4.3 Economic indicators**

(only 18% of residents that year) [39].

bringing added benefits to the local economy.

10.57%, reflecting the county's limited amenity development.

age annual pay for hospitality and recreation [48].

with locals for water sports [45].

geese populations, and serves as a breeding habitat for the migrating waterfowl [42]. Administered by the USFWS, the refuge reported 16,000 visitors in 2004 [43]. The refuge's most popular attractions are the nature trails and observation platforms. Hunting and fishing is also prevalent on the land, and attracted 3000

Brush Lake State Park, also known as "Oasis on the Prairie," is a spring-fed lake that became a state park in 2003 [44]. The lake is less than 300 acres, but is popular

Because Sheridan County is very rural, it does not boast the same visitation as other counties profiled in this report. It is expected the county will have a difficult time attracting the large number of tourists seen in Teton County, for example, due

Though the tourism industry is limited, Sheridan County does have agricultural activities. There were 1.06 million acres of land in farms in the county in 2007—almost 98% of the county's total 1.09 million acres [46]. Three quarters of the land in the county is tillable land, with soil that is of glacier origin, which makes it ideal for grain production Sheridan County's agricultural sector produces mostly durum wheat, which is used in pastas and cereals, and also has significant lentil and dry edible peas production. Each year the county hosts a Farm Expo, which brings together farmers from Montana and Canada for seminars, a Farm and Ranch

U.S. Census Bureau data shows that the number of individuals employed in the agricultural sector has decreased significantly over time, from 2352 individuals in 1978 (a full 40% of county residents at the time) to only 648 individuals in 2005

Sheridan County has seen significant growth in tax revenues from the petroleum

industry. Nyby reported that revenues have increased significantly in the past 10 years, despite a decrease in gas production. In 2003 Sheridan County received just over \$5 million in revenues from the petroleum industry, and by 2011 that number had increased to nearly \$11 million. Between 2003 and 2011, Sheridan County received a total of \$90 million in revenues from petroleum, \$23 million of which was specifically allocated to county schools Tax revenues represent an important benefit that oil and gas development bring to Sheridan County. Future development of the Bakken Shale formation would likely increase these revenues even more,

The oil and gas industry makes up a small but significant portion of employment in Sheridan County. In Sheridan County nearly 21% of employment is in this sector. That number is nearly three times the state average of 7.10%, and reflects the importance of extractive industries and agriculture within Sheridan County. Only 5.59% of the county's employment was in arts, entertainment, recreation, accommodation, and food services; that number is much lower than the state average of

Oil and gas production has a significant impact on workers the county in the form of higher average annual pay. Average annual pay in the upstream oil and gas sector is much higher than annual pay in agriculture or hospitality and recreation. Hospitality and recreation saw a pay increase of about \$4000 from 2009 to 2011. In recent years, average annual pay in oil and gas has also moved upwards, increasing by \$6500 from 2010 to 2011, while pay has decreased slightly in agriculture. In 2011 average annual pay for upstream oil and gas workers was about three times the aver-

to the lack of internationally—or even nationally—known landmarks.

Appreciation Breakfast, and a bread fair for kids [47].

**30**

Sheridan County has chosen a development path consistent with its resource endowments and has both energy and amenity development. The county participates in programs like the state-funded Reclamation and Development Grants Program (RDGP), a portion of which is funded by oil and gas taxes. The RDGP allows Montana communities, counties, universities, conservation districts, and others to apply for funding to complete projects that "indemnify the people of the state for the effects of mineral development on public resources" [49].

In Sheridan County, extractive industries have developed alongside the county's natural amenities, mainly its agricultural sector as Sheridan County's other amenity potential is limited. Some oil and gas development is occurring alongside amenity development (e.g. in the Medicine Lake National Wildlife Refuge).

With little opportunity to develop amenities and decreasing trade, oil and gas production is expected to become more prominent in the Sheridan County economy. Oil and gas production brings in millions of dollars in tax revenue each year. Although decreased production in the past has proved challenging to the county, Sheridan potentially could gain enormously from expanding development of extractive industries in the Bakken Shale formation.

### **5. Teton County, Wyoming**

Located in the northwestern corner of Wyoming, Teton County was established as a small ranching community at the base of the majestic Teton Mountain Range. The area remained primarily ranching land until the creation of Teton National Park in 1929, when economic focus shifted from ranching to tourism and recreation. The county contains many protected public lands, including national parks, national forests, wilderness areas, and a wildlife refuge. Federal lands, which include Grand Teton National Park, Targhee National Forest, Teton National Forest, the National Elk Refuge, Jackson Lake, the Gros Ventre Wilderness, the Teton Wilderness, and over 40% of Yellowstone Park are located in the county. These public lands comprise 97% of the county, private lands make up the remaining 3% [50]. Because Teton County is overwhelmingly owned by the federal government, county officials have limited influence over what happens in their county and instead are subject to decisions at the federal level.

Natural recreation sites within Teton County attract more than 2.7 million visitors each year, fueling the area's tourism and amenity-based economy [51]. During the winter, local ski resorts attract tourists; however, the majority of visitors come to Teton County in the summer months. This seasonal cycle of tourism can be difficult for the county economy; this is an issue that faces many counties with single-focus economies, including counties that focus exclusively on oil and gas development. While not as predictable as seasonal cycles, the oil and gas sector also faces boom and bust periods. Teton County has no active oil and gas activity, which is not surprising based on its land composition.

#### **5.1 Energy development**

According to data from the Wyoming Oil and Gas Conservation Commission, there are no active oil and gas wells or visible potential for petroleum development in Teton County [23]. Additionally, even if gas and oil resources were found in Teton County, it could be difficult to access because 97% of Teton County consists of protected federal lands.

#### **5.2 Amenity development**

With Grand Teton National Park, John D. Rockefeller National Monument, and large portions of Yellowstone National Park all located within Teton County, there is a large seasonal influx of tourists. During the months of June, July, and August, Teton County receives the most visitors; these months are the most popular time to visit Teton County to take advantage of the many outdoor recreation opportunities, like hiking and camping, that the county offers [52].

Visitation to Grand Teton National Park increased almost every year from 1952 to 1970. After 1970 visitation was more variable and dropped significantly from 1983 to 1992. After 1992 visitation picked up and remained fairly constant with visitation dipping below 2.5 million only 5 years between 1992 and 2010 [51].

The Grand Teton National Park is located in central Teton County. The national park offers backcountry camping, rock climbing, and cross-country skiing. The truly adventurous can climb the granite summit of the Grand Teton that rises 13,770 feet above sea level [53]. Visitors can also hike, boat, fish, kayak, and photograph the mountain scenery. This national park is also home to over 300 species of birds, 6 species of game fish, and 60 mammal species [53]. Within this park is a portion of the Snake River offering world-class fishing, as well as 11 lakes that allow recreation, ranging from jet skiing to windsurfing [54]. In the winter the visitors can enjoy private Snowcat rentals, snowshoeing, backcountry and snowmobile tours, sleigh ride dinners, and skiing and snowboarding on the Grand Tetons [55].

In 1972 Congress created the John D. Rockefeller Jr. Memorial Parkway between Grand Teton National Park and Yellowstone National Park. Grand Teton National Park administers this parkway. The sloping hills at the end of the Teton Range characterize this parkway and provide "a natural link between the two national parks," as these slopes give way to the volcanic flows of Yellowstone [56].

Yellowstone National Park is one of America's most iconic national parks. Designated as a National Park in 1872, Yellowstone is considered by some to be a "living museum," and covers over 2.2 million acres in Wyoming, Montana, and Idaho [56]. The most famous sites inside the national park include Old Faithful, Lower Falls, and Yellowstone Lake. Visitors are cautioned to drive slowly and plan extra time to account for wildlife that often crosses the roads within the park [56]. Visitation to the national park has generally increased since 1946. In 2010 the park saw a record 3.6 million visitors [56].

Yellowstone offers activities outside of those normally offered within a park including pack trips, stagecoach rides, and old west cookouts. More traditional national park activities are also offered; visitors can hike, view wildlife, take horseback tours, fish, and boat. In the winter, when road conditions allow, visitors can cross-country ski and snowshoe. Visitors who want to stay within the park have lodging options that offer more amenities than a traditional campground, although that option is also available; within the park there are eight hotels or cabins [56].

Teton County also has the National Elk Refuge, which celebrated its centennial in 2012 [57]. Composed of almost 25,000 acres, this reserve has been designated to conserve the Jackson elk population after development in the late 1800s pushed the animals out of their traditional habitat into much more difficult terrain [57].

Jackson Hole, Wyoming, is a popular, year-round destination in Teton County. This area includes the Jackson Hole Mountain Resort with an average of 459 inches of snow each year [58]. The city of Jackson has over 20 art galleries, restaurants that have been featured on the Food Network, and is home to the Grand Teton Music Festival, during which live broadcasts from the Met Opera in Manhattan are shown to "complement the flow downslope" of the Tetons [59]. Overall, Teton County

**33**

*Developing Together? Understanding the Interaction between, Amenity-Based Tourism…*

hosts almost every recreation activity available in the western United States, and

Teton County's primary economic focus has been, and will continue to be, tourism encouraged by its abundant natural amenities. The county's vision is to "preserve and protect the area's ecosystem in order to ensure a healthy environment, community, and economy" [60]. This focus on tourism provides important jobs and revenue to the county, and also brings some challenges, such as low-wages

The unemployment rate spikes in Teton County during the winter months, reflecting the seasonal nature of the tourism industry. Sublette County's unemployment rate, also shown on the graph, is much more stable, reflecting its more balanced economy that does not rely so heavily on seasonal industries. When tourism hits its peak in July, with a visitor count of about 643,000, county employment also reaches its peak with almost 21,000 employees [48]. As visitors to the county increase, seasonal jobs are created; however, at the end of the season the visitor

One notable aspect of the seasonal job growth and off-season decline is the attraction of non-resident employees to the area. In fact, seasonal jobs offered by Teton County attract nearly 5000 out-of-state employees [60]. Seasonal, nonresident employees tend to spend their wages outside of Teton County, mostly benefitting the communities where these employees live (though some do reside in the county during their working period), and Teton County is unable to capture the potential benefits these jobs create in the form of tax revenues. Aiming to increase both year-round occupancy and visitor spending to capture more benefits within the county, Teton County is working to attract more second home owners and

Recognizing the need for greater stability, the Teton County Planning Commission, in conjunction with Jackson County, included "[promoting] a stable and diverse economy" as one of its principles in the 2012 comprehensive county plan (the county plan focuses on the 3% of land in the county that is private). The commission is careful to note, however, that "tourism will continue to be the basis of our economy," and aims to create more stability and diversification by enhancing tourism, encouraging local entrepreneurial opportunities (particularly "green" opportunities), and promoting "light industry" [60]. The goal is to "develop the

The hospitality and recreation sector has grown for the majority of the decade. Employment began with about 5500 individuals in 2001 and grew to almost 7000 in 2008. After a decrease of over 500 employees in 2009 this sector grew slightly to

In 2010 one quarter of Teton County's civilian employees over the age of 16 were employed in the arts, entertainment, recreation, accommodation and food services sector; this is almost 16% higher than the state average. Teton County also has significant portions of its civilians employed in the construction; professional scientific, management, administrative, and waste management; and education

Although hospitality and recreation provides more jobs in Teton County than does agriculture, employees in hospitality and recreation earn lower wages than those working in agriculture. Over the decade, those employed in hospitality and recreation did see steadily increasing wages, from just over \$17,000 in 2001 to just under \$25,000 7 years later, though this data is reported in nominal dollars and has

*DOI: http://dx.doi.org/10.5772/intechopen.92111*

**5.3 Economic indicators**

and seasonality [61].

retirees to their communities [60].

6600 employees in 2012 [48].

Jackson Hole offers a small-town, yet urban vibe.

count decreases and the demand for seasonal jobs declines.

existing economy to be better, not necessarily bigger" [60].

services, health care, and social assistance sectors [48].

hosts almost every recreation activity available in the western United States, and Jackson Hole offers a small-town, yet urban vibe.
