Waldo Canyon Fire Case Study

The Waldo Canyon Fire

Approximately three miles west of Colorado Springs in the Pike National Forest, the Waldo Canyon fire of 2012 was the most destructive wildfire in Colorado history burning 18, 247 acres, killing two people, destroying 347 homes and damaging many more (City of Colorado Springs, 2013). In addition to property damages and loss of life, there were other damages caused from this wildfire to include wildlife, plant life, watershed and soil. Economic damages caused by this wildfire include firefighting costs, insurance claims, home displacement costs and business closures during the duration of the fire.

The cost associated with fighting the Waldo Canyon fire was very expensive. The city of Colorado Springs reports the expenditures

submitted for reimbursement from the firefighting efforts totaled $2,712,510 not including the regular salaries of workers (2013). There were many other organizations and agencies involved assisting the city of Colorado Springs with the fire. Some of these included nearby fire departments, local military personnel and other federal and state agencies. The total estimated cost of operational activities is reported at $16, 686, 000 (InciWeb, 2012). Many assets were used including aircraft to fight the raging fire.
Home displacement costs to evacuees were endured during the fire. Many organizations, local charities and faith groups took some of the burden, however there were costs to shelter and feed these people. The long duration of this fire added to the costs as evacuees were not allowed to return to their homes until the wildfire was properly contained. A total of 28,770 residents were evacuated covering 11,308 homes and buildings (City of Colorado Springs, 2013). Many local businesses were evacuated as well contributing to total market loss due to the fire. Again, the fire duration added to these losses.
Another huge economic impact is insurance claims of damaged and destroyed homes caused by the wildfire. Insurance claims of the destroyed and damaged homes from this wildfire totaled $453.7 million (Hemingway, 2013). In addition to the 347 destroyed home, there were claims for damages on many more. Smoke damage was a common claim by many homeowners that still had homes intact around the affected area.
The Black Forest Fire
Approximately 14 miles north of Colorado Springs, the Black Forest fire of 2013 burned a total of 14,280 acres, 2 fatalities and destroyed 489 homes, a commercial cell phone tower and 196 other small building structures such as detached garages and out buildings (El Paso County Sheriff’s Office, 2014).

As with the Waldo Canyon fire the year prior, there were also damages to wildlife, plant life and soil. Several of the same type of economic damages as the Waldo Canyon fire were felt. Reminiscent to the Waldo Canyon fire, these economic damages were in the form of firefighting costs, insurance claims, home displacement costs and some business closures as well.

As with the Waldo Canyon fire, many other agencies and organizations were involved in the response to this wildfire. This included state and federal agencies as well as nearby fire and police departments. Many of the same assets were utilized in the fighting of this fire including aircraft to fight this fire. It is reported that the Black Forest firefighting costs at $14.8 million and had a total market value loss of just over $116 million

(2104).
Again, home displacement costs were a factor in this fire. Mandatory evacuations occurred in an area of 94,000 acres covering 13,000 homes and 38,000 people (2104). Cost to shelter and feed evacuees occurred but not to the extent of the previous wildfire of 2013. The Black Forest evacuation area did not have as many businesses as the Waldo Canyon evacuation areas but still sustained some business loss to add to the costs of the fire.
Insurance claims were an economic factor in this fire as well. Claims were filed of the 489 homes destroyed and the many more damaged. Insurance claims from the Black Forest fire totaled $292.8 million (Hemingway, 2013). In addition to claims of smoke damage, many small out buildings and detached garages suffered damage or were destroyed driving the costs of these claims higher.
Environmental After Effects
With the amount of fire destruction, the wildlife and plant life in the affected area were largely impacted. Many wildlife animals were destroyed in the fire and those not destroyed lost valuable plant life that was vital for survival in the area. A Technical Specialist Report by the USDA Forest Service addressed potential risks identified with regard to critical habitat loss during the Waldo Canyon Fire. The Mexican spotted owl and Preble’s meadow jumping mouse are two species federally listed as threatened that were affected by portions of critical habitat loss (Quesada, 2012). The Black Forest burn area also experienced reduced plant life needed for the animals to survive in this area as well.
Watershed damage from the Waldo Canyon fire is another environmental concern as five of the local watershed reservoirs were affected. Some of the concerns of post fire watershed damage are suspended sediment inputs into reservoirs as well as increased concentrations of nitrogen, phosphorous and other trace elements from burnt soil contaminating the water shed (Smith, Sheridan, Lane, Nyman & Haydon, 2011). Projects are still ongoing to stabilize these effects in the affected area. The USDA Forest Service claims that burned watersheds typically take 5 to 10 years to recover and stabilize back to pre-fire conditions (USDA Forest Service, 2014). It will also take several more years to bring damaged soil back to its original state. Costs will incur throughout this process to recover the watersheds back to pre-fire conditions.
Soil damage is another environmental effect from the wildfires. Soil damage can cause many factors in composition such as loss of nutrients and a formation of water resistant layers causing reduced infiltration. The reduced infiltration is likely to cause flash flooding when rains attempt to penetrate the burned soils. Severely burned trees also contribute to exposed soils which expose soils to increased erosion. In the case of the Waldo Canyon fire, 30% of the burn area was classified as moderately burned and 30% as a severely burned area (2014). The USDA Forest Service reports the soil damage in this area was so deep that vegetation growth would be difficult to regrow on its own. Programs to heal the soil and reseed are underway and expected to hopefully recover within the next several years. The USDA Forest Service estimates a 5 to 10 year recovery time (2014).
There are several other long term environmental effects from wildfires that can be of concern. Invasive weeds can quickly fill in areas before native plants and shrubs recover and regrow in the affected areas. The crowding out of these native plants and shrubs can increase chances mudslides as well as accelerate erosion (Pallisar, 2012). Small animals and birds may become locked into limited areas as they struggle to find native plants and trees for survival. Concerns of environmental damage from fire suppression materials can also occur if they reach streams or other bodies of water in the area. This can be detrimental to aquatic animals and land animals that drink from these sources (2012).
Economic after effects. The many mitigation projects in these burn areas are costly in labor, materials and wages. Many hazards are required to be mitigated to prevent human harm and to help stabilize some of the environmental issues caused by the fires. Some of the projects being conducted include reseeding areas, removing hazard trees and stabilizing slopes to reduce sediment movement from rains. The USDA Forest Service also declare that debris flows, mud flows, landslides, soil movement and erosion can pose further threats to human life from the burn scar until completion of these mitigation projects (2014). Many of these projects will take years to complete spreading the costs throughout the future until completion time.
A significant economic after effect that have occurred were flash floods around the small town of Manitou Springs area and state highway 24 just west of Colorado Springs.

Following the containment of the Waldo Canyon fire, there were several major flash floods in this area and one particular deadly flood resulted in destroyed homes, vehicles and loss of life. The town of Manitou Springs incurred damages of $374, 755 and has received state funding in the amount of $2, 374, 423 for flood mitigation projects within the town (ManitouSpringsgov, 2013). Most of the flash flooding damages occurred to the state highway system that runs through Manitou Springs and continues west towards the continental divide in the Rockies. The Colorado Department of Transportation reported that over $400 million in state highway damage occurred during the 2013 flash floods (CODOT, 2014). Many commuters were required to take an alternate route as this part of the highway was unavailable until repaired. These flash floods were severe due to the burn scar from the Waldo Canyon fire. To date costs are occurring to mitigate the effects of these flash floods. Potential flooding is also a concern with the Black Forest burn areas but no significant flood damage has occurred in this

area.
Tourism revenue was likely impacted due to the flash flood damage of highway 24. There are a number of tourism spots along this highway. The highway closure restricted access to Pikes Peak and other attractions near the park entrance. The Manitou Cliff Dwellings and Cave of the Winds attractions were also inaccessible during rebuilding of the highway. These parks generate revenue daily and contribute to some of the tourism in Colorado Springs. Additionally, Manitou Springs is a high traffic tourist area that likely lost revenue during cleanup and repairs taking place. There are also many businesses that were not accessible and lost revenues along this area of damaged highway as well as in the town of Manitou Springs.
Another economic after effect include likely insurance rate increases in wildfire vulnerable areas as well as flood insurance increases for those residents in the flash flood areas. To recoup the massive amounts of claim disbursements, insurance companies must increase rates. With record number of statewide wildfires and hail storms the last few years, the rates have increased according to the Colorado Springs Business Journal (Vader, 2014). Some insurance companies will not even write wildfire into their policies for houses located in forested areas. The Waldo Canyon fire is touted as one of the most expensive catastrophes in Colorado. Additionally, homeowners in the increased flash flood areas are more likely to add on flood insurance to their policies to protect against the flood risks. FEMA encourages homeowners to purchase flood insurance through the taxpayer subsidized National Flood Insurance Program (NFIP) as flash floods and mudslides are not covered through regular homeowners insurance (Cleetus & Mulik, 2014). These extra insurance needs add additional costs to residents of these areas.
Worth mentioning but not fully quantifiable is the effects of wildfire smoke on human health and costs associated. A study of economic valuation of health effects was conducted from wildfires from California which estimated a cost of $84.42 per exposed person per day (Champ & Richardson, 2012). No such study was found to quantify an amount for the Colorado Springs wildfires. However, during these wildfires there was a substantial haze of wildfire smoke blanketing the entire area. Many people were seen wearing dust masks while out around the city in an attempt to not breathe in the pollutant from the fires.
Conclusion
With increasing warmer temperatures and droughts, a more preventative approach should be attempted to prevent wildfires throughout the western United States. The annual number of large wildfires on federal lands in the 11 western states has increased by more than 75% from 1980 to 2009 and the wildfire season has increased from five months to seven months on (Cleetus & Mulik, 2014). Additionally, increasing populations have resulted in more homes and businesses being built in wildfire prone areas. The increased structures in these areas contribute to more damages and increased costs incurred from wildfires. It is estimated that 200,443 homes in Colorado have a high or very high risk of wildfire damages (2014).
Not all effects of wildfires are negative. Controlled burns are actually beneficial and can prevent accidental or malicious wildfires. Controlled burns can reduce hazardous fuels, minimize the spread of pest insects and disease, provide forage for game, recycle soil nutrients, promote growth of plant life and remove unwanted species that threaten native species (Palliser, 2012). Perhaps more controlled burns in areas like Colorado Springs could have prevented or minimized the damages caused by these wildfires. Controlled burns should regularly be conducted throughout the state of Colorado in forested areas susceptible to wildfires.
As with all wildfires, the environmental and economic impacts can drain the money coffers of local cities and communities, requiring emergency funds from the federal government. Organizations such as FEMA are essential to help communities get through emergency crisis affecting them. Also, costs continue to incur for years after fires are contained and put out in the form of mitigation projects and future effects that the burn areas can cause such as with the increased flash flooding damages. Other categories of costs, such as pre-suppression costs, timber losses, tourism losses, human health effects and ecosystem damages may not be fully known until years after wildfires (Cleetus & Mulik, 2014). Colorado Springs has experienced many major effects on the local environment and economy from the two wildfires. These effects are occurring today and will continue to occur in the next several years.