market gravel?

[Jagfarms]

We were out digging out some big rocks on some land that we have. When we were digging we came across some gravel. We did not dig down to deep as we do not know where the underground lines run across the land. I do not know how much gravel is there or what quality it is.


I got a sample of the gravel we did dig up and showed it to a local construction company that uses lots of gravel and has their own crusher. They gravel roads and do lots of construction inlvolving gravel, pit run and sand. They said they would come out and do some test holes for me at no charge as long as they have first right to the gravel.

What is gravel worth, what is pit run worth, what is sand worth. I talked to the local RM here and they have a gravel pit and they get paid $1.25 yard for it. The construction company I am dealing with said they pay $0.75 to $1.00 yard. Chances are they will not find much gravel there but if they do I want to make sure I get a fair price.

What is the going rate for gravel?

Thanks in advance.

Jason

[sverchomin]

Jags,

I would be highly cautious with inviting a gravel pit processor onto your land. My old man has a gravel pit operation next door, needless to say they want to expand and he's trying his best to prevent it tooth and nail.

Several knocks from my experience with gravel pits. First, they do not have a good ability to reclaim the land even though policy calls for reclamation to its original productive state. I have yet to hear of that actually occuring. Second, not as lucrative as oil...if anything the guy should be paying you to run tests on your land. As bad as this sounds you probably better off growing canola than what he going to offer...over the long run. Third, giant eyesore especially if your acreage is nearby and expect to deal with a lot more traffic. Fourth, once they are there they will expand until they have ever last ounce of gravel.

Jags if you want more information let me know, but from personal experience they end up being a giant pain.

[melvill]

One other thing I wonder about: is gravel a mineral? Does the provincial gov't get royalties on the "mined" gravel? Jag, if you're in Alberta, check with the Farmer's Advocate Office in Edmonton.