The enormous but often overlooked impact of energy resource development on small Western United States communities can be illustrated by the experiences of the traditional coal mining town of Hanna, Wyoming. Coal development doubled the population between 1970 and 1972, and required the addition of a sewer system and a police force, plus the improvement of the water system, supported by a bond issue and federal loans. The community still did not have adequate housing, medical services, paved roads, recreational facilities, or uncrowded schools by 1972. Hanna had gone into debt for relatively few improvements, taxes were up dramatically, the tax base was not expanding, and the decline of per capita services was a possibility. To maximize benefits and minimize costs to communities similarly impacted by energy development, the state should require energy developers to file impact statements regarding the expected effect on local government, land use, population, and economy. Comprehensive community planning should begin prior to a boom and schools should consider the needs of energy industries in their curricula. Finally, an impact tax should be added to the severance tax and paid to impacted communities to turn some of the costs of energy development into local benefits. (SB)