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By Lynn C. Jacobsen

Among the unforeseen consequences of the 1973 Arab oil embargo has been a considerable array of new or increased taxes on the so-called energy minerals. These taxes will be the subject of this report. Both Federal and State taxes have been enacted, but I will be concerned mostly with state severance taxes and particularly those on uranium. Severance taxes are considered to include all taxes having the distinctive feature of being applied on a natural resource at the stage of extraction. The tax may be based on units of production or on value, and if on values it may be on gross value or on gross value less either arbitrary or cost-related deductions. The tax has a number of aliases - resource excise tax, conservation tax, privilege tax, mining excise tax, ad valorem production tax, and more - and this makes comparison of tax burdens among states difficult. The windfall profit tax on oil is an example of a severance tax at the Federal level. Severance taxes are an established feature of state tax systems, but they continue to be a controversial issue, and proposals to raise or modify existing severance taxes are regularly submitted to the legislatures of the Western energy producing states. No concensus exists as to what is a reason- able and proper level of severance taxation or to the form it should take. The taxes which have been adopted by the various states reflect the interaction of a variety of interests and the specific circum- stances in each state. What follows is a summary of theoretical, practical, and emotional viewpoints and arguments that surface in any statehouse in which a severance tax bill has been introduced. The New Mexico experience will be heavily relied upon. THE ECONOMISTS Marginal effects. A severance tax which is based on a gross percentage of revenue or on units of production is a constant addition to variable costs, and to the mine operator has the same effect as any other increase in operating costs. The direction of these effects is straightforward: the tax will cause the property to have a lowered present value, to be mined at a lower rate than without the tax, raise the minimum grade that will be mined, lead to lower total recovery, make marginal properties sub-marginal and discriminate in favor of richer, more profitable operations (Lockner, 1965; Steele, 1967). In the short run, production facilities are fixed and imposition of a severance tax will have little effect on production levels. In the longer term, capital is mobile and investment and exploration expenditures will shift from minerals and jurisdictions with high taxes to those with low taxes. Over a considerable range of taxation the effect will be to change the relative position of the taxing state, but an overly optimistic evaluation of the capacity of mineral producers to absorb a tax can bring an industry to a halt. It is generally acknowledged that imposition of high severance taxes on taconite in Minnesota stopped development completely, and that only the adoption of a constitutional amendment limiting the amount of taxes that could be imposed in the future brought the firms back and encouraged them to make the huge investments required (Weaton, 1969). A tax which is a percentage of the net operating income (gross revenue less cash operating costs) does not influence the cut-off grade for recovery nor change the time preference for extraction, and hence, is free of the negative features of the tax applied to gross revenues or units of production. In theory it is a more efficient tax but relative administrative complexity and inherent difficulty in predicting revenue have discouraged its use. The Wyoming severance tax on uranium, which uses grade of ore as well as price in establishing taxable value, is the most cost related, and hence, the most neutral and efficient of the various state severance taxes on uranium. Economic rent. Despite the discrimination and the anti-conservation aspect inherent in most severance taxes, economists generally endorse their use because they are seen as a vehicle to appropriate rents - that is, returns greater than the long-run competitive supply price. Conspicuous examples of supposed economic rents are the returns to oil producers because of the OPEC cartel, the returns of the uranium producers under AEC buying contracts in the 19501s, and the high prices obtained by the uranium producers for contracts entered into in the 1976-1979 period. Mining of coal in the Western states is believed by some to generate huge economic rents because of the OPEC caused increase in price of a competitive fuel (McLure, 1978, p. 261), and possibly because of clean air regulations favoring the burning of low-sulfur coal. In theory, such surplus returns could be taxed completely away without affecting supply. In practice, the situation is more complex (Steele, 1967, pp. 234-236); economic rent of mineral production is an elusive quantity involving as it does replacement costs, and technical and market risk, and it, like beauty or pornography, probably exists mostly in the eye of the beholder. Rent may also be perceived to be present in the upper portion of a cyclic market which also has a downside. Where rent exists, it is almost certain to be short-lived - cartels self- destruct, government subsidies end, competitive adjustments occur - but the taxes imposed to capture it tend to be immortal. There is little doubt that the perception of un- usual and undeserved (obscene) profits in the mid- and late 1970's was a major factor in the adoption of energy mineral taxes strikingly higher than had been previously considered. At the New Mexico legislature of 1977 supporters of a moderate tax were repeatedly confronted with some variant of the statement, "You can't expect me to believe that a

Jan 1, 1982

By B. F. Zwick

No new fields have been discovered in Ecuador during 1945, though Shell. Company of Ecuador's Vuano No. 1, near Arajuno in the Oriente concession, which was reported to have drilled to .5281 ft., tested a small, noncommercial quantity of 13° gravity oil. In the upper section, the well tested large flows of fresh water and has been abandoned. Shell is preparing to move to another location.

Jan 1, 1946

Jan 1, 1942

By C. E. Lundin

The Ce-H system was investigated in the temperature range, 573° to 1023°K, and the pressure range, 10-3 to 630 Torr, as a function of 'composition up to 72 at. pct H. Families of isothermal arid isopleth curves were plotted from the pressure-terr~perature-composition relationships. From these curves the solubility relationships were determined for the system. The isopleths are analytically represented by equilibrium dissociation pressure equations. The relative partial molal enthalpzes and entropies of solution of hydvogen in the systerrz were calculated fronz the dissociation pressure equulions and are tabulated. The integral free energies, enthalpies, and entropies of mixing in the Ce-H system were determined from the relative partial quantities and are also tabulated. The standard free energy, enthelpy, and entvopy of reaction of the dihydride phase at kcal per kcal per mole H2, and ?S° = -34. 1 cal per deg mole H2, respectively. The equilibrium dissociation pressure equation in the two-phase region is: UNTIL recently very little was known of the detailed solubility and thermodynamic relationships of the Ce-H system. Two previous investigations1,2 are noteworthy. However, significant discrepancies and omissions exist on analyzing them. The work of Mulford and Holley1 on cerium did not clearly delineate the boundaries of the two-phase region, Cess - CeH2-x. The plateau partial pressures were not thoroughly defined and were considerably displaced in pressure compared to those from the work of Warf and Korst.2 These latter authors concentrated their studies primarily from 823° to 1023°K in the pressure range of 1 to 760 Torr. No data were determined to outline the regions of primary solid solubility and the hydride phase. Also the establishment of the plateau partial pressures was rather limited in scope. In neither work was a treatment conducted of the relative partial molal enthalpies and entropies of solution of hydrogen in the single-phase regions and the integral thermodynamic quantities of mixing throughout the system. Therefore, it was the objective of this research to determine the complete equilibrium solubility relationships and thermodynamic data for the system by pressure-temperature-composition studies. EXPERIMENTAL PROCEDURE The cerium metal for this study was donated by the Reno Metallurgy Research Center of the Bureau of Mines. Total impurity content was 0.13 pct with only 60 ppm O. The metal was checked metallographically and contained only minor amounts of second phase compared to cerium from other sources. Specimen preparation was done in a dry box flushed with argon gas. The surface of a small rectangular piece of cerium (about 0.2 g) was filed with a clean, mill file. Final weighing was done in a tared enclosed vial containing argon gas. The specimen was then loaded quickly into the reaction chamber which was purged several times with high-purity hydrogen gas and then allowed to pump to about 10-6 Torr. The furnace was heated to the reaction temperature and the run started. The equipment used to conduct the hydriding was a Sievert's-type apparatus. Basically it consisted of a source for pure hydrogen, a precision gas-measuring burette, a heated reaction chamber, a McLeod gage, and a mercury manometer. Pure hydrogen was supplied by the thermal decomposition of uranium hydride. The 100-ml precision gas burette was graduated to 0.1-ml divisions and was used to measure the quantity of gas and admit it to the chamber. The reaction chamber was a quartz tube. Prior to each run, the cerium specimen was wrapped in a tungsten foil capsule to prevent reaction of the cerium with the quartz. Control of the temperature was achieved within ±1°K. Pressures in the manometer range were measured to ±0.5 Torr and in the McLeod range (10-3 to 5 Torr) to ±3 pct. The compositions of hydrogen in cerium were calculated in terms of hydrogen to cerium atomic ratio. These compositions were estimated to be ±0.01 H/Ce ratio. The technique used to study the equilibrium pressure-temperature-composition relationships of the Ce-H system was to develop experimentally a family of isothermal curves of composition vs pressure. The range of pressure through which each isotherm was developed was from 10-9 to about 630 Torr in the temperature interval, 573° to 1023°K. RESULTS AND DISCUSSION The hydriding characteristics of cerium are iso-morphous with those of the elements of the light-rare-earth group (lanthanum, cerium, praseodymium, and neodymium) wherein the region from the dihydride to trihydride is continuously single phase.' The structure of this phase is fcc.3 The heavy rare earths form a trihydride,2 which is hcp, separated by a two-phase region from the fcc dihydride phase. The Ce-H system is represented by the family of experimental isotherms in Fig. 1. Due to the small scale required to draw the curves, the experimental points are omitted; however, a total of 240 experimental data points were taken to prepare these curves. The solubility relationships can be deduced therefrom. Three distinct regions of partial pressure and composition can be seen. The region of cerium solid solution is represented by the rapidly rising isotherms in the dilute composition range. In accordance with Gibbs Phase Rule only one solid phase, the cerium solid so-

Jan 1, 1967

By F. W. Luerssen, J. F. Elliott

F LUSHING the early slag from a stationary open Fhearth having a high percentage of hot metal in its charge is necessary in order to remove silica from the system. The flush slag is strongly oxidizing and is somewhat acidic. It has, however, considerable capacity to extract phosphorus from the bath and it also removes considerable manganese. It seems probable that factors which control the distribution of phosphorus and manganese between slag and metal in the refining period also should be dominant in the flush and postflush periods. Several studies, as summarized elsewhere,1,2 support the viewpoint that conditions closely approaching equilibrium for these elements are rather readily established during the refining period. Over the years these studies have repeatedly demonstrated that 1—high slag v01ume, 2—low bath and slag temperature, 3—basic slag, and 4—strongly oxidizing slag favor rapid elimination of phosphorus from the bath to the slag. They also show that the following conditions favor retention of manganese in the bath: 1—low slag volume, 2—high bath and slag temperature, 3— basic slag, and 4—minimum oxidizing power of slag. When it is considered that the flush slag often carries as high as 75 pct of the manganese charged and only 25 to 60 pct of the phosphorus charged, it is evident that in removing silica much manganese is sacrificed but phosphorus removal is far from conplete. Because of overriding circumstances, this is accepted in most operations and actually it is considered to be inevitable. This may account for the fact that little attention has been paid to conditions affecting the elimination of phosphorus and manganese in the flush slag. A recent study of the behavior of various charge oxides has developed considerable information on the flush and postflush periods. Because the data are felt to be of general interest, they have been brought together and Presented in this paper. The object is to show the various factors in the flush and postflush periods which influence elimination of phosphorus and manganese. Physical Conditions During and After Flushing Physical conditions existing during the flush vary from plant to plant, from shop to shop, from furnace to furnace, and even from heat to heat. They are strongly influenced by the physical and chemical character of the charge oxide which is ordinarily necessary to provide sufficient oxidizing power early in the heat. Invariably the period is characterized by a vigorous reaction between the principal re-actants: the hot metal being added and the charge oxide. During the flush, it is probable that the slag acts to some extent as an oxidizer; but, because of the critical influence of the behavior of the charge oxid'e on flushing action, it seems apparent that the oxide itself is the dominant oxidizer. Fig. 1 shows the course of two heats which were selected as being typical of the group studied. Heat A was charged with 55 pet hot metal, based on the total metallics charged, and heat B had 57 pct hot metal. As indicated in Table I and Fig. 1, the melt-down slag, which is not usually voluminous and which is principally FeO, expands greatly in volume and will show rather high levels of SiO2, MnO, and P2O5 very soon after the beginning of the hot metal addition. Simultaneously, large volumes of CO are liberated which cause violent mixing of slag and metal. It is of interest to note that the time required to bring carbon down to a low level is very much longer than that required for the removal of silicon, manganese, or phosphorus. At the end of flush, carbon in the bath is still approximately 2 pct. When strongly reducing hot metal is brought into contact with strongly oxidizing conditions within the furnace! it is probable that the rate of mass transfer to the slag (and atmosphere) of silicon, manganese, phosphorus, and carbon initially depends principally on the rates at which the two participating phases are brought into contact That is, it depends on the nature of the various reactions. Later in the flush period, when the scrap is virtually all dissolved and the action of the bath has settled down to a steady and somewhat gentle boil, it is likely that other factors, such as the transfer of oxygen across the slag-metal interface, become dominant. The temperature of the slag-metal system is far from uniform. Heat is being driven by the flame down through the slag. Bubbling and surging of the metal also frequently brings portions of the bath in contact with the flame. At areas of contact between the ore and liquid metal, or slag and liquid metal, the oxidizing reactions generate much heat. On the other hand, scrap is being melted which tends to absorb large quantities of heat. Because the liquid bath is high in carbon, the steel scrap is brought into solution rapidly. This can proceed at a rather low temperature; and until much of the scrap has been taken into solution, the bath temperature would not be expected to increase appreciably. Consideration of these factors leads to the conclusion that during the flush period the slag should be rather hot and the bath relatively cold. Both observation and temperature measurements bear this out. Experimental Data The extended program of charge oxide evaluation permitted study of the widely varying conditions existing during the flushing period. Slag and metal analyses and bath temperatures reported herein (Tables I and 11) were obtained toward the latter portion of the work. Four different types of charge oxide, sinter, two types of hydraulic cement-bonded soft ores, and a pyrobonded agglomerate were used in the study. Although the heats reported were from only one 205 ton furnace, they show variations in flush slag analyses all the way from 25 pct FeO, which is typical with the use of a hard natural charge ore, to 45 pct FeO which resulted when a very poorly agglomerated fine ore was used. The physical behavior of the flushes showed a correspondingly wide variation from well controlled reactions to violent surges following periods of inac-

Jan 1, 1956

By Harold L. Walker

ENGINEERING educators have recently been discussing the advisability of extending the undergraduate curricula to five or six years, and a plan has also been proposed requiring a preliminary period of study in the liberal arts college before admission to the engineering college. Extension of the undergraduate curricula has been suggested as a means of more fully covering the subject matter in the major field of study. Interest in this proposed plan of requiring a preliminary period of study in the liberal arts college has been heightened through a bill recently introduced in the legislature of the State of New York. This plan intends to give a more professional status to engineering, and credit for these additional years of study would be allowed to those engineers applying for professional licensure. As a result of the interest in engineering curricula and due to the impetus given by these proposed plans a general reexamination of curricula has been conducted by a large number of schools with the stated purpose of determining if the present curricula are meeting the aims and scopes of engineering education.

Jan 1, 1940

By Hugh Marriott

MANGANESE and its ores have been recently dealt with in comprehensive papers to the Iron and Steel Institute by Sir Robert Hadfield, and in a series of papers read before the A. I. M. E. at the Cleveland meeting. I have taken the opportunity of adding this mineral, to my records of the "World's Mineral Production and Consumption," as recently pub-lished in the Economist ?. The tables bring out the following significant facts: The world's production has increased by 10 per cent since 1913. India's production has increased by 3 per cent since 1.913, the supply from this source now being 31.1 per cent of the world's output. Russia is now producing at about half its pre-war rate and yields 19 per cent of the world's production. West Africa supplies 12.5 per cent of the world's total output. Brazil's present output is 2.5 times that of the pre-war period, being 11.3 per cent of the world's output.

Jan 9, 1927

By AIME AIME

NO ADEQUATE salary scale, at the present time, can ignore the increase in the cost of commodities 'during the last few years or- afford to assume that this increase is merely temporary. A study of the change in prices and wages during and after the Civil War is of interest in connection with changes that have taken place from 1913 to 1919. The curves on the accompanying figure, based on reports of the War Industries Board and Department of Labor, show these changes. During the Civil War retail prices rose to 164,2 per cent. of the prices of 1860, during the next 8' or 10 years. It is interesting to note that the rise in wages during the Civil War was almost simultaneous with the rise in the prices of commodities. During the World, War, the rise in wages has lagged about a year behind the rise in prices. Furthermore, in the period immediately, following the Civil War, wages continued to rise after prices started to fall, The present price level is not considered merely temporary by such of our Government agencies as the Department of Labor and the Federal Reserve Board or by such economists as Irving Fisher' and J. S. Holden.2 Sub-

Jan 1, 1920

By Robert L. Haffner

When mining operations of The Eagle-Picher Co. began in the Illinois-Wisconsin zinc mining field in 1949, all underground loading of broken ore and waste was by caterpillar-tracked machines. Beginning in 1956 rubber-tired end-loaders were brought in; ultimately they completely supplanted the tracked units. End-loaders proved to have the mobility needed for the mining conditions and additional merit in auxiliary capacities. Eagle-Picher operates five mines in this area; two are entered by shafts and three by inclined adits. Several ore zones, some of which are attenuated over a considerable distance, are worked from the same entry. Consequently underground haulage roads connecting or following these orebodies have attained great length. In addition, working places are often widely separated because of the character of the mining operations which include pillar recovery and extending haulage connections into old workings. At one mine, the haulage distance is 5000 ft on either side of the shaft, at another the maximum one-way distance is 8400 ft, and at another the present road system of 6800 ft is expected to reach 10,000 to 12,000 ft.

Jan 6, 1962

By D. R. THOMAS

GENERALLY speaking, the production of other metals in Mexico fluctuates with that of silver. The first commercial discovery of mineral was in Taxco, Guerrero, in 1552. Five years later, the patio process was introduced at Pachuca, by Bartolome de Medina. In 1884, the main line of the Mexican Central R. R. was completed and a few years later, the National railway. In 1907, the patio process, after 350 years of successful operation, was replaced by cyanidation. Soon after the completion of the railroads, smelters were built at various points and provided means of treating ores that could not be treated by any of the processes existing at that time, such as patio, lixiviation, or pan amalgamation. As a result, a number of mines were developed along the railroads and even far \ out in the mountains. In order to facilitate the shipment of this ore to the smelters, purchasing agencies were established, which for a time were very profitable; most of these agencies are now permanently closed.

Jan 1, 1921

By E. S. Wheeler, M. W. Murphy

A LARGE part of the molybdenum produced in Colorado is converted and consumed in the Eastern States. As the raw materials and the power needed for the conversion of the Colorado concentrate are also accessible in the Eastern States, the conversion plant has been installed some 1500 miles east of where the ore is mined and milled. When concentrate was first produced at Climax in 1918, a custom smelter converted the product into ferromolybdenum. By 1924, the Company had decided to produce calcium molybdate and rented a building and installed equipment for that purpose at Langeloth, near Burgettstown, Pa., about thirty miles west of Pittsburgh. For the first few years the plant was a simple one of small capacity. A small hand-rabbled roaster was used, the product of which was made iota calcium molybdate by a conventional method; then an eight hearth mechanically rabbled roaster was installed to increase and speed up production. The output was considerably less than a million pounds of contained molybdenum annually until 1928, when a small part of the produc-

Jan 1, 1946

By Louis D. Huntoon

CANADIAN gold production is forging ahead annually and the prospects are that it will continue to do so for many years. Table 1 shows recent annual increases. Production for 1933 will probably reach $70,000,000, and further increases are likely in 1934 and 1935. (Data for November and December, 1932, are estimated throughout this article.) The depression sent many prospectors to the woods so during the last two years many new gold areas have been discovered and are attracting real capital for exploration and development. Several mills came into production in 1932 and mills now under construction will start production in 1933. The offices of mining lawyers are busy. Capital for this new work is obtained from well financed mining companies, syndicates, and individuals who were fortunate enough to invest in the dividend-paying gold mines of the north country in the early days. Prospectors and capital are cooperating. An interest is always retained by the prospector or vender and usually a small amount of real money is given the prospector.

Jan 1, 1933

By Charles G. Yale

(San Francisco Meeting, October, 1911.) A FEW years ago somebody connected with one of those self-constituted bodies of unofficial character, like a Chamber of Commerce, Board of Trade, or State Development Board, started a catch-phrase referring to California as " The Land of Sunshine, Fruit, and Flowers," and the railroad magazines and folders keep it steadily in use, working day and night. Yet it altogether ignores the substance which brought the State into the Union, which peopled it, and which made it famous through-out the world. You ladies and gentlemen who have come from what we here call "the East," have in your own States, no matter which one, sunshine, fruit, and flowers. But your Eastern States, having these things as we do, have not the gold that we do. Therefore, the old designation of "The Golden State," applied to California, should be revived, as being the most distinctive term. It is worthy of remembrance, too, that during the dark days of the civil war this State handed over $172,000,000 in yellow gold, and saved the credit of the nation. Gold-mining has been carried on in California since " The days of old, The days of gold, The days of 49," and it still continues. Since that historic year, and up to the end of 1910, the State has produced, in gold alone, $1,530,214,468. Since 1792 the entire United States production of gold has been $8,261,573,500, so that the single State of California has, in that period, produced within $201,144,564 of one-half of all the gold from Alaska, Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, South Dakota, Utah, Washington, and the Southern and scattering States. In other words, all the other 25 gold-producing States of the United States combined

Mar 1, 1912

By D. E. Norquist, J. E. Moeller

The results of wear on marked balls, 4, 31/2, 3, and 2 in. diam are given. All balls were forged steel of practically the same chemical analysis and hardness. The results indicate that balls in a given mill for a given length of time will have equal diameter losses, regardless of size.

Jan 1, 1950

By G. M. Lee

SEVERAL improvements have been made in Granby smelting practice since the company abandoned the direct smelting of raw ore in the blast furnaces in June, 1927, in favor of sintered concentrate. These improvements have been made in several fields, but the most novel and outstanding change was the development of a process of concentrating most of the gold, and a somewhat smaller fraction of the silver present, in a small portion of the blister copper produced. The practice of making "copper bottoms" is usually associated with the reverberatory smelting of copper ores containing high percentages of impurities, or of copper matte high in precious metals. It has for its object, in the one case, the production of a major part of the copper relatively free from impurities and, in the other case, the production of a small per¬centage of the copper carrying the major part of the precious metals. Although the blister copper produced at the Anyox plant of the Granby company is remarkably free from deleterious impurities and normally contains no great amount of precious metals, certain economic considerations made it advisable to concentrate the existing precious metals into a relatively small percentage of the blister copper produced. The process devised took advantage of principles and reactions of the usual bottoms processes, but was carried out in the converters instead of in a reverberatory furnace.

Jan 1, 1935

By J. F. K. Brown

ANTHRACITE?S satisfactory showing in 1942 was accomplished in the face of adverse conditions, such as the loss of man power to the active services and to other industries, and the difficulty and delay in obtaining the necessary materials and equipment required in mining operations. Although the in- creased output was stimulated by the war, and thus does not impress one as contributing to continuing improvement in the industry, nevertheless the year witnessed several efforts ant1 consideration of others that have the appearance of permanent progress.

Jan 1, 1943

By W. J. McKenna

The International Smelting Co. concentrator at Tooele, Utah, first operated on a custom basis for the treatment of lead-zinc-iron ores on Nov. 1, 1924, with a capacity of 500 tons per day. On May 1, 1925, the capacity was increased to 1000 tons per day by the addition of another 500-ton section. The concentrator has since operated on the two-section basis, each treating 500 tons per day entirely by flotation. Laboratory and Test Mill In connection with the concentrator, a well-equipped laboratory and small continuous testing plant are maintained. The flotation equipment in the test plant is of both the Callow and Mineral Separations Sub-"A" types, so that actual concentrator conditions may be duplicated as closely as possible. Purchasing of Ore A new shipper usually sends to the plant a 25 to 50-lb. samplc, representative of the ore to be shipped. Batch flotation tests are made on this sample to determine its amenability to the concentrator treatment flowsheet and reagent combinations. The results of these tests, which are accurately correlated with those obtained at the concentrator, both as to grades of products and recoveries, determine the actual value of the ore as submitted in the ore purchasing department's treatment schedule. Hearty cooperation has existed at all times between the ore purchasing and operating departments in the selection of ores as conccntrator feed. Ores Treated The basic tonnages for mixtures on the two sections come from the Park City and Bingham mining districts. The Park City tonnages arc received by rail and consist of crude ores and gravity mill products. Those from the Bingham district arc received by rail and aerial tramway,

Jan 1, 1928

By CHARLES F. DEISS

The total pipe-line runs of petroleum in Indiana during 1945 were 4,114,000 bbl., a decline of nearly 17 per cent below the estimated 4,950,000 bbl. produced in 1944. Drilling activity during the year was centered in Posey and Gibson Counties, where seven new pools were discovered in the state. Four of the pools are in Posey County-Crunk, Farmersville, Jeffries and St. Wendells East-and the other three are in Gibson County-Johnson West, Lysle and Mt. Carmel East.

Jan 1, 1946

By S. A., Taylor

IT is very difficult to arrive at exact figures for the cost of maintaining excess capacity of coal mines, but we can approximate the various items. To do this, I will take the Pittsburgh district of Pennsylvania and the other districts can be compared to this one. I believe we can take the depreciation item of plant ac- count as a whole and discount it over a period of 20 years; while this is high for some items it is low for others and I believe it is not far from a safe basis. This equals 5 per cent per year, and this depreciation will take place about as rapidly when not in use as when in operation. A fair value in the Pittsburgh district to- day for plant and houses is close to $4 per ton per annum. At 5 per cent this will equal 20 cents per ton per year. The item of keeping the mine in condition, free from water, etc., will be close to an average of 2y2 cents per ton per annum.

Jan 1, 1928

By Kenneth S. Ritchie

THE discovery well of the world's -deepest oil producing structure, University 1-B of Group No. One Oil Corporation, in the Big Lake oil field, Reagan County, Texas, has had a remarkable record. The well is outstanding for the following reasons: (1) It is the world's pioneer well to produce. oil in commercial quantities from a structure 8500 ft. below the earth's . surface; (2) this well was the only. producer from the 8500-ft. pay for a period of 17 months and 24 days; (3) the flow of the discovery well has been free from-the customary changes at the casinghead, with the exception of putting on a back-pressure of 185 lb.; and, (4) the well's daily production of oil and gas increased rather steadily for 17 months and 18 days from an initial of 40 bbl. per day to a maximum of 2926 bbl. per day, and then six months later, after a period of decline and self-readjustment to subsurface changes caused by six more deep producers, the well set its real record for one day's production of oil at 2950 bbl

Jan 1, 1931