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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

University of Alaska College, Alaska Mining Society (Inactive) H. G. WILCOX, Faculty .Sponsor University of California Berkeley, California Mining Association. OLEG D. SCHERBININ. President CHARLES S. PRATT, Secrctary LESTER C. UREN, Faculty Sponsor

Jan 1, 1944

By C. R. Boyd

In 1874 I received an appointment in the corps organized by Col. William P. Craighill, U. S. Engineers, to survey the New or Upper Kanawha river for the purpose of ascertaining the practicability and

Jan 1, 1895

By H. Dykstra

Calculated wellbore pressures were obtained for parameters of radilcs ratio and permeability. In all cases bur two, after-production was allowed to occur for one day. The calculated pressure build-up data were compared with actual pressure build-up data from a condensate well. The paper discusses the comparison, gives reasons for, inability to match calculated (2nd actual data, and presents conc1usions derived from the comparison. INTRODUCTION Considerable information has been published on the decline in wellbore pressure for oil and gas fields resulting from production of fluids. Considerable information also has been published on pressure build-up for oil fields, but relatively little has been published for gas and condensate fields. Perrine' summarized the equations derived for pressure build-up in oil wells and showed how the different methods could be applied. On the other hand, very little theoretical information has been published on pressure build-up in gas or gas-condensate wells.2-4 Tracy,' by pointing out the similarity between the equation describing oil wellbore pressure decline and the equation describing gas wellbore pressure decline, showed how methods of pressure build-up analysis could be applied to a gas well. In analyzing pressure build-up data for gas or gas-condensate wells, it would be very desirable to compare actual pressure build-up data with calculated pressure build-up data. Such a comparison would lead to a better feeling for the quantitative picture of gas-well build-up curves and would help to establish a degree of confidence in a given build-up curve. This paper discusses the comparison and presents conclusions made from it. Calculated wellbore pressures are given for parameters of radius ratio and permeability. In all cases but two, after-production was allowed to occur for one day. The work was done in an attempt to evaluate the reserves of a gas-condensate field. As will be discussed later, it was not possible to make an evaluation. METHOD OF CALCULATION The method used for solving the depletion and pressure build-up behavior for a gas-condensate well was that developed by West, Garvin and Sheldon.5 or the IBM 704 computer program used, it was assumed that liquid condensing out of solution would have only a minor effect on the flow behavior. Therefore, the field was treated as having single-phase flow, with the gas saturation S, remaining constant at unity minus the connate-water saturation Sw. As will be discussed later, this may not have been a good assumption. It also was assumed that oil production could be considered as equivalent gas production by using a conversion factor based on an analysis of the liquid produced. An outer boundary condition of no-flow was assumed. BASIC DATA The data required for the study were reservoir properties, fluid properties and production data. Reservoir properties included the following: thickness h, 179 ft; porosity, 0.194; connate-water saturation, 0.43; gas saturation, 0.57; permeabilities k, 1.0, 0.5, 0.25 and 0.15 md; radius ratios re/rw, 800, 1,000 and 2,000; wellbore radius rw, 5 in.; initial reservoir pressure P, 6,529 psia; and reservoir temperature, 272°F. The selection of permeabilities was based on core-analysis data showing an average air permeability of about 2 md. With a relatively high connate-water saturation, the average effective gas permeability would be about one-half, or less, of the air permeability. The selection of radius ratios was based partly on the observed rapid decline in wellbore pressure during production and partly on the fact that the well was believed to be located in a relatively small fault block. Reservoir fluid properties were obtained from a reservoir fluid study on a recombined sample of gas and condensate. Gas formation-volume factors were calculated from pressure-volume measurements made at reservoir temperature. Gas viscosities were calculated by the method of Carr, et al,G from an analysis of the re-combined sample. These data are shown as a function of pressure in Table 1. The production schedule from the gas-condensate

Article IX of the Bylaws constitutes the basic instructions to the Nominating Committee The first duty of the Nominating Committee is to select a candidate for Director and President-elect It is desirable that the successive Presidents from year to year be men of differing professional interests so selected that over a period of years each major group in the Institute will be represented in the Presidency a number of times bearing some reasonable relationship to the numerical strength of that group in the Institute In Section 2 of Article IX it is stated that "a sufficient number of Directors be selected on the basis of geographical districts so that each district will have at least one representative" These districts, as now established, are shown in the accompanying map There are ten districts including the New York metropolitan district Each of these districts is entitled to one Director, except the metropolitan district which is entitled to six Each year each district, the term of whose officially recommended Director expires, shall suggest a candidate and if desired an alternate candidate to the Nominating Committee to fill the vacancy If a candidate and an alternate are suggested they should preferably have different Divisional or Branch affiliations The Chairmen of the Sections In the district shall constitute a committee to select the candidate or candidates The Sections shall rotate the chairmanship, as shown in the Appendix to this instruction It is desirable that in filling a quota vacancy in any district, the selection be made from the name or names suggested by the district

Jan 1, 1952

By G. R. Heckman, H. J. Murphy, C. T. Sims

An incestigation has been made of the effects of heat treatment and alloy composition on the long-time stress-rupture properties and structural stability of the similar nickel-base alloys Udimet-500, Lrdimet-520, and Udimet-700. Rupture test data are presented at stresses ranging from 4 to 50 ksi at temperatures from 1450° to 1900°F for times up to 14,000 hr. Ductility response is emphasized. Optical and electron tnicroscopy were complemented by X-ray diffraction analyses of extracted phases to relate microstructural stability to the observed rupture properties. Particular attention is paid to Udimet-520 since structural characteristics of this alloy appear to vary somewhat from its sister alloys. Both cast and wrought performance of Lrdimet-500 are discussed. The computerized PHACOMP calculational technique, based on electron-vacuncy theory, is discussed and related to structural stability where appropriate. Electron microscopy and microprobe techniques were used to conduct evaluation of the oxidation characteristics of Udimet-500 exposed in air for 16,100 hr. The steady advance in strength and reliability of nickel-base superalloys continues to be one of the high points of modern metallurgy. The stress capability of these materials has increased steadily, allowing higher and higher operating temperatures in the highly sophisticated aircraft and industrial gas turbines now on the market. The attendant increase in efficiency, of course, means greatly improved power output. Gas turbines for industrial and marine use have long been designed with these objectives paramount the usual design requirements in terms of time of service being 100,000 hr. High-efficiency, long-life aircraft such as the supersonic transport require superalloy engine materials with high-strength and long-time structural stability. Thus, materials studied for and operating experience from industrial gas turbines provide a good reservoir from which technology of high value to the SST program can be drawn. This study is one such case. Three prominent nickel-base super alloys—Udimet 500, Udimet 520, and Udimet 700 were extensively evaluated for industrial gas turbine bucket use. Particular attention was directed toward structural stability as a requisite property. Within the present context, structural stability is defined as freedom from the propensity to form strength-robbing or embrittling phases such as u,p,x,or Laves, and the ability to maintain useful rupture strength and ductility throughout design life. MATERIALS The three alloys, cast Udimet 500 (U-500C), Udimet 520, and Udimet 700, were chosen for detailed evaluation based on preliminary studies which indicated that U-500C and U-520 possessed comparable rupture strength capabilities, and that U -700 had a greater strength capability but somewhat poorer ductility than wrought U-500. The nominal compositions of the three alloys, along with the compositions of the heats investigated, are presented in Table I. PROCEDURE Dimensionally rejected U-520 buckets from Special Metals Corp. heat 63370 were heat-treated using the four cycles delineated in Table 11. Cycle A was investigated to determine the effects of a shortened 1700°F primary age. Cycle B was considered a "standard" treatment. Cycle C investigated a higher solution temperature in combination with a shortened primary age, while cycle D assessed the effect of the higher solution temperature alone. These heat treatments were designed to produce optimum combinations of rupture strength and ductility through maximum y' development, the development of a y' grain boundary cushion, promotion of MC carbide degeneration reactions, and agglomeration of resultant M23CB. Since one of the premises of the evaluation of U-520 was that rupture strength would be equivalent to U-500, forged U-500 buckets from Special Metals Corp. heat 62916 were heat-treated with cycles A, B, and C to provide comparison. The heat-treated structures of U-520 and U-500 are illustrated in the 8700 times electron micrographs of Fig. l. The U-700 tested was all from 3-in.-diam hot-rolled and centerless-ground rod from Special Metals Corp. heat 2-1426. Two heat-treatment cycles were employed, E and F of Table 11. Cycle E is a standard four-step, triple-age treatment intended to provide an optimum match of strength and ductility through well-developed matrix and grain boundary y', as recommended by U-700 vendors. Treatment F is a shortened , single-age cycle which could provide a significant processing cost reduction should adequate strength and ductility be maintained. Following heat treatment, rupture specimens of U-500 and U-520 were machined from the buckets and tested. Standard rupture bars of U -700 were machined from the heat-treated rod and rupture-tested. Failed and withdrawn rupture bars were prepared and examined by optical and electron microscopy. Select specimens were electrolytically digested, and the residues analyzed for carbide and topologically close-packed phases using CrKa or CoKo radiation. Of the six different U-500C heats evaluated, five were cast by Misco Precision Casting Co. and one was cast by Haynes Stellite Co. Cast-to-size rupture bars

Jan 1, 1968

By Eric S. Cheney

Sulfur isotopes are best used in conjunction with other geological studies to determine the origin of known deposits; concept-oriented exploration programs can then be developed to find similar deposits. Geochemical processes are capable of causing different S '41S" ratios in the minerals and fluids participating in natural reactions. Because the magnitude of the resultant isotopic difference is inversely proportional to temperature, sulfur isotopic studies can be used to determine the source of the sulfur in high temperature deposits. The narrow spread of sulfur isotopic values from ores related to cupolas of felsic intrusions suggests that the sulfur in the ore-forming fluids was derived from a fairly uniform source (such as the intrusions) rather than by heated ground water from the adjacent country rocks. However, geologic and isotopic evidence suggest that the sulfur of many nickel sulfide ores may have been derived from the country rocks rather than the associated mafic igneous rocks. This sulfurization hypothesis implies that mafic intrusions in sulfur-rich country rocks should be prime exploration targets. Sulfur isotopic analyses of sulfides in the mafic rocks may indicate whether sulfurization has occurred. In equilibrium geochemical reactions S" is concentrated in the minerals with the greater bonding strengths. Thus the isotopic compositions of coprecipitated sulfides that have not undergone exsolution may be used as geothermometers and to distinguish multiple periods of mineralization, post-ore metamorphism, etc. The sulfur isotopic compositions of coexisting sulfides at Butte, Mont., indicate that the copper minerals did not originate by simple replacement of pyrite. Geologic and isotopic evidence suggest that the mineralogical and isotopic zoning at Butte formed almost isothermally during the geochemical evolution of the ore-forming fluids upward and outward from the Central zone. Unidirectional reactions cause enrichment of S" in the products. At low temperatures the isotopic effects of bacterial and inorganic reactions are difficult to distinguish. Anaerobic sulfate-reducing bacteria apparently were responsible for the sulfur of Gulf Coast salt domes and for diagenetic pyrite in sandstone-type uranium deposits. Sulfur (and carbon) isotopic data suggest that the roll ore bodies of sandstone-type uranium deposits originated by limited inorganic oxidation of diagenetic pyrite rather than by bacterial activity. Accordingly roll ore bodies should be most numerous and thickest against those portions of the sandstone aquifer that contain pre-ore pyrite.

Jan 1, 1975

By Roger N. Dokken

It is well-known1-4 that Fe-Si alloys from approximately 9 to 27 at. pct Si show an ordered structure of the Fe3Si type at room temperature. Recently Meinhardt and Krisement,' through an investigation of Fe-Si alloys at room temperature by neutron diffraction, discovered that at 10.8 at. pct Si ordering of the FeSi type occurs while above this composition the normal Fe3Si-type superstructure appears. This FeSi type of ordering was also found by Davies8 as indicated by X-ray diffraction measurements on an Fe-8.7 at. pct Si alloy. Meinhardt and Krisement7 extended their neutron-diffraction work and determined the phase-boundary temperatures for both FeSi- and Fe3Si-type ordering. Ordering phenomena can also be studied by resistance measurements.4,8-11 Krivoglas and Maty-sina" carried out a theoretical development of the

Jan 1, 1965

By Donald W. Barnett

U.S. environmentalists have tended to oppose all new energy developments. Their efforts may be counterproductive because opposition to, say, offshore oil directly leads to the continued use of other energy sources that may have a higher social cost. Rather than attempting to eliminate all pollution from energy production, which would be prohibitively expensive, one should minimize the social cost of energy production for the given demand. Linear programming is used to rank various oils (California State and O.C.S., Gulf of Alaska, Prudhoe Bay, Athabasca tar sands, oil shale and certain foreign crudes) in terms of their social desirability. The objective is to minimize the cost of supplying the California market, subject to resource, sulphur and oil spill constraints. Social desirability is indicated by the inclusion of the oil in the optimal solution and the size of the associated shadow price. the larger the shadow price, the greater the benefits of increased production. The more negative, the greater the cost associated with forcing consumption of that fuel. The environmental shadow prices indicate the size of the trade-off between a particular environmental standard and minimum cost. The trade-offs can be surprisingly large. any reasonable spill standard can be achieved by changing the development pattern. Generally, the further offshore, the smaller is the environmental degradation, but the more expensive is the oil. Foreign oils can be economically and environmentally inferior to domestic oils. Crude from the California O.C.S., San Joaquin Valley end Prudhoe Bay appears a valuable resource, while the Gulf of Alaska, synthetic and foreign crudes appear marginal to submarginal.

Jan 1, 1977

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Jan 1, 1928

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Jan 1, 1949

By R. W. Freeman, L. L. Tavlarides

The experimental methods used in obtaining kinetic data for solvent extraction systems can affect the validity of the results The method of contacting the two liquids should allow for accurate determination of the surface area, hydrodynamics, and diffusional processes The appropriateness of the Liquid Jet Recycle Reactor is discussed and the modelling of the mass transfer and chelation reaction is presented The LJRR is used to investigate the chelation of copper by LIX65N in toluene from aqueous copper sulfate sulfuric acid solutions The ranges of experimental variables are Copper, 1 8-13.8 g-dm-3, sulfuric acid 0-1.6 g-dm-3, LIX65N, 0 1-1.0 mol-dm-3 Data on the initial rate of copper chelation at the interface is generated Nonlinear regression analysis shows that the following expression adequately describes the data within experimental error.

Jan 1, 1981

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Jan 1, 1947