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By Forest Mintz

Many oil and gas producers find it advantageous to borrow against the value of their hydrocarbon re- serves. This paper considers the requirements for a reserve based loan and the calculations that a bank would perform to arrive at a loan amount. Three of the most common loan structures, i.e. a term loan, a production payment, and a revolving credit/term loan will be discussed. A typical outline for each type of loan is presented. Finally, a comparison of major considerations in the three financing techniques is shown.

Jan 1, 1982

By AIME AIME

CERTAINLY in point of attendance, and doubtless in several other ways as well, the 147th meeting of the A.I.M.E. was the best ever held. In times of depression, mining engineers and metallurgists have plenty of time to come to the Annual Meeting but money is scarce; at the height of industrial activity they have plenty of money but no time. "The current period of transition seemed to provide ideal conditions for' both the preparation of papers and attendance at their presentation. The weather made even the Californians present envious though the weather man gets no credit, for rain and snow was what he willed. Among the elevator men, the miners have the reputation of being the toughest crowd to handle, though the best natured, withal, of all the engineering groups that meet in the Engineering Societies Building. This year Your inquiring reporter was told, "it was the damnedest meeting I ever saw; they

Jan 1, 1937

By Paul E. Melancon, Vincent C. Kelley, Dale F. Kittel

Uranium of the Grants region occurs predominantly in continental sandstones of the upper part of the Jurassic Morrison Formation, but significant lesser deposits are found in limestone of the Jurassic Todilto Formation and in black shale of the Cretaceous Dakota Formation. The deposits are disseminations that form runs ranging from a few hundred tons to several million tons. The ore consists mainly of uraninite, uraniferous carbonaceous material, coffinite, and such secondary oxidized minerals at tyuyamunite, carnotite, and uranophane. In sandstone, the ore runs were locallized by mudstone, interstitial carbonaceous material, and primary sand channel trends. In limestone, ore deposition was related to folds and fracture zones. The great bulk of production has come from the Ambrosia Lake mines in the Grants district and the Jackpile and Paguate mines in the Laguna district. The ores, which generally have been 0.20 to 0.30 per cent U3O8, are treated at mills operated by Kerr-McGee Corporation, Homestake-Sapin Partners, and The Anaconda Company, all in the Grants district. In 14·years after discovery in 1950, the deposits had yielded concentrates valued in excess of $800,000,000. Since deposition of the Jurassic host rocks, a geologic history involving tilting, faulting, erosion, changing ground-water environments, and oxidation has considerably influenced the existence and character of the deposits. It is evident that their ongm is not simple. However, a degree of agreement appears probable for a pre-Dakota age for the original ore runs, and, at Ambrosia Lake, two principal stages of ore formation, separated by Laramide faulting, are recognized. All earlier ores have been modified by Quaternary oxidation, solution, and enrichment during which time much secondary tyuyamunite, metatyuyamunite, carnotite were formed.

Jan 1, 1968

By Donald F. Hammer, Donald W. Peterson

The Magma mine at Superior, Arizona, has produced over 13 million tons of ore yielding 1.5 billion pounds of copper. It is a mesathermal deposit, and, although the bulk of the ore has come from the Magma vein, most of the recent production has come from replacement deposits in limestone. The mine lies in a Precambrian and Paleozoic sequence of rocks that includes schist, diabase, quartzite, shale, and limestone; nearby, these rocks are intruded by igneous bodies of Mesozoic age that were probably the source of the ore-bearing fluids. Locally, these rocks are overlain by Cenozoic volcanic rocks and conglomerate. Layered rocks at the mine dip eastward about 30°. The area is extensively faulted, and surface faults are grouped into an earlier east-trending set and a later northtrending set. An additional set of diagonal faults that trends northwest and northeast is recognized underground. The east-trending Magma vein-fault, with its splits and branches, is the principal mineralized structure of the district. The bulk of the ore occurs in large ore shoots that plunge steeply westward and are sporadically connected by irregular ore shoots dipping gently eastward. The main ore controls apparently are selective zones of permeability related to the transverse faults. A bed of crystalline limestone near the base of the Martin Limestone (Devonian) is the host for the replacement ore bodies-discontinuous tabular pods dipping eastward parallel to the bedding. Selective permeability is again the apparent ore control, caused both by local hydrothermal solution of limestone and by deformation along faults. The principal copper minerals in the vein are chalcopyrite, bornite, enargite, tennantite, chalcocite, and digenite; these minerals vary in abundance according to a distinct zoning pattern. The upper part of the mine yielded considerable zinc as sphalerite, and the oxidized zone was rich in silver. The chief gangue minerals are pyrite, quartz, and hematite. In the limestone replacement bodies, chalcopyrite and bornite are the chief ore minerals.

Jan 1, 1968

By Raymond F. Gray, Victor J. Hoffman, Richard J. Bagan, Harold L. McKinley

The first indication of tungsten in the Bishop area was the discovery of scheelite concentrations in a gold placer operation in the ( since named) Tungsten Hills in 1913. After early intermittent production, the deposits of the district were slowly discovered and developed. The Pine Creek mine, located in 1916 and under the direction of Union Carbide Corporation since 1935, became the principal producer in the district. By the end of 1965, the total production of the district had reached 3,450,932 units of WO3, 17,071,242 pounds of molybdenum, and 19,599,110 pounds of copper. The topography of the district is characterized by its extreme relief, ranging in elevation from 13,986 feet to about 4400 feet in the Mount Tom quadrangle. The present topography is the result of the uplift and erosion of the Sierra Nevada and the great subsidence of the Owens Valley with its related deposition and volcanism. The general structure of the pre-Tertiary rocks consists of a series of tightly-folded metasedimentary and metavolcanic rock remnants surrounded by exposed plutons ranging in composition from hornblende gabbro to alaskite. The metasedimentary rocks consist of low- to intermediate-grade metamorphic equivalents of fine-grained sediments deposited during the Paleozoic era in a miogeosynclinal environment. Later volcanics were deposited in a eugeosyncline. The ore bodies in the Bishop district consist of scheelite-bearing tactite formed by the pyrometasomatic replacement* of calcareous sediments along the contact with an acidic granitic intrusive. A number of the metasedimentary remnants have had tungsten deposited along their edges.

Jan 1, 1968

By Robert K. Linn

The New ldria Mining District is in the southern part of the Diablo mountains of the California Coast Range, 140 miles southeast of San Francisco. The district, noted primarily for quicksilver, also has become important recently as a producer of short-fiber chrysotile asbestos. Between 1853 and 1966, the New Idria district produced 568,092 flasks of quicksilver valued at about $55,600,000, 99 per cent of which was recovered from one deposit, the New Idria mine. In 1944, the district was ranked third in all-time production of North American quicksilver districts, and, since that time, the New Idria mine produced an additional 129,045 flasks, placing the district and the New Idria mine second in all-time production. The major structure of the region is the northwest-trending Coalinga anticline consisting of an asymmetric dome of sedimentary beds ranging in age from Jurassic to Quaternary and marked at its northwest end by an oval body of sheared serpentine 14 miles long by 4 miles wide. The serpentine core, rimmed by Franciscan sandstone of probable Jurassic age, was uplifted in stages between Jurassic and Quaternary time and was intruded along a ring of faults into beds of the Panoche Formation of upper Cretaceous age. The core of serpentine and Franciscan rocks is the locus of about 20 quicksilver mines that rim the faultbounded core and lie within the serpentine mass. The host rock of the most productive deposits is altered Panoche shale and sandstone that lies intermittently along the perimeter of the core. Deposits of the New Idria group of mines and those of a few other small mines lie along the northeast contact in the footwall of the New ldria thrust fault, and a few others occur on steep normal faults around the south and southwest. The chief ore mineral in all quicksilver mines is cinnabar, but minor amounts of metacinnabar and native mercury are found in some of the mines. Ore shoots were deposited in fracture zones and stockworks in altered Panoche shale and sandstone and in definite fissure veins in Franciscan sandstone. Rocks made highly amenable to fracturing by hydrothermal alteration were fractured extensively by late faults. The resulting fracture zones, located along the late faults and at changes in strike or dip of the hanging wall or footwall, are the principal controls of most ore shoots. The largest and richest ore shoots are those of the New Idria mine. The major ore bodies occur in fractured shale and sandstone beneath the New ldria thrust fault at its junction with major tear faults.

Jan 1, 1968

By D. R. Knowlton

IF I were a minister, and this were a sermon, and such a passage appeared in the Bible, I would choose for my text: "From whence cometh the oil for our war?" And no preacher was ever more serious than I am. You petroleum engineers recognize that the producing branch of the industry is passing through an era of plenty and inflated potentials into an era of scarcity and unmet allowables. Not too long ago the oil operators of Kansas, California, and Texas were appearing before operators' meetings and regulatory authorities asserting that these States were capable of producing at rates far in excess of what the demand at that time would absorb. Today every oil-producing area in the United States except the Texas Gulf Coast and West Texas is producing close to or in excess of its maximum efficient rate.

Jan 1, 1943

By Robert L. Davidoff

INTRODUCTION The impact of taxation differs substantially from state to state in a complex fashion that depends on both the physical characteristics of a mineral deposit and on the price of the mineral commodity relative to its costs of production. A comparative analysis of the tax structures of eight states (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wisconsin) showed wide variations in rates of return for any given type of mineral property, with no state having either the most burdensome or least burdensome tax structure under all circumstances. Three hypothetical mineral operations were analyzed: a producing open-pit copper property, a non-producing underground platinum operation, and a non-producing underground gold operation. None of them corresponds exactly to an existing property. Each of these property types is further defined to have ore feed grades at three different levels, leading to three potential profitability levels, referred to in this paper as "economic", "marginal" and "subeconomic". Thus the differential impact of state tax structures is measured for mineral properties of different types, as well as for different profitability levels. Montana is used as the base case. This study does not address the topic of corporate structures or tax consolidation. There are no costs assumed external to the operation of the deposit (e.g. exploration to locate additional deposits). Two types of analyses were performed for this study. The first calculates the total cumulative tax payments in each state using all applicable taxes (including U.S. federal income taxes and examines the resultant differences in discounted cash-flows rate of returns DCFROR's amoung the eight states. The second is a sensitivity analysis that examines each type of state tax separately (i.e. state income, property, and severance taxes) in order to isolate and examine the differences in tax payments that are due to the difference in rates and methods of computing specific types of taxes in each state. The results of this study serve to illustrate the complex nature of interactions among various taxes. For example, property tax is a deduction in calculating severance tax in some state. Changes in property-tax and severance-tax payments both enter into the calculation of state and federal income-tax liability. This, in turn, could change the timing and usage of tax-loss carry forward amounts and investment tax credits. Additionally, the physical characteristics of a property, the method and costs at which the mineral will be extracted, and the profitability level at which each property operates will affect tax treatment. Each mineral operation was evaluated at three different predetermined profitability levels, referred to using the terms economic, marginal and sub-economic. These three profitability levels are defined by the ore feed grades of the primary commodity that yield in constant terms, approximately an "economic" 18% DCFROR, "a marginal." 10% DCFROR, and a "sub-economic" 5% DCFROR, respectively, under the Montana tax structure. In the analyses, the mining and processing parameters for each of the three types of properties were assumed to be identical for each of the eight states. It was assumed that each operation produces at full operating capacity throughout its life. This implies the level of mineral commodity demand will support the inferred commodity price, such that each operation will be able to sell all its output. The analyses performed for this study were done using a comprehensive economic evaluation simulator that is used in the Bureau of Mines, Division of Minerals Availability MAS program to perform DCFROR analyses. All economic evaluations performed upon these data (see appendix 2) were in constant January 1981 dollars. By-product prices used for the analyses were: [Gold $425.00/troy ounce Palladium$200.00/troy ounce Silver $ 10.00/troy ounce] Typical cash-flow calculation layout is given in Appendix 3. The initial step for each evaluation is to define an "economic" profitability level scenario. An 18% DCFROR rate in Montana was considered the

Jan 1, 1985

By A. Azis

The problem of expressing a nation's mineral resources in terms that convey a sense of economic reality poses a great challenge to those charged with keeping government policymakers informed. A model is presented that can be used to simulate and examine the effects of, for instance, differences in levels of output, transportation costs, mining costs or selling prices on the exploitability and expected order of development of new mineral deposits. The model in its present form can be used to screen, as a first cut, the economic from uneconomic deposits in cases where little or nothing is known about them in detail. To date, this has generally been done - reluctantly - by subjective judgments. This model provides an improvement on the "informed opinion" approach, as it forces those who use the model to be both systematic and explicit in their assumptions. Moreover, the procedure is repeat- able and each step can be defended and justified. Implications can be examined of the uncertainty associated with many of the variables. The model is entirely too general to be of use for actual feasibility studies. It is not useful, in the case of speculative or little-known deposits, to provide a model that has an input format more detailed than the information that is likely to be available. Should the user see a need for it, the model can easily be expanded to allow for the input of more detail or more variables.

Jan 1, 1977

By J. E. Lawver, B. J. Clingan, R. E. Snow

Response surface methodology is a well-known and powerful technique for determining optimum conditions in flotation systems. One disadvantage is the onerous task of the numerical calculations and curve plotting. This paper describes a system in which the investigator simply selects the range of several flotation variables after which the design of the experiment, data analysis, generation of response surface equations, and response surface plots are automatically carried out using a digital computer and a computer-driven curve plotter. Several typical response surfaces of important variables in phosphate flotation are presented as examples.

Jan 1, 1980

By Alistair Frame

INTRODUCTION In April 1988 discussions were about to start with BP on the possibility of buying their- mineral interests, and it took a long time to arrange a deal. I will talk about RTZ without BP Minerals, look at the new RTZ with BP Minerals, discuss the outlook for metal prices, and review the problems in South Africa and develop the case against sanctions on that country. RTZAT THE END OF 1988 Late in 1987, after completing a worldwide review of our strategic thrust, we decided: 1. That the business focus would be to remain a major diversified natural resource group with interests in related industries. 2. To divest non-core and low growth businesses. 3. To develop a logical acquisition plan. 4. To emphasise organic growth and, most importantly, to enhance shareholders' wealth by capital increase and a progressive dividend policy. Subsequently, we concluded that we should sell our oil and gas business and dispose of several assets for which we saw little growth potential. The disposal programme raised some U.S.$ 1,600 million, representing a significant capital gain on our various investments. All transactions were carried out by our small Head Office staff in London, without the help of merchant banks and lawyers, and we were able to safeguard the employment of our staff in all these operations. The most interesting disposal was of our oil and gas interests. Before the 1987 strategic review, we had ambitions to develop our oil and gas interests and to become the leader in the second division of European oil companies. Our interests, which were purely in exploration and production of oil and gas, consisted of the 100% owned RTZ Oil and Gas company, and 29% of LASMO, a publicly quoted U.K. oil and gas company with extensive worldwide interests. LASMO, in turn, owned 25% of Enterprise Oil, one of the more successful of the North Sea oil exploration and production companies. Prior to the end of 1987, our intention was to acquire control of both LASMO and Enterprise. However, when we evaluated the net asset value of these two companies based on our oil price assumptions, which were pessimistic for the next five years or so, we concluded that they were both trading in the market at significant premiums. This, taken with the additional premium required for acquisition and the high cost of exploration, led us to conclude that, since funds could undoubtedly be used to better effect, we should sell our interests. Turning to the other major achievements in 1988, we commissioned, and built up to design levels in a very short period of time, the Morro do Ouro gold mine in Brazil. This mine reached its design output of 100,000 ounces of gold per year within three months of start-up, which was on time and under budget. We are now considering a possible expansion of this property. In South America, Utah International, Mitsubishi and RTZ arranged non-recourse finance, with post completion guarantees, for the giant Escondida Project in Northern Chile. Financing came from a group of banks in Japan, Germany and Finland -- the countries to which most of the concentrates will be sold -- and from the LEC. The average output of the mine for the

Jan 1, 1990

By H. J. Polta, R. W. Michelson

Discounted cash flow analysis is commonly used to evaluate the profit making potential of a business venture. The same method can be used to analyze the effects of varying physical and economic conditions upon the real cost of supplying a mineral commodity. If a fixed rate of return on a capital investment is specified, and the flow of cash, discounted at that rate, is just adequate to repay the investment over the life of the venture, the net present value of the venture is zero. At this condition it is possible to evaluate the unit cost of producing the mineral. It will be exactly equal to the selling price required to calculate a zero present value. Increasing a particular cost factor will not always increase the cost of supply by the same amount. For example, in iron production from magnetic taconite, an increased cost per ton associated with beneficiation would be integrated into the discounted cash flow model along with local, State, and Federal taxes, depletion and depreciation allowances, resultant increased unit recoveries, and all of the other related component cost factors. Rather than adding to the cost, the factor may have a positive, instead of a negative, effect on the discounted cash flow and cause a decreased cost of supply. This value can be determined by a computer model which iterates the necessary selling price until the net present value is essentially zero. The discounted cash flow evaluation model lends itself particularly well to an application of the Monte Carlo simulation method for calculating a probability distribution of iron unit cost resulting from the probability distributions of the component cost factors.

Jan 1, 1969

Jan 1, 1902

By Edward Hanrahan

September 1981 I'm here today to report on a revolution -- a revolution in the way the Federal Government looks at energy. I'm not talking about a simple change in the relative emphasis on sources -- such as more recognition for coal and nuclear power, with less rhetoric about "soft- technology." Nor am I describing a mere change in focus -- from the demand side to the supply side. And I am not referring exclusively to our obvious goal of budget cuts. No, I'm here to discuss a fundamental change in Federal direction -- one that started as soon as President Reagan was inaugurated, and one that is articulated in the National Energy Policy Plan he sent to Congress in July. That brief policy document was backed up by three volumes of supporting data; but I think I can catch it's flavor for you in just three phrases: * First, various energy forms complete with each other and complement one another. * Second, fair competition among them (which includes honest pricing) will give us the best "energy mix." • And, finally there may be ligitimate arguments about where Federal responsibility in regard to energy spills over into Federal interference; but it's about time we drew the distinction -- and eliminated the latter. This Administration's national energy policy is quite different from any we have had in recent years. It is tuned to human nature and changing times. We are seeking the best practical solutions in the energy -a lot better than the ones we have been offered before, but still something less than perfection. One way we do that is by counting on a fully informed public to guide it's own destiny. And, instead of treating energy as an isolated entity, we recognize it as part of the overall economy. The President's Program for Economic Recovery is as much a factor in energy policy as the specific actions of the Department of Energy. One striking difference from the past energy policy 1s that this policy plan does not say: "In 1985 we will -produce so many hundreds of millions of tons of coal: . . . or . . . "By the end of this century the Nation will be deriving X percent of it's electricity from wind generators." Unfortunately, targets like these are what many people have come to expect from the Federal Government -- and what they think of as energy policy, whether the figures hold up in the long run or not. But . . . think about it! Nether the Department of Energy nor any other part of the Federal Government produces coal, or mines uranium, or manufactures solar collectors. There are only a few sections of the country where the Federal Government generates and sells electricity. So it does not take any great insight to recognize that the amount of energy we will produce or consume as a Nation In the future depends on many factors beyond direct government action. And those future totals cannot be predicted precisely, anyway -- by the Government or by anybody else. According to our way of thinking, the choices should be up to the people. When the free market works within a healthy economy, individuals express their preferences in the marketplace -- adjusting the balance of all energy factors continually in a way that no computer could be programmed to reflect perfectly. So, instead of having the Government issue a rigid set of numerical goals, our main concern simply is that there be enough energy. We want the Nation itself to decide how much that should be, what form it should take, and how that energy should reach consumers. The marketplace decides. Considering the recent past, this is indeed a revolutionary idea. It has some pitfalls, and we won't reach this ideal of free choice overnight. But that is where we are headed. And I'll offer some evidence in a few minutes that the policy has already started working. First, let me give you some of it's highlights: 1) Nobody who appreciates the philosophical underpinnings of this Administration will be surprised that the energy policy shows faith In domestic energy production and the supply side of the economy; but it also recognizes the important role of energy conservation -- the wise and efficient use of energy resources.

Jan 1, 1982

By H. M. Chance

STRETCHING from New York southwestwardly to Georgia is a great range of hills and mountains consisting of pre-Palaeozic schists, slates, and gneissic and granitoid rocks, known locally by many different names; in Pennsylvaniaa as the South mountains, the Berkshire or Durham and Reading hills, and in Virginia and farther south as the Blue ridge. To the northwest of this range lies the " Great Valley," underlain by Lower Silurian limestones, and known as the Lehigh valley, Cumberland valley, Shenandoah valley, valley of Eastern Tennessee and Georgia and by other local names, but all these are parts of one valley, geologically and geographically continuous from New Jersey to Georgia. Lying upon and along the northern flank of this range of mountains, and dipping northwestwardly under the limestone of the valley, is the Potsdam formation (Primal or No. 1 of the Pennsylvania Geological Survey), which consists of sandstone or conglomerate overlain by slates. The latter are sometimes arenaceous and occasionally are replaced in part by sandstone. This formation varies from a few feet to several hundred feet in thickness. At the outcrop the slates are completely decomposed, oxidized or disintegrated, forming a belt of clay several hundred feet wide occupying the interval between the outcroppings of the sandstone and limestone. This clay-belt includes a more or less continuous series of iron-ore (brown hematite) deposits, which have been, and still are, extensively worked. The belt is more or less continuously mineralized with iron throughout its length, and hundreds of large deposits of ore have been developed and worked, producing many millions of tons of ore.

Sep 1, 1908

By L. E. Young

IT has been said the British Empire was built on British Coal. In all the postwar planning for Great Britain the necessity for producing cheap coal and the prosperity of the coal industry are given first consideration. On Jan. 23, 1945, there was released in London a "Report to the Colliery Owners" which had been awaited with great interest. This was entitled "A Plan for Coal" and was the recommendation of Robert Foot, chairman of The Mining Association (Colliery Owners), prepared at their request. Presentation of the "Plan" at this time is particularly significant as it is an answer to the demand for nationalization of the coal industry by the Labour Party and at the same time is a carefully considered program for postwar reconstruction, prosperity, and stability. In the words of Mr. Foot, If the coal industry for the first ten years after this war is to find itself in a situation similar to the one it occupied for the ten years following the last war, with its record of disputes, strikes, stoppages, short-time working, unemployment, and, with it all, a completely insufficient margin of profit, and all the insecurity and instability in our basic industry that was brought with them, it is goodbye to any real prospect of full employment, social security, and high standard of living. To present an elaborate review of the conditions which have brought to a crisis the unfortunate situation in the British coal industry is here unnecessary, but certain of the salient points

Jan 1, 1945

By AIME AIME

HOWARD H. PRESTON, professor of economics and business at the University of Washington, presented a paper before the North Pacific Section, A.I.M.E., on Jan. 23, on the "Economic Aspects of Gold and Silver." He carefully reviewed recent governmental actions that have affected those metals and gave an interpretation of their effects. A brief excerpt from his address; follows: Including the proclamation of March 6, 1933, the principal steps of the present Administration which have carried the United States off the gold standard and led up to the present program have been: (1) The Presidential proclamation of March 6 controlling gold. (2) The monetary sections of the Emergency Banking Act of March 9. (3) Mobilization of gold under Executive orders issued March 10 and April 5. (4) The gold embargo by Executive order, April 20. (5) The controlled inflation bill, May 12. (6) The joint resolution abrogating the gold clauses, June 5. (7) The Executive orders on newly mined gold, Aug. 28. (8) The President's radio address of Oct. 22 and the R.F.C. gold-buying program. (9) New anti-hoarding order calling in small holdings of gold, Dec. 28, 1933 and Jan. 15, 1934. (10) Nationalization and revaluation of gold' (Message to Congress, Jan. 15).

Jan 1, 1934

By Donald W. Scott

GENERALLY speaking, there is nothing very difficult about taking good micrographs of photogenic thin sections or grains with a petrographic micro-scopecamera setup. However, sometimes it is desired to show some detail that cannot be illustrated satisfactorily by the usual micrographs taken with parallel polarized light, with crossed nicols, or even with two micrographs. A simple procedure giving good results has been used at Battelle Memorial Institute for subjects falling into this classification, and it is believed to be of interest, especially to research people who must sell a point to executives through the medium of well-illustrated reports. The following problem illustrates a typical application: It is desired to photograph a thin section of an iron ore to illustrate the character and association of the iron oxides and the individual quartz crystals. A magnification of 75 dia. is acceptable. A micrograph of the field in question (Fig. I[a]) was taken with parallel polarized light. Due precaution was taken to provide critical illumination, correct exposure, a sharp focus, a good darkroom technique, and other essential conditions. It illustrates correctly the iron oxides, but it fails to show the individual quartz crystals. A micrograph of the identical field (Fig. I[b]) was taken under the same precise conditions, but with crossed nicols. It gives a better idea of the character of the individual quartz crystals but is likely to be misinterpreted unless accompanied by a lengthy descriptive note. This micrograph suggests that the centrally located, large black area is composed entirely of iron oxides. That this is an incorrect interpretation is evident by reexamining the micrograph of Fig. I[a]. The correct interpretation is that the dark area contains quartz crystals oriented with their optical directions parallel to, or nearly parallel to, the vibration directions of the polarizer and analyzer of the microscope. Thus, the executive, or anyone who had not done the work personally, would get no more than a fair interpretation, even if two micrographs were included; and in the interests of both brevity and clarity, one micrograph usually is more desirable. Exactly how many quartz crystals occur in this region cannot be told from the two micrographs, and a printing of the two negatives in register would likewise not show the detail desired. Thus, it is evident that some subjects cannot be satisfactorily illustrated by the usual procedures. In photographing Fig. is the light was subdued and, during the entire exposure of 75 sec., the analyzer nicol was rotated uniformly in its mounting from a crossed position to 45° uncrossed position to introduce the desired amount of contrast in the various individual quartz crystals. The true reproduction of the character and association of the iron oxides, and the additional structure and detail in the quartz areas, is apparent. It might be

Jan 1, 1946

By Geo. H. Ashley

THE present critical state of the supply, distribution, and utilization. of coal and the necessity for pooling and zoning coals calls renewed attention to the lack of any fully adequate classification of coal. In the past coals have been classified as anthracite, semianthracite, semibituminous, bituminous, subbituminous coals, and lignite, and a few special types, such as splint coal and cannel coal. But under the term bitumi¬nous coal are included a great variety of coals differing markedly both physically and chemically. The term subbituminous coal covers as great a range of chemical differences. In order to distinguish these varieties of bituminous coals it has been customary to designate coals by names derived from the place where mined, or by the name of the bed from which it is mined. Thus, in the market reports, coals are quoted as Pocahontas coal, New River or Sewell coal, Moshannon coal, Ohio coal, Williamson County coal, Jellico coal, and so on indefinitely, no limit being set as to the boundaries of the area to which a given name is applied. Nor is there any scale by, which the coal from one place may be compared with the coal from some other district or some other bed. On the one hand, coals from the same district may be quite distinct and sell at very different prices or coal from the same bed may differ greatly in different districts; on the other hand, coals from different states may be so similar physically and chemically that one could replace the other in practical use without any appreciable difference in service.

Jan 8, 1919

By John V. Beall

GOING west from Denver on Route 6, the direct road to Grand Junction, one gets the first glimpse of mining a few miles east of Denver near Idaho Springs where the workings of defunct gold mines are visible on the sides of mountains along the highway. One enterprising company is turning a profit by showing tourists through the mine and mill and then selling them gold samples on the way out. We have always known that mining people are ingenious, but this proves it. About five and a half hours fast driving west from Denver brings one to Rifle, Colo., which is the site of the oil shale mine, retorting plant, and refinery of the U. S. Bureau of Mines. As you drive up to the mine, you can see a portal high on the face of the cliff in front of you where the mine surface plant literally hangs by its toenails. Below, the retorting plant and refinery gleam in the sunlight. Up at the mine, Fred Wright will show you how the oil shale is extracted in two benches (a third bench would be used for commercial mining) by the room-and-pillar method. In mining the top level, an underground crew of thirteen men have been able to produce 1500 tons of shale in each eight-hour shift. To do this, the mine is thoroughly mechanized. The mining method is de- scribed in the September issue of Mining Engineering.

Jan 1, 1949