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By Glen C. Reed

"The Avon mica district of Latah County, Idaho, is situated on a heavily forested spur of the Thatuna Range at an average altitude of 4,000 feet. The nearest rail connection is at Avon, a small farming settlement 7 miles to the south. The main supply point is Moscow, Idaho, which is 35 miles by graveled and graded county roads from Avon.Discovery of mica-bearing pegmatites in 1885 was followed in 1888 by exploitation of several outcrop deposits. Although factual data are unavailable, past production appears to have been well in excess of $100,000. Recent production (September 191 to April 1945) amounted to 65,824.78 pounds of trimmed sheet mica and 33,294.17 pounds of punch mica having a total gross value of $434,298.The several properties of the district are variously owned by estates, individuals, and the State. When active, all wore under lease or sublease to individual operators.The deposits are in an area of pre-Cambrian schists adjacent to a small granitic outlier of the Idaho batholith. The pegmatites are nearly concordant in dip and strike to the foliation of the enclosing schists. The more persistent bodies are usually tabular, lenticular, or pegmatite. Individual dikes range in length from 10 feet or less to 300 feet.The recoverable crude mica content of the pegmatites ranges downward from a maximum of 115 pounds per ton of pegmatite mined. Material discarded in rifting and trimming operations further reduces recovery to a maximum of 5 pounds per ton -of pegmatite mined. The average recoverable sheet content of the 'recently operated .deposit is estimated at 2 pounds per ton of pegmatite -mined. Available data indicate that about 21 percent of the district's recent production of trimmed sheet mica has been ""Group A"" material suitable for exacting condenser requirements. A few of the dikes contain local concentrations of beryl.Reserves of the three known major deposits of the district are estimated at about 600 to 1,000 tons of combined ""indicated"" and ""inferred"" crude block mica. One of these deposits is inferred to contain between 150 and 450 tons of beryl.It is believed that those mica reserves are minable only under a cost-market price ratio similar to that established during 1943 and 1944. A small part of the reserves can be ""high-graded"" under the present price structure. Profitable recovery of the beryl would require a market price four to five times that paid in 1944.Preliminary examination of the Avon mica district was made by the Bureau of Mines in the summer and fall of 1942. A study of the Muscovite mine and a brief reconnaissance of the surrounding district led the Bureau to recommend that the district be explored by angle-dozer trenching."

Jul 1, 1946

By Lulie H. Crump

Salient information on reserves, production, and consumption of fuels and energy by State is summarized in this Bureau of Mines publication. Reserve and production data are shown for each of the fossil fuels (coal, crude oil, natural gas liquids, and natural gas) and for uranium. The consumption data of each of the major consuming sectors (household-commercial, industrial, transportation, electric power, and miscellaneous) are broken down by energy source (coal, petroleum, natural gas, hydropower, and nuclear). In addition, total energy consumption in the Nation in 1974 is compared with consumption in 1973 and 1975 (preliminary data).

Jan 1, 1977

By Jason Ryan, Stephen Harria

Q.E.D. (QED) is a blast design and evaluation model that allows full three-dimensional design specification including the development of unique “live” terrains and an unlimited variety of complex charge configurations. QED’s analysis package allows the examination of likely outcomes resulting from changing various design variables in terms of vibration, fragmentation, rock-mass damage and muck-pile profile. Especially applicable to use cautious blasting applications, QED’s damage model uses vibration to estimate rock damage beyond excavation boundaries. This relates directly to operations such as Yucca Mountain Nuclear Waste Repository in Nevada, where damage beyond the excavation perimeter must be tightly controlled. The U.S. Department of Energy (DOE) h as b een studying a site at Yucca Mountain, NV to determine its suitability for long term storage of nuclear waste. The main mechanism of waste isolation will be the natural barrier of the host rock Total Systems Performance Assessment (ISPA) is used to model the excavation design and its behavior over time. Of importance to TSPA is quantifying the condition of the rock-mass before and after excavation. Ideally, there should be no excavation-induced changes to the rock-mass’ structure (removing the requirement to model the effects). At the least it may be possible to keep excavation-induced damage far enough away from waste packages so that modeling of these effects will not be required. QED can calculate a prediction of the extents of blast induced damage to the rock-mass. By using this metric as a design parameter, it may be possible to complete excavation of the repository more rapidly and inexpensively than previously thought, without jeopardizing the structural integrity of the waste containment areas or requiring blast damage to be modeled by the TSPA. This paper will explain the structure of the QED blast modeling system and show the analysis of historical data from Yucca Mountain. Processing of the historical data and the subsequent results will demonstrate how blast modeling can be used on an ongoing basis to assist the excavation process at Yucca Mountain.

Jan 1, 2000

By F. Qi, T. Frišcic, C. Mottillo

"One of the principal goals of modern industry is to minimize the environmental impact and increase the materials- and energy-efficiency of transforming raw materials into valuable products. This paper will highlight our latest laboratory-scale research in low-energy, low-solvent reactivity of metal oxides and their conversion into popular metal-organic frameworks (MOFs), zeolitic imidazolate frameworks (e.g. Basolite® Z1200 component ZIF-8), and metallodrugs (e.g. bismuth subsalicylate, active component of Pepto-Bismol®). Mechanochemical ion- and liquid-assisted grinding (ILAG) and ""accelerated aging"" techniques will be presented, along with novel low-energy and solvent-free approaches, inspired by geological weathering processes, for converting metal oxides into metal-organic materials. INTRODUCTIONThe development of environmentally-friendly processes, which would in the same time be more materials- and energy-efficient than the existing ones, is one of the central concerns of modern chemical research. In that sense, the focus of the chemist has been mainly on the preparation of carbon-based organic molecules and adaptation of traditional organic synthesis to the recently delineated ideals of Green Chemistry. However, there is a growing realization within the chemistry community that significant energy, materials, and ecology-related benefits can be achieved and, indeed, targeted in the transformations of materials that are typically associated with inorganic chemistry and minerals processing. The principal aim of this highlight contribution is to illustrate how, through the use of approaches associated with solventfree chemistry and mechanochemistry (James et al., 2012), one can develop a clean and efficient system of chemical and materials transformations involving oxide precursors that normally belong to the realm of inorganic chemistry and mineral processing. In particular, this contribution will provide an overview of the recently developed mechanochemical and solvent-free reactivity of metal oxides towards small organic molecules. These mechanochemical reactions, including the methods of liquid-assisted grinding (LAG, Frišcic & Jones, 2009) and ion- and liquid-assisted grinding (ILAG, Frišcic, 2010), have so far provided a radically different means to construct advanced metal-organic materials (e.g. porous metal-organic frameworks, [MOFs] or metallodrugs) by rehabilitating metal oxides as precursors, eliminating the use of bulk organic solvents, and avoiding the use of high temperatures."

Jan 1, 2012

By C. A. Komar

The Bureau of Mines is investigating possible applications of acoustic energy at sonic and ultrasonic frequencies in petroleum production. A phase of this work involves measuring sound velocity through petroleum reservoir rocks. References and abstracts were prepared as a bibliography to make available to others some of the material obtained from a literature search covering the past applications and the present uses of sound. Laboratory and theoretical studies of the various parameters that influence the velocity of sound in porous media account for the wealth of information now available. Velocity of propagation of sound waves in porous sediments as a function of depth is a quantity frequently measured. Velocity logging systems, capable of measuring speed of sound waves in underground formations penetrated by wells, have been developed for interpretative studies. The close relation between acoustic velocity and porosity makes it possible to determine porosity from velocity logs. Most velocity log interpretation in terms of porosity is based on a formula developed by Wyllie and others known as the time-average relation.

Jan 1, 1963

By P. Foster, A. Burton

Over the past decade there has been a great deal of research into the use of virtual reality (VR) and computer graphics in the mining industry. Much of this has led to developed applications including training simulators and accident re-construction. One other area where there is considerable potential for virtual reality is that of mining ergonomics. This paper identifies those common ergonomic limitations associated with mining equipment that can be effectively modelled using VR techniques. From this, two simple models have been developed namely (i)remote control continuous miner operation and (ii) free steered vehicle sightlines, which demonstrate the practical use of VR in this area.

Jan 1, 2003

By Charles D. Litton

This Bureau of Mines report presents a discussion of the essential components of pneumatic monitoring systems and their associated functions. Design criteria are presented which can be used for the design and fabrication of pneumatic monitoring systems having total system response times on the order of 15 to 30 min. To illustrate the utility of these design criteria, two detailed design examples are presented,

Jan 1, 1983

By R. S. Rosso

A program to investigate the effects of hardened washers on the uniformity of roof bolt tension and the resulting ground control in an underground mine was carried out. The complete roof bolt installation and roof bolt loads, mine convergence, and bed separation were monitored for a period of five months. The results show no evidence to support or refute the theory that mechanical roof bolts offer better support when they are installed with a high uniformity of tension. Also shown is the fact that if the bolts are installed with a maximum deviation from the mean torque of ±15% the addition of hardened washers significantly improved the uniformity of the installed tensions in the roof bolts.

Jan 1, 1977

By E. J. Gleim

[THE ORGANIC act under which Federal Bureau of Mines was established provided for the investigation of the safe use of electricity in mines. Each Congress appropriates funds for conducting this investigation. As part of this investigation, electrical apparatus used in mines is studied to determine if its operation and use might introduce a hazard. From this study, certain safety standards have been developed. These standards, established with the aid of both the manufacturer and user of such apparatus, are published in schedules, and apparatus that complies with the requirements set forth these schedules is classified as "permissible." This term is defined to designate apparatus as "completely assembled and conforming in every respect with the design formally approved by the Bureau of Mines." In the judgment of the Bureau, the manufacturers of such apparatus have adhered to certain minimum standards of safety in supplying a product that when properly used and maintained is safe for operation in mines where flammable gas or coal dust may accumulate. This work of the Bureau of Mines for increasing safety does not make it obligatory for manufacturers of mine equipment to produce only that of permissible classification. Before the effective date of the Federal Mine Safety Code,5 the Bureau sought to promote safety by recommending that mine operators install permissible equipment in gassy mines as a preventive measure against gas and dust explosions initiated by electrical equipment. For some years, the mining laws of several States have prescribed the conditions under which permissible equipment must be used. The Federal Mine Safety Code requires that ?all new electric face equipment and replacements of equipment purchased for mines where nonpermissible equipment is now being used shall be of a permissible type approved by the United States Bureau of Mines,]

Jan 1, 1955

By Brian Micke, Mick Gavrilovic

The problem of rock hang-ups in underground mining operations has been a continuing one since the days of the “hang-up man”. This position commanded the highest pay of any underground worker in many historical Western U.S. underground bulk-mining operations, due to the occupational hazards of the job. Although underground mining techniques and especially work practices have changed greatly since then, the hang-up problem is a continuing one in many mines which use gravity flow of coarse rock in their transport systems or in those mines where stressed ground causes rock slabs to spa11 and bridge rock passes and stopes. In addition, with mechanized underground open-stoping mining methods now being used in many different types of ore deposits worldwide, this problem has again emerged as a very significant one in many of these highly mechanized operations. This is especially so where the remote operation of loaders is used for removing blasted rock from underground open stopes.

Jan 1, 1999

By S. L. Aaroe

"TYRETHANE PRODUCTSTyrethane® is the family brand name which has been adopted by The W. S. Tyler Company of Canada, Limited to identify its polyurethane products. Since we have been manufacturing Woven Wire Cloth for over one hundred years and have been the innovator for most of the product improvements and developments of that industry, it is only natural that our first and primary efforts involve the use of Tyrethane® as a screening medium. The product is ideal for application in the mining industry and other operations where the rate of wear on existing media is exceptionally high.In the event that you have already had some experience with polyurethane it should be poirted cut that there are many grades of the material. The polyurethane used in Tyrethane® Products will be compounded in a variety of chemistries and different heat treatments will be used to develop best mechanical properties to handle specific applications. However Tyrethane® will not be a ""cure all"" but when it is properly applied as a screening medium it will assist by lowering the unit cost for screened materials.Prior to an explanation of the advantages of Tyrethane® let's review the conventional screening media whose applications may be considered as good candidates for replacement by Tyrethane®.1.,Woven Wire Cloth.2.,Perforated metal screens.3.,Rubber faced perforated metal screens.4.,Perforated rubber screens.5.,Cast steel screen segments and weldiments.6.,Profile wire.In most cases a Tyrethane® section is designed for a one for one replacement of the material now being used. It is rarely necessary to modify the screening equipment to enable you to install the Tyrethane® Product although it may be desirable to take some steps to improve the service life of hold down components such as Clamping Strips or Tension Members. Those parts can be encapsulated in polyurethane if necessary.To fabricate the Tyrethane® section we have three basic building blocks. They are: (1) Small molded segments having square or slotted openings, (2) Reinforcing material and (3) the raw liquid polyurethane."

Jan 1, 1976

By Feng Yongxuan

Anchored sheep pile is normally used in deep excavations, many of which only require stability in accordance with Terzaghi theory. In this paper, based on the experience, new lateral earth pressure method is adopted taking account into interaction among soil, anchors and sheet piles so that a group for the project under very difficult conditions and very severe requirments, especially, for the displacements are determined according to that mentioned above. During and after construction, displacements monitoring were carried out for about four months, which was proved that there was a little difference between calculation and practice.

Jan 1, 1991

All aspects of precious metals processing were featured at a symposium held Oct. 3-6, 2007, at Loews Ventana Canyon Resort in Tucson, AZ. Although billed as "Precious Metals Processing: Advances in Primary and Secondary Operations," the symposium also looked at economic, regulatory and environmental issues affecting the precious metals industry. The symposium was sponsored by SME; The Minerals, Metals & Materials Society (TMS); and the International Precious Metals Institute (IPMI). It included workshops, technical presentations, guest speakers and social activities. Mining industry management, process engineers, equipment manufacturers, consultants, metals marketers, academics and others involved in the precious metals industry attended the conference. Needless to say, with gold nearing $25.721g ($800/oz) and platinum pushing $41.801g ($1,300/oz) at the time of the meeting, the mood among the attendees could not have been more positive. The symposium was privileged to have Father Ernest S. Sweeney, professor of Latin American History at Loyola Marymount University, as a guest speaker. Sweeney, a Jesuit priest, provided a colorful account of the history of mining in Arizona and the surrounding region of North America (Fig. 1). He described the importance of the mining industry and said, "To go down into the bowels of the earth to extract its riches for the benefit of all of us is an awesome task deserving our sincere respect and gratitude." However, he warned the industry that: "The ever increasing de¬mands on the mining community for the protection of the environment calls for endless efforts to maintain ethical standards in a business filled with risk, uncertainty and frustrations." Sweeney noted that the Spanish conquest of the Americas was driven by the three fundamental motives of "God, glory and gold." He noted that gold was the basic, most powerful driving force of the conquest and occupation of the Spanish empire. The first European to explore Arizona was the Franciscan missionary Marcos de Niza. He came to Arizona in 1539 in search of the fabled Seven Golden Cities of Cíbola. Sweeny noted that Spanish explorers were consumed, as Cortes himself described it, "with a burning fever that only gold could cure." Sweeney told the story of some of these early explorers, including Francisco Vázquez de Coronado who "mounted an expedition in pursuit of gold and rich empires to conquer." Coronado passed through Arizona and discovered the Grand Canyon. "Coronado returned to Mexico exhausted, bankrupt and disillusioned, but with a wealth of new knowledge of the borderlands of the Spanish empire," said Sweeney. He then described the colorful history of early gold, silver and copper exploration and mining in Arizona, including the famous tale of the Lost Dutchman's Mine. In a luncheon address, David Kanagy, SME's executive director, introduced the attendees to the upcoming OneMine. org Web site. Kanagy told the audience" One-Mine.org will be a collaborative digital library that will

Jan 1, 2008

By Shiro Watanabe

To determine the potentialities of nickel as a substitute for cobalt in catalysts for the synthesis of hydrocarbons from carbon monoxide and hydrogen, RESULTS The maximum oil yields obtained in bench-scale equipment were as follows: Using 100N1:20Mn:100 kaolin:200 diatomaceous earth catalyst, a maximum yield of 133.8 cm.3/m.3 of pure CO+2H2 was obtained from one pass of the feed gas, With a nickel:cobalt mixed catalyst (Ni:Co - 3:7) having the composition 100(Ni+Co):8MgO: 5Th02:200 diatomaceous earth, a maximum of 172.2 cm.3/m.3 of pure C0+2H2 was obtained.

Jan 1, 1951

By Bruce Jago, Joe Zhou, Chris Martin

"From the perspective of metallurgical processing, gold ores can be classified into free-milling and refractory ores. Their extractive metallurgy are largely driven by mineralogical factors such as: gold particle size, association with other minerals, coatings and rimmings, presence of cyanicides, oxygen consumers and preg-robbers, presence of refractory gold minerals and locking of submicroscopic gold in sulfide mineral structure etc. Gold process mineralogy helps address issues and problems related to gold ore processing. It provides useful information on process selection, flowsheet development, recovery improvement and reagent consumption optimization. By combining classic mineralogical techniques, modern instrumental analysis and diagnostic metallurgy, the mineralogist is able to balance the various types of gold occurrence in an ore. This paper will provide a broad review of gold process mineralogy and the techniques available, and use case studies to describe how they can be used together, to provide the complete picture of gold process mineralogy in an ore. Examples will be used where applicable.INTRODUCTIONSince the early 1980’s, a great deal of work has been done in the characterization of gold ores, particularly refractory ores (Gasparrini, 1983; Wang, 1984; Hausen, 1985; Haines, 1986; Henley, 1989; Chryssoulis et al., 1990; Wang et al., 1992, 1994; Kojonen, 1999; Simon et al., 1999; Hong et al., 2000; Pals et al, 2003). Process mineralogy has come into its own as a respected inter-discipline in the fields of mineralogy and metallurgy – a subject that occupies an important place in both research and industry. As the free-milling gold ores are being depleted and more refractory ores are being discovered and processed, gold process mineralogy receives more and more attention from both the mineralogist and metallurgist as it helps to solve various problems encountered during gold ore processing. Steadily rising gold prices are also stimulating the need for gold process mineralogy due to the increasing demand for and production of the yellow metal. At SGS Lakefield Research, gold process mineralogy studies are conducted routinely on all types of gold ores and mill products to assist in a wide variety of metallurgical projects. This paper will briefly discuss the gold ore types and gold mineralogy, review the common mineralogical factors affecting gold extractive metallurgy and the techniques available to gold process mineralogy, introduce the procedure employed at SGS Lakefield Researc"

Jan 1, 2004

By J. S. Coffman

Wyoming is estimated to have more than 700 million tons and Utah more than 2.5 billion tons of +10 percent P2O6 phosphate rock considered to have some future economic potential. In Wyoming, the +24 and +18 percent P205 rock potential resources total nearly 250 and 450 million tons, respectively. In Utah, the +31, +24, and +18 percent rock total approximately 33 million, 222 million, and 2.2 billion tons, respectively. These resources are all located above the local drainage levels and do not include latent resources. All of the mining and beneficiation of phosphate rock in the two States is done by San Francisco Chemical Co. The facilities include open pit mines at Vernal, Utah, and Leefe, Wyo.; an underground mine in the Crawford Mountains, Utah, and beneficiation plants at Leefe and Vernal. One of the principal markets for the phosphate rock is Western Phosphates, Inc., fertilizer plant at Garfield, Utah. Recent exploration and development has been under-taken by different companies in the Southeastern Wind River Range, Sublette Range, and Crawford Mountains. The facilities at Leefe and Vernal are in the process of expansion. Some of the areas of western Wyoming contain vast quantities of phosphate rock in minable units, but, because of their remote location, are classed as latent areas. In these areas, there are estimated to be about 700 million, 2 billion, and 3 billion tons of phosphate rock in the +24, +18, and +10 percent P205 grade classes, respectively. The Snake River Range of Idaho and Wyoming is also estimated to contain roughly 21, 106, 177, and 214 million tons of potential resources in the +31, +24, +18, and +10 grade categories, respectively. This area also contains a large amount of latent rock in the more remote areas.

Jan 1, 1967

By S. K. Oraee

Managers always look for systems with minimum hazards. The hazards create problems for performance of projects. The largest and most important hazards of working underground mine can be related to health, safety and environmental, because if one of these sectors be in hazard, maybe lead to close mine. Failure mode and effects analysis (FMEA) is a widely used quality improvement tool to identify the potential failure modes for measuring reliability of a product or a process. FMEA is performed by developing a risk priority number (RPN), which is the product of severity, occurrence, and detection ratings. On the other hand, with regard to uncertainty in the decision-making, fuzzy theory will be able to model this uncertainty. Fuzzy FMEA provides a tool that can work in a better way with vague concepts and without sufficient information than conventional FMEA. This article by using Fuzzy FMEA and based on HSE criteria evaluate hazards of Parvade No. 1 Mine in Tabas Coal Mine. The results demonstrate the most hazardous parameter is rock burst in this mine.

Jan 1, 2011

By D. L. Katz, M. J. Rzasa

The derivations of three methods of computing the static pressure gradients in natural gas wells have been presented to show the assumptions made. Charts were developed from which the pressure gradients may be read when the well-head pressure, the well fluid gravity, depth, and the average well temperature are given. A chart for estimating the well fluid gravity from the condensate content and separator gas gravity is included. The effect of the increased average well temperature after flow on the calculation of the static pressure gradient is discussed. Introduction Reservoir pressures have been calculated from well-head pressures for gas wells for many years. As the pressure measurements become more accurate, the need for a reliable calculation of the static pressure gradient often arises. This paper will develop the several methods for computing the pressure gradient in gas wells and make a comparison between them. The method of calculating static pressure gradients in common use is Eq. I (ref. I) or its counterpart which includes a factor for the deviation of the gas from the ideal gas law. P2 - P1 = P1(e0.0000347GX _ I) Eq. [I] in which P1 = pressure at well head, lb. per sq. in. abs. PP = pressure at bottom of well, Ib. per sq. in. abs. G = gas gravity X = depth of well, ft. An alternate method is to compute the average density of the gas in the well and multiply by the well depth in a manner similar to that used for liquid gradients. Derivation of Formulas A static pressure gradient is a special case of the general fluid-flow equation. Consider a pound of fluid flowing in a vertical column from point I to point 2, Fig. I. By an energy balance for fluid flowing from I to 2: U1 + P1V1 + u12/2g + X1 + q = U2 + P2V2+ u22/2g+X2 +W [2] in which U = internal energy, ft-lb. per lb. P = pressure, lb. per sq. ft. V = volume, cu. ft. per lb. u = average linear velocity, ft. per sec. X = height above datum, fl. q = heat absorbed by fluid, ft-Ib. pcr lb. W = work done by system, ft-lb. per lb. An energy balance on the fluid itself gives: U = ?TdS - ?PdV + etc. [3] in which T = temperature, deg- R- S = entropy, ft-lb. per deg. R. per lb.

Jan 1, 1945

By Young C. Kim

Introduction and Objective of This Paper Computerized open pit mine models* are more and more used today for feasi¬bility studies as well as for long range mine planning. In fact, using these models is becoming an enforced practice due to various reasons. One main reason is its capacity to evaluate several designs in a fraction of time required by manual effort. Another reason is the necessity to evaluate several. pit designs due to ever decreasing grade of the orebody and increasing financial risk due to smaller profitability margin. In spite of today's accepted use of computer models, very little guidelines are available which the average practitioner can follow either to choose or to build the type of model best suited for his need. Consequently, the objectives of this paper are: 1. To review the current state of the art in the computerized open pit mine models. 2. To provide some suggestions for model selection. 3. To share our experiences in developing a model for a highly irregular copper ore deposit (see Appendix).

Jan 1, 1977

By Walter J. Mead

By American tradition, if not by rational decision, publicly owned natural resources have been transferred to private industry for processing. The process of transfer requires specific determination of the price which the patentee, buyer, or lessee must pay to the government in exchange for the right to develop a resource, and selection of the patentee, buyer, or lessee from among several possible contestants. Pricing of natural resources owned by the government presents a set of problems quite different from ordinary commodity pricing. Natural resources in situ are not homogeneous commodities. Within any class of natural resources, specific leasable parcels will differ in value by reason of location and accessibility, as well as quality and quantity. Thus, there is no "going price;" every lease within a specific resource class will have a different value. To complicate further the pricing and buyer selection problems, competition may not be reliable. Natural-resource markets are characterized by oligopsony conditions. In a significant number of cases, as will be shown later, there has been only one bidder for a given lease, and in most lease sales the number of bidders is equal to or less than three. As a further complication, there is great uncertainty regarding the value of specific resources, even among the best-informed buyers, as well as within the leasing agency. In some instances, particularly with regard to oil and gas resources, there may be uncertainty about the presence of resources, as well as the quantity and quality of any resources contained in the tract offered for lease. In other cases, such as oil shale and some deep ocean minerals where new technologies are involved, the presence of the resource is clearly established. There may be a relatively high degree of knowledge about the quantity and quality of the resource, but there is great uncertainty concerning the cost of production. These problems in total make it difficult for the leasing agency to appraise accurately the resource to be leased, as well as for the potential bidder to calculate a bid price that will yield him a normal profit. The pricing goal of the federal government as the seller or lessee may be to capture the economic rent; that is, the price of a resource might equal its discounted present value. A required price substantially above this amount would either generate no bids, or, in the long run, would bankrupt the buyer. A price below this amount is a disguised subsidy to the lessee. A subsidy to mineral lessees, as to any other economic interest group, as a minimum should be justified by a clear showing of net external benefits from the economic activity. In the case of timber sales by the U.S. Forest Service, the Forest Service Handbook asserts that "the aim in national forest stumpage appraisal is to determine market value,"8 and "market value" is equated to "fair market value." Regarding minerals, there is no reference in legislation or regula-

Jan 1, 1976