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By William A. Vogely, Robert T. Deacon, Walter J. Mead

Oil and gas together are the most important energy sources consumed in the United States. In 1983, 67% of total energy consumption was represented by these two resources (43% was oil and 25% natural gas), while coal accounted for only 23% of U.S. energy use. All other sources (hydroelectric, nuclear, geothermal, wood and other waste products) accounted for only 10% (U.S. Department of Energy, 1983, p. 1). In this chapter we address the issue of regulation in the oil and natural gas sectors of the U.S. energy industry. In addition, we analyze the cartel characteristics of the Organization of Petroleum Exporting Countries (OPEC). If OPEC is an effective cartel, then U.S. oil as well as substitute energy prices, production, and consumption will be affected by cartel action. Further, as the nation learned in the 1970s, major changes in oil prices produced major disturbances in other sectors of the U.S. and world economies. Consequently, it is important to determine whether the roughly ten-fold increase in nominal prices that occurred in the 1970s was the result of cartel action, the result of normal economic forces adjusting to the fact that the world was running out of cheap oil, or some combination of the two. Furthermore, the presence of OPEC- associated oil price increases is related to regulations that were imposed on the energy sector during the decade of the 70s. THE RATIONALE FOR GOVERNMENT INTERVENTION Economists have traditionally judged the state of an economy to be efficient if it is impossible to improve the welfare of any one member of society without harming someone else. Any economy that satisfies this condition is said to be Pareto efficient, after the Italian economist Vilfredo Pareto who first gave rigorous attention to such questions (see Chapter 4.10). It is easy to see why an economy that fails to satisfy this condition could not be efficient; by definition, it would be possible to alter the allocation of resources in a way that improves everyone's welfare.' Much of the appeal of this weak efficiency criterion is that it avoids comparisons of levels of well being among different individuals. The cost of such generality, however, is that in any given economic system a wide array of different Pareto efficient states will typically be attainable. In the simple Robinson Cursoe economy of the undergraduate textbook, for example, efficiency could just as easily be attained in the case where most of the island's resources are owned by Friday as in the case where they are under Crusoe's control. However, the distribution of welfare among the two inhabitants would obviously be quite different in the two situations. Such equity issues cannot be settled on objective or scientific grounds. To decide which distribution of welfare is socially "best" an explicit value judgment is needed. It is useful to keep in mind the preceding distinction between efficiency and equity issues when analyzing the role of government in a market economy. Decentralized market processes will not necessarily result in a distribution of welfare that society considers just. For this reason a potential role for government lies in the redistribution of income among individuals. In some circumstances, however, market pro-

Jan 1, 1985

By Stanley Dempsey

INTRODUCTION The mining industry has been under- going a significant restructuring for the past several years. Some firms have been liquidated. Some have been merged with other firms. A number of mining divisions of larger firms have been spun off, in some cases in leveraged buyouts by management. Recently, there have been a number of spin outs of gold subsidiaries. There are also a number of start-up situations where new firms are emerging as significant gold producers through mine development or acquisition. This restructuring has created an attractive market for specialized mining finance firms, and a number of firms have recently entered that field in the United States. These firms provide financial advisory and valuation services to mining firms and project developers, and access to venture capital. In some cases, they invest for clients or for their own account. I have been asked to describe how our firm works, and what kind of information we expect to receive when mine developers seek our assistance in financing a project. HOW WE OPERATE Denver Mining Finance works for both mine developers and investors. We also provide expert advice on mining issues to governments and to firms who are in litigation over mining issues. A lot of our work involves valuing mineral interests for various purposes. Our principal expertise is in the technical, commercial, and financial area. We help put mining deals into shape commercially so that they can be financed, and we help investors get into mining deals that are commercially sound. We work on projects, but we also advise mining firms on the structure of their business and how to make the most out of one or several mines that they might own. In addition to our work for clients, we are also prepared to invest in mining projects for our own account, and to recommend gold properties for acquisition by our parent company, Royal Gold, Inc. We are, to some extent, a venture capital firm, in that we sometimes work with projects that are not "bankablerV1 and are prepared to invest in attractive early-stage situations in mining. However, I want to emphasize that our principal focus is on development of commercially attractive mining projects that can be brought into production in the best possible financial terms. If we can make a project qualify for a project loan from a commercial bank, we will not advise the developer to use high cost venture capital. For the purpose of this paper, I will focus primarily upon our functions with respect to development of precious metal projects. In a typical case, a firm with an advanced-staged project approaches us for help with financing the final feasibility study, and construction and operation of a mine. In some cases, the developer has already developed a financing plan and wants only our access to investors. If we agree that the project is sound and that the financing scheme will be attractive to investors, we will help the developer reach investors on a commission basis. In such cases, we are particularly insistent that the financing plan and our participation meet all regulatory requirements, particularly compliance with state and federal securities laws. In most cases, however, the developer asks us for advise both on how to structure the financing, and how it can be implemented. Here we work for fees based on hourly rates for advisory work,

Jan 1, 1987

By C. Athanassopoulos

Geomembranes have been used in the mining industry since the early 1970s in solution and evaporation ponds, tailings impoundments, and heap leach pads. Traditionally, heap leach pad lining systems have consisted of a single geomembrane liner placed directly over a prepared subgrade of locally available soil. Heap fills are constructed by placing a layer of highly-permeable drainage stone (overliner) over the geomembrane. Crushed ore is then placed on the leach pad in 3- to 10-m (15- to 30-foot) thick lifts, sometimes reaching final heights of several hundred feet. The crushed ore is irrigated with a chemical solution which dissolves the precious metals from the ore. The nature of the chemical leaching solution depends on the metal being targeted. Low pH sulfuric acid solutions are generally used to leach copper and nickel; high pH cyanide solutions are used to leach gold and silver. The metal-laden pregnant leach solution (PLS) passes down through the ore pile and is captured in a drainage system. Metals are extracted from the leach solution and the solution is then recycled back onto the leach pile. When under load, geomembranes are vulnerable to damage from large stones both in the soil subgrade and in the overlying drainage layer. Although intact geomembranes are virtually impermeable, installed geomembranes will have a small number of holes due to imperfect seams or damage during construction and filling operations. These holes serve as open pathways for leakage into the soil below. Smith and Welkner (1995) estimated liner leakage rates ranging from 5 to 10,000 L/ha/day, depending on the type of heap pad liner and level of construction quality assurance (CQA). Thiel and Smith (2003) reported liner leakage rates up to 2,000 L/ha/day for a valley fill facility with heads ranging from 15 to 35 m.

Jan 1, 2011

By Paul E. Senseny

Data from triaxial compression tests per- formed at confining pressures between 0 and 100 MPa are used to evaluate parameters in a contitutive model that is based on microcracking. The tensorial formulation is reduced to equations that are specific to the simple Loading imposed in triaxial compression tests. Procedures for evaluating the model parameters are described, dependence of parameter values on confining pressure is discussed, and prediction of failure is assessed.

Jan 1, 1986

By M. G. Ayat

In the previous work (1,2), initial developments in a novel tracing technique employing specifically prepared trace particiles were fully described. The synthetic tracers produced proved to represent coal particles in specific gravity based coal washing equipment in this work, a detection system has been developed that can detect the artificial tracers in the product or refuse part of the density-separating coal cleaning units and thus indicate the performance characteristics of the circuit. This system could not only be a simple, accurate, and inexpensive replacement for the usual time-consuming washability analysis, but it could also be used for diagnostic purposes in coal separatory devices.

Jan 1, 1987

By W. K. Collins, C. L. Dahlin, D. C. Dahlin, W. K. O’Connor, G. E. Rush

Direct mineral carbonation has been investigated as a process to convert gaseous CO2 into a geologically stable final form. The process utilizes a slurry of water, with bicarbonate and salt additions, mixed with a mineral reactant, such as olivine (Mg2SiO4) or serpentine [Mg3Si2O5(OH)4]. Carbon dioxide is dissolved into this slurry, resulting in dissolution of the mineral and precipitation of magnesium carbonate (MgCO3). Optimum results have been achieved using heat pretreated serpentine feed material and high partial pressure of CO2 (PCO2). Specific conditions include: 155°C; P002=185 atm; 15% solids. Under these conditions, 78% conversion of the silicate to the carbonate was achieved in 30 minutes. Process mineralogy has been utilized to investigate the appropriate feed characteristics, identify the process products, and interpret the mineral dissolution and carbonate precipitation reaction paths.

Jan 1, 2001

By Slawomir Bock

One of the fundamental issues having a great influence on the safety of operations performed in underground mines is the support of workings which should assure their stability in a given geological setting and mining-technical conditions during the life of their use. The process of designing and planning support for roadways may use analytical and empirical, as well as numerical methods. In view of the rapid increase in the data processing capacity of computers and the development of more and more enhanced software for numerical modeling, it seems to be advantageous to use numerical methods in searching for design solutions ? especially in the case of non-typical mining and geological conditions and in cases that need to take into consideration a great number of factors. The assessment of rock mass quality is of basic significance in designing mine supports. Fractures, dividing the rock mass into blocks, have an essential influence on the stability of the rock mass and underground construction. This paper presents examples of the fundamental underground investigations on the rock mass conducted by the Department of Extraction Technologies and Mining Supports of the Central Mining Institute in Poland, such as: penetrometric tests, introscopic examination, laboratory testing of rock samples and ground penetrating radar. Moreover, this contribution also presents examples of applications of three-dimensional numerical modeling for the purposes of stress-strain analysis of the rock mass around mine workings and computer-aided support design by means of FLAC3D (developed by Itasca) and Cosmos/M (developed by Structural Research and Analysis Corporation).

Jan 1, 2009

By Horace M. Varner

Under sponsorship of the USBM and later of the DOE, a new type of rotary rock drill has been developed by The Bendix Corporation. Originally developed for the production of holes for the installation of longer than seam height roof bolts, the flexible drill is a useful tool for many drilling applications. This drill allows hands-off or remote production of holes for increased drilling speed and greater operator safety in any strata suitable for rotary drilling. The paper discusses various applications and experience for the flexible drill system in coal mining, metal/nonmetal mining, and for general civil engineering uses. Manual, remote control, and automatic roof bolter modules are also discussed.

Jan 1, 1982

By George M. Leonard

Mineral commodities on National Forest System lands contribute to the nation's well being. Access to these commodities is dependent on public perceptions of the effects of mineral operations on other resources. An outlook is described which the Forest Service believes is essential to the minerals industry if it plans to continue seeking minerals on National Forest and Grasslands.

Jan 1, 1991

By L. P. Meade

The particular impact of imported industrial minerals varies within the Industry and is dependent upon many diverse factors. In a similar way, the impact on individuals has been varied and the degree of impact will depend partially on the individual's ability to handle change. Just as many corporations are adjusting their marketing strategy and production methods to compensate for imported mineral products; individual managers, mining engineers and geologists are making adjustments to their own personal job marketing techniques and on-the-job operating procedures. Modifying the degree of impact for both industry and individuals depends upon the ability to adapt.

Jan 1, 1988

By A. E. Aldrich

The Pittsburg & Midway Coal Mining Co. (P&M) is expanding a combination of surface and underground coal mining operation in Northeastern New Mexico. The York Canyon Complex, located 35 miles west of Raton, New Mexico, is aggressively pre-paring for increased production while meeting present requirements. Surface mining activities in four separate mining areas are preparing the complex for additional markets. Drag-line, truck/shovel, highwall miner and contour stripping are surface mining methods currently planned. In addition, P&M will move a Marion 8200 dragline from Kansas to the York Canyon site, finish constructing a $20 million coal preparation plant, and complete conveyor upgrades to the existing underground mine. This paper will describe the diverse York Canyon Complex.

Jan 1, 1993

By Irwin H. Reiss

Gentlemen, the title of my paper is Surface Mining An Interim Land Use. Surface mining has become one of the major controversies of our time. This has happened in spite of the fact that all surface mining to date has involved only 6 million acres out of a total of 2300 million or approximately one-fourth of one percent of the total land area in the United States. I'm not going to dwell on whether peoples' perspectives are out of focus in light of the area involved, the energy crisis, national security, or the international balance of payments problem. While these things are all critically important, it is not the function of this paper to relate to them. Maybe the amount of attention attracted to surface mining is out of proportion to a lot of other things, but I don't feel that we should use that as a basis for procrastination. However, let me categorically state that anything that affects the surface of the earth is a form of land use --- be it an interstate highway, a power plant site, a golf course, a corn field, a strip mine, or the plot of ground on which your house is located.

Jan 1, 1974

By E. R. Hoskins

The Gulf Coast States ranging from South Texas to Alabama contain vast resources of lignite ranging in energy content from about 4000 to 7000 Btu/lb (as-received) with sulfur content ranging from about 0.5 to 2 percent. Currently, the strip mining rate is about 35 million tons per year in Texas and essentially zero in the other Gulf Coast states. Estimates of future mining rates are as high as 310 million tons per year by the year 2000 with 240 being in Texas. In this paper, we examine the life cycle of the surface mineable lignice based on the most recent estimates of surface mine recoverable resources with two scenarios. The first indicates that a 310 million tpy rate could be sustained for only 15 years while the second scenario suggests that the 310 million tpy could be sustained for 25 to 30 years. If lignite resources are required beyond those that are surface mineable, the deep basin lignite will be developed. Five strategies for developing deep basin lignite are discussed.

Jan 1, 1983

By Nic Arrieta

The Arimetco White Cliff Diatomite operation near Tucson, Arizona will be discussed and reviewed across the spectrum of geology, mineralogy, mining, processing and product attributes and market applications. Unique for the operation are the type, quality and the extent of the reserves and several product characteristics of the diatomite.

Jan 1, 1996

By M. S. Enders

The McDonald deposit is a volcanic-hosted epithermal gold resource that is estimated to contain 251,000 kg of gold in 375 Mt of ore at an average grade of 0.7 g/t gold. Phelps Dodge exploration geologists, working for the Seven-Up Pete Joint Venture, discovered the deposit in 1989. By the end of 1992, 494 drill holes for over 113,000 m of drilling, bulk sampling, soil geochemistry, geophysics, metallurgical testing, engineering, and environmental studies had been completed to support feasibility studies. The discovery of McDonald required vision, persistence, and commitment of everyone from the geologist on the drill rig to the senior management of the company.

Jan 1, 1995

During the past decade, since the appearance of Popoff's (1966) review of grade tonnage calculations, it has become evident that defining a new method which could be followed step by step by a technician and which would improve reserve estimation was not a simple thing to do. Some concepts have emerged though, and most definitions of ore reserve now require a statement of reliability (USGS, 1975; and Zwarten-dyke, 1976). Exactly how the reliability should be computed is not a straightforward process. It also became apparent that not only was reliability a requirement but that additional questions such as how to predict mining re- serves from geological reserves were to be asked. In fact what became obvious is that specific models have to be designed for each type of mine and for each type of question which is asked. Most methods can be encased within a unique general geostatistical, model, but it takes considerable custom tailoring, and there are still questions that are left unanswered. In this chapter, before giving techniques, we intend to first review what should be required from a grade tonnage calculation done at the exploration stage. If the final objective is still to specify a tonnage and grade, with eventually a reliability, many qualifications have to be made before quoting, and of course, calculating these two numbers. Then the currently avail- able methods will be reviewed and future trends will be shown; finally a few case studies will be given and recommendations about the choice of a model will be made.

Jan 1, 1979

By Gary L. Nelson

An overview is provided of Franklin Industrial Minerals mica mine and plant operations located near Velarde, New Mexico. Operated by Franklin Industrial Minerals since July of 1990, several process and product modifications have been developed and instituted to improve the operation. In addition to a brief history of site operations, descriptions of the mining, beneficiation, delamination grinding, and product classification processes are reviewed. Supportive topics discussed include equipment modifications and improvements, product application diversification, and specific product characterization. Also reviewed are the key areas of safety, environmental responsibility, and programs pertaining to process quality control and product quality assurance.

Jan 1, 1994

By C. Newman, N. Schaefer

"As underground mining continues to operate at deeper depths and in more complex geologic and geometric conditions, there has been an increased demand for mine designs to better reflect site-specific conditions, measurements, and observations with respect to ground control safety and stability. During the past 20 years, the National Institute for Occupational Safety and Health (NIOSH) has developed, validated and distributed a number of free software packages (ALPS, ARMPS, AMSS, ARBS, etc.) specifically aimed at providing the industry with ground control design tools for the evaluation of underground stability in coal mines. While these programs were initially developed as stand-alone software packages where all data reside on an individual or workgroup computer, modern day web applications have begun to migrate toward a “multiple-tier” architecture, allowing multiple users to access an application by means of an Internet connection.This article introduces a new Web-based platform for ground control software applications, webGroundControl (webGC). webGC provides users with a platform through which one can access NIOSH and other ground control design software utilizing a Webbased, multiple-tier architecture. This provides users with easy access to ground control designs, the ability to perform on-demand calculations, as well as increase online collaboration between operational personnel and engineers through a web server. The basic framework and, more specifically, the user-interface of webGC are defined and outlined within this paper. It is expected that the mining industry will rapidly embrace this new product and webGroundControl will be a new paradigm for mining engineering computer applications. Platform architectureAs Web-based computing technologies continue to advance and cloud computing gains momentum, web-based platforms for software applications are growing in popularity across all industries due to ease of product accessibility and distribution as well as data security. With the expansion of Internet connectivity on the surface and underground, there is an industry need to develop Internet-based applications for mine and ground control design (Barczak et al., 2016). Cloud-based products are already available for many industries and are slowly being developed for the mining and geotechnical industry. A notable example is the drillysis package, which is a cloud-based borehole logging database (Geosysta, 2017) or the Dynonobel package for on the fly blasting calculations (Dyno Nobel, 2013)."

Jan 10, 2017

By F. N. Earll

4.1 – DEFINITIONS 4.1.1-MINERALS, ROCKS, ORES AND NONMETALLIC MINERALS F. N. EARLL A mineral is a naturally occurring inorganic element or compound. Most minerals are distinctly crystalline in habit, and many commonly occur in well-formed crystals or crystalline aggregates, but a few species are characteristically amorphous or noncrystalline. Nearly 2,000 mineral species are now recognized but, perhaps fortun¬ately, a rather large proportion are rarely encountered. Even so, the application of modern mineral-detection and identification techniques reveals the presence of surprising numbers of mineral species, even in deposits of outwardly simple mineralogy. A rock is an aggregate of grains or crystals of one or more minerals. Some rocks are essentially monomineralic. Thus, limestone consists largely of the mineral calcite, and many sandstones are dominantly quartz. Most rock varieties, however, contain a number of mineral species, and their classification or identification depends upon the minerals present, their relative abundance, and such factors as rock tex¬ture and origin. Ore is defined as an accumulation or deposit of one or more minerals that can be exploited at a profit. The profit criterion commonly is taken somewhat liberally, however, for, although always present, the specific mineral content that constitutes a viable product is transitory. The term ore, usually, but no longer consistently, is restricted to the description of mineral deposits that are of value for their metal content. Nonmetallic deposits, although similar to metallic ores in many respects, generally are valued for the minerals or compounds present, as with rock salt (halite), rather than for individual contained elements, though such minerals as elemental sulfur are of much value. 4.1.2-ROCK TYPES F. N. EARLL Rocks arc grouped tinder three broad headings: (1) igneous rocks formed by the crystallization of magma; (2) sedimentary rocks formed by surface processes of weathering and deposition; and (3) metamorphic rocks, which may have been derived from either of the foregoing, but have undergone important physical and/or chemical changes through the application of heat or pressure, or both. The three groups can he further subdivided for convenient reference. Thus, igneous rocks are described as being abyssal or plutonic if formed at great depth, hypabyssal if formed at intermediate depth, and extrusive or effusive if formed at or on the earth's surface. The sedimentary rock group is similarly subdivided into clastic sediments and chemical precipitates. The clastic sediments form by deposition of preexisting minerals that were released from their place of origin by weathering and were transported to their point of deposition as discrete grains

Jan 1, 1973

By Ben V. Petersen

Surveying is to tunneling, as a steering wheel is to a car—somewhat essential if you want to end up in the right place. The principles of tunnel surveying have remained unchanged since the first tunnels were constructed: To mathematically connect the selected start and end points of a tunnel and physically translate that alignment onto the ground. The alternative is just dead-reckoning and leaves the probably less than satisfying end results to chance. Today’s laser-guided tunnels often have to thread the needle through a maze of soil types, utilities, structural features and other underground considerations. Surveying makes it possible.

Jan 1, 2005