Search Documents

By Lynn C. Jacobsen

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

Jan 1, 1982

“IT is decreed by Divine Providence that those who know what they ought to do and then take care to do it properly, for the most part meet ' with good fortune in all. they, undertake; on the other hand, misfortune overtakes the indolent and those who are careless in their work." These are the words of Georgius Agricola. to. those who are engaged in mining, taken from De Re Metallica, Book II, second paragraph. Safety in mining is just that simple, when considered on the basis of the individual. The words imply a .knowledge of what is to be done and how to do it. Armed with this knowledge it is only necessary to proceed with diligence and care to achieve the desired end without personal or financial mishap. Obviously the complication arises in the large company operating numerous mines and the consequent ramifications of company structure embodying management, supervision, engineering, and labor. Agricola stresses later on the importance of supervision and direction by the owners of the mine. We know that this principle is recognized today by the frequency with which the statement is repeated "a safety program must stem from management." People charged with responsibility for safety and management also stress the importance of securing the cooperation of the employees in formulating and carrying . out safe working practices. Safety committees consisting of employees, supervisors, and. representatives of management are recognized as the most practical method of achieving safety consciousness in all levels of mining company organization.

Jan 1, 1952

not weaken. I saw him shortly before he was killed; his conduct under fire was splendid and an inspiration to his men. His loss is felt deeply by all ranks. Thanks to him and to others, who like him, paid the full measure of devotion to their country, our line was held until the critical situation in that vicinity was at an end. He died the true death of a soldier, with his face to the enemy. As we now look back, it is easy to believe that this holding of the line of defense intact by General Carey and his men was a determining factor in the outcome of the war. To have played so important and noble a part in this vital effort as that taken by Perry is assuredly the privilege of few. Our lives, it seems, are like capital entrusted to us to be expended as wisely and effectively as we may. With them we purchase whatever of accomplishment the stuff that is in us permits. It is impossible to escape profound regret that a career so full of the highest promise, and a personality so overflowing with all that is fine and lovable, should have been cut short at the age of thirty-one. Yet who can doubt that in a few months Perry bought with his life the fullest achievement of a life-time—a glorious part in the salvation of Liberty and Justice and Decency, indeed of Civilization itself! L. C. Graton.

Jan 1, 1920

By Joseph Hodgson

Introduction SINCE about 70 per cent. of the total cost of mining is due to underground work which is out of sight, it is essential that expenditures should be made here to the best advantage. A great many mistakes have been made which were expensive, but perhaps these have not even been detected by mine owners. In the future these may be minimized to some extent, especially if there is cooperative effort on the part of each employee. I have been interested in this subject for some years and have tried to deduce principles and methods. These have proved highly advantageous and may also be of help to others. Some corporations, like the United States Steel, and the Cleveland-Cliffs Iron Co., have done a great deal in this field by having stated meetings of their organizations, with the view to interchanging ideas among their men and educating them along the lines of concerted effort. Since no man knows all about the various branches of mining, it is advisable that frequent meetings of the operating department be held for the interchange of ideas and that all members of the organization have an opportunity to express themselves on the various subjects. It has often been found that in discussions between heads of departments, foremen and bosses, many valuable suggestions may be obtained which promote the best interests of the company. The method regarded as the most conducive to cooperative effort, and pursued by the organization, is to analyze and develope the different phases of various mining subjects at regular meetings.

Jan 5, 1916

A. MALINOVSZKY,* Belleville, Ill. (written discussion?).-I have been very much interested in Mr. Dolman's paper. We all realize, I think, that this question of developing our home industries and support-ing the new industries which have developed during the great war is very important at present. Mr. Dolman has well shown the quantity and quality of the raw magnesite in the United States, and the commercial and industrial possibility of our home magnesite and I believe, with him, that our home industries should receive adequate protection. There are two reasons, however, for believing that this may be difficult. One reason is that much American capital is invested in the Austro-Hungarian magnesite industry. The raw magnesite can be quarried and prepared for the market in Austria with much cheaper labor expense than in the United States; large deposits which are very easy to quarry and good transportation facilities also contribute to the cheapness of production. The second reason is the old saying that the magnesite found in the United States is not of the same quality as the Austro-Hungarian mag-nesite; this I doubt. Even if the magnesite found here does not in a raw state equal the Austro-Hungarian, it can be synthetized so that the finished article will have the same properties as the Austro-Hun-garian finished magnesite refractory possesses. Thaw magnesite from Greece is not the same as the. Austro-Hungarian, but it has linen demon-strated that a good refractory can be made from the Greek product.

Jan 10, 1919

By R. P. McLaughlin

IN most branches of the mining industry it is a well-recognized fact that care must be taken to protect the mineral deposit from undue physical injury. It is comparatively easy to grasp this idea when the mineral is a solid and the lives of workmen depend directly upon the care with which it is removed from its natural position, but when the product is a liquid. drawn up from pools several thousand feet beneath the surface of the ground through openings only a few inches in diameter, it requires some imagination to picture underground conditions and the changes which must often occur. The development of the petroleum deposits of California has been attended by numerous accidents, the results of which are readily noticed at the top of the wells and in the profit and loss accounts of the operators. Determination of the cause of these accidents has been the subject of considerable study, which naturally has fallen upon men familiar with technical methods. The greatest damage to the oil deposits of California has resulted from water finding its way into the oil-bearing sands, and it is the purpose of this paper to set forth briefly this phase of the oil industry. Much of the material here presented has previously appeared inn publications issued by the California State Mining Bureau, which, under the direction of State. Mineralogist Fletcher McN. Hamilton, has investigated the subject and taken steps toward improvement of conditions. The writer, having been in charge of this branch of the Bureau work, has gained considerable knowledge of existing conditions.

Jan 12, 1915

By Robert L. Bates

An industrial mineral, says the Glossary of Geologic Terms, is "any rock, mineral, or other naturally occurring substance of economic value, exclusive of metallic ores, mineral fuels, and gemstones; one of the nonmetallics." Probably most geologists and engineers would accept this simple and straightforward definition, at least as a general statement. On analysis, however, certain anomalies crop up. For example, it may be considered arbitrary to include industrial diamond and corundum, but to exclude their precious varieties, gem diamond and sapphire. So the present volume has a section on gems and gem materials, in spite of the definition. Another problem arises when we try to define precisely what is metallic and what is nonmetallic. Bauxite and ilmenite certainly qualify as metallic ores, but both are also raw materials of important nonmetallic substances; hence they are included in the book. A third anomaly is that, by common consent of geologists, engineers, mineral economists, and others concerned, the term industrial minerals may include not only rocks and minerals but also certain manufactured products like cement and lime, and even mixed groups of natural and artificial products, such as abrasives and refractories. Thus the central realm of the industrial minerals is clear enough, but its boundaries tend to be indefinable. Since a definition that allowed for every irregularity in the outer fringes would be excessively un- wieldy, the one quoted above may be considered satisfactory. The expression industrial minerals is commonly equated with nonmetallics, and with the somewhat more precise phrase industrial minerals and rocks as in the title of this book.

Jan 1, 1975

By Bernard Rachlin

IN the mineral industry measurement of density or specific gravity of slurries is often necessary or highly desirable. To date the most successful method of measuring the specific gravity of various media is to hand weigh a constant volume sample of the slurry. This method is time-consuming, however, and is intermittent rather than continuous. Most density measuring instruments in use today are variations of three basic systems: air bubble tube systems, radioactive methods, and displacer systems. The high cost of the radioactive cell, combined with the precision electronic measuring that is required, limits the practical utility of this procedure to a small percentage of critical processes. In the air bubble systems clogging of the bubble tubes with solids has rendered this type of measurement completely ineffectual for many applications. Continuous or intermittent purging of the bubble tubes with air or water to prevent tube clogging has been tried but has not been very successful, especially in the heavy media process. The displacer system, which presents the fewest complications of all the density measuring systems, consists only of a metal immersion unit and a means of weighing it. In the past, settling of the solid in the slurry has caused untrue samples and clogging of the media at the bottom of the chamber. It is also important to dampen excessive flow surges such as those caused by reciprocating pumps. The system described here successfully overcomes these difficulties. Description of the Process System: The process equipment, on which the field tests were run, was a

Jan 1, 1957

By S. Luszcz, R. W. Vook, Fred Witt

In situ X-ray investigations were made on polycrys-talline silver films deposited by vacuum evaporation on (111) CaF2 and (100) NaCl single-crystal substrates at 80°K. The films were evaporated and annealed in an X-ray diffractometer attachment having a residual gas pressure of 2 x lo-' Torr. All measurements were made without exposing the films to the atmosphere. Measurements were made on the films in the as-deposited state and after various annealing treatments. The intrinsic stacking and twin fault densities, the magnitudes of the uniform and nonuniform strains, and the crystallite sizes were determined. In addition the textures in the films were measured qualitatively. The results obtained for the as-deposited films on single-crystal substrates are in substantial agreement with previously reported results for silver films deposited on glass. Intrinsic stacking and twin faults, as well as uniform and nonuniform strains, were present in these films. During the various annealing treatments (up to 350°C) the faults and nonuniform strains annealed out. Considerable grain growth and texture changes occurred also. The effects were much greater for the NaCl substrate than for the CaFz substrate. The relative magnitudes of the grain growth in the variously oriented grains could be explained qualitatively in terms of the thermal strains and strain energies introduced into the differently oriented grains during the initial, irreversible anneal. These strains were due to the different thermal expansion coefficients of the film and substrate. X-RAY diffraction measurements on evaporated films deposited on substrates at low temperature have the advantage that many of the imperfections introduced into the film during deposition are "frozen in". Thus, the influence of a very important experimental variable, substrate temperature, on the imperfection structure of evaporated metal films may be studied. Moreover, the effects of annealing such films makes possible the study of thermally activated recovery processes in these films. The present study was designed to determine the influence of single-crystal substrates on the resultant film structure relative to the previous results obtained using glass substrates.' To this end great care was taken to keep the experimental variables the same in the two cases. Different experimental conditions would, of course, result in films having different physical properties. Again the initial substrate temperature was in the neighborhood of 80°K and the films were subsequently annealed to 350°C. The pure metal silver was chosen for evaporation, primarily because of its relatively low stacking fault energy and consequent high fault density in the as-deposited state. The silver films were formed by evaporation onto air-cleaved {ill} CaF, and (100) NaCl surfaces cooled to 80°K in an X-ray diffractometer attachment2 having a base residual gas pressure of 2 X l0-' Torr. The films were not exposed to the atmosphere until all of the X-ray data had been recorded. In this way one of the most important experimental variables, environment, could be well-controlled and reproduced. X-ray measurements were made at the temperature of deposition and included determinations of the diffraction line peak positions, line shapes, and integrated intensities. The peak position measurements were used to determine the intrinsic stacking fault densities and the average uniform strain in the film. The shapes of the diffraction lines provided information on the twin fault density, true crystallite size, and average nonuniform strain. The preferred orientation in the film was determined qualitatively from the integrated intensities. I) EXPERIMENTAL PROCEDURE The evaporator attachmentZ was charged with 99.999 pct Ag pellets positioned in a tantalum filament which had been outgassed previously at l0-8 Torr. The CaFz and NaCl single crystals were cleaved in air and then placed in position in the chamber so that their cleavage surfaces were on the diffractometer axis. The chamber was prepumped using a sorption pump, sealed off, and then baked at 150°C for 24 hr. The ion pump operated during the bakeout cycle. The substrate was then heated to 500° C by means of an auxiliary heater and kept hot until the rest of the chamber was cooled slowly to room temperature. This bakeout procedure consistently resulted in an ultimate pressure in the low lo-' Torr range. The substrate was then cooled down on 80°K. Its temperature was monitored by a thermocouple wedged into the rear of the copper substrate holder. The diffracted intensity and peak position of the 111, 222, and 333 CaF, lines were measured prior to evaporation. Nickel-filtered, pulse-height-discriminated copper radiation was used. Similar measurements were made for the 200 and 400 lines from NaC1. These measurements were used as a lattice parameter check and to determine the thickness of the evaporated silver films from the attenuation of the substrate lines. The evaporation rates were approximately 3A per sec for both films while the maximum pressures during evaporation were 3 x lo- ' and 7 x 10"8 Torr for the CaF, and NaCl cases, respectively. The film thickness was measured by the attenuation of the CaF, and NaCl substrate lines and by at optical interference method. Values of 1700 and 1500A, respectively, were obtained for the silver

Jan 1, 1969

By S. O. ANDROS

RECORDS in mining operations naturally fall when improved equipment and methods are developed. And tunneling through the Continental Divide is a mining operation, even though the tunnel was not driven to strike a vein at depth. Although many engineering feats have been successfully accomplished in the development of water supplies in the Western States, the Twin Lakes Tunnel in Colorado presents some unusual features that make it noteworthy. To begin with, it is the first trans-mountain water diversion project in the West. The fact that the Continental Divide intervenes between where the water is and where it is needed was brushed, aside as of minor importance. It was enough to know that on the western side of Independence Pass, the highest in Colorado, with an elevation of 12,095 ft., there was water which was needed on the eastern side, where the Twin Lakes are situated, forming the

Jan 1, 1934

By A. STEPHENSON

EXPERIMENTAL work conducted at the Petroleum Engineering Laboratory of the University of California by L. C. Uren, J. Domercq, Jr., and J. Mejia has shown that small diameter wells offer tremendous resistance to the flow of fluids in their immediate vicinity. This resistance is due in part to the constriction of the area through which the fluids must pass as they approach the wall of the well, but is also accentuated by the increased volume which results from gas expansion. The latter in turn is a function of the deduction in pressure, the fundamental cause of fluid movement. If the diameter of the bore is enlarged several diameters, the capacity of the well, or the volume of fluid passing per unit drop in pressure per unit of time, is greatly increased without necessitating such high fluid velocities. The fundamental features which should be taken into consideration in the design of casing joints were stressed by J. B. Graham and E. E. Smith. These involved such points as correct thread design, high efficiency, and small diameter, together with the insurance that leakage will absolutely be prevented. The practical features of such design were ably discussed by engineers from leading steel manufacturers.

Jan 1, 1935

By AIME AIME

JANUARY saw the completion of the 237-ft. Upper-Narrows hydraulic debris dam on the main Yuba River in northern California. This project which is the key unit in a series of four similar structures on the Bear, American, and Yuba Rivers, removes the last obstacle to the revival of California's vast hydraulic gold-mining industry. The Upper-Narrows dam is a single-arch type of structure, and embodies the latest developments in that type of construction. One of the principal innovations used is the series of air vents in the crown (that part over which the water spills) which serve to break the vacuum caused by the spilling water, thus reducing vibration to a minimum. Electric strain gages were also embedded in the concrete of the dam, and it is hoped that by careful study of these instruments true stresses can he determined.

Jan 1, 1941

By M. B. Kahle, A. D. Pernichele

Four types of slope failures in waste dumps are recognized debris flow, foundation failure, edge slump, and blowout. The first three types, although at times causing considerable damage to property and interfering with mine operations, are not usually dangerous to personnel because of their slow rate of movement. The fourth type, the blowout, is the most dangerous because of its explosive mode of failure and lack of forewarning. The December 1969 failure at Verona dump is presented as an example of a blowout. Data from piezometer holes indicate that the blowout was due to perched leach solutions near the face of the dump. The level of water in this zone is very closely related to the rate of leach water application on the dump. A detailed analysis of core samples indicates that the impounded water was perched on a zonal accumulation of jarosite which is associated with a buried dump surface. Drain holes proved successful in controlling perched leach solutions in the critical zone near the face of the dump. Monitoring of the water level in the perched zone is considered essential in preventing blowouts. The use of drain and piezometer holes has allowed an increase in the rate of water application on the dump while preventing additional failure.

Jan 1, 1972

By Chris Mills

The role of gravity separation in the mineral industry is briefly considered in perspective. The mineralogical and laboratory approaches to gravity process design are examined with emphasis on process technology selection. The equipment available for small scale and pilot test-work is discussed, particularly in regard to scale-up and the acquisition of reliable, accurate data. Transposition of performance data from pilot scale to plant scale is explained. The available types of full scale gravity separation equipment are discussed with emphasis on large high-capacity units. Plant layout and selection of ancillary equipment are considered.

Jan 1, 1978

By O. M. TUPPER

REQUIRING a finer ground clay than that obtainable with a dry pan or hammer mill, the Clay Corporation of California installed a five-roller, low- side Raymond impact mill at its Lincoln plant in 1925 and since then has been economically grinding fire clay with a moisture content as high as 15 per cent. This was one of the first, if not the first, of this type of mill to be used in the grinding of clay on the Pacific coast. The pulverizer consists of a die-ring, lying in a horizontal plane, enclosed in a sheet-iron housing. A vertical shaft supports a spider from which five rolls are suspended in such a way as to always have them bearing on the die-ring. The vertical mill shaft is driven by means of beveled gear and pinion from a horizontal shaft which is connected by belt with a 60-hp. motor with suitable pulleys to give a speed of 175 r.p.m. A large fan which has a speed of 1100 r.p.m. and is belt connected to a 40-hp. motor is connected to the mill housing. The discharge end of the fan is in turn connected to a cyclone dust collector.

Jan 1, 1929

By Clyde E. Williams

MORE has been said about the iron and steel situation on the Pacific Coast than has been done .about it; but perhaps as much has been done as conditions have warranted. The production of finished steel in an amount sufficient to take care of the local demand for certain sizes and shapes is an established industry on the .coast. The amount .and the variety of products, so made, changes with the demand or them which is largely dependent upon the growth in population. An increasing demand will not always increase the quantity of steel produced locally because the cost of production may rise so -high as to let in steel from the outside. The reason for this is that all of the steel made in the West comes from steel scrap, the supply of which is .limited. From the standpoint of the metallurgist, it would. be desirable to subititute pig iron for some of ' the steel scrap, but this cannot be done profitably because the pig iron now available is too expensive. In other words, the large future demand for steel and pig iron on the Pacific Coast must be supplied by reduction of ores in the West, unless we are to be content with paying high transportation costs for material produced elsewhere. ."

Jan 1, 1924

By C. DeWitt Smith

"It just looks like everything is doing fine but humans," wrote Will Rogers fifty years ago. "Animals are having a great year, grass was never higher, flowers were never more in bloom, trees are throwing out an abundance of shade for us to loaf under. Everything the Lord has a hand in is going great, but the minute you notice anything that is in any way under the supervision of man, why, it's cockeyed." Do these words from two generations ago apply to oil shale? The United States has been blessed with deposits that can yield synthetic crude oil at a cost competitive with natural crude oil-under present economic conditions and with existing technology. Yet, the oil shale program is cockeyed because of the artificial obstacles that have been placed in its path "under the supervision of man." But more about this later. For the moment, let's focus on...

Jan 10, 1974

By F. S. Jr. Norcross

MANGANESE has long been considered one of the United States' most important strategic raw materials. Its indispensabil-ity in steel manufacture makes it vital to the nation's industrial life. Coupled with this indispensability is the fact that domes-tic producers have not been able as yet to supply more than a small part of the nation's manganese needs; consequently the United States has had to depend upon such distant foreign sources as the U.S.S.R., British India, the African Gold Coast and Brazil for the major portion of its ore. The great bulk of the mineral is con-sumed in the form of ferromanganese, an alloy that averages 8o per cent manganese and 20 per cent mainly iron and carbon. Manganese is used as a deoxidizer and desulphurizer in steel manufacture. By combination with the residual oxygen and sulphur of the bath, it helps to produce a clean, sound metal. Approximately 14 lb. of manganese, it is estimated, is used in making one ton of steel. For standard-grade ferromanganese, the ore should have a minimum of about 48 per cent Mn and preferably more. Beneficiation methods have not yet been developed for making the immense low-grade deposits in the United States salable at prevail-ing prices.

Jan 1, 1940

By F. S. Jr. Norcross

MANGANESE has long been considered one of the United States' most important strategic raw materials. Its indispensabil-ity in steel manufacture makes it vital to the nation's industrial life. Coupled with this indispensability is the fact that domes-tic producers have not been able as yet to supply more than a small part of the nation's manganese needs; consequently the United States has had to depend upon such distant foreign sources as the U.S.S.R., British India, the African Gold Coast and Brazil for the major portion of its ore. The great bulk of the mineral is con-sumed in the form of ferromanganese, an alloy that averages 8o per cent manganese and 20 per cent mainly iron and carbon. Manganese is used as a deoxidizer and desulphurizer in steel manufacture. By combination with the residual oxygen and sulphur of the bath, it helps to produce a clean, sound metal. Approximately 14 lb. of manganese, it is estimated, is used in making one ton of steel. For standard-grade ferromanganese, the ore should have a minimum of about 48 per cent Mn and preferably more. Beneficiation methods have not yet been developed for making the immense low-grade deposits in the United States salable at prevail-ing prices.

Jan 1, 1940

By Stanley C. Herold

TWENTY-FIVE years ago no distinction was made between water wells and oil wells except in the nature of the fluid produced. Water wells usually showed no decline in their rate of production; when oil wells showed decline something in the manner of handling them was considered wrong. Both water and oil were believed to be subject to the same physical laws in their underground movement toward the wells. Today a sharp distinction is made between them. Whereas water exists alone in the porous formations at depth, oil is usually accompanied by gas. This mixture does not behave as a liquid alone. It is a frothy, seething mass of foam which approaches and enters the wells. Different physical laws come into play. Twenty-five years ago attention was directed entirely to the well itself; today the well is accepted as a mere hole in the ground, a hole to be equipped properly for efficient service, yet without any value whatever unless it is backed up by a sufficiently prolific reservoir. Then, we were concerned with wells alone, 3000 ft. in depth; now commercial wells and their reservoirs are 10.000 ft. deep. Petroleum engineering concepts have necessarily therefore undergone a change in this last quarter century. What are they today?

Jan 1, 1937