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By I. A. Ettlinger

DEPRECIATION allowances have become firmly rooted in our income tax structure both by legislation and by court decisions. Secretary of the Treasury Morgenthau has recently stated before the Ways and Means Committee of the House: A taxpayer who did not provide for depreciation of assets used in his business could not long remain in business and the income tax should be levied on the assumption that he will provide for such depreciation. The 1934 Revenue Act has now been enacted, the depreciation provisions of the 1932 Revenue Act having been carried forward without change. However, there has arisen, in connection with the preparation of this new Revenue Act, a determination by the Treasury Department to make certain changes in the future administration of the depreciation allowances that will affect all corporations, and mining companies in particular.

Jan 1, 1934

By Hal T. Morris

The main Tintic mining district in central Utah has produced approximately 13,500,000 tons of ore, containing silver, lead, gold, copper, zinc, and other metals, valued at more than $315,000,000. More than 90 per cent of this ore has come from large, irregular ore bodies that have replaced folded and faulted limestone and dolomite strata. Of lesser importance are replacement veins that chiefly cut contact-pyrometasomatized carbonate rocks and fissure veins that cut altered intrμsive bodies and volcanic rocks. The district is in the west-central part of the East Tintic Mountains, a north-trending fault-block range near the eastern margin of the Great Basin. The consolidated sedimentary rocks exposed at the surface and in mine workings are miogeosynclinal deposits more than 10,000 feet thick that range in age from late Precambrian to Late Mississippian. They are folded and strongly faulted and are partly overlain by volcanic tuffs and agglomerates and by extensive flows of porphyritic and vitrophyric quartz latite, latite, and trachyandesite of Eocene age. All of these rocks are locally concealed beneath thick alluvial deposits of Pliocene and Quaternary age. The Eocene and older rocks are cut by dikes, sills, and small stocks of porphyritic quartz monzonite, monzonite, and latite, which are genetically related to the ore deposits. The district is inactive except for the production of halloysite clay and for minor leasing activity and exploration ventures. Several exploration targets remain untested.

Jan 1, 1968

By T. C. Desollar

The group of iron-ore mines known as the Red Ore Mines, owned and operated by the Woodward Iron Co., is on Red Mountain approximately ten miles southwest of Birmingham, Ala. At the present time NO. 1 and No. 3 mines are active, No. 2 mines having been abandoned in 1928. Ore from this group of mines was first mined in 1882, and originally came from open cuts along the outcrop, but, when the "soft ore" (weathered hematite) was mined out and the harder ore was encountered, it became necessary to develop the orebody by means of slopes driven in the ore formation. The three mines to date have produced more than 22,000,000 tons, and the two operating mines now have a capacity of over 1,000,000 tons per year. Geology The U. S. Geological Survey has described the features of the district. It places the hematite of Red Mountain, commonly called "red ore," in the Clinton formation of the Silurian system. This formation varies from 200 to 300 ft. in thickness, and is composed largely of shale (slate) and sandstone. There are four iron orebeds in the formation, known as the Hickory Nut, Ida, Big Seam and the Irondale seams. The strike of the orebeds is northeast and southwest, and the dip is southeast, the outcrops being on the west side of the mountain. The two seams that have been worked at the Red Ore mines are the Big Seam and the Ida. The Big Seam, which is and has been the principal source of the ore mined, is approximately 20 ft. thick and consists of hematite and ferruginous bands of sandstone. It is separated into "upper" and "lower bench" ore by a slate parting that is about 30 in. thick. All present mining is confined to the "upper bench" ore, which is uniform in texture and drills and breaks fairly easily when the holes are placed so as to take full advantage of the face of the ore. Typical analyses are shown in Table 1. The presence of two water-bearing formations, the Fort Payne chert and the Hartselle sandstone, lying respectively 160 and 300 ft. above the Big Seam, make it essential that in mining the ore any movement of

Jan 1, 1934

By FRANK RIEBERS

IN DISCUSSING the selection of a geophysical method, much of what the writer will say is applicable to any of the various methods and to their use in prospecting, whether for oil or for other minerals. Specifically, the writer's subject is the problem, particularly pressing on the Pacific Coast, of checking the rising cost of the discovery of new fields by the proper employment of geophysical methods. Table I was prepared from statistics published by the California State Milling Bureau. The writer selected five of the largest a:ld most active companies operating in California, segregated the number of wild-

Jan 1, 1930

By D. R. Cook, W. M. Shepard, H. T. Morris

The East Tintic district in central Utah has produced ores of gold, silver, copper, lead, and zinc valued at more than $120,000,000. All of this ore has been produced from blind ore bodies in Paleozoic sedimentary rocks that are concealed beneath hydrothermally altered volcanic rocks and cut by intrusive bodies of Eocene age. The Paleozoic rocks, which range in age from Early Cambrian to Mississippian form the core and limbs of a large, northtrending asymmetric anticline that is cut by low-angle thrust faults, high-angle transcurrent faults, mineralized fissures and faults, and normal faults that are both older and younger than the mineralized fissures. The ore bodies generally may be grouped into two classes: ( 1) massive replacement bodies that are rich in silver, lead, zinc and manganese and (2) fissure veins that are valuable primarily for their content of gold, copper, and silver. The replacement ore bodies are localized chiefly in the Middle Limestone Member of the Ophir Formation of Middle Cambrian age where it has been thrust-faulted against older or younger rocks and cut by northeast-trending mineralized fissure zones. The fissure veins primarily are productive only in the Lower Cambrian Tintic Quartzite. Extensive lowgrade deposits of lead-zinc-silver ore recently have been discovered in Devonian carbonate rocks in the Lower plate of the East Tintic thrust fault but as yet are unevaluated. The principal guides to ore include: ( 1) intersections of northeast-trending fissures and crossbreaking faults that brecciate the carbonate rocks; (2) zones of late-stage pyritic, calcitic, and sericitic alteration in the lavas; ( 3) primary geochemical anomalies in the altered rocks; and ( 4) mineral zoning patterns of the known ore bodies. The present development of the Burgin mine would seem to assure the continued productivity of the district for at least a decade.

Jan 1, 1968

By A. B. Kinzel

SILICON and its metallurgical uses have been the subject of speculation since the earliest days of modern civilization. The early philosophers, Theophrastus and Pliny, believed that silica was a special form of ice, an opinion that was not seriously challenged until the seventeenth century. The first comprehensive view of the nature of silica was advanced by Lavoisier in 1787. He assumed silica to be an oxide of an unknown metal. In 1808 Berzelius produced ferrosilicon by heating silica, iron and charcoal. Probably the first produc¬tion of crystallized silicon was in 1854 when H. St. C. Deville accidentally produced the material while electrolyzing a double chloride of aluminum and sodium containing siliceous impurities. It is not strange that the early investigators should have given so much attention to silica and silicon, because of the great natural abundance of the former. Although silicon does not exist in the elemental state in nature, it has been estimated that the lithosphere contains approximately 60 per cent silica; quartz and rock crystal are found in practically every part of the world.

Jan 1, 1933

By P. S. Miller, S. H. Ash

EXTENSIVE and diversified resources justify large populations and great industries. To carry on the business of commerce and meet the demands of large populations, the utilization of tunnels in some form for transportation purposes constitutes an important link in modern civilization. The driving of tunnels has been appropriated by the tunneling branch of the heavy-construction industry, and the progressive steps taken by modern tunnel builders were not even dreamed of 50 years ago. Great strides have been made toward more rapid progress in tunneling in the United States during the past 10 years. Tunneling consists of a definite cycle of operations developed from ideas that are crystallized and translated into action programs through various engineering phases that begin with the first preliminary survey and do not end until the job is completed. Once the line of the bore is established and a time set for the completion of the work, the face must advance according to estimates prepared before the work commences. This schedule must be followed in regular sequence from the moment the drills start against a new face of rock until they are ready again to drill the succeeding face, constituting a round.1 Mining is largely tunneling carried on under conditions often more inherently hazardous than actual tunnel construction, but for various reasons1 tunneling is more hazardous than mining in any branch of the mineral industry, On the other hand, obstacles are sometimes encountered in heavy-construction tunneling projects that when met in mining enterprises do not offer comparable tasks to avoid or overcome them. One of these is the existence of water under high pressures. In mining enterprises, various alternatives offer a solution in driving a tunnel, even to the extent of its discontinuance or the abandonment of the mine, but a "construction" tunnel usually must go forward because some important project depends largely if not entirely upon it. This paper describes an unusual method of driving a water-supply tunnel through rock carrying water under pressures and conditions that did not permit the use of ordinary tunneling methods. THE DELAWARE AQUEDUCT The new Delaware aqueduct is a Manhattan project of some magnitude; when completed, it will contain what probably will be, for some time to come, the longest tunnel in the world. Various features in its construction are currently described in the trade journals of the construction industry, and informative engineering details are given in the Delaware Water Supply News, published twice a month by the Board of Water Supply of the City of New York. Work was begun on this project on March 24, 1937. The tunnel will convey water from reservoirs at the headwaters of the Delaware River to the City of New York.

Jan 1, 1942

By Craig S. Hartley

An approximate expression is obtained for the energy of a closed dislocation loop in equi1ibriu)n with a constant net stress. The result obtained is valid for loops in isotropic or anisotropzc materials provided that they are suJficiently large that the energy per unit length of a segment of the loop can be approximated by that of an infinite straight dislocation tangent to the loop. It is shown that this approximation leads to very close agreement with a more rigorous calculation of the elastic energy of a circular glide loop. The Gibbs-Wulff Form, GWF, of a dislocation is the closed planar loop which has the smallest elastic self-energy of all possible loops having the same Burgers vector and enclosing a fixed area, A.' The energy of such a loop is related to the net resolved shear stress* required to expand the loop and to the stress required to activate a Frank-Read source.223 In the following sectiorls the problem of determining the form of the GWF is discussed and an approximate method for calculating its elastic self-energy is presented. It is demonstrated that the approximations employed lead to no serious errors when applied to a calculation of the elastic energy of a circular glide loop. This method is then used to obtain a closed form expression for the energy of GWFs in isotropic and anisotropic materials. THEORY Burton, Frank, and cabrera4 have proved that the relationship of the equilibrium shape of a two-dimensional array of atoms under the influence of the Gibbs free energy associated with unit length of its boundary, G(O), is that the polar plot of G(0) vs 0 is proportional to the pedal of the GWF.* The angle 0 is measured "The pedal of the polar graph ofG(0) vs0 is the envelope of tangents to the eraph.relative to some crystallographic reference direction. The difficulty in applying this result to a closed dislocation loop arises from the self-interaction of the loop. For a dislocation the energy analogous to G(0) is a function of the total configurati~n.~ Consequently the relation which determines the GWF is an integro-differential equation rather than the simple differen- tial equation which results when G(8) is a function of 0 alone. Mitchell and smialek3 and Brown~ have used the self-stress concept introduced by ~rown' to calculate the shapes of dislocations in equilibrium with an applied stress. In this approach the glide force on an element of the dislocation loop due to the interaction of the element with the rest of the loop is equated to the glide force exerted by the local applied stress. The shape of the loop is then adjusted so that the two forces above are equal at all points on the loop. It is possible to calculate the energies of such loops by noting that, for equilibrium with an applied stress, the energy is equal to pijbiAj (summation convention) where bi is the Burgers vector, p.. is the local net stress tensor, and Ai is a vector directed perpendicular to the plane of thd loop with magnitude equal to the area of the loop. Also Brown' has calculated the energy of a hypothetical polygonal GWF using the above technique and anisotropic elasticity. However, his indicated solution for the energy in the general case of an arbitrary GWF is only slightly less involved than an iterative solution of the integrodifferential equation referred to earlier. In the present work the approximation employed by DeWit and Koehler' is used to calculate the energy of a closed loop in equilibrium with an applied stress. That is, the energy of a loop segment, ds, is approximated by the product of ds and the energy per unit length of an infinite, straight dislocation in a cylinder coaxial with the tangent to the loop at the angular position of the segment. This is known as the "line tension" approximation. The inner cutoff radius of the elastic solution defines the core radius, while the outer cutoff radius is determined by some characteristic dimension of the loop. Actually, both of these radii vary with the edge-screw character of the segment. The effective core radius changes because of the orientation dependence of the Peierls width of a dislocation,8 and the outer radius should be the radial distance from the circumference of the loop to the center of symmetry of the area enclosed by the loop.g However, since the energy varies logarithmically with the ratio of these radii while depending directly on the effective elastic constants, only the effect of the latter is considered. This approximation also neglects the self-interaction of the loop segments. For small loops this will doubtless be extremely important, but for large glide loops produced by plastic deformation the self-interaction is not nearly so important in determining the energy of the loop. This point is illustrated by the following calculation of the energy of a circular loop. Consider a circular loop of radius R which lies in the XI - x, plane of an infinite isotropic continuum and whose Burgers vector makes an angle $ with xs. The first-order solution for the elastic self-energy is:'

Jan 1, 1970

By A. W. Fahrenwald

The physics and chemistry of the flotation process are not well understood. Many papers dealing with the theory of flotation have been published but most have been narrow in their viewpoint. No theory advanced has done more than explain, more or less satisfactorily, various isolated phenomena. Scientists have done little with the problem, doubtless because they have not seen sufficient of the practical side of the subject to have their interest aroused. Any attempt to explain the mechanism of flotation that considers only contact angles, surface tension, adsorption, the floating of needles, flocculation, or any other single and narrow phase of the question is sure to be disappointing. Flotation is a problem of colloid chemistry and must be studied as such. In a broad general way, flotation is a process involving and operating by virtue of surface reactions. The term "surface reactions" may be open to criticisms. Many chemists give the term "reactions" a definite and restricted meaning and to such the term may connote change in atomic grouping in strict stoichiometric ratios. While Langmuir looks upon adsorption as a reaction, and there is much evidence in support of this view, we may look on adsorption as a physcial process as far as this paper is concerned. The term seems well suited to the work in general. Presumably these reactions are reactions between the same kinds of forces (electrical) and differ only in degree and in the surface manifestations produced. This premise seems logical if we accept the theory that the atoms of dl elements are made up of grains of electricity, having mass and charge, called electrons; and that atoms differ from one another only in the number and arrangement of the electrons about a positive nuclear

Jan 1, 1924

By H. T. Matson

IN the Northern Rhodesia copper fields the size of the orebodies and the exceptionally consistent values over great distances made it possible to outline the ore with drill holes spaced at 1000-ft. intervals; in some cases, 2000-ft. intervals.. Owing to the fact that the size of the deposits made it very evident that much outside capital would have to be called in to develop them and, owing to the wide spacing of the holes, it was essential that the sampling of drill holes be as accurate as possible, so that outside examining engineers could adopt the results as trustworthy within the limits of accuracy of the drilling method. With this object in view, the field staffs of the Selection Trust group of companies have studied for the past three years, and are still studying, drill sampling in a very thorough manner, and for this reason it is felt that these notes may be of interest to engineers or students who are, or in the future may be, in charge of drilling operations. The orebodies in this field lie in shales and sandstones, more or less indurated, in the lower strata of the Roan series, and the copper mineralization is in the form of sulfides predominantly, with some oxidized copper minerals. Those interested in the geology and history of the area can find full details in a recent paper by Anton Gray and Russell J. Parker.1

Jan 1, 1930

By H. J. Wasson, L. W. Mayer

The existing large stocks of raw materials have induced misgivings in the minds of many as to near-view prospects for a return to higher commodity price levels. Until stocks are materially reduced—and this operation will probably extend over a protracted period—a buyers' market will continue. Meanwhile the matter of production cost becomes more and more a factor of consequence to industrial management, finance and the investing public. With many commodities a general level of costs exists with which the public has been made familiar. Certain conditions surround these industries which, at the outset, determine whether there is a basis for sound commercial results. In other words, it can generally be determined in advance whether or not the cost of production is sufficiently below the normal average price to return a reasonable profit over the years. With all domestic agricultural products there are available exhaustive Government studies in the field of production costs. Such figures as the average cost of wheat, cotton, sugar, etc., are reiterated constantly. There are many products of foreign origin such as coffee, rubber, raw silk, etc., the production costs of which are to most of us matters of deep mystery. Forest products also are so diversified that few but specialists know what a thousand feet of lumber really cost at the mill, especially where remotely located. However, with respect to products of mines, production cost information has been widely disseminated. The literature is replete with such data. Here we find that without any special help from outside agencies the industry itself has given publicity to a large variety of cost figures. For example, we know, or know where we can ascertain, the cost of producing a pound of copper from Chile, Arizona or the Lake Superior district. In many cases we can secure from the company reports a vast amount of detail leading up to the cost per ton of ore and the cost per unit of the metal yield. These records are of great assistance to the mining industry as a means of estimating on new exploitations. This industry has been production-cost-minded almost from the beginning.

Jan 1, 1931

By Eugene McAuliffe

AS this is written, the probability A is that the bituminous coal out- put for 1936 will approximate 420,000,000 tons (of 2000 lb.) with an average working time for all mines of 205 days. The results for 1935 approximated 369,224,000 tons, with the mines working about 185 days. The increase in production of 14 per cent is heartening. In anthracite, it is probable that the preliminary figures covering output for 1935, 51,- 003,000 tons, will be exceeded this year although the percentage of in- crease will almost certainly be small. The substantial tonnage of anthracite illegally mined, estimated to be 3,600,- 000 tons in 1935, with a similar large Lonnage in 1936, is in addition to the figure given above; it represents an open and flagrant disregard of law and property rights. It is hard to understand why the officials of the State of Pennsylvania do not enforce the laws against theft and brigandage, more so when the legitimate employees of the established producing proper-

Jan 1, 1937

By Jerry L. Taylor

Utah Power & Light Company is an electric utility serving approximately 1.8 million people in Utah, Idaho, and waning. In order to supply coal to fuel power plants, Utah Power & Light awns three mines in central Utah. Planning for these mines is aided by a computer program developed by the staff mining engineers. This program, when supplied with the pertinent seam and mining configuration data, calculates the time to mine each section. This allows the planning engineer to estimate accurately the time required to extract pillar sections or develop longwall panels. The program's greatest benefit, however, is its ability to allow the engineer to examine quickly, different combinations of possible mine layouts to determine the most efficient plan. Computer aided mine planning has been used at Utah Power & Light Company since 1979, and has significantly improved the accuracy and quality of mine planning.

Jan 1, 1983

By Howard N. Eavenson

ALL of the matters so far taken up by the Institute Committee on Stabilization of the Coal Industry will be of help, but it seems to be that under present conditions not very much can be expected until the railroad situation has been improved. As an instance of this, I would cite the fact of our experience at our mines in West Virginia and Kentucky. During 1917 and 1918 at our West Virginia plants we produced for our own consumption, practically entirely in the Chicago district, about 4,750,000 net tons of coal. In 1919 our output was reduced to 3,500,000 tons, this being caused partly by the shortage of orders in the few months following the armistice, but more particularly by The car shortage which began last September and continued throughout the remainder of the year, with the exception of December. This car shortage has been more acute since the first of the year, and while we now have an actual capacity here of 20,000 tons daily and have the equipment to produce it, with the possible exception of a few houses, we are able to average only about 12,000 tons, and in consequence, about 30 per cent. of our by-product ovens in the Chicago district are idle, and a number of blast furnaces are down for the want of coke. These figures, of course, refer to conditions before the strike of switchmen in April was started.

Jan 1, 1920

By J. C. F. Randolph

This mill being now in successful work, it seems proper to record some professional memoranda concerning it. It is intended to handle an unusual ore, in a locality difficult of access, and its arrangement and method of procedure present some novel features of interest. It was prepared for the San Miguel property at Batopilas, State of Chihuahua, Mexico, owned by the Consolidated Batopilas Silver Mining Company of New York, at present under the management of ex-Governor Alexander R. Shepherd. This property contains a large series of more or less parallel veins, worked through a deep cross-cut tunnel 1300 feet in length. The vein rock of these veins is calcapar in diorite. While, near the stirface, ruby silver, black

Jan 1, 1882

By John C. F. Randolph

THIS mill being now in successful work, it seems proper to record some professional memoranda concerning it. It is intended to handle an unusual ore, in a locality difficult of access, and its arrangement and method of procedure present some novel features of interest. It was prepared for the San Miguel property at Batopilas, State of Chihuahua, Mexico, owned by the Consolidated Batopilas Silver Mining Company of New York, at present under the management of ex-Governor Alexander R. Shepherd. This property contains a large series of more or less parallel veins, worked through a deep cross-cut tunnel 1300 feet in length. The vein rock of these veins is calespar in diorite. While, near the surface, ruby silver, black

Jan 1, 1882

By Emil-Paul Lorenz

Considered as a whole, the mineral resources of the Turkish Republic (Anatolia) are in their untapped virgin state, and the little development shown is not the result of modern systematic geologic exploration but the continuation of the ancient open-pit mining methods of the Orient. When I came to Turkey in 1924, I found myself confronted by a formidable task because of the lack of preliminary geologic mapping. Today this condition has not essentially changed; less than one per cent of the country is covered by topographic mapping adequate for modern requirements. However, I was able to bring a semblance of order in a presentation of the mineral deposits of this country, by tracing the story of the mineral deposits that showed surface evidence of their existence. At present only the easily discovered mineral deposits of coal, copper, and lead-silver ores are being exploited. In the case of coal, of 3,000,000,000 metric tons available, only 100,000,000 have been mined. The same is also true for copper, lead-silver, and other ores, as shown in Table 1.

Jan 1, 1948

By Frederick Rhines

PURE copper that has been allowed to oxidize at an elevated tempera-ture in the air is found to be covered with two distinguishable layers of oxide scale. The outer of these, which is very thin, is composed of cupric oxide, while the inner layer, comprising the bulk of the scale, is made up chiefly of cuprous oxide (Fig. 1a). If a small quantity of an alloying element, such as silicon, is present in the copper, silica particles are found disseminated through the cuprous oxide, deposited most abundantly near the metal surface, and, in addition, silica particles occur to a limited depth within the copper itself (Fig. 1b). It is this inner layer, composed of oxide particles precipitated in a matrix of metallic copper that is known as the "subscale" or the zone of internal oxidation. Under a low oxygen pressure it is possible to produce the subscale without the formation of external layers of copper oxides, thus leaving the metal surface bright and apparently clean while oxidation has occurred, in fact, to a considerable depth within the metal (Fig. 2). Although little is yet known in a detailed way of the mechanism of internal oxidation, the general nature of the process is evident. By virtue of the considerable solubility of oxygen in copper,1 it is possible to bring the alloying element in contact with oxygen within the metallic solid solution. If the oxide of the alloying element is more stable than cuprous oxide, the foreign oxide may form and, since most oxides are relatively insoluble in copper, it will not long remain in solution, but will separate as a precipitate. As the metallic solute is exhausted in the zone of precipitation, oxygen that is constantly being supplied at the surface diffuses farther into the alloy and thus produces an ever-thickening shell of subscale. The distribution of the reacting elements in the subscale and adjoining zones must be somewhat as indicated in Fig. 3. The conditions requisite to internal oxidation to be anticipated are thus: (1) a solubility of oxygen in the alloy, (2) the ability of oxygen to diffuse at an appreciable rate into the alloy, (3) the possibility of the

Jan 1, 1940

By C. A. Hartinagel

During 1941, the total production of crude oil in New York state was 5,185,000 bbl. This represents a small increase over the average for the past five years. From 1921, when the annual production of the state amounted to only 988,000 bbl., there was a regular annual increase in production (excepting one or two years) until the 5,000,000-bbl. mark was reached in 1937, After more than 20 years of oil recovery by flooding methods, it was generally believed, until a few months ago, that the rate of production was nearly at its peak and within a few years the fields would experience a gradual decline as the thicker sands became exhausted and the thinner ones could be worked only at increasing costs. As a result of the present emergency, however, unusual efforts are being made, in spite of higher costs of operation, to increase the output of Pennsylvania grade oil, to which the New York product belongs. Since most of any increased production would be obtained by flooding, and since floods travel slowly, no large increase in production can be expected for some months to come. During the first year, 10 or 15 per cent increase could be obtained, but maximum production, an increase of perhaps 40 per cent, could not be expected until some time during the second or third year. In the Allegany fields, which account for two thirds of the state's oil production, 1246 wells, including water-intake wells, were drilled during the year; 390 more than in the preceding year and 590 more than in 1939. It is evident that much of the best oil territory has already been developed. As producers move toward edge properties and thinner sands, returns will be smaller, whereas costs remain the same or, under war conditions, become higher. It is estimated that at least 60 million barrels of oil is in sight and will be produced from the thicker sands by present recovery methods. In the thinner sands and edge properties, some 35 million additional barrels can be produced at a profit only if prices become higher. In view of the fact that there is little hope of finding new oil pools in New York, one of the future problems of the oil producer will be to obtain adequate returns for increased production costs. The year started with a posted price of $2.15 per barrel of crude. There were five successive price increases until the high of the year was reached at $2.98 on Aug. 14. Eight days later the Office of Price Administration directed that the price be reduced to the June level of $2.75 a barrel, which remained in effect to the end of the year. With rising costs of operation, it is feared that many of the smaller properties cannot continue production unless the Federal price cut is revoked. During the year, Allegany Refiners Inc., a local enterprise founded in 1933, with plant at Bolivar, western Allegany County, increased its refining capacity from 1000 to 1500 bbl. daily. At the same time equipment was added to make the plant a complete lubricating-oil refinery, including facilities for the refining of wax into the finished product. Previous to the enlargement, it was necessary to sell the wax

Jan 1, 1942

By C. A. Hartinagel

During 1941, the total production of crude oil in New York state was 5,185,000 bbl. This represents a small increase over the average for the past five years. From 1921, when the annual production of the state amounted to only 988,000 bbl., there was a regular annual increase in production (excepting one or two years) until the 5,000,000-bbl. mark was reached in 1937, After more than 20 years of oil recovery by flooding methods, it was generally believed, until a few months ago, that the rate of production was nearly at its peak and within a few years the fields would experience a gradual decline as the thicker sands became exhausted and the thinner ones could be worked only at increasing costs. As a result of the present emergency, however, unusual efforts are being made, in spite of higher costs of operation, to increase the output of Pennsylvania grade oil, to which the New York product belongs. Since most of any increased production would be obtained by flooding, and since floods travel slowly, no large increase in production can be expected for some months to come. During the first year, 10 or 15 per cent increase could be obtained, but maximum production, an increase of perhaps 40 per cent, could not be expected until some time during the second or third year. In the Allegany fields, which account for two thirds of the state's oil production, 1246 wells, including water-intake wells, were drilled during the year; 390 more than in the preceding year and 590 more than in 1939. It is evident that much of the best oil territory has already been developed. As producers move toward edge properties and thinner sands, returns will be smaller, whereas costs remain the same or, under war conditions, become higher. It is estimated that at least 60 million barrels of oil is in sight and will be produced from the thicker sands by present recovery methods. In the thinner sands and edge properties, some 35 million additional barrels can be produced at a profit only if prices become higher. In view of the fact that there is little hope of finding new oil pools in New York, one of the future problems of the oil producer will be to obtain adequate returns for increased production costs. The year started with a posted price of $2.15 per barrel of crude. There were five successive price increases until the high of the year was reached at $2.98 on Aug. 14. Eight days later the Office of Price Administration directed that the price be reduced to the June level of $2.75 a barrel, which remained in effect to the end of the year. With rising costs of operation, it is feared that many of the smaller properties cannot continue production unless the Federal price cut is revoked. During the year, Allegany Refiners Inc., a local enterprise founded in 1933, with plant at Bolivar, western Allegany County, increased its refining capacity from 1000 to 1500 bbl. daily. At the same time equipment was added to make the plant a complete lubricating-oil refinery, including facilities for the refining of wax into the finished product. Previous to the enlargement, it was necessary to sell the wax

Jan 1, 1942