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By Dennis J. McCarthy

TAX TREATMENT OF EXPLORATION AND DEVELOPMENT EXPENSES Exploration Expenditures General Principles. Exploration expenditures are expenses incurred within the United States or the Outer Continental Shelf for the purpose of ascertaining the existence, location, extent or quality of any deposit of ore or other mineral. Section 617 of the Internal Revenue Code permits a taxpayer to elect to deduct these expenditures currently. In default of election, exploration expenditures must be capitalized and included in the basis of the mineral property for purposes of determining cost depletion. Entitlement to Deduction. In order to qualify for current deduction, exploration expenditures must be incurred prior to the commencement of the development stage, i.e., when mineral deposits are shown to exist in sufficient quantity and quality to reasonably justify commercial exploitation. Generally, expenditures for geological and geophysical investigations, reconnaissance, surveying, testpitting, trenching, drilling, driving of exploration tunnels and adits and similar types of work constitute exploration expenditures if incurred prior to the commencement of development. However, expenditures to further delineate the extent and location of an existing commercially marketable deposit are not exploration expenditures. Exploration expenditures may be incurred from within a producing mine to ascertain the existence of what appears to be a different ore deposit. Expenditures for property which is subject to an allowance for depreciation are not deductible under §617. However, depreciation properly allowable on assets used in exploration is an exploration expenditure. Election to Deduct Exploration Expenditures. The election to deduct exploration expenditures is made by deducting these expenditures in the return for the first taxable year for which such treatment is desired. The election applies to all properties of the taxpayer. Once the election is made all exploration expenditures, in the year of election and thereafter, must be deducted, unless the election is revoked with the prior consent of the Commissioner. The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) made substantial changes in the treatment of exploration expenditures. For exploration expenses incurred after 1982 and before 1984 by a corporation, the amount currently deductible is limited to 85% of the expenditure. The remaining 15% must be capitalized and recovered over a five-year period. Although exploration costs capitalized under this provision are not part of the basis of the property for cost depletion purposes, investment credit may be claimed with respect to these expenditures. Further changes have been added by the Tax Reform Act of 1984 with respect to expenditures made after 1984. The Act reduces the amount of otherwise currently deductible costs from 85% to 80%. Additionally, it limits the availability of the investment credit for capitalized mineral exploration costs to deposits located in the United States. TEFRA also allows individuals a special method of recovery under which exploration expenditures may, at the election of the taxpayer, be amortized ratably over a 10-year period beginning with the year in which the costs are paid or incurred. If taxpayer does not use this method, the excess of the exploration expenditures actually deducted over the amount that would have been deducted if 10 year amortization had been elected is an item of tax preference subject to the alternative minimum tax.

Jan 1, 1985

Recognizing the fact that the problems of the committee named by the Board to prepare the "official ticket for officers and Directors of the Institute are various and difficult; and desiring to assist this committee by setting forth some of the principles that should guide the committee and some of the qualifications that should be required of candidates, the following instructions are formulated and the Secretary is directed to publish them in MINING AND METALLURGY concurrently with the publication of the names of each newly appointed Nominating Committee and to send a copy to each member of the Committee.

Jan 1, 1937

Recognizing the fact that the problems of the committee named by the Board to prepare the "official ticket" for officers and Directors of the Institute are various and difficult; and desiring to assist this committee by setting forth some of the principles that should guide the committee and some of the qualifications that should be required of candidates, the following instructions are formulated and the Secretary is directed to publish them in MINING AND METALLURGY concurrently with the publication of the names of each newly appointed Nominating Committee and to send a copy to each member of the Committee.

Jan 1, 1938

Recognizing the fact that the problems of the committee named by the Board to prepare the "official ticket" for officers and Directors of the Institute are various and difficult; and desiring to assist this committee by setting forth some of the principles that should guide the committee and some of the qualifications that should be required of candidates, the following instructions are formulated and the Secretary is directed to publish them in MINING AND METALLURGY concurrently with the publication of the names of each newly appointed Nominating Committee and to send a copy to each member of the Committee

Jan 1, 1943

Recognizing the fact that the problems of the committee named by the Board to prepare the "official ticket" for officers ' and Directors of the Institute are various and difficult; and desiring to assist this committee by setting forth some of the principles that should guide the committee and some of the qualifications that should be required of candidates, the following instructions are formulated and the Secretary is directed to publish them in MINING AND METALLURGY concurrently with the publication of the names of each newly appointed Nominating Committee and to send a copy to each member of the Committee.

Jan 1, 1944

By G. Don Sullivan

Surface mine operators have organized a voluntary group known as the Mined-Land Conservation Conference for the specific purpose of developing and expanding reclamation programs on mined land. As a part of the Conference program, a Voluntary Industry Program was adopted and subscribed to by its membership. This program stated: "The basic approach to a sound conservation program is the restoration of mined land to its most practical and productive use within the shortest possible time . . . reclamation of mined lands, including planting to grasses or tress, should be done on a planned basis, under technical guidance by personnel trained in this field."

Jan 7, 1965

By R. W. Raymond

In connection with the paper of Mr. Locke on Gilsonite or Uintahite (Trans., xvi., 162) read at the Salt Lake session of the Utah and Montana meeting, in July, 1887, the following data may be of interest and value. In December, 1887, I received from Mr. William Wagner, Seeretary of the Denver & Rio Grande Railway Co., a box of specimens of an asphaltic mineral from Utah. In the course of the correspondence which followed, I learned that the box had been forwarded by Mr. J. A. McMurtrie, of the firm of McMurtrie & Streeter, railroad contractors, Denver, Col. Mr. McMurtrie was, in 1883, chief engineer of the Denver $ Rio Grande Railway, and the mineral mas first brought to his attention in that year by Mr. Thomas H. Wigglesworth, who was then employed in making preliminary reconnaissances for wagon-roads to be used in constructing the Utah extension (now the Denver, Rio Grande $ Western) of the railway. Mr. Wigglesworth, I understand, was subsequently chief engineer of the Colorado & Utah Midland, and is now again employed by the Rio Grande. He writes substantially as follows concerning this mineral:

Jan 1, 1889

By Robert F. Griffith

In 1948 when the U.S. Bureau of Mines began the investigation of domestic monazite placers for the Atomic Energy Commission, deposits of this type amenable to large-scale operations were unknown in the U. S. Intensive search for such deposits had not been carried out in the past. Problems to be met included scarcity of men with placer experience and need for development of new exploration, evaluation, and analytical procedures. As a result of the exploration program three dredges have gone into operation in one area in Idaho and another dredge is operating in South Carolina. Search for Deposits In the search for areas to be investigated for monazite, the first step was a thorough study of all available literature reporting occurrences of the mineral. Initial work was guided largely by many reconnaissance reports prepared by the U. S. Geo- logical Survey and the AEC. As the work progressed many new deposits, not mentioned in the literature, were called to the attention of USBM engineers by prospectors who had noted the presence of the yellow, heavy sand while prospecting for placer gold. Every prospector was given an attentive ear.

Oct 1, 1955

By Lester C. Uren

Today, a dozen or more universities and colleges in the United States are offering curricula designed for the specialized training of engineering students who plan to enter the petroleum industry. Many hundreds of students are following these curricula in their academic preparation, with the expectation that by so doing they will be better equipped to enter the petroleum industry in an engineering capacity than their competitors that seek to do likewise with training of less specialized character. Those who have helped plan and develop these curricula believe that such specialization should and does afford the student a superior preparation for his task. Others have questioned this and urge a broad preparation in fundamentals without specialization. Still others are suggesting even greater specialization than present petroleum engineering curricula afford. Some would have the student first prepare himself in one of the more general divisions of engineering, such as civil, mechanical or electrical engineering, and then seek some degree of specialized preparation in a graduate program. Which of these views is correct; or, if there is merit in each, which plan offers the greater advantage to the student? It is time that we paused to take stock of our objectives and of our way of attaining them. Is the training received by our petroleum engineering students what it should be? To what extent is the product of our petroleum engineering schools meeting the requirements of the industry? How may graduates be better equipped for the work they are called upon to do? These are questions that educators interested in the training of petroleum engineering students are ever asking. They must depend upon engineers and executives engaged directly in the industry for advice and helpful suggestions in better planning the training to be offered to our future engineers. This paper will have served its purpose if it is successful in focusing attention of men active in the industry on some of these educational problems, to the end that the ideas of men close to the needs of the industry may be made known to those who have responsibility in the control of our educational programs.

Jan 1, 1937

By Charles White Merrill

Money is one of the most pervasive elements in human life. The compensation for a workman's daily efforts is expressed as a wage and is measured in money. What an individual may consume depends largely on his income which also is expressed in terms of money. If he would start an enterprise its size would be determined in large part by the amount of money available for capitalization and its success would be measured in net income expressed in money. In short, the most widely used common de- nominator for comparing merchandise, real property, jobs, enterprises, gross national product, or personal success is money. Despite this use of money by almost everyone past infancy to express his appraisal of the innumerable values he sees around himself, the complexity of the device called money makes its nature and workings a mystery to most users. Some of the difficulty in understanding money results from the fact that it has three distinct but interrelated functions: (1) a medium of exchange, (2) a unit of account, and (3) a store of value. In many statements about money the discussion moves from one function of money to another without the speaker or the listener recognizing the changes. For example, the housewife says "We took the money we had saved up to make the down payment and after twelve monthly payments the television will be ours." When this housewife spoke of "saving up the down payment" she referred to money in its function as a store of value; when she spoke of "the down payment" she was using money as a medium of exchange; and when she referred to the "monthly payments" she spoke of money as a unit of account. Another cause of confusion in understanding money is its paradoxical nature in that it represents both the power to produce and the power to consume. For example, when the rich uncle dies one nephew may regard his inheritance as an opportunity to buy a farm and leave the ranks of the wage earners to become an independent producer, whereas the other nephew may regard his portion as the means of living in complete leisure as a pure consumer.

Jan 1, 1964

By Charles M. Cooley

With explosives representing over 10 pct of the cost of operating the entire company, the Maumee Collieries Co., Terre Haute, Ind., inaugurated a program to develop a low-cost blasting agent. Results of more than two years' work were announced on May 1 by Hugh B. Lee, president of the company. Utilizing a mixture of commercial-grade ammonium nitrate and carbon black packed in polyethylene bags, Maumee has been able to reduce blasting costs by 50 pct. The lower costs are brought about principally by elimination of high transportation charges on fixed explosives and use of low-cost material (commercial NH,NO, and carbon black). The Akremite blasting method incorporates a 20-lb cap-sensitive primer to detonate the stable explosive. Maumee now uses Akremite exclusively in its stripping operations producing more than 2 million tons of coal per year. The explosive is employed to break about 25 million cu yd of overburden that covers the coal

Jan 5, 1955

Last November, when the British Educational Mission was visiting this country, letters were sent to the various mining schools asking what arrangements had been made for cooperating with British and. French schools. Of the eleven schools from which replies were received, none had taken any definite steps in this direction. The Colorado School of Mines, though, stated that it was offering scholarships to all men who had served in the U. S. Army and Navy during the war. A letter was also sent to Sir Henry Miers, Vice-chancellor of the University of Manchester, who was the head of the British Mission. He replied as follows: "In my opinion the mining profession is second to none in the responsibility of the duties which it involves or to which it leads in all parts of the world; also it is a. profession in which the student or teacher has much to gain by migrating to foreign countries. This applies in a special degree to British students coming to America where they will be able to enlarge their views by a widened experience. We (the Mission) have everywhere found the most, cordial acceptance of such proposals. Several of the British Universities have recently instituted a new doctorate of philosophy attainable after 2 or 3 years course of advanced study; this scheme includes Oxford and Manchester. The conditions admitting to the degree course are that the applicant should be a graduate of an approved University and should show evidence that he is qualified to pursue the course which lie proposes." In a conversation with Prof. Alfred C. Lane, of Tufts College, Sir Henry Miers said that students from Great Britain should be most easily attracted to America, both to universities and colleges and technological institutions.. He doubts, however, whether Great Britain can offer America, in this respect, as much as America can offer her. Prof. Lane, though, is quite sure that, especially for geologists, there is much to be

Jan 2, 1919

By Newell Alford

THE data in this paper were collected to show both the volume and speed with which bituminous mines have indefinitely suspended operation while economic advantage in the industry has so gravely declined. The study was limited to the bituminous coal-mining states east of the Mississippi River, wherein conditions affecting production and demand are more common respectively to all of the mining districts included and represent about 95 per cent of the nation's coal mining. Data for the compilation of these statistics and for the construction of these graphs have been obtained in all cases from state mine depart-ment reports, except from those of Ohio and Virginia. In Virginia essential individual mine data were secured from an authentic source, but no individual Ohio mine information is obtainable, because all Ohio fact-gathering agencies are prohibited by law from revealing such data. In other states the facts were tabulated and later checked with the cooperation of Chief Mine Inspectors. In all, excluding Ohio, over 17,000 individual annual mine returns were examined. Special infor-mation was secured from each state mine department about suspensions in 1932. Accurate information was not available from all states about mine abandonment due to exhaustion of coal reserves, and while these were completed for several states, it has not been shown because it was not perfected for all states. However, the total observed sample was comprehensive enough to show that exhaustion accounts for a very limited part of the suspended production. Wherever mention is made of "suspended production" the largest annual output of the mine in the five years prior to suspension has been taken as the measure of its probable production had it continued to operate. A mine is not regarded in this category, as having suspended, when it merely ceases to produce. The word "suspension" is used only where there is a complete abandonment of activity for an indefinite period, as evidenced by the fact that both ventilation and pumping are discontinued.

Jan 1, 1933

By Newell G. Alford

The data in this paper were collected to show both the volume and speed with which bituminous mines have indefinitely suspended operation while economic advantage in the industry has so gravely declined. The study was limited to the bituminous coal-mining states east of the Mississippi River, wherein conditions affecting production and demand are more common respectively to all of the mining districts included and represent about 95 per cent of the nation's coal mining. Data for the compilation of these statistics and for the construction of these graphs have been obtained in all cases from state mine department reports, except from those of Ohio and Virginia. In Virginia essential individual mine data were secured from an authentic source, but no individual Ohio mine information is obtainable, because all Ohio fact-gathering agencies are prohibited by law from revealing such data. In other states the facts were tabulated and later checked with the cooperation of Chief Mine Inspectors. In all, excluding Ohio, over 17,000 individual annual mine returns were examined. Special information was secured from each state mine department about suspensions in 1932. Accurate information was not available from all states about nine abandonment due to exhaustion of coal reserves, and while these were completed for several states, it has not been shown because it was not perfected for all states. However, the total observed sample mas comprehensive enough to show that exhaustion accounts for a very limited part of the suspended production. Wherever mention is made of '(suspended productionJ' the largest annual output of the mine in the five years prior to suspension has been taken as the measure of its probable production had it continued to operate. A mine is not regarded in this category, as having suspended, when it merely ceases to produce. The word "suspension" is used only where there is a complete abandonment of activity for an indefinite period, as evidenced by the fact that both ventilation and pumping are discontinued.

Jan 1, 1934

By John S. Crandall

The mineral garnet, while ordinarily considered a semiprecious gem stone or a second-grade industrial gem, has also proved itself in the field of industrial abrasives. Its use is well known as a sand-paper grain, and as a sandblasting sand its qualities are rapidly becoming recognized in more and more industries. Production of garnet as an abrasive is confined chiefly to two areas in the United States, North Creek, N. Y., where the Barton Mines Corp. operates, and Emerald Creek, Benewah County, Idaho, where the Garnet Mines, Inc., and the Idaho Garnet Abrasive Co. with mills at Fernwood, Idaho, operate. This paper is confined to a discussion of production and marketing of garnet sand by Idaho Garnet Abrasive Co.

Jan 5, 1950

By W. Hume-Rothery

RECENT interest has been shown in utilizing solid-state techniques for obtaining large oriented grains in the Alnico Alloys.1-4 Unfortunately, due to the inherent brittleness of these materials it is difficult to introduce sufficient imperfections by deformation to support the nucleation and growth of new, recrystallized grains. As a result, recrystal-lization methods for obtaining large grains, such as the strain-anneal technique, do not appear to be feasible. Steinort et a1.2 used a combination of a thermal gradient and internal strains to obtain large single crystals of Alnico 5 from a poly crystalline casting by annealing at temperatures above 1200°C. It was suggested that the strains were the result of the precipitation of the y phase which exists between -850° and 1200°C. The purpose of the present study was to determine if the grain size of the cast Alnico alloys can be markedly increased by solid state techniques involv-

Jan 1, 1963

By B. Ramaswami, Y. Nakada, U. F. Kocks

Compression tests were performed on single crystals of aluminum, silver, gold, and a Ag-10 pet Au alloy, with height-to-width ratios from 8:1 to 1:1. As this ratio decreased, so did the amount of easy glide until, for cubic specimens of all the pure materials, it was entirely absent. Heterogeneity of deformation is proposed to he a major contribution to the explanation of easy glide in slender specimens. For comparison, one single-crystal cube of zinc was tested and showed a behavior very similar to that in tension. Beyond easy glide, tension and compression curves are very similar. It is concluded that, in this range, neither grip effects nor orientation change influence the work-hardening characteristics to any significant extent. (121) and (100) crystals of all materials had similar stress-strain curves in tension and compression, except that the stress level of the flat portion of aluminum (109 crystals at high strains mas somewhat higher in compression. These results are at variance with previously proposed mechanisms of orientation dependence by both Hosford and Kocks. The compression tests themselves are described in detail and it is shown that they are essentially frictionless and produce single slip when the crystal is suitably oriented. DEFORMATION in uniaxial compression does not necessarily give the same result as deformation in uniaxial tension, essentially because the boundary conditions chosen are practically always different. 1) The shape and size of the specimens are usually different, and any genuine effect of size on work hardening should thus influence the result. 2) The grip constraints are usually different and can vary substantially for different kinds of tests. If the compression specimen is a thin plate and the friction on the platen is large, the grip contraints are more serious than in tension and lead, in the extreme, to uniaxial strain rather than uniaxial stress. If the specimen is roughly cubical and the friction is low, the specimen is less constrained than in tension inasmuch as displacements in the contact face are allowed. 3) The orientation change of single crystals is of opposite sign in tension and in compression; it is furthermore different in detail, because the relevant orientation in a squat specimen is the normal to the contact face, whereas that in a slender specimen is the generator of the side faces.' The considerable dependence of work hardening on the initial orientation in tension would suggest that the orientation change should also be very important. 4) Finally, localized deformation instabilities found in tension tests, such as necking and Lüders band propagation, are not possible in squat specimens. This is, for some investigations, a favorable consequence of the large grip influence. Even if one is not interested in any of the effects mentioned above, compression tests are often desirable just because the specimens needed are so much smaller and sturdier. For example, they have been very helpful in the investigation of latent hardening by means of alternate longitudinal and lateral compression of cubes,* and for testing

Jan 1, 1964

By Robert H. Richards

THE Institute of Mining Engineers has shown so much interest in the educational problem of profitably combining theory and practice, that it seems especially appropriate to lay before its members the methods and aims of the mining laboratory of which I have charge, and in which one form of combination of hand with head work is now being tried. If anything may be contributed toward the solution of this problem by the discussion which follows, my purpose mill be attained. Whether it was wise or not to establish a mining school so far from the principal mining centres, does not now enter into the question. Given, a mining school already begun, how shall it be made most efficient in developing engineers who are trained to think for themselves as well as versed in the works of others ? This is the question with which we have had to deal. In considering the bearing of this laboratory work upon the students' preparation, it will be convenient to take it up under five different heads: 1. The methods and aims of the laboratory. 2. The advantage to students of having a part, at least, of their practical work in the curriculum of their school. 3. The advantage to be derived by mine; and works. 4. Degree of accuracy which may be attained in working ores on a small scale. 5. Reslts of work in the laboratory. 1. The Methods and Aims of the Laboratory.—During the May meeting of 1873, held in Boston, I had the privilege of reading before you a paper stating the plan; and aims of this laboratory. Since that time me have been constantly following out those plans, and are more than ever convineed that me are working in the right direction. We do not feel that the time we have spent has been in any sense thrown away. Perhaps the aims of the laboratory can be most clearly shown by illustration. Many young engineers have school thinking that they know everything. They go to the works, and expect to teach the superintendent something and the men a good deal, regardless of the fact that it is this spirit that has prejudiced workmen against schoolmen. They are often more trouble than they

Jan 1, 1879

By Sid T. Killan

The utilization of the reducing power of blast-furnace gas can be estimated by applying two rectifying calculations to the gas analysis. A resulting corrected CO/CO2 ratio varies inversely with furnace production. Directions for calculating the corrected CO/CO2 ratio are given, and a corrected CO/CO2 ratio is compared with actual furnace production. THE inadequacy of the normally accepted CO/CO, ratio as a measure of blast-furnace performance and furnace efficiency was discussed following the presentation of the paper by H. F. Dobscha.' In this outstanding example of careful observation on large scale blast-furnace operation, the changes occurring with beneficiated ores were: 1—A net gain in tonnage of 21.2 pct. 2—A decrease in net coke of 15.3 pct. 3—A decrease of 1.9 pct in the CO/CO, ratio. In this great change in furnace performance, the CO/CO, ratio proved itself worthless. The discussion of the inadequacy of expressing furnace performance and efficiency by the CO/CO, ratio led indirectly to the calculations forming the basis of this paper. At that time Dr. T. L. Joseph said: "We must consider difference in CO, from the stone in the two cases when we talk about the ratios of CO/C02." This statement is used for the second of the two CO/CO, ratio corrections forming the basis of this paper. The research work in attempting to find out why the furnaces could op-erate so differently with practically the same CO/CO, ratio lead not to the answer sought but, after a shift to the gaseous phase in the research work, the proof that the normal CO/ CO, ratio was outmoded and a new corrected ratio should replace it. To be of any value, any new corrected ratio should express approximate furnace efficiency and give an idea of practical furnace performance to be expected. This the normal CO/CO, ratio has failed to do. However, in the absence of anything better, some credence has been attached to the normal CO/CO, ratio. As far as the writer can ascertain, the present paper is the first attempt to change or improve the normally accepted index of

Jan 1, 1952

By E. T. Dumble

The domes of the Texas coastal plain are structural features, consisting of bosses or stocks of salt, gypsum or anhydrite, or of combinations of these, intruding into and occurring in connection with broken and uplifted sedimentary beds of Cretaceous and Tertiary age. Some of these domes show on the surface as mounds of greater or less elevation, while others are only known from drilling records. They may be divided into two classes: interior domes and coastal domes. The interior domes include those which occur in a zone 40 to 50 miles in width lying immediately east of the Cretaceous-Tertiary contact, and extending from the Sabine to the Colorado. With a single exception, these domes, so far as now known, occur in approximate alignment with the contact, but at irregular intervals. East of the Brazos, the domes are entirely surrounded by Eocene sediments. The coastal domes are found nearer the Gulf, lying entirely within Neocene territory and stretching from the Rio Grande to the Sabine. They are much more numerous than the interior domes, and, apparently, are ranged along several lines having a general northeast-southwest direction. No domes are known in the Oligocene belt. INTERIOR DOMES The interior domes so far, identified are Butler's, in Leon county, Palestine and Keechi in Anderson county, Brooks and Steen in Smith county, and Grand Saline in Van Zandt. In connection with these interior domes we must also consider the Sabine Peninsula,. of Harris, which is, without question, genetically connected with them. The Palestine and Keechi domes have been described recently by 0. B. Hopkins,1 who gives a clear idea of their corn position and structure. Others have been described at different times, and an excellent resume of the literature is given by De Golyer.2 _

Jan 10, 1918