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By Lawrence W. Teufel

An anelastic strain recovery technique is presented as a method of determining the directions and ratio of the maximum and minimum horizontal in-situ stresses from oriented cores from deep wells. Predictions of hydraulic fracture azimuth inferred from principal stress directions determined from both elastic and time-dependent (anelastic) strain relaxation measurements of volcanic tuff are consistent with the observed orientations of hydraulic fractures produced in simulation and mineback experiments, underground at the Nevada Test Site. In addition, anelastic strain recovery measurements on oriented cores of shale and sandstone from well depths of about 1680 meters show consistent relaxation directions of the principal horizontal strains and have enabled a prediction of the principal horizontal stress directions and hydraulic fracture azimuth.

Jan 1, 1982

By R. E. J. Putman

Introduction Self-tuning regulators are a class of controllers built around the concepts of sampled data theory, and are especially suitable for implementation in a digital microprocessor or minicomputer control system. The algorithms used are distinctly different from those based upon analog control techniques and include automatic adjustment features which permit them to adapt to unmeasured changes (in, for example, ore grindability) or process nonlinearities (as exhibited by cyclone classifiers). They are also designed to handle transport lags in a simple manner, for example, anticipating the effects of a variable recycle rate on particle size distribution. The advent of distributed control systems will encourage the exploration of these techniques in the minerals processing industries, and particularly for improving the control of comminution circuits, which are especially energy intensive. This paper outlines some current work in progress on this topic. Background Those engaged in the practice of process control have long had two philosophical problems for which solutions have been actively sought - what is optimal control and how can we attain it in some heuristic fashion automatically. The basic analog controller can be represented by the differential equation: [V = Ko + K1 f y • dt + K2 dt(1)] where: v and y are the instantaneous values of output and error respectively and K0, K1, and K2 are tuning constants. The empirical rules for establishing the values of K0, K1, and K2, which provide stability, have evolved from the initial suggestions of Ziegler and Nichols(9) in 1942 and have served their purpose well. However, later analyses demonstrated that there are in fact many combinations of the values of K0, K1, and K2 which, besides being stable, behave better or worse in relation to other process control criteria; some examples are duration of error, amplitude of a damped response, magnitude or rate of movement of control valve or adjustment of speed regulator, etc. The definition of optimality had broadened. In 1964, Kalman(4) published his classic paper which tried to resolve these problems. He defined a

Jan 1, 1982

By Herbert E. Lindberg

Laboratory-scale intact and jointed rock masses were tested in field and laboratory experiments to investigate tunnel response in high stress environments. In most of the experiments the tunnels were modeled by a rigid-plastic foam polyurethane with a crush strength of 3.4 MPa (500 psi) and emphasis was placed on jointed rock parameters: joint sets (single set of parallel plane joints versus a double set of orthogonal parallel plane joints), joint plane angle with respect to the direct loading direction, and joint spacing. Other parameters were loading stress, loading direction, and tunnel reinforcement strength. Results show quantitatively the increase in tunnel deformation in jointed compared with intact rocks, double versus single joint sets, and large versus small angle between the joint plane normal and the loading direction. A surprising result was the decreases in tunnel deformation with increases in the number of joints across a tunnel diameter. The efficacy of scale modeling with laboratory-constructed rock was tested by modeling complex reinforced concrete and steel tunnel reinforcements in jointed rock masses and comparing the results with large scale tunnels previously fielded in highly jointed granite. Tunnel response was reproduced in surprising detail, including concrete fracture, steel liner bending and fracture, and critical load to produce these responses. The scale models also allowed sectioning of the jointed rock masses to observe gross sliding along the joints that accompanied tunnel failure.

Jan 1, 1982

By Hokuichiro Ohmachi

INTRODUCTION Metallic minerals have been formed only through complex geologic processes which took place at certain stages of the earth's histrory. Their concentration, abundance, and distribution are, therefore, restricted geologically, and very small in global scale. Ore is a mineral deposit or mineral concentration from which metals can be economically extracted by the contemporaneous technology. By this definition, several factors should be considered before any mineral deposit is regarded as an ore. The grade of mineral concentration and the scale of the reserve are most important. Demand for the metal and its price are the other factors. Advancement of technology in mining and extraction are also vital. Copper, for example, is now commonly extracted from the ores containing less than 0.3% of the metal. However, in the 1700's the common minerable grade was about 13%, and in the 1900's between 5 to 2.5%. This decrease in minerable grade is a function of not only the demand for copper, but also technological progress in mining and metal extraction in this case. Availability of ores has recently been subject to political factors, which were not the primary concern in the past. The petroleum of the Middle East is the prominent example. The metallic minerals are classified into three categories. The first one is the minerals free from these factors mentioned above. Iron and manganese belong to this category. The second category include aluminum, copper, nickel, cobalt, titanium, lead and zinc. These metals can be provided by the future progress in technology which enables the use of lower grade deposits. The third one represents the metals whose occurrence is geologically limited, and, thus, subject to the political factors. Niobium and tantalium are the example. In this article, I discuss these minerals in detail to give an outline of the factors which brought their concentration, distribution and availability. SELECTED MINERAL CONCENTRATIONS Iron Major iron ore deposits are the features of the relics of ancient continental crusts. They are found in all the continents where the Precambrian rocks expose. They do not occur in the oldest rocks (3,000my old) nor in the youngest ones (600my old). They are sedimentary rocks, normally, exhibiting alternations of bands of iron oxides (magnetite and hematite) or iron silicates (especially greenalite), and bands of silica, variously described as jasper, quartzite and chert. The best known banded iron ore deposits exist in the Lake Superior region of the North America, and their distribution extends at intervals to Labrador of Canada. Other examples occur in the U.S.S.R. Brazil, Venezela, India, the mainland China, and southern and western Africa (Liberia and Guines) (Table 1). Recently large deposits have been discovered in the Hammersley region of the western Australia, and northern and central region of Brazil. These ore deposits were originally formed in shallow seas where simple but abundant life existed. After the deposition, enrichment processes , related to tropical weathering, have brought about wholesale removal of silica to produce the deposits of best quality. Ores with 50-60% iron represent the best products in the Precambrian fields. Since local reserves of this high grade ores approach to exhaustion, benefication processes have been used effectively to upgrade much leaner ores (for example, taconite with 20-25% iron in Minesota, U.S.A.). There are two other types of iron deposits. Ironstone, a sedimentary rock containing goethite, chamosite and siderite, first appeared in early Paleozoic times in the stratigraphic record, and reached its Zenith in the Jurassic. Similar bedded iron deposits are found in the belt from the Cleveland Hills to Oxford in England, and in the "minette" oolitic ores of Alsace-Lorraine in Luxenburg and France. The iron content of these ironstones seldom exceed 30%, but they usually contain calcite and are self-fluxing. They also have phosphorous as undesirable impurity. Because of the grade and impurities, they require more fuel than the Precambrian ores. The third type of iron ore is associated with igneous activity and consists of magnetite and some hematite, and apatite. This deposit is believed to be a product of magmatic differenciation. It occurs in Kiruna of Arctic Sweden. The iron ore, therefore, present no global shortage problem. They extend to considerable depths. Their concentration is largest among the metals. If low grades were treated, the resource can be stepped up much substantially. Manganese Manganese is a ferro--alloy metal, thus, essential to the manufacture of sound steel. Manganese comes from manganese oxide and silicate ores. Many minerals contain manganese, but only a few oxides, silicates, and, in some places, carbonates (rhodecrosite) are mined as ore. Types of manganese deposits are bedded, massive,

Jan 1, 1982

US 4,181,588 - Direct extraction of lead from lead sulflde ore. Ore is leached with a solution of ferric chloride and sodium chloride. The leach liquor is filtered to remove sulfur and gangue, then cooled in a crystallizer to precipitate lead chloride The slurry from the crystallizer is subjected to electrolysis to deposit lead chloride on the cathode plate. Solution from the electrolysis cell is used in the leaching step. M.M. Wong and F.P. Haver, assigned to US Secretary of the Interior Jan 1, 1980. 6 pp. (204-115). Filed: 1-4-79 (1,026).

Jan 1, 1982

By R. W. Schenker

INTRODUCTION Environmental and occupational safety and health requirements often have a major impact on the design of comminution circuits, leading to increased capital and operating costs and reduced income. A project's capital cost can be increased by environmental permitting delays and the addition of dust collection equipment. Income can be reduced by lost production during unscheduled plant shutdowns for dust collection equipment maintenance. Dust collection equipment must be carefully selected and sized to minimize impact on the project. The equipment performance must comply with environmental regulations and allow working areas to comply with occupational safety and health regulations. Unnecessary overdesign could jeopardize the project's desirability from an economic standpoint. The equipment must be sufficiently reliable to avoid interference with production schedules. This chapter provides practical information on the selection and sizing of comminution circuit dust collection equipment that is consistent with the requirements stated above. It presents information on the reasons and general principles of dust collection; various types of dust collection equipment; and design criteria for ventilation hoods, duct systems, fabric filter dust collectors, and fans. An example discussing the selection and sizing of dust collection equipment for a simple comminution circuit is also presented. REASONS FOR DUST COLLECTION Dust collection equipment should be installed in comminution circuits for a variety of reasons, some of which are discussed below. These include compliance with government regulations, minimization of housekeeping requirements, product recovery, and improvement in public and employee relations. Compliance with Government Regulations Dust emissions from comminution circuits must comply with both air pollution control and occupational safety and health regulations. The regulations that may influence the selection of comminution circuits are discussed in more detail in Chapter 2. Air pollution control regulations limit the emission of dust, as well as visible emissions to the atmosphere and the concentration of dust in the ambient air. These regulations minimize the degradation of air quality and impact to other environmental considerations such as the health of the general public,

Jan 1, 1982

By Randall L. Neal

This paper discusses the impact of taxes at the state and federal level on typical on-shore oil and gas exploration economics in the USA. Taxes considered are the windfall profits excise tax, state production (or severance) taxes, state income tax, and federal income tax. Also considered will be market prices for oil and gas in the USA. The effect of government take as a percent of revenue, on rate of return, discounted Payout, and discounted cumulative cash flow is shown on the attached tables. The conclusion drawn is that tax laws, while rarely the most important factor to be considered when drilling a well, can have significant impact on the profitability of oil and gas ventures, and should be considered when determining where to drill. Hypothetical exploration wells were analyzed for the impact of tax laws on project profitability. The results of this study show that when factors other than taxes are postulated to be the same (such as producing rate, capital, operating costs, and prices), cash flow can vary by as much as 68% due to the differences in the tax laws. Other significant findings for the cases studied include: (a) that discounted payout varied by as much as 1.8 years, (b) that rate of return differed by up to 67% and (c) the total tax rate as a percentage of revenue had a maximum variance of 33%.

Jan 1, 1982

By C. Richard Tinsley

Like most minerals, coal is inherently a demand-limited commodity. The very sedimentary nature of its occurrence implies greater availability potential than demand. But this situation is overridden by economics among fuels, between coals, and within coal blends. Such considerations make coal forecasting a very hazardous profession indeed. THERMAL COAL If one thought that the lead times involved with a mining project were very long, one has obviously not been exposed to the planning process in the electric generation business - a process seriously confounded by shifts in load growth, environmental pressures, capital intensity, security of fuel sourcing, inter-fuel economics, and so on. But as a general rule, the near-term forecasts for thermal coal can reliably be based on a bottom-up, plant-by-plant analysis. Cement plant conversions can also be reasonably estimated next in order of reliability, although they have a much wider spectrum of coal qualities and fuel sources to choose from with a notably higher tolerance for sulfur and ash. Finally, industrial demand can be assembled from the estimates for conversions by pulp/paper plants, chemical plants, etc. The industrial sector is harder to estimate, since it may involve small boilers or dual-fired units. Assessing demand in the Pacific Rim is relatively a straightforward process in the near term because the major importing countries are all located on the Asian continent with either negligible or very minor (yet stable) indigenous coal production, (itself often operated on a subsidized basis). Furthermore, all imports are seaborne. These major importers are Japan, Korea, Taiwan, and Hong Kong with Thailand, Singapore, and Malaysia up-and-coming consumers. The suppliers to this market all have substantial reserves to back up decades of exports to these countries. Australia, the US, Canada, South Africa, China, and the USSR dominate the supply side. The second oil-shock of 1979/1980 has convinced the importers that reliance on oil can be expensive and eminently interruptible. Thus, they are determined to diversify away from oil' to nuclear and coal for generating electricity and for coal for other purposes where possible. This trend is seen to continue even in the face of the oil glut worldwide and oil-price reductions in early 1982. But the importers are also convinced that reliance on one coal source and, in particular, one infrastructure route for the coal chain from mine to consumer can be equally expensive and interruptible. Strikes in the US and Australia; excessive demurrage at certain ports; relegation of coal to a lower priority on multiple-use railroads in the USSR and China; and concern over escalation on high-infrastructure or high-freight coal chains are among the risks worrying the importers. As a consequence, Pacific Rim thermal coal purchases are being allocated among supplier nations, between ports, and within each country. An example of Japan's shift away from Australia and toward the US and Canada is shown in the estimates in Table 1. But the confidence of the import estimates deteriorates sharply beyond the plant conversion timetables and construction schedules in the near term. If part of the second generation of coal-fired power plants can handle lower-energy coals, the field of suppliers could widen to accept sizeable tonnages from Alaska, Wyoming, Alberta, or New Zealand resources. These supply sources generally have some infrastructure or freight advantage to compensate for their lower quality and to compete on a delivered energy-unit basis. These also offer diversification in sourcing. And the possibility of coal liquefaction in Japan further widens the sourcing network. A great number of Pacific Rim coal forecasts have been generated, especially for Japanese thermal-coal imports which are expected to grow strongly in the 1980's. Since the Japanese themselves have not yet settled their energy policy, the exact numbers are hard to call. Nevertheless, at 50 million tonnes of imports in 1990, Japan would consume 50-60% of the total Asian thermal coal imports as shown on Tables 2 and 6. The next most important consumers are the "island" nations of Korea, Taiwan, and Hong Kong (see Tables 3-5). All three are embarking on power plant developments usually with captive unloading facilities, capable of accepting more than 100,000-dwt vessels. Korea, with no-indigenous bituminous coal, is not especially enamoured with US coals, which are deemed too heavily loaded by freight and infrastructure costs -- up to 70% of the delivered price. Thermal coal contracts are presently split to Australia (70%) and to Canada (30%). Korea Electric Power Co. is already considering second-generation boilers capable of burning lower-quality coals than the present standard. Korea does burn domestic anthracite.

Jan 1, 1982

US 4,181,703-Removal of magnesium impurity from phosphate rock. Crushed screened ore containing more than 0.3% by weight of magnesium is slurried with sea water, acidified with sulfuric acid to a pH value not lower than 2 5, and filtered and washed before the neutralization point is reached. W. Wengeler, F. Wolstein, and E. Hoffman, assigned to Uhde G.m.b.H. Jan. 1, 1980 4 pp (423-167) Filed: 11-18-77 (852,918)

Jan 1, 1982

By Peter J. Conroy, Julianne H. Gyarmaty

INTRODUCTION The current study is part of the U.S. Department of Energy's (DOE) on-going subsidence research program. The long-term objective of the DOE program is to develop analytical methods of subsidence prediction applicable over a broad range of geologic and mining conditions encountered in the United States. The DOE currently has several contracts in progress to develop a sound data base that can be used in the development of predictive models. Dames & Moore is currently under contract to DOE to collect and analyze detailed subsidence and hydrologic data from a coal mine employing longwall mining methods in the Eastern Coal Province. Work under Contract No. DE-AC22-80PC 30335 began in October of 1980 and will continue through September of 1984. The contract includes monitoring of two adjacent longwall panels. This paper summarizes the surface monitoring work that was performed through February of 1982. Mining of the first of the two panels (3 off 3 north) was completed on February 3, 1982. Results of the surface monitoring through completion of this panel are presented and discussed. SITE DESCRIPTION The mine being studied is located in eastern Ohio. The site is west of the Ohio River, approximately 56 km (35 miles) south of Wheeling, West Virginia. The topography of the unglaciated region

Jan 1, 1982

By Edward D. Thimons, Richard J. Kline

Converting the energy of falling water into useful work is a well developed engineering concept. Much of the electric power consumed in the United States is generated in this manner. It is easy to conceive that the water which flows down long vertical pipelines into deep nines could be utilized in a similar manner by allowing it to operate a turbine at the bottom of the pipelines. The mines in the United States are continually descending to greater depths in search of mineable deposits. Large quantities of water are carried down long vertical pipelines in order to be used for dust suppression, motor cooling, and refrigeration. Pumping the used water back to the surface is also required. The electrical costs associated with mining are also constantly escalating due to both increased demand and rising kilowatt hour costs. To help deal with this problem, the United States Bureau of Mines (USBM) has awarded a contract to Foster-Miller, Inc. of Waltham, MA, to investigate, evaluate, and demonstrate commercially available means of energy recovery for the deep mining industry. In other words, it demonstrates an efficient system for converting the energy of water flowing down vertical pipelines into useful mechanical or electrical energy.

Jan 1, 1982

By Reaves. M. J.

The title of my talk, "What Happened to the Uranium Boom?" is old news. Certainly it is for this group. All of us that make our living in uranium know that the boom of the last half of the 1970's is over. U.S. production has been exceeding consumption by more than two to one. Mines and mills are closing and yellowcake prices have been dropping for over 20 months. The gloomy outlook for the industry in the near term has been well documented by soothsayers of various descriptions, your daily newspapers, and in the Nuexco Monthly Reports. I'd like to attempt to describe the next upturn in the market (speculate, really) based upon the clues we're seeing now. In order to do that, I'd first like to go over briefly, some of the market factors that contributed to the recent price drop and resultant production cutbacks, and then hypothesize on the way these factors are changing and will change. Market prices are greatly affected (maybe even entirely determined) by buyer perceptions. This is particularly true with uranium, because of the long lead times associated with nuclear plant construction and also with conventional mine/mill development. Before the price rise (say, 1975) utility uranium buyers believed that: 1) U.S. producers would have difficulty expanding to meet U.S. demand. 2) Australian and Canadian production was essential to avoid shortages in the early 1980's. 3) Uranlum prices would continue to rise as demand exceeded supply. 4) Enrichment capacity would become inadequate. It was thought necessary, therefore, to build enriched inventory in the early 1980's for use in the late 1980's. Artificially accelerated expansion of the uranium producer industry was necessary to accommodate anticipated enrichment demand. Current perceptions are largely the opposite. These are the beliefs that were held most of this year and late last year as prices dropped. 1) U.S. production is far in excess of domestic need. Contraction of the U.S. production lndustry is necessary. 2) Canadian and Australian supply is optional and not essential. Producers in those countries are expanding mainly by displacing higher cost production and not because they fill a void, 3) Prices may be essentially stable for some time. 4) Enriched uranium is in excess supply. That is 1981. 1982 is shaping up to look like this: 1) Prices will have bottomed out. (That is not Nuexco's opinion necessarily, by the way, but it is my opinion.) 2) There will still be substantial utility inventories, but fewer spot sales. 3) Canadian and perhaps Australian sellers will have made substantial sales in the U.S. and will be aggressively seeking more. 4) U.S. production will have been dramatically curtailed. U.S. utilities that wish to con- tract long term will have difficulty in finding domestic sellers. Concern will develop about the availability of U.S. production capability. Virtually all long term con- tracts signed will be with non-U.S. sellers. 5) An awareness will begin to develop among U.S. buyers that we are approaching a period of dependence upon foreign uranium (which will be true). The history of the uranium market has been one of dramatic changes and overreaction to those changes. The rapid price rise of a few years ago generated excess U.S. production capacity and the rapid price drop of the last two years will almost certainly result in too little capacity. It will soon be difficult for U.S. buyers to buy domestic material except on the spot market. The question is, "will they care?" The lack of demand, of course, is the underlying reason for the current poor health of the uranium industry. In 1972, 1973 and 1974 collectively, there were 105 nuclear reactors ordered in the U.S. That ordering rate was expected to continue and accelerate throughout this century. In 1975, 1976, 1977, 1978, 1979, and 1980 altogether, there were 56 more reactors cancelled than ordered. The net growth of our only customer since 1974 has been a negative 56. TO put this in perspective, if these 56 reactors were operating now it would more than double present U.S. uranium consumption. Underlying lack of demand is something that is simply not going to change in this decade. Time is going to be required. The NRC indicates that the maximum feasible number of new reactors that can be licensed each year is six. That would increase uranium consumption by only 10% per year. New reactors, if ordered tomorrow, would not generate new uranium demand until after 1990. Even so, United States' consumption of uranium will rise from the 1980 level of 18 million pounds per year, to

Jan 1, 1982

By Georges Caraghiaur

INTRODUCTION A small, independent mining enterprise (SIME) is an independently owned and operated business concern engaged primarily in mineral development, from the exploration to the production stage. A SIME may or may not be listed on stock exchanges. By definition, a SIME is not dominant in its field and has no long-term financial backing. As such, it is not a major producer of minerals, nor is it a petroleum company, a government organization or a subsidiary of such organizations. The survival and growth of a SIME is most often controlled by an independently minded entrepreneur, who not only conceives and carries out new projects, but is materially affected by the success or failure of these projects. Usually, a SIME does not have a large or constant cash flow. Such a lack of long-term financial backing forces the SIME to meet the challenge of finding capital for its activities on a step-by-step basis. Its survival strategy is thus based on finding funds at the right time, of the right type and in the right quantities. The purpose of this paper is to show that the type of venture in which a SIME is involved affects the difficulty of raising new capital and the choice of possible sources of funds. The Small, Independent Mining Enterprise The SIME, also called small miner, junior mining company, speculative mining company, and pennystock mining company, is not a figment of the imagination of financial speculators. In Canada, there are more than 1,800 small mineral enterprises which spend on the average less than $1,000,000 per year on activity which is directed at bringing forth new mineral supply. In the United States, 64 percent of the non-fuel mining operations are conducted by nine or fewer men, and the coal industry is characterized by several thousand smaller independent producers, still predominantly family-owned or controlled. In Chile, 80 percent of the mines can be classified as small mines. In the Philipines, approximately 60 percent of metal mining operations are classified as small mines. The SIME is actively engaged in mining all over the world, and very much so in the Pacific Rim. The Mineral Supply Process The whole process of bringing forth new mineral supply involves a dynamic sequence of activities, ranging from the initial exploration for a mineral occurrence to the production of a marketable product. A typical sequence is outlined in Figure 1. At the grass-roots exploration stage, a series of geological, geophysical and geochemical tests is aimed at locating a mineral occurrence. Especially in the early phases of such activities, the uncertainty (risk) surrounding a venture is high, since only general geological information exists on which to base a judgement of the economic viability of the venture. Such risk is attractive to few investors.

Jan 1, 1982

By Sam Rosenblum

The anomaly ratio is obtained by dividing the analyzed value of an element by the anomaly threshold value of the element. The sum of anomaly ratios for all anomaly elements in a sample may be compared with similar sums for other samples, so that samples having the greatest anomaly- ratio totals can be recognized easily. In partial or full suites of ore elements the we of anomaly ratios is more meaningful than use of analyzed value because the ratios quickly indicate how use of analyzed values because the ratios quickly indicate how anomalous some elements are, and call attention to samples and

Jan 1, 1982

By D. Y. Geng, Syd S. Peng

This paper analyzes the effects of geology and mining methods on surface subsidence factor, angle of draw and angle of critical deformation based on the results of 40 longwall subsidence profiles in the Northern Appalachian coalfield. Several equations were derived to show the relationships between those parameters. Furthermore, the equations were transferred and plotted in the form of several monographs for convenience of applications.

Jan 1, 1982

By Terry G. Richard, Vernal H. Kenner, Sunder H. Advani

This paper presents and discusses the results of thirty-one fracture toughness tests on Pennsylvanian Age Clay Shale. Two different orientations for this anisotropic material were studied and two series of tests were conducted, namely, 1. a test series to determine the effect of moisture content on fracture toughness, and 2. a test series to study mixed mode fracture. Increased absorbed moisture is found to reduce fracture toughness. Several analyses of mixed mode failure are found to give varying non-conservative predictions of failure stress intensity level.

Jan 1, 1982

By K. N. Clark, N. B. Carter, C. G. Thomas, V 7. 0 / 300 dpi

A statistically designed, experimental study showed how gangue minerals, flux additions, fineness of grind, firing temperature, and time affect the properties of acid pellets made from a Western Australian hematite ore. Alumina has less effect than silica and lime, but interactions between the six variables occur, which influence abrasion index, reducibility, and cold compression strength. Finer grinding has little influence on reducibility but improves the other two properties. The major variable is firing temperature, which interacts with all other variables to affect pellet properties. Calculations based on the data show the implications for straight-grate pellet plants and optimum hood temperature ranges.

Jan 1, 1982

By Thomas R. Smith

This paper covers oil shale resources in those countries that border the Pacific Rim. The major known resources around the Pacific Rim occur in the Western United States, Australia, the People's Republic of China, (PRC) and the Thailand/Burma region. The location of these deposits is shown in Figure 1. In 1965, the U.S. Geological Survey estimated world oil shale deposits of over 4 quadrillion tons having a potential oil yield of over 2 quadrillion barrels. If all this were extracted, it could meet the world's entire energy needs far into the future. However, the Survey also estimated the spent shale waste could cover all of the surface of the world to a depth of about 10 feet. Thus, for this and many other technical and economic reasons, it does not appear to be feasible to develop a large portion of the world's oil shale resources in this century; nor will shale in itself solve our energy problems. Nevertheless, shale oil and other ' synthetic fuels are expected to play an important role in new energy supplies in the longer term. WHAT IS OIL SHALE OR SHALE OIL? The term "oil shale" is sometimes a misnomer, in that the rock is often more of a limestone or siltstone than a shale. The common link between resources termed “oil shale" is that they all contain an insoluble substance cal led kerogen (which is from the Greek words for waxmaking). Kerogen is a form of organic carbon derived from a variety of plants ranging from algae to higher plants. When heated sufficiently, the kerogen generates hydrocarbons called shale oil, a form of synthetic crude oil that in most cases is lower in hydrogen content than conventional crude oil. The amount of oil in oil shale is relatively small --roughly 10 percent (by weight) in the richer shales. To upgrade this synthetic oil to usable products, additional processing is necessary. This brief sketch gives an idea of what this different, but significant, form of hydrocarbon is like. ENVIRONMENTS OF DEPOSITION Most oil shale deposits fall into three environments of sediment deposition: 1ake (called lacustrine), sea (marine) and river (fluvial-deltaic). In each case, the deposition of oil shales took place in quiet water environments where plant life, particularly algal plants, could flourish and, after dying, be deposited in unoxygenated water where the kerogen precursors would be safe from destruction by oxidation. The oil shales that were deposited in large lake basins (lacustrine) have attracted the most attention for development over the years. They often have multiple seams, deposited in a cyclic nature with extensive areal distribution and rapid vertical changes in kerogen content. Grades are moderate to high, ranging from 80 to 200 liters per tonne. Rundle in Australia and the Piceance Creek Basin in Colorado are examples of this type. Both deposits represent large volumes of oil shale in small areas which could provide the large volume of feedstock needed for future commercial operations. The stratigraphic sections of these two deposits feature thick oil shale seams with average grades of 80 - 125 liters/tonne conducive to both open pit, and underground operations. However, the rock strength of the Rundle shale is not sufficient to - support underground mining. On the other hand, the Colorado deposits, being more carbonate in nature, are sufficiently strong to support either type of mining depending on the overburden to ore ratio. These latter types of deposits will likely provide the first target for development of a commercial industry. The marine type is characterized by extensive areal distribution with relatively thin seams. The grades are generally low to moderate, ranging from 50 to 120 liters per tonne. The marine oil shales are common worldwide, and their attractiveness for mining is dependent on the overburden to ore ratio. Because of their widespread areal distribution, their in situ resources can be quite large. The Toolebuc Formation in Central , Queensland, Australia is a good example of this type of deposit being 7-10 meters thick over an extensive area. The Julia Creek deposit with its favorable overburden-to-ore ratio is being studied for possible development. In a fluvial-deltaic environment, there are many small lakes or bogs associated with rivers in which a very pure type of oil shale called torbanite could form. Torbanites are very high grade containing up to 75 percent hydrocarbons. The known occurrences are generally small lenticular deposits associated with coal seams. Even with the high grades, it is not likely that any of the known deposits would warrant commercial development because of their small size. The torbanite deposits in New South Wales, Australia were processed prior to World War I1 near the town of Glen Davis. However, today's known resources of this type are not large enough to warrant a commercial plant.

Jan 1, 1982

By Thomas R. Stauffer

The principle that conventional schemes for taxing petroleum or mineral resources are "inefficient" is illustrated using simulation calculations tested against an "ideal" system. Inefficiency is defined as the relative success in maximizing expected government revenues from the resources. Most systems fail because: 1) they leave oil in limbo, i.e. unproduced because of excessive fiscal burden; or 2) they unnecessarily increase the variance in the explorationist'c, rate of return by undertaxing large fields and overtaxing smaller but infra-marginal fields. This increases his discount rate and reduces taxable surplus. An "ideal" tax system is specified which maximizes government revenues while minimizing risk to the operator. Two criteria are developed: 1) the tax falls to zero on fields which yield only the minimum necessary rate of return ("marginal" fields); and 2) the after-tax present value of all fields is the same for all fields above a threshhold size. In particular, marginal fields, while contrib- uting little to expected values, do contribute to reducing variance and hence risk praemia by distributing the exploration costs over a higher probability of successful outcomes.

Jan 1, 1982

By B. H. G. Brady, C. M. St. John

Computational schemes for analysis of rock mass response to excavation, loading and other imposed changes, are employed pervasively in rock mechanics practice. Applications range in complexity from determination of stress and displacement distributions around openings, to prediction of the thermo-hydromechanical behaviour of a saturated fissured mass. While this may be taken as apparent sophistication in rock mechanics design activity, the indiscriminate use of computer methods may sometimes conceal inferior and inadequate engineering procedures. These inadequacies may not always be recognized, due to the general uncertainties which are inherent in rock mechanics investigations. This paper seeks to identify some common deficiencies in rock mechanics applications of computational schemes, and to propose ways of eliminating them. It also indicates some specific developments and applications of computational procedures, which are required to address persistent design problems in geomechanics practice.

Jan 1, 1982