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By R. G. Beverly

The presence of radioactivity in uranium mill wastes has resulted in somewhat unique waste disposal methods. In addition to the common problems of disposing of large quantities of solid wastes, neutralizing acids, minimizing dissolved heavy metals, and clarifying all liquid effluents, the uranium mill operator must sample and analyze liquid effluents for micro-micro-quantities of radio- nuclides such as Ra226, Th230, and Pb210. Special disposal methods or decontamination procedures are required to meet the stringent limitations established by the U.S. Atomic Energy Commission on the concentration of radionuclides in liquid effluents. Routine monitoring of the receiving stream is also normally required. In recent years there has been a growing concern about the radioactivity remaining in uranium mill tailings, particularly at the sites of shut-down or dismantled mills. The State of Colorado, in cooperation with the industry, has adopted regulations for stabilization of inactive uranium mill tailings.

Jan 6, 1968

By W. W. Coffeen, K. E. Doud

A singular mineral extraction and processing operation is conducted by Metal & Thermit Corp. in Hanover County, Va. The mine presently produces aplite rock, rutile and ilmenite. The deposit lies in the piedmont plain about 25 miles northwest of Richmond. It first drew attention as a result of discovery of float rutile on the surface about 1910. About seven years prior to this, Metal & Thermit through a subsidiary. American Rutile Co., had begun producing rutile'and ilmenite from a deposit in Nebon County, near Piney River, where aplite rock and ilmenite are mined today. Because of the interest in titanium minerals and the similarity of the new deposit to the Nelson County deposit, Metal & Thermit became interested and eventually acquired the Hanover County deposit.

Jan 10, 1962

By E. Horton Jones

INTRODUCTION WE have endeavored in the following "sheets" to give the unit construction costs derived from the building of the Arizona Copper Co.'s new smelter, Clifton, Ariz., starting in February, 1912, and completing February, 1914. 1 In Chapter I-Unit Costs-are to be found the most elementary total unit costs which the accounts provide for. They are usable in the Clifton district. Here too are found the percentages to be added to an estimate for Engineering and General Expense. In Chapter II-Comparative Costs-these elementary costs have been classified, averaged and reported as labor and material unit costs. In such form the labor unit costs, when properly applied to similar conditions as these under which they were derived, are usable anywhere. The material unit costs are better disregarded for more accurate estimates and replaced by a newly priced bill of material. In Chapter III Composite Costs are given. They are unit costs built-up from several elementary units, and likewise units of larger dimensions and simpler application, valuable for

Jan 7, 1914

By AIME AIME

AT a joint meeting of the Tulsa Geological Society and the Mid-Continent Section of the A; I. M. E., held at Tulsa on March 21, the history of unit development in the Kettle- man Hills field was discussed. Robert C. Patterson? Super- visor for the U. S. Geological Survey at Taft, Calif., was the speaker. An abstract of some of his remarks follows: On July 1, 1923, curtailment agreement for two years was made between the operators of North Dome Kettleman and the U. S. Department of the Interior. In this it was agreed to consider a plan of unit development, or other cooperate method of developing the structure. As a result, Kettleman North Dome Association was incorporated in December, 1930, as a non-profit cooperative corporation under the laws of California. Approved in January, 1931, by California Oil and Gas Supervisor and by Secretary of Interior. On Feb. 10, 1931, it became an active organization through election of executive officers and eleven- directors. General manager chosen. Association started to function April 1, 1931. Assumed control of 10,800 acres of proved and semi-proved land, as shown in Table 1.

Jan 1, 1932

By Oliver B. Knight

The producing formation in the South Field, or "Golden Lane" structure of Mexico, is a buried ridge of reef limestone of Comanchean age overlain unconformably with sediments of Upper Cretaceous, Eocene and Oligocene. The structure extends in a long sweeping arc, with the convex side toward the west, from San Geronimo, Vera Cruz, to San Isidro, south of the Tuxpam River, which it crosses at the town of Alamo. It is 52 miles long and averages 3/4 mile in width. The surface of the producing formation of El Abra limestone consists of a series of minor parallel highs which are separated longitudinally by synclinal troughs and laterally by structural saddles. The presence of these highs has been of utmost importance in the development of the field, especially in recent years when the salt-water level has risen above the synclines and confined the oil to the isolated highs. In many cases, faulty information and interpretation of the subsurface has resulted in drilling costly dry holes and salt-water wells. Development The development of the Golden Lane was started by the Mexican Eagle Oil Co. in 1906. San Diego No. 3, usually known as Dos Bocas, the first producing well on the structure, was completed on July 4, 1908. This well came in unexpectedly for an estimated daily production of 129,000 bbl., and, as the casing was not properly set, the well flowed wild into the Tamiahua Lagoon, causing a loss of several million barrels of oil. In flowing wild the well formed a crater which covers an area of 48 acres, out of which salt water and small quantities of gas still flow. Casiano No. 2, the Huasteca Petroleum Co., which yielded 200 bbl. of oil daily, and which was completed in November, 1909, was the next producing well to be drilled on the structure. In 1910, the same company completed Casiano No. 7, with an initial production of 50,000 bbl. daily, and Casiano No. 1, which produced 200 bbl. daily. In the same year, the Mexican Eagle Oil Co. completed its Potrero del Llano wells 1, 2 and 4, with initial productions of 500, 400 and 100,000 bbl. respectively. From 3910 to the latter part of 1919, development proceeded

Jan 1, 1931

By W. P. Z. German

Some attention should be given to definitions. The term "unit operation " may have at least two meanings. One meaning is the merging of titles and the development and operation of the unitized area, as if it were one tract of land held under a single oil and gas lease, according to a definite program intended to accomplish a maximum recovery from the pool as a whole at a minimum of cost. It is incomplete when the royalty owners do not also merge their titles to their oil and gas rights in the area, and is complete when they do. The other meaning is not accompanied by any merger of titles, but the development and operation of the area is in accordance, as nearly as reasonably practicable, with such a program. This second conception may be nothing more than a cooperative development and operation plan, but in this paper it is regarded as more than that. If there cannot be unit operation without a merger of titles, it would seem that the state cannot require unit operation, for it cannot require a merging of titles; but if it may consist in requiring each and all of the leaseholders to develop and operate or to submit to a development and operation according to some such common plan as is referred to above without at the same time requiring a merger of titles, it would seem that unit operation may be required by the state. Whether the states have this power is the subject to be herein considered. If the state can so bind the several lessees, it also can so bind the several lessors. The writer does not know what would be an ideal plan for the development and operation of a pool; but it takes into account the fact that the accumulation of gas and oil is not uniform throughout the formation; that often free gas, highly compressed, occupies the upper portions of the reservoir, the oil with compressed gas in solution coming next in order; that at places oil is not overlain by free gas, and sometimes there are peaks where free gas is not immediately underlain by any oil; and the fact that these substances are held under a uniformly distributed pressure, generally referred to as "rock pressure." It also recognizes that the most efficient utilization of this naturally existing reservoir pressure in the recovery of the oil requires that there be no operation of wells completed into areas where gas only has accumulated, for this diminishes the

Jan 1, 1931

By Robert E. Allen

The organized curtailment of California oil production is not yet one year old but during its first year it has accomplished so much that it is now firmly established as an agency of economic efficiency. The principle of cooperative curtailment has been adopted by other states and it is safe to say that the principle will continue as long as the demand for petroleum is notably less than the potential production. It' is interesting to note that this same principle of regulating supply to meet demand is now being urged for other industries, such as agriculture and mining. Since Oct. 31, 1929, when curtailment was instituted by the oil producers of Santa Fe Springs and Long Beach in an effort to avert the disaster of ruinously low prices which confronted them, there has been a constant and increasingly effective curtailment program in California. Prior to that time a notable effort toward the restriction of oil production was made under the direction of F. C. Van Deinse during the early summer months of 1929. A considerable reduction of oil output was recorded as the result of this effort, but because of incomplete cooperation and the discovery of still deeper zones at Santa Fe Springs the effort was abandoned; flush field production became unrestrained and prices soon fell to low levels. This initial curtailment movement was educational and experimental. It showed all operators a way out of their overproduction difficulties and developed the principles followed in later curtailment efforts. Thus it was that only a few days after their oil had been reduced to 60 c. per barrel, the operators of Santa Fe Springs got together and agreed to restrict their current production of more than 270,000 bbl. daily to not more than 150,000 bbl. daily. The operators at Long Beach followed the same course a few clays later and agreed to limit their production to not more than 110,000 bbl. daily. The Santa Fe Springs operators chose H. P. Grimm as umpire and director of their proration program. Neal H. Anderson was chosen umpire for Long Beach. Since that time, as the need for curtailment has increased, practically every field of the state has come under the curtailment of these two umpires. Curtailment of the Elwood and

Jan 1, 1931

By Peter Q. Nyce

Law is as old as civilization. In its early stages the so-called law of the jungle, "the survival of the fittest," was entirely operative. Man was quite largely a law unto himself and was likewise his own lawyer. As civilization developed and individuals segregated themselves into bands or communities, man-made laws became a reality, the individual sacrificing certain privileges for the benefit of the band or community in which he was privileged to live. Our present system of law is a continued development of that process. Very early in this development the exigencies of the occasion called into being classes of individuals who were given to study the laws then existing, and this group became known as lawyers. They advised what could or could not be done under existing laws. They were the aggressors in formulating new laws and principles under which the communities must live. Concurrently with the development of the law and the lawyer, the engineering profession was born. In our early civilization, each man was his own engineer; he built his own home, constructed his own bridge, and provided his own means of conveyance. As civilization became more complex, technical study was required to consummate projects and thus meet the requirements of an expanding community. The engineering profession assumed this burden. Both groups were human and thus susceptible to human mistakes and errors. It was Macaulay who said: "The world generally gives its admiration not to the man who does what nobody else ever attempts to do, but to the man who does best what multitudes do well." BiRth of Petroleum Industry In 1859, by the completion of the Drake well in Pennsylvania, the petroleum industry as we know it was born. Its rapid progress since that time has been both extraordinary and remarkable. The zeal of the individual operator to secure all possible oil in the shortest time, even to the extent of bringing into possession a part of the oil underlying a neighbor's property, developed unnecessary drilling, wasteful methods of recovery, great loss of gas, the early abandonment of property with much unrecovered oil thereunder. Such methods, plus

Jan 1, 1931

By Joseph E. Pogue

There are two methods employed in the development of oil pools. The older and dominant method is one in which the primary object is the protection of the underground deposit from drainage through competing wells, and considerations of efficiency of extraction and cost of production are subordinated thereto. The newer and less prevalent method is one in which maximum efficiency and minimum cost are the first objectives and developments to these ends may proceed undisturbed by the exigencies of competitive drainage. The second method has developed mainly in pools under single ownership and the term "unit operation" has come to be applied to this procedure. A single ownership, however, is not essential to the method, for unity of operation may be achieved by agreement under split ownership, or even by a concert of enlightened purpose. There are examples of unit operation where neither the ownership nor the management is a unit, but merely where unity of procedure has been attained, as in the Yates pool. Throughout this paper "unit operation" is used in its broad sense without implying sole ownership or single management, although unit operation is more conveniently attained where these conditions are present. It is evident, upon reflection, that the second method should yield results far superior to the first, for the work of exploitation can be conducted without extraneous considerations and the natural forces present in the oil reservoir can be utilized to maximum advantage. Experience has amply confirmed this conclusion and were the facts widely known and appreciated, the efforts to extend the applications of the principle of unitization would be greatly intensified. Competitive Development of Oil Pools It has come about that the vast majority of oil pools, or reservoirs, in the United States are subdivided by numerous surface tracts under separate ownerships. This condition arises from the prevalent practice in the oil business of acquiring prospective acreage in checkerboard spreads. Thus the discovery of oil usually reveals a mosaic of overlying ownership. Since oil is a migratory mineral and is subject to lateral

Jan 1, 1931

By H. H. Power, C. H. Pishny

When an oil operator becomes a party to a proration agreement he may wonder, with good cause, whether production prorated .today is merely deferred until tomorrow or whether oil might be lost. Various types of evidence obtained from production records when studied quantitatively are of great assistance in arriving at definite conclusions. A study of individual examples cited in this paper leads towards some solution of the problem, particularly when they are considered in the aggregate. Many production curves on various pay horizons were studied. A disappointingly large number of these were of contributory value, but inconclusive. However, there were enough curves of similar type from the Wilcox sand at Earlsboro, Bowlegs, Seminole City, the Cromwell horizon at Little River, and the Simpson dolomite at Valley Center, Kansas, from which reasonably definite conclusions were drawn. Assuming that deferred production is later made up with no increase in ultimate recovery, a curve (Fig. 1) shows the normal flowing and pumping life of a composite well, contructed by the family curve method. The initial production of the well shown is 1700 bbl. daily and the allowed production is 25 per cent. On this basis the average daily allowed rate for the first month is 425 bb1., or the area BCDE, which is equivalent to the area AFDG under the normal decline curve. The potential production for the second month is 1500 bbl. and the allowed production 375 bbl. daily. By this procedure a potential curve for each succeeding month is obtained (points A, H, I, J and K). If the well is opened it should produce somewhere near its potential curve for a short period and then decline at a more rapid rate than the potential curve. This theoretical analysis is basic. Actual examples exhibiting all points raised by the ideal curve are rare. Proration in the Mid-Continent area has been effected mostly by leases rather than by individual wells; hence a well may produce any

Jan 1, 1931

By Eugene A. Stephenson

Critical analyses of the work expended in producing oil by the utilization of gas energy have appeared in the publications of Shaw,' Pierce and LewisI2 and Herold,3 authors who have ably discussed the factors which must be taken into consideration in comparing energy consumed per barrel in various wells which are flowed by means of gas-lift. However, two distinct phases of oil production are concerned with the ratio of gas energy consumed to oil produced. One of these phases is the gas-lift, which utilizes the differential gas pressures for the purpose of flowing oil, whether these pressures be natural reservoir pressures or be induced by artificial compression of gas or air. The other phase has to do with prorating oil production in pools which are operated either as units, or are subject to such restrictions as those imposed at Oklahoma City by the Corporation Commission, or by similar controlling groups in other fields. An abundance of literature is available relative to the problems of flowing wells by gas-lift, but the first suggestion that the energy of the gas within the oil and gas pool might serve as a basis for proration, appeared in the timely article by Mc Williams.4 Much of the dissatisfaction with proration in certain fields arises because some operators feel that besides the hazard to the wells which accompanies the test, the method of allocating production on the basis of the " potential" gage is inequitable and gives some operators a distinct advantage over others.5 The most severe penalty may be exacted from the most progressive operators or those who attempt to produce their oil with a minimum quantity of reservoir gas. If no difficulties ever developed in drilling, shutting off water, or in well completion, it might

Jan 1, 1931

By David Donoghue

The efforts towards curtailment in Texas have been successful, despite the great area covered and the wide variety of oils offered. There are, of course, examples of noncooperation, perhaps of absolute indifference, but of such it can at least be said that they have benefited from the restrictions imposed elsewhere. The prevention of waste is the legal background for proration in Texas. The legislature in 1899 passed the first laws to prevent waste of oil and gas. Subsequent legislatures, especially those of 1905, 1913 and 1917, undertook to regulate the development and transportation of oil and gas to the end that waste would not occur. In 1917 a constitutional amendment was submitted to the people, providing that natural resources of the state should be conserved and requiring that the legislature pass appropriate laws. This amendment was adopted, and the Acts of 1919 and 1929 have been passed, and these have had the effect of making a rather elaborate plan for the conservation of oil and gas and their protection against waste. In 1930 the new pipe line act, designed to provide for ratable purchases, was passed. The administration of these laws has been placed under the Oil and Gas Division of the Railroad Commission of Texas. The Commission can only consider actual waste, not economic waste. The various proration plans in use in the state, while differing in efficiency, are based on engineering principles. In the proration of flush fields, the limiting of drilling and the steady production of oil under restriction are the principal points involved, and these methods are entirely different from those which prevailed until recently in the Oklahoma City Pool, where apparently nothing beyond the restriction of production on a time basis was attempted. There is little to say in defense of proration in the older and smaller producing areas in Texas, except that, inasmuch as the market outlet has been reduced, proration distributes the market ratably among the producers. Work of Central ProRation Committee In the early part of 1930 the overproduction situation became acute, and, at the request of the Railroad Commission, a committee was formed composed of representatives of the Texas Division of the Mid-Continent

Jan 1, 1931

By H. C. Hardison

The Yates pool, Pccos County, Texas, has greater potential capacities than any other field in the United States. This field is notable for the large return it yields on capital invested, for low production costs and for the orderly and conservative manner in which it was developed and continues to be operated. The proven area is 20,000 acres and there are 392 producing wells, or approximately 1 well to 50 acres. The theoretical daily potential is 5,250,000 bbl. as determined by l-hr. open-flow gages. Individual well gages vary from a few barrels to 8500 bbl. per hour, and well depths range from 1000 to 1800 ft. The greater part of the production is from a very porous limestone, and by agreement no productive well has penetrated the lime more than 225 ft. The forces driving the oil from the formation to the surface are hydrostatic head, expanding gas or a combination of the two. The degree of effectiveness of either depends upon the structural position of, and porosity encountered in, the individual wells. Approximately 95 per cent. of the wells in the field flow naturally. The pipe line outlet of the field at the present time is 100,000 bbl. per day, which is less than 2 per cent. of the daily potential. Difficulties and Principles of Probation It became evident during the first year of the development of this field that operators would have to devise a scheme to allocate pipe line runs equitably among their different properties. When the idea of proration was first inaugerated, the matter of spacing wells was given consideration. This was given up through fear of legal difficulties. Storage was also a question that was given considerable thought, and a plan was finally developed which went into effect Oct. 1, 1927. It was decided that the oil runs should be prorated according to the total potential capacity of all the wells which the several operators had in the field. The potential capacity of the wells was measured by a l-hr. open-flow gage. All runs to storage by an operator were deducted from his daily allowance.

Jan 1, 1931

By H. C. George

Since 1911, when J. L. Dunn first used compressed air for repressuring depleted oil sands in southeast Ohio, the rejuvenation of many depleted oil fields has been directly due to repressuring by means of air or gas. Developments in repressuring in recent years have resulted in its successful use in the early life of some deep, high-pressure oil fields, conserving the natural gas dissolved in and associated with the oil by returning it to the producing oil sand after it has been compressed above the existing rock pressure of the reservoir. One of the most successful operations of this type is that of the Humble Oil & Refining Co., on the DeWalt salt dome at Sugarland, Texas. I quote from a personal communication with reference to this field: "Structurally, the field is dome-shaped, having a closure of approximately 350 ft. Production comes from a sandy shale interbedded with a clean sand and lying over a cap rock which is about 3400 ft. deep on top of the structure." A feature of the operation of this field is the production of the required amount of oil with the minimum of gas production. Wells on top of the dome have high gas-oil ratios, while those down structure have lower ratios, depending upon the distance of the well from the peak. To date, it has been possible to produce the oil needed from the wells circling the dome above the water zone and below the gas zone, and in this manner the average gas-oil ratio has been kept low. The gas from all separators is turned into a gas system which serves the entire field. From this system, all drilling rigs and utilities requiring gas for a fuel draw their requirements, and the remainder of the gas (about two-thirds of the production) is delivered to a compressor plant which boosts the pressure until it can be returned to the sand at the top of the dome where the rock pressure is 1400 lb, per square inch. "The Sugarland wells produce through 2-in. tubing with a 3/8-in. choke in one wing of the well-head manifold. The pressure builds up as high as 1300 lb, per square inch on the casing while on the tubing it varies from 0 to 900 lb. per square inch, depending upon the amount of gas produced with the oil."

Jan 1, 1931

By Earl Oliver

Some two years ago the Petroleum Division of the A. I. M. E. organized a special study of unit operation. That method of handling oil pools had been urged as the remedy that would save the United States petroleum industry from the crisis that even then loomed as more than a small cloud on the horizon. Today it is only one of several remedies vigorously advocated. Proration, regulation of imports, unit operation, constructive marketing and interstate compacts all have their earnest proponents, but the advocates of each have been disposed to look with indifference on the other respective proposals, with the result that none has had united support. Meanwhile the industry has drifted rapidly toward a serious crisis, the imminence of which in itself may bring the solution. The gravity of the situation tends to force study of the merits of proposals that a short time previously were brushed aside as impractical; and to the surprise of most of us we now find merit where previously we thought none existed. Irrespective of what might have been the result had any single proposal being adopted years ago, it is now apparent that under present conditions no one of the remedies—unit operation, proration, regulation of imports or constructive marketing—standing alone would be of much benefit. On the other hand, it is becoming evident that a well balanced program comprising all four of these remedies might save the United States petroleum industry; also that some such comprehensive program might be necessary to save it. It is even becoming evident that the despised interstate compact might be an appropriate type of machinery in which to group and coordinate all these remedies. We have progressed beyond the belief that either the industry or the government working alone can correct the situation, and have arrived at the more healthy realization that the task will require most sympathetic cooperation between government and industry, backed by an equally sympathetic public understanding. If we were functioning under a Mussolini or a Stalin, stabilizing the petroleum industry would be a much simpler task. However, in the

Jan 1, 1931

By Joseph Jensen

California's outstanding contribution to unit operation is the plan of development now established for the North dome of the Kettleman Hills. Beginning April 1, 1931, the Kettleman North Dome Assn. will control the unified operation and development of 10,800 acres of proven and semiproven oil land, and at the same time the Standard Oil CO. of California will operate as another unit its fee land of 9460 acres of similar character. The holdings of the two companies are in a checkerboard mile-square pattern. In addition to this, 410 acres of land may yet be included in the Kettleman North Dome Assn. unit and 530 acres of land are definitely out of both units. The owners of some of this land have expressed their intention of cooperating in a reasonable way with these two units. Cooperative agreements are now in force as to most of this field. Under the definitions of a unit pool and a near-unit pool,' the operation at Kettleman Hills will be a near-unit operation, but because of the size of the structure and its proven highly productive character, the arrangement. concluded on Jan. 31, 1931, in the approval of the Kettleman North Dome Assn. Agreement by Secretary of the Interior Ray Lyman Wilbur and by California State Oil and Gas Supervisor R. D. Bush is of outstanding importance to the entire oil industry. No other major unit operation plans are under way in California at the present time. There has been some little discussion of a plan in the North Belridge field and a feeling that the discovery of oil in the Lost Hills field and also in the South Belridge field would necessitate consideration of unit plans. So few data are available for these areas, as to the land that should be included in such unit plans, that little constructive action is now possible. The beginning of drilling on the Middle dome of the Kettleman Hills also makes it an area deserving consideration for unit operation. All four of the above-named areas lie on the west side of the San Joaquin Valley, in Kings and Kern counties, to the south of the

Jan 1, 1931

By E. L. Estabrook

Oil companies operating in foreign countries have made increased use during 1930 of cooperative agreements in prospecting unproven territory and in developing proven territory. A considerable proportion of the existing foreign fields are held under single ownership and have been developed as units. The operating companies seek to maintain this condition by acquiring land in large blocks or by merging smaller concessions under unit operating agreements. Your committee has secured a number of reports on foreign non-competitive operations and a valuable formal paper which deals with the Golden Lane of Mexico.l 0. B. Knight has drawn some valuable comparisons concerning costs of development and ultimate production between a certain competitive area and another noncompetitive area along that strip of rich producing territory. After discussing details of production, numbers of wells and cost of drilling and production, he concludes that the 93,700,000 bbl. of competitive oil will have cost $0.193 per barrel as compared to 85,700,000 bbl. of noncompetitive oil at $0.059 per barrel. The saving of $0.134 per barrel amounts in round figures to $11,500,000, which is 21/2 times the total cost of developing the non-competitive block. The cost for drilling and development of the two areas of 3550 acres which Mr. Knight compares was $18,150,000 under competitive and $4,760,000 under noncompetitive conditions. The estimated ultimate production of the competitive 3550 acres is expected to reach 93,700,000 bbl., or 8,000,000 bbl. above the noncompetitive block. Under ordinary production methods it is to be expected that a noncompetitive area will yield less oil per unit area than will a similar competitive area, because of closer spacing and more rapid extraction in the latter case. The advantage of noncompetitive conditions, in this regard, is that the undivided ownership makes it possible to apply repressuring as a production method fairly early in the life of the field and thus, in the end, to vastly increase the yield. In the particular region described by Mr. Knight, repressuring is not thought to be a factor of

Jan 1, 1931

By R. Walker, R. J. Anslow

Today at Tampa we see the end results of a team effort: A vital link in an intermodal transportation system, the link that enables the unit-train concept to be employed with full effectiveness and the link that improves the economics of water transportation systems. Two new phosphate transfer complexes with a multi- million ton annual capacity are in operation in Tampa, Fla. Revolutionary in concept, these companion installations represent a total investment in the Tampa Bay area of $18.5 million.

Jan 1, 1970

By J. A. Reeves

The unit-train for moving mineral raw materials is considered by many railroad men as the most significant contribution toward reducing rail freight costs since the introduction of the diesel locomotive. The idea, which involves assigning railroad equipment to only one haul and keeping the equipment rolling, results in the maximum utilization of equipment. For example, before the unit train was placed in service on coal hauled to one of Mid-Continent Coal and Coke Company's customers, about 900 cars and 9 locomotives were needed to move its coal requirements, compared with 250 cars and 6 locomotives currently used. If unit-train economics are to be achieved, coal companies cannot use railroad cars as small storage bins on wheels to accumulate their coal in train-load shipments, instead, these companies must build large bins which incorporate facilities for the rapid loading of railroad cars in a minimum length of time.

Jan 1, 1970

By Paul Averitt

In spite of recent trends in the United States toward construction of steam generating plants near mine mouths, and toward use of high-voltage direct current for long-distance transmission of electricity, coal in substantial amounts is being transported over relatively long distances to serve specific needs. As coal is a low-cost bulk commodity which is more suitable for use near the point of origin, some of these long hauls are of considerable interest because they show what can be done under the pressure for more and more coal to support industrial and economic growth. Japan has an Insatiable Appetite for Coal Perhaps the longest U.S. coal journey begins in the east Appalachian Basin of southern Pennsylvania, eastern West Virginia, and southwestern Virginia. High-quality coking coal mined in these areas is shipped by rail to Baltimore, Md., and to Hampton Roads, Va., where the coal is reloaded on freighters for shipment primarily to western Europe and Japan. In 1967, shipments of coal to western Europe totaled 19 million tons, and shipments to Japan totaled 12 million tons. Japan also imports coal from Australia, the U.S.S.R., Canada, Poland, the People's Republic of China, and to a lesser ex- tent from several other countries. In an effort to solve long-term needs, Japanese steel interests have contracted for the purchase from the Kaiser Steel Corp. of 51 million long tons of coking coal over the period 1970 to 1985. The coal will come from the Kaiser Steel Corp. mine near Fernie, British Columbia. This arrangement will reduce Japan's future dependence on Appalachian Basin coal.

Jan 10, 1969