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By Earl R. Parker, Ralph Hultgren

DURING the past year publications in physical metallurgy have not been abundant when compared with the output of prewar years. Nevertheless, some noteworthy contributions have been made to the literature. Because of the necessity for war production, much of the metallurgical effort has been directed towards the solution of problems of production processes. The limited amount of time devoted to other problems is reflected in the small number of papers devoted to nonapplied research, though a few excellent contributions have been made to the fundamentals as will become evident in the following pages. Results of many of the government-sponsored research investigations have been released to the public and are being published in the technical journals. Many more of these papers may be expected to appear in the 1946 publications.. Public distribution of information obtained in the course of these investigations should be of great value to American industries in the postwar era. Continued activity in research of all kinds is apparently assured because of intense

Jan 1, 1946

William Kent, New York, N. Y.:—The Institute may congratulate itself on the opportunity of reading the splendid address of President Brunton. It is an admirable summary of the progress that has been made in the mining and metallurgical arts in recent years. The paper rightly gives the chief credit for this progress to the aid which has been rendered to these arts by the advances in mechanics, chemistry, and electricity. It is notable that most of the headings in Mr. Brunton's address refer to the work of the mechanical engineer, the electrical engineer, and the chemist, rather than to that of the specialist in mining-operations. It seems that the most successful mining engineer of the present day is the one who makes the most intelligent application of the inventions and designs of engineers and others who are not directly engaged in mining. A tabulation of the headings of the address, grouped as below, shows this most clearly. Work of the Mechanical Engineer—Rock-drills, hoisting-machinery, tramming, pumping, ventilation, dredging, Sampling, concentration, briquetting, fume-recovery. Work of the Electrical Engineer—Electric machinery for hoisting, pumping, tramming, lighting and signaling, electric transmission, electric smelting. Work of the Chemist and Metallurgist—Explosives, chlorina-tion, cyanidation, roasting, lead-smelting, and copper-smelting. Work of the Geologist—Economic geology. Work of the Mining Engineer—Mine-mapping, surface-mining, timbering, tunneling; and planning and supervision of the work in general. The mining engineer of the present day, who is in responsible charge of a large plant, finds his chief work not in doing those things he was trained to do as a specialist, but in making use of the knowledge of geologists, chemists, and electrical and

Jan 1, 1910

By James J. Halbouty, Michel T. Halbouty

Drilling activity in the South Texas area, which includes the South Corpus Christi and Laredo districts, showed a marked decline during 1941 from that of the preceding year. The rate of new discoveries, however, 'compared favorably with exploratory results of 1940 because of the many new productive sands opened in existing fields. South Texas completions for 1941 were about 12.3 per cent below the 1940 figure, compared with an increase of approximately 5.5 per cent in the total number of completions in the United States during 1941 over the 1940 total. During the year, 1452 wells were drilled in this area; of these, 1205 were drilled in or as extensions to the proven fields, and 247 were rank wildcats drilled in search of new producing pools. The comparable 1940 figures were: 1320 field or extension wells and 336 rank wildcats, a total of 1656 completions. This represents a decline in 1941 of approximately 8.7 per cent in proven-area wells, and of about 26.5 per cent in rank wildcats. It must be stressed that wells that were considered rank wildcats at the beginning of operations, but which opened production later classified as additions to existing fields, are not regarded as rank wildcats in this and previous annual reports on this same area. These wells are classified as semiwildcats (Table 2). There were 13 new oil or distillate fields and 4 new gas areas opened during the year, as listed in the next column. This listing represents a decline of 32 per cent from the 25 new areas found during the previous year, and to a great extent can be attributed to the 26.5 per cent decline in wildcatting. The rate of new discoveries based on the 247 wildcats was 14.5 to I, which compares somewhat unfavorably with the 13.4 to I ratio obtained in 1940 (Table 5). Dry wildcats totaled 230. The proof of the prolific character of the South Texas area as a source of petroleum reservoirs is to be found in the fact that of the 1205 field or extension (semiwildcat) wells completed during the past year 61 opened production from new sands or found crude in formerly distillate-producing sands. The 1940 total of 1320 such wells accounted for 50 horizons that provided either new production or crude in distillate sands, and in this respect the 1941 rate of discovery shows to greater advantage, the ratios for new sands being 19.7 to I for 1941 and 26.4 to I for 1940. The 1205 field or semiwildcat wells completed in 1941 resulted in 926 oil or dis-

Jan 1, 1942

By James J. Halbouty, Michel T. Halbouty

Drilling activity in the South Texas area, which includes the South Corpus Christi and Laredo districts, showed a marked decline during 1941 from that of the preceding year. The rate of new discoveries, however, 'compared favorably with exploratory results of 1940 because of the many new productive sands opened in existing fields. South Texas completions for 1941 were about 12.3 per cent below the 1940 figure, compared with an increase of approximately 5.5 per cent in the total number of completions in the United States during 1941 over the 1940 total. During the year, 1452 wells were drilled in this area; of these, 1205 were drilled in or as extensions to the proven fields, and 247 were rank wildcats drilled in search of new producing pools. The comparable 1940 figures were: 1320 field or extension wells and 336 rank wildcats, a total of 1656 completions. This represents a decline in 1941 of approximately 8.7 per cent in proven-area wells, and of about 26.5 per cent in rank wildcats. It must be stressed that wells that were considered rank wildcats at the beginning of operations, but which opened production later classified as additions to existing fields, are not regarded as rank wildcats in this and previous annual reports on this same area. These wells are classified as semiwildcats (Table 2). There were 13 new oil or distillate fields and 4 new gas areas opened during the year, as listed in the next column. This listing represents a decline of 32 per cent from the 25 new areas found during the previous year, and to a great extent can be attributed to the 26.5 per cent decline in wildcatting. The rate of new discoveries based on the 247 wildcats was 14.5 to I, which compares somewhat unfavorably with the 13.4 to I ratio obtained in 1940 (Table 5). Dry wildcats totaled 230. The proof of the prolific character of the South Texas area as a source of petroleum reservoirs is to be found in the fact that of the 1205 field or extension (semiwildcat) wells completed during the past year 61 opened production from new sands or found crude in formerly distillate-producing sands. The 1940 total of 1320 such wells accounted for 50 horizons that provided either new production or crude in distillate sands, and in this respect the 1941 rate of discovery shows to greater advantage, the ratios for new sands being 19.7 to I for 1941 and 26.4 to I for 1940. The 1205 field or semiwildcat wells completed in 1941 resulted in 926 oil or dis-

Jan 1, 1942

By F. C. Greene

Development work in western Missouri was continuous during 1933, owing to the shallow depths at which production is obtained and the low operating costs. Unfortunately, no statistics covering the total production of oil and gas during the year are available. No new oil-producing pools were opened in 1933, but the Knoche area in 1.46 N., R.33 W., Cass County, was extended. There are probably less than 100 producing oil wells, all in Cass and Jackson counties, with a combined production of possibly around 150 bbl. daily. Several new gas areas were developed and there were several extensions of old areas, in 1933. Production was extended north by an entirely new pool—the Hammond pool, north of Plattsburg in Clinton Co. (sec. 18, T.55 N., R.31 W., and sec. 13, T.55 N., R.32 W.) where 13 wells were completed, the largest producing 2,332,000 cubic feet. In the Bartle and Marshall pool in secs. 3-4-9-10, T.47 N., R.33 W., Jackson County, four wells opened a new area. The largest well was 1,000,000 cubic feet. There were some small extensions near Independence, Jackson County. Two wells of about 300,000 cu. ft. were completed at a depth of 700 ft. in Kansas City and in a deeper sand than is usually productive. The Shaler area, in secs. 27-34, T.44 N., R.33 W. in Cass County, was extended with several wells, the largest of which was 300,000 cubic feet. The production in the pools mentioned is obtained chiefly from the Henrietta and Cherokee formations of the Pennsylvanian age.

Jan 1, 1934

AARONS, J. BOYD; Major. AGNEW, FRANK VANS. ALLEN, HERMAN H., Private, D Co., 8th Reserve Engineers. AMBLER, HARRY A., Second Training Camp,, Ft. Sheridan, Ill. BAINS, THOMAS M., JR., Major, Engineer Officers' Reserve Corps. BANKS, H. R., Lieutenant, Canadian Engineers, B. E. F. BARBOUR, PERCY E., Deputy' Supt. (Captain), New York State Troopers; Captain, 22d Regiment, N. Y. N. G. BARLING, H. B., 1st Lieutenant, Engineer Officers' Reserve Corps. BARRETT, LESLIE P., Lieutenant, A. E. F., France. (Unattached.) BENSEL, J. A., Major, Engineers' Reserve Corps. BIGELOW, BRAXTON, Royal Engineers, B. E. F. BLOOMFIELD, E. C., Lieutenant. BORROW, F. K. BOWLES, MARTIN F., 2d Lieutenant of Infantry, Camp Funston, Kans.

Jan 11, 1917

By A. Boltax

H. Herman and M. E. Fine (Northzcesteriz University)—The author is to be complimented on the quality and completeness of his work. Of special interest to us was the exponent of time in the exponential rate equation, n = 0.28 ± 0.03, since it is consistent with results for the early stage of quench-aging in A1-2 at. pct Cu, n = 1/3, first determined in this laboratory."' In that work we attributed the early kinetics to attraction of vacancy - solute atom complexes to the plate-shaped zone due to the strain field about the zone and the lowering in free energy. To our knowledge, Hirano et 1.' were the first to

Jan 1, 1962

AARONS, J. BOYD, Major. AGNEW, FRANK VANS. ALLEN, HERMAN H., Private, D Co., 8th Reserve -Engineers. AMBLER, HARRY A., Second Training Camp, Ft. Sheridan, Ill. BAINS, THOMAS M., JR., Major, Engineer Officers' Reserve Corps. BANKS, H. R., Lieutenant, Canadian Engineers, B. E. F. BARBOUR, PERCY E., Deputy Supt. (Captain), New York State Troopers; Captain, 22c1 Regiment, N. Y. N. G. BARLING, H. B., 1st Lieutenant, Engineer Officers' Reserve Corps. BARRETT, LESLIE P., Lieutenant, A. E. F., France. (Unattached.) BENSEL, J. A., Major, Engineers' Reserve Corps. BIGELOW, BRAXTON, Royal Engineers, B. E. F. BLOOMFIELD, E. C., Lieutenant. BORROW, F. K. BOWLES, MARTIN F., 2d Lieutenant of Infantry, Camp Funston, Kans.

Jan 10, 1917

(The following-list contains the names of those members of the Institute of whose connection with military service we have only recently. become acquainted.) ADAIR, ARTHUR C., Corporal, 4th Co., 1st Tr. Bn., 154th D. B., Camp Meade, Md. BATCHELOR, STILLMAN, 1st Lieut., Co. 6, E. 0. T. S., Camp Humphreys, Va. BATES, BENNETT R., 1st Lieut., Engineers, Co. 3, E. 0. T. S., Camp Humphreys, Va. BJORGE, GUY N., Co. 3, E. 0. T. S., Camp Humphreys, Va. BOAS, Ross, H., U. S. A. BRADLEY, . H., JR., Capt., 408th Engineers, Camp Cody, N. M. BRINTON, OWEN F., Capt., Engineers, U. S. A. BROWN, HAROLD C., 2d Lieut., A. S. A.P.

Jan 1, 1919

By Donald W. Scott

Generally speaking, there is nothing very difficult about taking good microgrztphs of photogenic thin sections or grains with a petrographic microscope-camera setup. However, sometimes it is desired to show some detail that cannot be illustrated satisfactorily by the usual micrographs taken with parallel polarized light, with crossed nicols, or even with two micrographs. A simple procedure giving good results has been used at Battelle Memorial Institute for subjects falling into this classification, and it is believed to be of interest, especially to research people who must sell a point to executives through the medium of well-illustrated reports. The following problem illustrates a typical application: It is desired to photograph a thin section of an iron ore to illustrate the character and association of the iron oxides and the individual quartz crystals. A magnification of 75 dia. is acceptable. A micrograph of the field in question (Fig. Ia) was taken with parallel polarized light. Due precaution was taken to provide critical illumination, correct exposure, a sharp focus, a good darkroom technique, and other essential conditions. It illustrates correctly the iron oxides, but it fails to show the individual quartz crystals. A micrograph of the identical field (Fig. Ib) was taken under the same precise conditions, but with crossed nicols. It gives a better idea of the character of the individual quartz crystals but is likely to be misinterpreted unless accompanied by a lengthy descriptive note. This micrograph suggests that the centrally located, large black area is composed entirely of iron oxides. That this' is an incorrect interpretation is evident by reexamining the micrograph of Fig. Ia. The correct interpretation is that the dark area contains quartz crystals oriented with their optical directions parallel to, or nearly parallel to, the vibration directions of the polarizer and analyzer of the microscope. Thus, the executive, or anyone who had not done the work personally, would get no more than a fair interpretation, even if two micrographs were included; and in the interests of both brevity and clarity, one micrograph usually is more desirable. Exactly how many quartz crystals occur in this region cannot be told from the two micrographs, and a printing of the two negatives in register would likewise not show the detail desired. Thus, it is evident that some subjects cannot be satisfactorily illustrated by the usual procedures. In photographing Fig. Ic the light was subdued and, during the entire exposure of 75 sec., the analyzer nicol was rotated uniformly in its mounting from a crossed position to 45° uncrossed position to introduce the desired amount of contrast in the various individual quartz crystals. The true reproduction of the character and association of the iron oxides, and the additional structure and detail in the quartz areas, is apparent. It might be

Jan 1, 1949

By Donald W. Scott

Generally speaking, there is nothing very difficult about taking good microgrztphs of photogenic thin sections or grains with a petrographic microscope-camera setup. However, sometimes it is desired to show some detail that cannot be illustrated satisfactorily by the usual micrographs taken with parallel polarized light, with crossed nicols, or even with two micrographs. A simple procedure giving good results has been used at Battelle Memorial Institute for subjects falling into this classification, and it is believed to be of interest, especially to research people who must sell a point to executives through the medium of well-illustrated reports. The following problem illustrates a typical application: It is desired to photograph a thin section of an iron ore to illustrate the character and association of the iron oxides and the individual quartz crystals. A magnification of 75 dia. is acceptable. A micrograph of the field in question (Fig. Ia) was taken with parallel polarized light. Due precaution was taken to provide critical illumination, correct exposure, a sharp focus, a good darkroom technique, and other essential conditions. It illustrates correctly the iron oxides, but it fails to show the individual quartz crystals. A micrograph of the identical field (Fig. Ib) was taken under the same precise conditions, but with crossed nicols. It gives a better idea of the character of the individual quartz crystals but is likely to be misinterpreted unless accompanied by a lengthy descriptive note. This micrograph suggests that the centrally located, large black area is composed entirely of iron oxides. That this' is an incorrect interpretation is evident by reexamining the micrograph of Fig. Ia. The correct interpretation is that the dark area contains quartz crystals oriented with their optical directions parallel to, or nearly parallel to, the vibration directions of the polarizer and analyzer of the microscope. Thus, the executive, or anyone who had not done the work personally, would get no more than a fair interpretation, even if two micrographs were included; and in the interests of both brevity and clarity, one micrograph usually is more desirable. Exactly how many quartz crystals occur in this region cannot be told from the two micrographs, and a printing of the two negatives in register would likewise not show the detail desired. Thus, it is evident that some subjects cannot be satisfactorily illustrated by the usual procedures. In photographing Fig. Ic the light was subdued and, during the entire exposure of 75 sec., the analyzer nicol was rotated uniformly in its mounting from a crossed position to 45° uncrossed position to introduce the desired amount of contrast in the various individual quartz crystals. The true reproduction of the character and association of the iron oxides, and the additional structure and detail in the quartz areas, is apparent. It might be

Jan 1, 1949

By Orr Hamilton

VALUATION of a mine is an approximation of its true cash value which requires the application of fundamental principles of economics. Mines are valued from necessity, for the following reasons: (a) Transfers of titles. (b) Dissolutions of partnerships or corporations. (c) Mergers of mining companies. (d) Appraisals for the purpose of State and Federal taxation. (e) Establishment of the fact of worth as a basis of loans. (f) Determination of values as frequently required in litigation. (g) Listing of stock for sale by a reputable stock exchange. For the majority of purposes a valuation is required as at the present time, but for some purposes valuations as of bygone times may more nearly reflect the intrinsic worth of a mine because its subsequent history can never be, entirely ignored, but valuations made as at the present time are better indicators of cash values. Many mines with great intrinsic worth have been sold for small cash prices. The object of legitimate mine valuations is to deter-mine salable value, or that price in cash at which a transfer of the property from a willing seller to a willing buyer might be consummated, assuming that both vendor and vendee have knowledge of all pertinent data and that the owner, is not forced to sell at a sacri-fice-the definitions of fair market value precluding a forced sale.

Jan 11, 1923

By Thomas Read

SUMMARY THE cost of labor turnover in industry is so large as to justify the adoption of almost any means to bring about its reduction. Intensive study has shown that faulty methods of hiring and discharging men is the most important factor in labor turnover. Complete control over hiring and discharging by the foreman is a relic of outgrown industrial conditions; centralized hiring permits this work to be put on a scientific basis and also does away with many serious evils that cannot otherwise be reached. Centralized hiring does not impair the authority of the foreman; he hires his men from the employment office and discharges them back to it, instead of from and to the street. The employment manager, being a direct representative of the employer, tends to restore the former relation of direct intercourse between employee and employer that was helpful in avoiding friction between them. Being a specialist, he is able to bring special knowledge and skill to bear upon the task of selling employment in his concern to desirable workmen; lie is also able to give the foreign workman the special attention he requires. Employment managers have been used for the past few years by a number of large organizations, a few of which are engaged in the mining and metallurgical industries. They have invariably reduced labor turnover, in some cases to as little as one-tenth of what it had been. So great a reduction is due in part to other changes made in the light of the data made available by scientific study of the labor problem. In my former paper on personnel work1 I advocated the more general use of the employment manager in mining and metallurgical enterprises as a means of reducing labor turnover. The form of organization recommended seems not be to understood by all, and I have requested the privilege of explaining it at greater length, since it is perhaps the most important factor of all in personnel work, and has a vital influence on the cost sheet of every industrial enterprise.

Jan 2, 1918

By M. C. Messner, L. P. Davidson

The Giesche Spas Akcyjna, in Polish Upper Silesia, produces zinc, lead and coal, together with many byproducts emanating from the zinc-lead ores. The development of the concern in the 230 years of its existence has been influenced not only by metallurgical improvements but also to an unusual extent by political and economic factors. The company was founded by George Giesche, who was born in 1653 and died in 1716, and who in 1704 received from Emperor Leopold I the exclusive privilege of mining and selling galmei1 in Silesia. His children, who retained the business, gave the name to the firm—George von Giesches Erben. After 1802 modifications in the Prussian mining and corporation laws limited the rights formerly enjoyed. The family concern became a corporation and expanded its activities, building smelters and opening new mines. The establishment of the present eastern boundary of Germany resulted in the transfer of nationality of a large part of the mines and surface plants to Poland, which, in turn, necessitated the formation of a Polish company, the Giesche Spólka Akcyjna. The first concentrators at the Bleischarley mine were built between 1854 and 1860 and owing to dual ownership were two in number. They were used only for the treatment of galena. In 1873 a concentrator was built for the treatment of sulfide ore preparatory to treatment in the Recke roasting plant, which was the first to have an acid plant for recovery of the sulfur gas. This concentrator was replaccd by a larger one in 1888, when the present orebody was opened up. At the same time, a mill was built for the treatment of the galmei. The concentration of the sulfide ore resulted in a much higher grade of feed for the zinc plants after the first troublesome steps of the roasting process had been worked out. Consequently, the oxide ore in its primitively concentrated state was no longer highly valued as a retort charge. and steps had to be taken to increase its zinc content.

Jan 1, 1935

By Don C. Blackmar

THE production of non-ferrous secondary metals has become a large and important industry in the United States, and deals with practically every type of manufacturing concern. Its business is unique in that it generally buys from its customers as well as sells to them, whether they are individuals, cities, corporations, or the United States government. Its operations are of vital importance to the success and prosperity of many of the nation's most important manufacturers; yet there are few industries about which less is generally known by those outside it, whether concerning the magnitude of its operations or the details of its actual technique. The industry itself is to blame for this meager publicity, because its technical men have made few attempts to openly exchange ideas, in spite of the excellent examples set by the iron and steel or the copper and brass industries. Whether this is due to the ancient shroud of secrecy generally supposed to cover smelting operations, or because its technical men actually felt that the industry was too puny to be interesting, is hard to say. This paper will consider its subject in a general way, attempting to show something of the size and importance of the industry, as well as its fitness to do its work well. Attention will be called to the sound economic reasons for the handling of non-ferrous wastes by specialists, and to the often unseen losses of metals and labor which occur when manufacturers reclaim their own metallic wastes. MAGNITUDE OF THE MODERN INDUSTRY No particular thought is given to the kitchen accident whereby a ruined saucepan is sorrowfully tossed into the ash can, yet it is a fairly safe guess that within a month this saucepan, together with hundreds of its fellows, will again be in service, perhaps in an automobile crankcase, or in an electric vacuum sweeper. It is by this conversion of the useless into the useful, whether from home or large manufacturer, that the secondary tonnage is built up.

Jan 1, 1928

By Charles F. Park

Mining in the Pacific Coastal Region has passed through three stages of development. First came the gold rush days, a period when gold and silver were the objects of intensive search. Second was the development of the high-grade base-metal deposits and of the smaller and more refractory precious metal deposits. And third was the modern period that covers the discovery and development of the rarer metals, of large low-grade deposits, and of the industrial and nonmetallic minerals. Brief discussions of the salient geologic features of the region and of a few of the better known mineral deposits are given. The regional geology is favorable for continued exploration and discovery of new deposits and districts.

Jan 1, 1968

By Dr. O’Neil Thomas J., Donald W. Gentry

It was a western truism that more money was made from selling mines than from buying them, just as it was accepted that many a good mine had been spoiled by working it. from R. E. White, "The Mining Town," Alta California August 18,1873 INTRODUCTION One of the most important aspects of mineral enterprises of US corporations is the influence of the depletion allowance on cash flow. This allowance permits mineral producers to claim sizable federal income tax deductions not available to other industries, and these deductions significantly increase cash flows in mining. In the past several years the minerals depletion allowance has come under increasingly heavy fire from many sectors as a tax loophole that deprives the federal government of large amounts of revenue. One estimate of the loss of tax dollars in 1968 was $2.25 billion due to depletion deductions and intangible expenses in the oil industry. Largely on the basis of such arguments, the Tax Reform Act of 1969 reduced percentage depletion rates for a number of minerals, and the Tax Reduction Act of 1975 totally eliminated statutory depletion for most oil and gas. In regard to percentage depletion for hard minerals, the federal government has estimated its resulting loss of revenue at $1.75 billion for 1980. The TEFRA legislation of 1982 further reduced the statutory depletion allowance available to iron ore, coal, and lignite beginning in 1984. Thus, it is clear that minerals engineers and managers should have a thorough knowledge of the origin, evolution, justification, and computational procedures relating to the depletion allowance. ORIGIN AND EVOLUTION OF THE DEPLETION ALLOWANCE

Jan 1, 1984

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 is the case of 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.

Jan 1, 1930

By William F. Boericke

CONSIDERABLE waste of oil and grease in lubricating motors and other machinery results from the use of bearings that are not totally enclosed. There is also the likelihood of damage to the bearing through the accidental introduction of grit or dust both in the oiling process and after, unless the cover is entirely dustproof. With the ordinary sleeve bearing that is only partly enclosed, it is generally easier for a careless attendant to cause trouble through neglect than with the ball bearing type, which from its design, must be totally enclosed to give effective service, and needs a minimum of attention. At one of the large mining companies which has taken a leading part in reducing unit costs and pioneering new developments in mining machinery, ball bearings have been gradually supplanting the conventional type of sleeve bearings on many of their motors, centrifugal pumps, and other machines in the mines. This innovation is not recent, as substitution of ball bearings on mine motors was first tried out by this company in 1909. Since then an increasing number of such bearings have been put in. They are now favored because of increased operating efficiency and reduction in lubrication costs.

Jan 1, 1926

By Douglas A. Karvonen

INTRODUCTION Although the economy in the Province of Saskatchewan has historically been agriculturally oriented, a major source of wealth has been realized through natural resources such as petroleum and natural gas, coal and uranium and since the 1960's - potash. Potash or potassium chloride, in the form in which it is presently produced in Saskatchewan, is used primarily as fertilizer, a source of potassium, one of three essential elements required for healthy plant growth, with about 5% of production sold to the chemical industry for use in such products as soap and liquid detergent, glass and ceramics, textiles and some pharmaceuticals. Saskatchewan is estimated to have approximately 40% of known world potash reserves and its ten active mines account for some 25% of annual world production. POTASH CORPORATION OF SASKATCHEWAN In an effort to guarantee a fair and lasting economic benefit to the Province of Saskatchewan, the Potash Corporation of Saskatchewan (PCS) was created on February 4, 1975 through an Order-in-Council under the Crown Corporation's Act and later on April 1, 1976, the Potash Corporation Act provided for its continuation. PCS was given the mandate to acquire ownership of a significant portion of the potash mining capacity in Saskatchewan and to establish an organization capable of operating the facilities, marketing the product, and conducting all of the other activities necessary for a successful corporation competing in the world potash industry. The corporation is the largest potash producing and selling organization in the Western World - or third largest in the world. (See also Figure 1). PCS through its wholly-owned subsidiary, PCS Mining, has acquired a whole or partial interest in five geographically distinct producing properties or divisions, representing today more than 40% of Saskatchewan's potash producing capacity. The acquisition of each division was followed by a program designed to exploit and maximize the particular opportunities at each minesite for increased production. To that end, PCS Mining has taken an active lead in expanding to meet future demand and has implemented expansion programs at all properties except for its Esterhazy Division where it has a long-term processing agreement with International Minerals & Chemical Corporation (Canada) Limited. Through its wholly-owned subsidiaries, PCS Mining, PCS Sales and PCS Transport, this provincial crown corporation has the ability to operate as a producer and marketer of Saskatchewan's potash. In certain instances PCS, the parent company, assists in the financing of various projects undertaken by the subsidiaries and in other cases the subsidiary involved arranges its own financing. POTASH RESERVES As a background to the specific issue of financing, it is helpful to describe briefly the nature of the deposit which supports the industry - our collateral, if you like. The potash beds underlying Saskatchewan are sedimentary rock deposits formed by the gradual evaporation of an inland sea during the Middle Devonian period roughly 400 million years ago. Now known as the Prairie Evaporite, this formation stretches from North Dakota and Northeast Montana through Southern Saskatchewan into North-Central Alberta. These beds lie at mining depths ranging from 950 - 1000m (3,000 ft) below the surface, where conventional mining methods can be used, and to 1,650m (5,000 ft), where solution mining must be

Jan 1, 1985