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By Robert B. Parsons

"On February 15, 1984 Finance Minister Lalonde presented to Parliament a budget heavily flavoured with the current consultative mood of the Government. Notably absent from the budget was the typically long list of tax changes of immediate effect. Instead, the bulk of the budget papers consisted of a wide variety of white papers on significant topics that would have a far reaching impact on the future of all Canadians.This month. Tax Notes examines the highlights of Mr. Lalonde's budget.IntroductionThe mining industry need not feel slighted in Finance Minister Lalonde's budget of February 15, 1984: the budget offered very little that would have an immediate impact of significance on any sector of the economy. Apart from some welcome announcements for the oil and gas industry to postpone the implementation of certain negative tax changes, the budget was surprisingly scant in terms of definitive tax proposals.While massive revisions in the rules relating to pensions, small businesses, commodity taxation and profit-sharing were brought forward, many of these proposals are set out in White Papers or other documents to be implemented into legislation only after further consultation. Canadians will accordingly have to wait for such promised benefits as increased RRSP and other pension contribution limits."

Jan 1, 1984

EDITORIAL comments on the anthracite report of the Federal Fact-finding Coal Commission, which became public on July 5, together with an analysis of its more important conclusions, will be found on another page of this issue. In this place, only a few extracts from the report, bearing more directly on technical matters, can be quoted, for lack of space. COST OF MINING Mining cost, as it stands on the books of each mining company, represents the average cost of the total output, all sizes, of anthracite. Egg coal has at least five times the market value of barley, but these' sizes are mined together and their costs can not be separated. Mine costs directly reflect the conditions under which these deposits of coal are recovered. Even within the few counties in which anthracite is found there is a conspicuous range of natural conditions. The distinc-tion between the Northern, Middle, and Southern field, or, as they are also termed, the Wyoming, Lehigh, and Schuykill regions, is primarily geologic and topo-graphic, but the effects of the natural conditions largely control costs. The contrast is great between Some of the level-lying beds of moderate but fairly constant thickness under the broad Wyoming Valley, where mining and underground haulage present relatively simple problems to the engineer, and the steeply pitching or overturned and faulted beds of variable thickness in the Schuykill field, where crushed coal' and treacherous roof multiply the difficulties of mining; and increase the unavoidable waste. Even more direct is the connection between geologic processes and the, differences in the character of the coal as mined, the varying proportions of large and small sizes demanding differences in preparation and resulting in different average prices realized for the product of the mines.

Jan 8, 1923

DURING September, the Coal Commission pre- pared for issue a series of 18 reports on varied aspects of- the bituminous coal industry; the final report, dated Sept. 22, sums up the facts and offers recommendations addressed to Congress, to the industry, and to the public. The few following paragraphs are selected: Bituminous coal is the real foundation of that great industrial and transportation structure which enables more than a hundred million people to live in America and be so well supplied with things necessary for their health, comfort; and convenience; it also furnishes domestic fuel for two-thirds of the homes of the land. The distribution of the output of the bituminous mines tells the story: 28 per cent. goes to the railroads, 25 per cent. to the boiler houses of factories and mills of all kinds, 15 per cent. to the coke ovens and gas plants, 10 per cent, to the homes, 7 per cent. to steel plants and the same percentage to power plants and street railways, 4 per cent. is exported, 2 per cent is used for power at the coal mines, and the remaining 2 per cent. goes to the seaboard for steamship fuel. Bituminous coal enters into interstate commerce on a scale approached by no other commodity; less than a fourth of the coal mined in the United States fails to enter interstate com-merce. All but one of the 45 coal producing districts in the United States ship coal outside the State in which it is mined. Three hundred miles of cars loaded with coal is the daily output of the bituminous mines of the United States. The public-welfare element in coal is seen in the dependence of public health and safety on an unfailing supply of fuel, in the close connection between the prosperity of most industries and the uninterrupted operation of the coal mines, and in the obvious fact that without coal the great network of railroads which binds together this great country would be idle. The railroads and the public utilities, themselves so clearly obligated to render what-ever public service is demanded of them that the constitutionality of their public regulation is unquestioned, are of all industries most dependent upon coal. Thus, coal makes up over 35 per cent. of the operating cost at the gas plant and over 25 per cent. at the electric power station, and in the operating expenses of. a railroad the cost of coal is the largest single item, next to labor. The practical logic that half a century ago clothed with a public interest the steam locomotive and in later years the electric-power station must recognize a large element of public service in the coal mine that furnishes the necessary energy to both locomotive and power-plant.

Jan 10, 1923

By Robert Bohman

I truly free enterprise system requires free and unrestricted competition among a diversity of suppliers, in order to function properly. The natural attrition of the marketplace tends on the one hand to narrow the competitive field ... but the flow of new competitors entering the arena provides a "diluting" effect, and a "balanced" market place. Without the ready flow of new business entrants, the market becomes increasingly concentrated in the hands of fewer and. fewer firms. Competition among suppliers is diminished and the "free" marketplace suffers accordingly. A number of organizations, both governmental and private, have recently expressed grave con¬cern over the competitive future of the Western coal market. While most have noted that there is currently adequate competition within the Western market, some have cited the growing con¬centration of coal ownership ... particularly federal lease ownership ... in the hands of a relatively few firms. They suggest that unless this apparent trend is reversed or at least stemmed, the number of new firms entering the federally-dominated West may become reduced to the point where competition will suffer.

Jan 1, 1982

By D. Harrington

ANNUAL or necessary inspections and investigations of coal mines for various purposes were made possible through the Federal Coal Mine Inspection Act of May 7, 1941, which authorized entry to the Secretary of the Interior through the Bureau of Mines. Primary object of these inspections is to obtain information pertaining to health and safety conditions. Among the purposes for which the data are to be used, are annual reports to Congress, the publication of inspection reports, and the compilation and publication of statistics. The act states that inspections and investigations shall be made by employees of the Bureau of Mines, who shall co-operate with other bureaus of the U. S. Department of the Interior, as well as with the official mine-inspection, safety cr health agencies of the several states and territories. The act specifies that a coal-mine inspector shall have "the basic qualifica-

Jan 1, 1946

Since its organization, in July, 1917, the War Minerals Committee of the Institute, of which William Y. Westervelt is chairman, has been studying important phases of the mineral industry and its relation to winning the war. From this has come a realization of the imperative need for more definite coordination than is possible without direction by some governmental agency. No privately controlled industry can have the detailed knowledge of war needs or the control of all its supplies and markets necessary to effect the adjustment of its activities for war purposes. Inevitable shortages of certain essential minerals confront us unless immediate steps are taken to stimulate and develop. the mining

Jan 2, 1918

By John M. Lovejoy

FEDERAL regulation of the petroleum resources of the nation has long been an interesting topic for discussion. A plan to accomplish Federal control has now taken definite form. At the request of the President of the United States, a bill to be known as the Petroleum Conservation Act of 1939 has been presented to Congress-H. R. 7372, offered by Representative Wm. P. Cole, Jr., and more usually known as the Cole bill. It is an act ostensibly designed to conserve our petroleum resources, through regulation of production practices. Hearings are being held currently by a subcommittee of the Interstate and Foreign Commerce Committee, in compliance with the request of the President to report the bill early in the next session of Congress.

Jan 1, 1939

By B. Samoski

In late 1994, EPA and OSM acknowledged that efforts by any one agency or by the many different agencies to remedy the water quality impacts of decades of contamination from abandoned coal mine lands in Appalachia would not be successful if their disjointed efforts were not unified and if the local watershed organizations were not included. The result of the collaboration between EPA and OSM was the creation of a statement of mutual intent which was a pledge by government agencies, watershed organizations, and the industry to restore watersheds degraded by acid mine drainage from abandoned coal. The presenter will describe the evolution of this pledge from a paper promise to on-the-ground remediation projects.

Jan 1, 2002

By R. D. Hutchinson

I consider it an honour to be the opening speaker in this afternoon's session on "Canadian Exploration". I also think it most appropriate that this joint meeting of the MMIJ and AIME should consider this subject, because Canada is a major exporter of mineral products and Japan and the United States are our two largest customers. Clearly, therefore, both countries have a valid interest in developments on the Canadian minerals scene. I represent the Mineral Development Sector of the Canadian Department of Energy, Mines and Resources. I will therefore speak from the point of view of the Federal Government. At this point I would like to acknowledge the help and constructive criticism I have received from several of my colleagues in Mineral Development Sector in the preparation of this paper. In any discussion of exploration in Canada, it is essential to emphasize at the outset that Canada has a federal system of government, with powers shared between Ottawa and the provinces. Under our constitution, the federal government has jurisdiction over the north, and over offshore areas, while the provinces own the natural resources within their boundaries. They control the systems of land acquisition for exploration and the terns under which mining titles are issued, and are therefore able to determine the rate and conditions of exploration and development of these resources. It follows that the Federal Government can influence the exploration and development of the provincial resources only indirectly by consultation with provincial authorities. However, once the resources are developed and begin to flow to market, the Federal Government can exert a much stronger influence because of its constitutional right to control both inter-provincial and international trade, as well as through its general fiscal and tax powers.

Jan 1, 1976

By Otto L. Schumacher

The Overthrust Belt in portions of Montana, Idaho, Utah, and Wyoming, an area that has contributed generously to the Nation's mineral supply, is one of the few remaining oil and gas frontiers on the North American continent. Determination of the oil and gas potential and development of mineral resources of the area have been affected by a variety of land withdrawals and other restrictions, The purpose of this study is to determine the extent of these withdrawals and restrictions and to discuss the mineral resource potential within the study area. Statistics in this report refer to land status on January 1, 1979. At that time, of the 27.3 million acres of Federal mineral lands within the study area, applications tor Federal oil and gas leases for more than 4,4 million acres (about 16 percent) were pending; the average length of time was 2 years. Federal oil and gas leases covering 8.8 million acres were also on record. Although drilling has occurred on some of these leases, others are subject to restrictions that discourage or prevent development. Some in fact contain stipulations disallowing any development.

Jan 1, 1981

By David Russell, Courtland Lee

FOREWOHD-Americans have been able to create wealth from the nation's natural resources to an extent unprecedented in recorded history, thanks largely to the existence of a free market and of a rational body of laws. The General Mining Law of 1872, for instance, by establishing the rules of the game, was quite effective in channeling the ability of Americans to discover and develop mineral deposits. Another example was the Mineral Leasing Act of 1920 which made available the more easily discovered mineral deposits by spelling out the conditions and rules under which miners could obtain leases on federal lands.

Jan 5, 1977

By ARCHIBALD DOUGLAS

AT various times during the past quarter century proposals have been made that the basic Federal mining law of 1872 be repealed or amended, and that in its place a new and simpler law be enacted to provide for the entry upon, working, and the taking up of claims on the unallotted Federal mining lands in our western states and in Alaska. Serious discussion and study have been given such proposals but little has resulted there from, except perhaps a lively interchange of opinion and the conclusion that though the Apex law of 1872 is in many ways highly unsatisfactory and frequently a fomenter of strife and trouble, it still bids fair to remain with us. Under this act a greater part of the non-ferrous mining industry of the United States has developed. With all its short-comings it is the legal bridge that has carried over the innumerable caravans of adventurers and prospectors who explored our mining frontiers. For without any amendments of substance this act has for fifty-eight years been the guide in the location of our western Federal mineral claims and has stood unchanged during the most important period of our mining history. While Federal and state acts and amendments have been ground out by thousands and tens -of thousands the mining act of 1872, with a :strange tenacity, has remained as constant as the Rock of Gibraltar, and under it states, mining districts, and local customs have developed different codes for its application but its fundamentals have been unaltered. "Use doth breed a habit in a man"; until now the application of the law of 1872 has become a second mining nature.

Jan 1, 1930

By William H. Sutherland

INTRODUCTION Coal workers' pneumoconiosis and sili- cosis are only two of several diseases which are rlassed as pneumoconiosis. These are respiratory diseases caused by dusts which are inhaled and accumulated in the lungs. The individual particles of dust cannot be seen by the human eye. They are so small that they escape the natural cleansing mechanism of the nose and air passages and make their way down to the terminal air sacs of the lung where they injure the cells and cause the formation of scar tissue. Consequently, if there is exposure to high concentrations of dust over a period of time - usually, a number of years - the amount of scar tissue increases and begins to impair breathing. As a result, the miner develops shortness of breath, coughing and wheezing ad-if exposure continues - this progresses to permanent disability and frequently to death. Death is often due to pulmonary heart disease, the effect of stress on the heart 2s it tries to compensate for the weakened lungs. Specifically, silicosis is an occupational lung disease caused by the accumulation of free silica (quartz) in the lungs. Silicosis is considered the most important form of pneumoconiosis, not only because of its seriousness as a respiratory crippler, but also because of the large number of workers who risk contracting it in a variety of occupations. Quartz is one of the most common substances of the earth's crust, estimated at about 60 percent. Silicosis has been found in coal, metal and granite miners, as well as in other workers, such as sandblasters and pottery makers. Silicosis is also known to predispose the lung to tuberculosis and to increase the chances that a worker will contract chronic bronchitis and emphysema. The seriousness of silicosis was tragically brought to public attention about 50 years ago. During 1932-34, workers were involved in digging a tunnel through rock at Gauley Bridge, West Virginia. While their exposure time was relatively short, they developed silicosis because of the high concentrations of quartz. By 1936, 476 workers had died of silicosis and about 1500 were believed to have the disease (Washington Post, 1982). It is difficult to tell how many coal miners have silicosis. Because x-rays and breathing function tests do not show the difference the type of pneumoconiosis is generally diagnosed by the miner's work history. For example, if a worker

Jan 1, 1986

By Dorothy A. Canter

Three Federal programs exist for identifying significant environmental chemicals, including minerals, that should be tested for toxicological effects. Two programs are mandated by law and can lead to industry-funded studies; they are administered by the Environmental Protection Agency and the Agency for Toxic Substances and Disease Registry, respectively. The third is the National Toxicology Program, a Federally-funded testing initiative. This paper summarizes the three programs, describes their similarities and differences, and discusses their applicability to minerals.

Jan 1, 1991

By Kelvin K. Wu, Daniel S. Mazzei

As a result of the 1972 Buffalo Creek disaster, the Mining Enforcement and Safety Administration (MESA), now the Mine Safety and Health Administration (MSHA) initiated the draft of new federal regulations to deal with the mine waste impoundment and refuse pile problems. Public hearings were held and finally promulgated in October, 1976. As stated in 30 Code of Federal Regulations 77.214-216, the complete engineering design plan which is mandated by the regulations has to be approved by a coal mine health and safety district manager. During the past 18 months MSHA has gained considerable experience through the submission, review, and approval process. This report indicates the procedures, general design criteria and inspection requirements for submission of engineering plans to be approved. In particular, problem areas encountered most frequently by both operators and MSHA will be discussed. Only through diligent efforts by the operators, consultants and government, can we hope to accomplish the common goal to improve the safety of operations.

Jan 1, 1982

By Daniel A. Jones

The Surface Mining Control and Reclamation Act of 1977 establishes a nation-wide program requiring the Secretary of the Interior, through the Office of Surface Mining Reclamation and Enforcement, and the States to protect against the adverse effects of coal mining and to reclaim previously mined lands left without adequate reclamation. The Act requires coal mine operators to: restore the land to approximate original contour, return the land to a condition capable of supporting prior potential uses, protect the hydrologic balance, segregate and restore topsoil, control blasting to prevent damage and injury, establish vegetative cover, and control surface effects of underground mining. The Act also establishes: a reclamation fee on coal, a program to assist small operators, a program to give technical and financial assistance to State programs, State Mining and Mineral Research Institutes., a program for designating areas as unsuitable for mining, and a study on surface mining of minerals other than coal.

Jan 1, 1977

The mines of the country are called upon to bear a very large part of the enormous taxes to be raised for 1917 and later years. The Internal Revenue Bureau, which is charged with the assessment and collection of these taxes, desires that the taxation laws shall be administered in a fair and business-like way. The application to mines, however, which have wasting assets, involves questions of particular complication and difficulty. To meet this situation, there has been established in. the Income Tax Branch, a Section of Mine Valuation in which these specific problems of the industry will be handled by competent engineers. But it is realized that something more than this is required for the satisfactory application of the tax laws to the mines, namely, as complete understanding as possible between the Government and the taxpayer, a spirit of cooperation as between the two and every possible assistance and advice from mine owners and mining engineers.

Jan 9, 1919

By L. C. Graton

THE Federal taxes on incomes and excess profits are of course heavy. In 1917, the value of the mineral production of the United States was a little in excess of $5,000,000,000. The total of Federal taxes for that year, for the mineral producing companies, as computed by themselves, amounts, according to tentative compilations, to about $207,000,000, and the total for the comprehensive group of mineral and metal indus-tries to about $766,000,000, which figures represent respectively 9.5 per cent. and 35.1 per cent. of the total tax paid by all corporations. Be-cause of greater complexities in applying the revenue laws to mineral properties than to most other industries, opportunity is afforded for wide differences of view. The taxes indicated above, therefore, are not final

Jan 11, 1919

W. 0. HOTCHKISS, * Madison, Wis.-It was fortunate, in a way, that this subject of income taxation came up during the war when the government could appeal, on the basis of patriotism, to men of large, business experience to undertake the work of formulating this matter and practically donate their services. At any other time the government would have been unable to secure the necessary number of men of like ability. There is one thing that must not be forgotten. In all cases, except the very largest and most important, the application of this income tax law to a mine is going to be made by clerks whose salaries are fixed by a Congress that appropriated a half billion of dollars for a war purpose and provided that $4000 should be the highest salary paid in the adminis-tration of that great sum. The Congress of the United States unfor-tunately seems almost entirely unaware of the fact that men of ability and experience are worth money and must be paid adequately if proper public service is to be secured. While the formulation of the broad plans for administering the law have been in the hands of. men of unusual ability, we have the future to guard, and, if possible, the mining industry should see to it that the Internal Revenue Department is permitted by Congress to pay salaries that will enable it to secure men of the ability and experience necessary to insure proper consideration of the industry. Another fact to which I would call attention is the difference between the business and the economic, or economists', points of view as to what a mine is. The economists have properly, from their point of view, classed a mine as a wasting asset, but the average metal mine is not a wasting asset if it is a real mine. The economists are correct in a broad sense in that every ton of ore taken out diminishes the orebody by that amount. When it comes to the consideration of an individual mine from the business standpoint, the future of that mine rests on unfore-seeable events-the discovery of new orebodies or the development of old bodies beyond the point of probable expectations. Every going mine must develop new ore each year to replace that extracted, and, .during all but the last one or two years of its activity, actually does so. Instead of being a "wasting asset" such a mine, from the practical stand-point which must control valuation, is an "increasing asset." From

Jan 12, 1919

By James R. Walpole

Less than 100 years ago the first major federal regulatory agency, the Interstate Commerce Commission was established (in 1887), and since that time literally hundreds of other federal agencies have been created. The regulations set by these agencies tremendously affect the individual citizens of this country as well as U.S. institutions. A few examples of the myriad agencies established include the Food and Drug Administration. (1907), the Bureau of Mines (1910), the Federal Reserve System (1913), the Federal Trade Commission (1914), the Tennessee Valley Authority (1933), the Securities and Exchange Commission (1934), the National Labor Relations Board (1935), the Small Business Administration (1953), the Federal Maritime Commission (1961), the Equal Employment Opportunity Commission (1965), the Farm Credit Administration (1971), etc., etc. Eight years ago, on December 2, 1970, still another federal agency was established by the reorganization plan of President Nixon -- the Environmental Protection Agency (EPA). The Administrator of EPA was given authority to regulate certain activities affecting the environ-ment, which were formerly within the jurisdiction of the Department of Interior, the Department of Health, Education and Welfare, the Federal Radiation Council, the Atomic Energy Commission, the Department of Agriculture, etc. Within weeks after the formation of this Agency, Congress began to enact legislation which would be administered by EPA. Over the last eight years a considerable number of such laws have been passed, a few of which include: the Clean Air Act (1970), the Noise Control Act (1972), the Federal Water Pollution Control Act (1972), the Marine Protection, Research, and Sanctuaries Act (1972), the Federal Insecticide, Fungicide and Rodenticide Act (1973), the Safe Drinking Water Act (1974), the Toxic Substances Control Act (1976), the Resource Conservation and Recovery Act (1976), the Clean Air Act Amendments of 1977, etc. It may be helpful to review, in a summary fashion, the major provisions in some of these statutes, and accompanying regulations, as they relate to water quality control in the mining industry. The Safe Drinking Water Act and the Federal Water Pollution Control Act contain provisions to be examined, as well as the Resource Conservation and Recovery Act and the Toxic Substances Control Act. One other law, the Surface Mining Control and Reclamation Act (1977), is not administered by EPA although it does contain many provisions related to environmental control, and it will also be dis-cussed because of its importance to the mining community.

Jan 1, 1978