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By Ashis Bhattacherjee, Rahul Upadhyay, Nearkasen Chau, Aditya Kumar Patra, Dhanjee Kumar Chaudhary

Heavy earth-moving machineries used in openpit mines intensively expose drill operators to whole-body vibration and shocks, and thus to musculoskeletal disorders. The roles of individual, machine and rock-related factors in their exposure remain poorly understood. This cross-sectional study investigated their roles in 39 drill operators from Indian iron ore mines. It shows that 70 percent of the operators were exposed to high levels of vibration, above the limit values recommended by ISO 2631-1 (1997). Multiple linear regression models showed that the whole-body vibration and shock exposures were strongly associated with operator’s age, drill-machine model and rock hardness, uniaxial compressive strength and density. The role of body mass index was close to significance (p = 0.08). Univariate analyses found the drill’s age, seat-pad thickness and seat backrest height were also strong predictors. These results help in identifying risky operators, materials and occupational situations, and in implementing appropriate prevention and intervention strategies to reduce and monitor the exposures and health risk. In addition, during the planning stage of acquisition of new equipment, anthropometric data of the operators should be considered for the ergonomic design of the seat.

By J. L. Heaver

All complete plant foods require phosphorus, nitrogen and potassium. And phosphate rock is the primary source for the phosphorus of the inorganic fertilizers. As more and more world food production is grown with these chemical fertilizers and since the Florida field supplies over 30% of the phosphorus component, let us look at the vital phosphate industry. Mining of phosphate rock in Central Florida began in 1891 and production has continued to grow at a steady pace. In 1965 a phosphate mine was opened in Hamilton County, North Florida and one in Beaufort County, North Carolina in 1966 . Since the beginning of mining in 1891, approximately 700 million metric tons of phosphate rock have been produced of this amount one-half was mined in the last 11 years. While the field was not deliberately "high-graded," the best of the known deposits were mined first. Those now being mined, and those yet to be mined, cost more to operate and the product is of lower grade. The U. S. Bureau of Mines' data for 1977 lists "Florida" phosphate rock production as 40.6 million tons; 86% of U. S. production and 85% of "Florida" capacity. The U. S. Bureau of Mines includes North Carolina production in "Florida" statistics so as not to reveal individual data for the one mine operating there. Approximately one-half of "Florida" production is exported, either as rock or as rock equivalent in upgraded products. Deposits of phosphate rock necessary to support present and future production are catalogued as: reserves, paramarginal reserves and resources. Reserves denote deposits which can be mined at a profit now. Paramarginal reserves are defined by the U. S. Bureau of Mines and the U. S. Geological Survey as: that portion of sub-economic resources that a) borders on being capable of production economically, or b) is not commercially available solely because of legal or political circumstances. The " b)" part of this definition may now be expanded to include environmental controls and requirements. Resources are deposits which cannot be mined at a profit at present. Listed in Table I are reasonable values for each of the three categories of phosphate deposits in the northern and southern parts of Central Florida. North Florida and North Carolina.

Jan 1, 1978

By Stephen G. Tough, Ted M. Noskiewicz

INTRODUCTION For many years, in Europe and in North America, pre-formed metallic and concrete segmental linings in tunnels have been used extensively as temporary and permanent ground support systems. In the United Kingdom the use of cast iron as a means of ground support in mining shafts dates from the first decade of the 19th century. Although at that time wood tubbing was extensively employed, cast iron was used in shafts at Wallsend and Percy Main collieries in the North East of England. The original form of cast iron tubbing consisted of cylinders which were lowered bodily into the pit and were built from the bottom up, but subsequently they were subdivided into segments which involved the making of vertical as well as horizontal joints. Principally, the practice of providing immediate pre-formed support developed because of the incompetent state of the surrounding ground and, although this still remains the over-riding consideration nowadays, several other factors are examined before finally deciding what type of lining to use. Other branches of sub-terranean technology such as tunnel thrusting or immersed tubes (both of which involve pre-formed linings) can provide alternative solutions to problems hitherto thought better solved by bored tunnelling methods. However, this paper will confine itself to those linings developed for the more traditional tunnelling methods. Usually the shape of segmentally lined tunnels is circular because this profile is the most suitable for bad ground and many tunnelling machines. This does not always lead to the most economic use of space within the tunnel and horseshoe or elliptical linings are sometimes used in suitable ground. The number of segments

Jan 1, 1974

By Michael S. Kucker, Robert A. Robinson, Harvey W. Parker

Ground deformations are of major concern during tunneling, especially in downtown environments, since they have a significant impact on the costs and practicality of tunneling. This case history describes soil and groundwater conditions and ground behavior during the construction of twin transit tunnels for the Downtown Seattle Transit Project (DSTP). The tunnels were excavated through complex glacial soils ranging from hard glaciomarine drift to flowing sand. The tunneling process was greatly facilitated by the prediction of soil layer positions to an accuracy of ±0.6 m (2 ft). Tunneling was complicated by the presence of over 500 temporary tiebacks and by disturbed ground overlying an operating railroad tunnel. A variety of ground improvement techniques were used to successfully minimize settlements, which ranged from 1 cm (0.4 in.) in glaciomarine drift to 6 cm (2.4 in.) in flowing sands. Ground improvement techniques included compaction grouting, chemical grouting, jet grouting, and eductor well systems.

Jan 1, 1991

By L. A. Bellows

The "Athabasca oil sands" of the McMurray formation in northeastern Alberta cover an area of about 21,000 square miles and contain the world's largest reserve of oil. Fort McMurray, a small town in the heart of the oil sands area, is about 235 air miles north- east of Edmonton. A railway serves the town but no year-round roads connect the town with the rest of Alberta. (Figure 1). The McMurray formation is of early Cretaceous age, deposited unconformably on a limestone surface of Devonian age. The sediments appear to have originated from the Canadian Shield to the east and were deposited in bays and deltas of large fresh water lakes. The lakes were later replaced by marine seas in which t the overlying Clearwater shale was deposited. (Figure 2).

Jan 1, 1963

The future phosphate rock deposits in South Florida contain a significant fraction of dolomite. The high MgO content of the rock is undesirable in the production of phosphoric acid. Several flotation schemes have been attempted to separate dolomite from phosphate rock. Alternately, Selective Flocculation process has been suggested to separate dolomite from apatite. A high MgO content rock was simulated by a 30:10:60 synthetic mixture of apatite, dolomite and silica. Single mineral selectivity was observed in the mixed mineral systems apatite-silica and dolomite-silica with Polyacrylic acid (PM) and Poly(ethylene oxide) (PEO) flocculants respectively but not realized in apatite-dolomite system with PEO flocculant. Heteroflocculation, suspected to be the major reason for loss in selectivity, was minimized by addition of a Site Blocking Agent (lower molecular weight fraction of PEO). Process parameters such as size reduction schemes, flocculant/SBA dosage, and pH were investigated to achieve the desired separation. The selectivity obtained in binary mixed mineral tests was translated into the ternary mixed mineral system, viz. apatite-dolomite-silica. In this presentation surface chemical characterization of the samples and their flocculation behavior will be discussed.

Jan 1, 1994

By S. Gering, R. Ruiz, C. H. Calderon-Arteaga, J. Barrios

"INTRODUCTION Located in the northeast corner of Zacatecas State, Mexico, the Peñasquito Operation is comprised of the Peñasco and Chile Colorado (Brecha Azul) deposits. Open pit mining (pre-stripping) began in 2010 and full production commenced during 2011. The open pit mines feed both a sulphide concentrator (mill) and a heap leach pad. The project is owned by Goldcorp, Inc. Penasquito is a poly metallic deposit with Au, Ag, Zn and Pb being recovered as payable metals. As a consequence of lower grade ores expected with advancing mine-life Peñasquito is facing a declining metal production profile. To maximize returns and asset value plant modifications including the addition of a carbon pre-float circuit and a pyrite leach circuit to improve recovery are currently being undertaken. This carbon pre-float circuit will enable the recovery of precious and base metals from carbonaceous sediments. This material is currently being stockpiled. With the associated increase in complexity in the process circuit, the requirement of the ore control system to accurately predict ore feed characteristics is critical to maximizing metal recovery at the Penasquito operation. The addition of the carbon pre-float circuit was also a key driver in allowing the Chile Colorado open pit to be developed. These conditions alongside Goldcorp’s drive to increase profitability, and maximize net asset value has created challenges. These challenges are numerous and are multifaceted, however the ability to accurately route materials from the ore control system is critical to site success, and some of these challenges have been overcome by the adoption and implementation of a new ore control (OC) technology. Examples of these technological innovations in the ore control program are discussed in this paper and include improvements in geo-modeling, material routing and reconciliation. Successful implementation of these elements has led to significant improvements in selectivity, performance, and data management, while reducing the variance between planning and execution, thus helping to drive overall improvement across the operation."

Jan 1, 2018

By Paul F. Ziemkiewicz, Aaron Noble, Christopher R. Vass

The rare earth element (REE) industry has sought to develop ore deposits where geologic processes have produced mineralized zones with commercially attractive concentrations. These deposits are extremely uncommon, particularly in the United States. Given the criticality of these materials and the need for a sustainable domestic supply, the current research seeks to leverage the generation and treatment of acid mine drainage (AMD) as an autogenous process that can lead to concentrated REE resources. 

By Paul F. Ziemkiewicz, Aaron Noble, Christopher R. Vass

Many modern industries rely on rare earth elements (REEs) to produce products that are essential to both civil and defense applications. In a prior study (Vass et al., 2019), we showed that REE grades in acid mine drainage (AMD) and associated byproduct precipitates from AMD treatment (AMDp) warrant evaluation as a feedstock for REE production. The current work extends that effort through a broad survey of 141 AMD treatment sites in Northern and Central Appalachia. In this study, 185 raw AMD and 623 AMDp field samples were obtained and analyzed to assess the REE and major metal concentrations. Results show that an average of 282 μg/L and 724 g/t of REEs occur in AMD and AMDp, respectively. Additionally, both basins contained similar distributions of REEs, and these distributions tended to favor heavy and critical REEs when compared with traditional REE ore deposits. 

By Ernest E. Thurlow

Introduction Today, more than 50% of rail-carried commodities are mineral industry related, with coal being the most important single commodity moved by rail. In 1980, coal accounted for more than 5.7 million of the total 22.6 million carloads moved by rail. Metallic ores were third behind grain, with more than 1.4 million carloads. Crushed stone, gravel, sand, and other non-metallic minerals totaled almost 2.3 million carloads. Chemicals and allied products, including fertilizer and coke, added another 1.7 million cars, with petroleum and petroleum products totaling 300,000 carloads. Coal Several things happened in the 1970s that gave rise to increased consumption of coal-particularly western coal-and to its dominant position among rail-carried commodities. First, the Clean Air Act of 1970 required generating plants to make significant reductions in sulfur dioxide emissions. To comply, utilities could either invest in scrubbers or switch to low-sulfur western coal. Many opted for the latter. By 1972, increasing demands by the utility companies halted what had been a 25-year decline in national coal consumption. Second, the Arab Oil Embargo of 1973 put an end to cheap oil and gas, limiting their future as fuels for electric generating purposes and increasing the potential for coal. Third, in 1977, President Carter announced an energy program with coal as its cornerstone, calling for an annual two-thirds increase in national coal production by 1985. He also called for conversion to coal by utilities and large industrial users. Finally, he proposed a 10-year, $10 billion program to encourage domestic coal production and stimulate development of export markets. Coal bounded into world prominence. Foreign demand for steam and metallurgical coal increased tremendously, while US demand for western coal also shot up. This meant greater demands on the transportation sectors that traditionally carried coal to market. Many railroads began programs to serve the coal industry. One example is Burlington Northern's commitment to handle increased western coal tonnages. The company spent more than $1 billion in recent years to develop a system capable of moving more than 91 Mt (100 million st) of coal each year. Other leaders in this renewal were Norfolk and Western, Union Pacific, Santa Fe, and Southern Pacific railways. The importance of the rapid growth of coal traffic to the railroads is shown in the accompanying table, which gives percentages of total tonnages hauled and revenues attributed to coal. With coal providing the railroad industry with a substantial share of its revenues, there is keen competition among the rail companies themselves and among railroads and other transportation sectors for coal haulage. But there is also cooperation when more than one railroad is involved in delivering the coal from mine to market or when a combination of transportation modes is more economical. The latter is represented by Conrail's interest in working with the port authorities of New York and New Jersey to establish a new coal port that would serve not only export markets, but also utilities and industries in the northeast. Iron Ore Next to coal, iron ore (taconite) is the most important single mineral commodity handled by railroads. In Minnesota, where most iron ore is produced, rail transportation is primarily by Burlington Northern and the Duluth, Missabe, & Iron Range Railway Co. (DM&IR). The DM&IR, owned by US Steel, serves several producers on the Mesabi Iron Range. Two of the larger producers, Erie Mining Co. and Reserve Mining Co., also own railroads that operate between the mines and the ports of Silver Bay and Taconite Harbor on Lake Superior. Several iron mines and taconite plants in Michigan are served by the Chicago and Northwestern, and the Soo Line. Total 1981 shipments of taconite and iron ore are estimated at 55.9 Mt (55 million It), compared with about 61 Mt (60 million It) in 1979 the most ever shipped in one year. Still, with annual production capacity of the eight Mesabi Range

Jan 10, 1982

By James Corcoran, Richard McLane, Joseph DeMello, Eric Carlson, Hans van de Vrugt

The Los Angeles County Transportation Authority’s Purple Line Extension Phase 1 is a $3.12 billion (USD) design-build, underground heavy rail project, connecting an existing station at Wilshire Boulevard and Western Avenue and extending west 3.92 miles under Wilshire Boulevard and terminating approximately 550 feet west of Wilshire/La Cienega Station. The project alignment runs through the heart of the world famous La Brea Tar Pits and one of the world’s largest urban oil elds. This paper presents a case history of the planning, design, and construction efforts to achieve successful construction of the bored tunnels through Reach 3 of the alignment. Further, this paper outlines the proactive partnership between the owner, Los Angeles County Metro (Metro), the Design Builder, Skanska-Traylor-Shea oint enture (STS), and Southwest Geophysics who provided the geophysical services. Specically, the project included background review of historic site data (e.g., oil eld maps, building foundation plans, historic aerial photographs, etc.), geophysical demonstration testing to ascertain the capability of borehole magnetics to detect oil wells, directional drilling of thousands of feet of horizontal and vertical boreholes, collection of high resolution magnetic gradiometer data along vertically and horizontally cased boreholes as well as the collection of surface magnetometer data, discovery (“ground truthing”) of detected geophysical anomalies, and abatement of potential obstructions within the tunnel alignment.

Jun 23, 2024

By Enrique Rubio Esquivel, Matías Fuentes Bustamante

The transition from open pit to underground mining represents a key strategic challenge in modern mine planning. This paper presents a multicriteria and multivariable methodology to plan such a transition, integrating technical, economic, environmental, and social considerations. The proposed framework focuses on risk reduction (de-risking) through the identification of alternative development paths, the use of stochastic simulation to model geological and technical uncertainty, and different mining strategies such as methods, production rates, sequence, etc. for ultimate underground implementation. The study summarizes the limitations of traditional planning methods—which usually treat the open pit and underground mine designs as independent processes—, also often it considers a single mining method and production rate for the underground option. Instead it is proposed an integrated approach that leverages synergies between both mining methods and scalable production rates. Also the proposed methodology incorporates the definition of critical variables (geotechnical, economic, and social, among others), the construction of multiple operational and technological transition paths, and the evaluation of each path under criteria of economic attractiveness and practical do-ability (capacity to be executed). Using simulation tools (SIMPLAN for operational performance and SIMVAL for economic evaluation), probabilistic distributions of the different path are obtained, enabling the quantification of the project’s Value at Risk (VaR). A subsequent multicriteria analysis weights the expected profitability against the feasibility of execution of each alternative, producing a decision matrix that provides a framework for evaluating the different project path. As a result, the proposed approach identifies OP→UG transition strategies that maximize business value by capturing remaining resources while minimizing financial and operational risks. Finally, strategic conclusions and recommendations for the industry are provided, emphasizing the importance of early transition planning even challenging the open pit sequencing of the latest push backs by introducing early underground operations. Future work includes strengthening the methodology—such as integrating real-time analysis and adaptive decision-making—and providing recommendations for its application in various mining operations. In summary, this paper delivers a technical and professional framework to guide mining companies on when and how to carry out a successful transition from open pit to underground mining, balancing resource recovery with financial, operational, and social security.

Feb 22, 2026

By K. V. Raj, C. A. Berry, A. T. Weakley, A. L. Miller, P. R. Griffiths, D. A. Parks

Diesel particulate matter (DPM) has been classified as a carcinogen to humans by the International Agency for Research on Cancer. DPM exposure is therefore regulated by the U.S. Mine Safety and Health Administration (MSHA). The current monitoring process takes days or weeks for exposure levels to be known, and a real-time monitoring device is needed. It is believed that infrared spectroscopy has potential for use in a real-time, field-portable device. This paper presents a method for measuring organic carbon (OC) and elemental carbon (EC) in DPM for a broad range of OC/EC ratios. 

By S. Mathur

The southern Florida phosphate deposits that will be mined in the future contain significant amounts of dolomite. Because high MgO levels are undesirable in phosphoric acid production, several flotation schemes for the removal of the dolomite have been attempted. Alternatively, selective flocculation has been suggested as a potential process. A high MgO rock was simulated with a 30:10:60 mixture of apatite, dolomite and silica, respectively. Single mineral selectivity was observed in the apatite-silica and dolomite- silica systems using Polyacrylic acid (PAA) and Poly(ethylene oxide) (PEO) flocculants, respectively. However, no single mineral selectivity was observed in the apatite-dolomite system using PEO. Heteroflocculation, suspected to be the major reason for the loss of selectivity, was minimized by the addition of a site blocking agent (SBA), consisting of a lower- molecular-weight fraction of PEO. Process parameters such as size reduction schemes, flocculant/SBA dosage and pH were investigated to achieve the desired separation. The selectivity obtained in binary mixed-mineral tests was also achieved in the ternary mixed-mineral system, namely, the apatite-dolomite-silica system. In this report, surface chemical characterization of the samples and their flocculation behavior are discussed.

Jan 1, 1995

By Marco Sonnenschein

Belt conveyors for tunnelling are industry standard and key to high performance of TBM drives. Conveyors reduce traffic in the tunnel and increase safety in the tunnelling process. This paper will illustrate the state of the art of tunnel belt applications in very long and curvy tunnels like the Coxwell Bypass Tunnel Project in Toronto, Canada.

Jun 23, 2024

By Philani Larrance Ngwenyama, Ronald CW Webber-Youngman

The survival chances of trapped miners in underground mines depend on how quickly they can be located and rescued post-accident. During entrapments, emergency rescue is highly desired but can be hindered by the lack of positioning information when a fit-for-purpose missing-person locator system is not available. Various types of missing-person locator systems are available to aid search-and-rescue operations. From the wide range of the available systems, selecting the most suitable one becomes the next challenge. The available systems have not been measured if they are fit-for-purpose or not, and to what situation. This study proposes user requirements that can be used as a guideline to facilitate the system selection process. These user requirements provide a framework for the design and development of a fit-for-purpose missing-person locator system. The user requirements can also be used for evaluating the performances of a particular system, predict its success, and also drive future research toward developing new technology to enhance the capabilities of the current systems.

Apr 1, 2024

By Justin R. Patts, Andrew B. Cecala, A. KYLE LOUK, Emily J. Haas

The National Institute for Occupational Safety and Health (NIOSH) and the former U.S. Bureau ofMines (USBM) have given a significant effort over the past four decades in researching and developing engineering controls and interventions to reduce mine workers’ dust exposures during the bagging and palletizing of industrial minerals. Workers performing manual bagging and palletizing of 50- to 100-pound bags typically have some of the highest dust exposures of all workers at mining and mineral processing operations. This paper will provide an overview of available dust control technologies for bagging operations and present the findings of a recent case study that was conducted at four different industrial sand operations to identify the current types of bagging and palletizing technologies being used and to evaluate their effectiveness in reducing workers’ exposures to respirable crystalline silica dust. An evaluation will also be performed to determine if further reductions in respirable dust levels can be achieved by incorporating additional modifications or improvements into the existing technology.

Apr 3, 2020

By James I. Mathis

Should an arbitrary reduction factor be applied to laboratory compressive strengths when designing pillars? The answer is, as is the main contention of Peng's article, probably not. Many factors affect the strength of the material remaining in the pillar. On the other hand, outside influences will influence the strength testing results from the lab. This is not the first article, nor the last, to discuss the discrepancy between the two strengths. As was discussed in the article, actual pillar strength is affected by several factors. The two mentioned were: • The scale effect of discontinuities. How large must the pillar be so that the increase in discontinuity count with size will not decrease the strength. • Non-uniform strengths and lithologic units within the pillar. The scale effect of discontinuities is important. What size block must be tested so that the rock mass strength is actually measured? For a highly fractured rock mass, or coal with a high cleat density, this sample may be quite small. Conversely, if an unaltered, moderately jointed, quartz monzonite was examined, the sample block would likely be very large. This is the subject of ongo¬ing research. More to the point, if the tested sample is sufficiently large to model the rock mass strength, then no reductions should be made in the lab strength based on this factor alone. Non-uniform strengths and variations in lithologic units will also affect the pillar strength. I am not an expert in coal mines, having gained my experience in hard rock metal mining. These problems, though, are commonplace. However, strength sampling for pillar strength determination involves sampling material from within the lithologic unit that will form the pillar, not from pieces of material found on the floor. In addition, this sampling should cover the entire range of strengths of the material in the pillar-hard units (such as the partings described by Peng), as well as soft units. Testing results should then be included in the pillar design. Contrary to statements in Peng's article, at least one rock mass rating system (Laubscher, 1990) allows for the compositing of strong and weak units into a design rock mass strength that can be used for pillar design.

Jan 1, 1993

By K. Konialis

In the last twenty years, the mining industry has made marked efforts to improve its reputation in regard to its social performance. These efforts have been expressed in the 9th ICMM (International Council on Mining and Metals) principle as a commitment to contribute to the social, economic and institutional development of the local communities. Towards this goal, which has been increasingly highlighted because of its importance for sustainable development, a number of practices and methods have been developed. The international development literature describing these practices is full of so-called development buzzwords, such as stake-holder participation, empowerment, capacity building. This paper argues that none of these development catchwords are neutral, but contain assumptions based on a specific view of development. Since capacity building is a central task in development, the paper focuses on this concept and takes a critical look at the assumptions that underlie this concept and influence strategies employed by the mineral sector. It suggests that the notion of capacity building in some earlier approaches implies a set of asymmetric power relationships between developed and developing countries where capacity is transferred from the developed countries to the developing ones. The developing countries are seen as passive recipients while the experts, i.e. the developed countries through their mining companies ultimately control the capacity-building process. The paper also points out that the mainstream capacity development approach has been based on the assumption that local or indigenous communities are mainly made up of needs and capacity gaps. The goal of development projects should then be to address these needs, which are perceived and prioritized by the ?experts?. Critiques of this development model suggest that in order for the mining industry to embrace more successful and sustainable practices, it should rethink the notion of capacity building. It should move towards alternative approaches that see it as a two-way learning process which will serve to enhance not only the capacities of the communities, but also of the development practitioners and which will build on the strengths of the community, and move away from attitudes of superiority and practices of dependence.

Jan 1, 2007

By Henry O. Ash

On June 16, 1982, Rio Blanco submitted a request to the US Minerals Management Service for a suspension of operations under its federal oil shale lease. The company also wanted a five-year delay in the requirement for further minimum royalty payments and a five-year extension of the primary lease terms of 20 years. The request was granted in late July in the midst of yet another slump in oil shale activity. Rio Blanco holds one of four Federal oil shale leases that were granted under the Interior Department's Prototype Oil Shale Leasing Program in 1974. That year the DOI offered for lease six federal oil shale tracts, two each in Colorado, Utah, and Wyoming. The leases in Colorado and Utah were granted for substantial bo¬nus bids as shown in Table 1, but the Wyoming tracts had no takers. In the eight years hence, no oil shale has been produced commercially. Indeed, the prospects for successful oil shale development have fluctuated widely, continuing a 60-year- old cyclical pattern in the fledgling industry. The prototype program was developed and initiated while this infant industry struggled to begin anew, without the benefit of any federal oil shale leasing regulations, or any history of federal oil shale leasing at all. Permanent regulations were not required because the effort was limited and designed to provide the foundation for any future leasing program. Section 21 of the Mineral Leasing Act of 1920, a Nov. 30,1973 Federal Register notice, and the leases themselves constitute the legal and regulatory framework for leasing and developing prototype oil shale tracts. The prototype leases contain some unusual provisions including installment payments of the bonus bids, credit of early development costs against payments due the government, adjustment of royalty rates according to regional crude oil price fluctuations, and unusually extensive and detailed environmental stipulations. Several of the provisions were intended to provide incentives for early development and financial penalties for failure to develop. The requirement for minimum royalty payments in lieu of actual production royalties beginning in the sixth year of the lease falls in the latter category. After the sixth year, the required minimum payment is increased east year through the 15th year by an increment equal to that due in the sixth year. The minimum royalty then remains the same through the final five years of the primary lease term. Minimum royalty is calculates on a different production level for each prototype lease, based on the quantity of 125 L/t (30 gal/st) shale estimated to be recoverable from. each tract by room-and-pillar mining. That mining system was selected for reference as the only proven extraction method for oil shale at that time (early 1970s) The minimum royalty (production) rate was calculated for each tract by direct comparison of its estimated recoverable 125-L (30-gal) resource to a hypothetical tract containing 1.9 Gt (2.1 billion st) of recoverable 125-L (30-gal) shale. For the hypothetical lease tract, the minimum production for the sixth year was calculated to be 3.2 kt/d (3,500 stpd), increasing by a like amount each lease year through the 15th to a daily production rate of 31.7 kt (35,000 st). Under this formula, the hypothetical lease tract would yield $16 million in minimum royalty payments over the 20-year primary lease term if there were no production, no development credits taken, and no adjustment of the royalty rate due to fluctuation of regional crude oil prices. The production rate of 31.7 kt/d (35,000 stpd) was a somewhat arbitrary figure that was considered, in the early 1970s, to represent a minimum size for a commercial oil shale operation. A production rate of 7.9 dam3/d (50,000 bbls/day) soon supplanted that smaller mine production figure as a rule of thumb for the minimum size for a commercial facility. The proportional relation-

Jan 11, 1982