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By Oliver B. Hopkins

Peruvian production for the year 1935 amounted to 17,064,879 bbl., a record amount for any year, bringing the cumulative production of the country up to 188 million barrels. The 1935 figure is an increase of 785,769 bbl. over the 1934 total. The property of the International Petroleum Co. contributed 636,812 bbl. of this increase, and the Lobitos property 158,625 barrels. Exploration work in the country was again active, with attention focused on three areas, the Huallaga River, Lake Titicaca and the Coastal Zone of the Province of Tumbes. It is reported that in the Huallaga River area the Selden Breck Construction Co. has completed geological and engineering studies on its Pachitea River concessions and has ordered a drilling rig. In the Lake Titicaca region further studies in the vicinity of Pusi were made by Government geologists. During the period from 1906 to 1915, the Pirin anticline in this area produced 285,936 bbl. of low-grade crude. The Government holds 120,000 hectares of reserved lands in this area. In the Coastal Zone of the Province of Tumbes explorations by the Government were continued on the National Reserve, and a test location has been selected in the Quebrada Zapotal about 10 miles from the Port of Zorritos. An order has been placed in the United States for drilling equipment. LaBrea-Parinas Estate.—Production on the LeBrea-Parinas Estate reached an all-time high in 1935 of 14,756,914 bbl., an increase of 636,812 bbl. over the 1934 record. The total production from 1890 to 1935 was 148,541,523 bbl. During 1935 a total of 63,021 ft. was drilled in new wells and 5449 ft. in deepening existing wells; 23 wells were deepened and 29 new wells were completed, of which 27 were producers and 2 were dry holes. At the end of the year 2873 wells had been drilled on the Estate, of which 1838 were still productive. The remaining 1035 wells represent abandoned producers or dry holes. Practically all the drilling on the property has been done with cable tools, but during 1934 three strings of rotary tools were introduced. Experience with these outfits has shown that rotary equipment can

Jan 1, 1936

By Oliver B. Hopkins

Peruvian production for the year 1935 amounted to 17,064,879 bbl., a record amount for any year, bringing the cumulative production of the country up to 188 million barrels. The 1935 figure is an increase of 785,769 bbl. over the 1934 total. The property of the International Petroleum Co. contributed 636,812 bbl. of this increase, and the Lobitos property 158,625 barrels. Exploration work in the country was again active, with attention focused on three areas, the Huallaga River, Lake Titicaca and the Coastal Zone of the Province of Tumbes. It is reported that in the Huallaga River area the Selden Breck Construction Co. has completed geological and engineering studies on its Pachitea River concessions and has ordered a drilling rig. In the Lake Titicaca region further studies in the vicinity of Pusi were made by Government geologists. During the period from 1906 to 1915, the Pirin anticline in this area produced 285,936 bbl. of low-grade crude. The Government holds 120,000 hectares of reserved lands in this area. In the Coastal Zone of the Province of Tumbes explorations by the Government were continued on the National Reserve, and a test location has been selected in the Quebrada Zapotal about 10 miles from the Port of Zorritos. An order has been placed in the United States for drilling equipment. LaBrea-Parinas Estate.—Production on the LeBrea-Parinas Estate reached an all-time high in 1935 of 14,756,914 bbl., an increase of 636,812 bbl. over the 1934 record. The total production from 1890 to 1935 was 148,541,523 bbl. During 1935 a total of 63,021 ft. was drilled in new wells and 5449 ft. in deepening existing wells; 23 wells were deepened and 29 new wells were completed, of which 27 were producers and 2 were dry holes. At the end of the year 2873 wells had been drilled on the Estate, of which 1838 were still productive. The remaining 1035 wells represent abandoned producers or dry holes. Practically all the drilling on the property has been done with cable tools, but during 1934 three strings of rotary tools were introduced. Experience with these outfits has shown that rotary equipment can

Jan 1, 1936

By Charles H. Osmond

The rapid progress of basic changes in refining processes, which has characterized this division of the petroleum industry during the last 7 years, slowed up in 1926 and the industry as a whole devoted itself to the enormous task of adopting these changes to its methods of manufacturing. If for no other reason, the year of 1926 will stand out as the first year of widespread activities in placing refining on a true manufacturing basis. A brief survey of each of the important operations and the trend of the changes with their economic results indicate the importance of this period of transition. No attempt has been made to detail the numerous activities in each of the major operations and the writer would refer those seeking such information to the various trade papers and the paper on "Basic Changes in Refining Processes," by Walter Miller.' Distillation.—-Distillation (excluding cracking) is the major item in refining. During the past year there has been a wide application of the improvements developed in former years. Operating costs have been reduced for fuel, labor and capital items. Practically all types of distillations are now carried on as semi-continuous or continuous operations, rather than by the old batch method. Heat-saving devices, such as heat exchangers, or improved combustion chambers, have had a marked effect on the total fuel bill of the industry. The modern pipe-still has been widely used and figures available show that approximately 10 per cent. of the older shell equipment was replaced by pipe-stills during 1926. The range of usefulness of this type of equipment has been extended successfully to the most complicated types of lubricating oil manufacture. These stills afford marked economies in fuel as well as labor costs, also many advantages in older plants where space is limited, as a single pipe-still can replace several batteries of shell stills. Capital expenditure per barrel capacity is decidedly lower and offers economy in this direction. Although there has been considerable discussion of other types of distillation equipment such as the vacuum still, there has been no appreciable increase in these installations during 1926. Cracking.—-Cracking equipment increased rapidly during 1926 as evidenced by the increase in output of cracked gasoline from an average

Jan 1, 1927

By L. Alan Weakly

The Bureau of Mines has pursued a program of research on mine illumination that has defined the coal miner's illumination needs. St. Joe Minerals Corporation, recognizing the need for improving the illumination of the working place in their mines, entered into a cooperative research agreement with the Bureau of Mines to utilize the Bureau’s expertise in this field. Some similarity in the environment, in which coal and hard rock miners work, has allowed the application of developed coal mine illumination technology and equipment to be utilized in hard rock, room and pillar mines.

Jan 1, 1979

By Oliver B. Hopkins

Peru produced approximately 17,466,620 bbl., of oil during 1937, or slightly less than the record high of 17,593,700 bbl. established during 1936. As in 1936, the entire output of the country was derived from the La Brea-Parinas, Lobitos-Restin and Zorritos fields in the northwestern part of the country. Outside of the proven areas, drilling was 'continued by the Peruvian Government in the northern province of Tumbes on the reserved zone at Zorritos. Drilling was carried out on three locations, two of which are understood to have been abandoned during the year. In southern Peru, further attention was given by Government engineers to the Pusi and Saman districts and plans are being worked out for the commencement of drilling operations in the near future in the vicinity of Pirin. Activities in the montaiia region in eastern Peru were continued by the Compafiia Petrolera El Ganso Azul. This company acquired the interest of the Selden Breck Co., and holds some 90,000 acres along the Pachitea River a few miles above its confluence with the Ucayali. During the year, the preparation of a landing place, the cutting of a 12-km. (71/2-mile) road from the river to the drill site, and the construction of a camp were undertaken. Equipment for drilling on this company's concessions has already arrived in South America. La Brea-Parinas Estate.—Production of crude oil on the La Brea-Parinas Estate of the International Petroleum Company Limited amounted to 14,722,754 bbl. during 1937, a decrease of 403,736 bbl. from the all-time high reached during 1936. The total production from 1890 to Dec. 31,1937, was 178,390,767 bbl. During 1937, a total of 141,653 ft. was drilled, 129,516 ft. in new wells and 12,137 in deepening existing wells. In all, 57 wells were completed, 47 of which produced oil, 2 were gas wells and 8 dry. holes. Twenty-nine wells were cleaned out or deepened during the year. The average depth of new wells completed during 1937 was 2367 ft. compared with 1984 ft. for the new wells completed during 1936. There was an increased use of rotary tools during the year and this method is now used to a greater extent than the cable-tool method, which formerly predominated. Of the 57 wells completed during the year, 31 were

Jan 1, 1938

By J. O. Nomland

DuRing the year 1939 the program of the California Arabian Standard Oil Co. in eastern Saudi Arabia consisted of drilling wells to increase the production of Dammam Dome. (This structure is also sometimes referred to as Dhahran Dome.) In addition, in other areas of the concession, wildcat wells are being drilled on geologically favorable structures. In the early wells drilled at Dhahran, production was at a depth of 2000 to 2200 ft. Since discovery of the "Arab zone" below 4300 ft., all of the later wells have been drilled to the deeper productive members. At present there are at Dhahran fivc wells in various stages of drilling or completion. In addition, 15 wells previously were drilled to the upper or lower zones. Although some of the early locations are exceptions, in general the spacing of the wells is at 3000 feet. Prospect testing consisted in drilling one well at Abu Hadriya and one at Ma'agala, about 100 miles northwest and 120 miles west of Dhahran. The first had attained a depth of 8655 ft. without encountering the main Darnmam productive zone, while the second was at a depth of 1372 ft. Both of these wildcat wells are on large dome structures. Production.—During the year 3,933,903 bbl. of approximately 35" gravity oil was produced, all from flowing wells. A part of this production was shipped in barges to the refinery at Bahrein. In early May a 40-mile 10-in. pipe line was completed to the deep-water terminal at Ras Tanura. The ceremony of first opening the valve for flow of oil into an ocean tanker was performed by King Abdulaziz Ibn Saud. Since that time tanker shipments have continued, both to Bahrein and to world markets. Only sufficient gas for camp purposes has been produced. Equipment.—A stabilization plant has been completed at Dhahran and plans have been made for a refinery at Ras Tanura. A modern camp is being built including power plant, central air-conditioning plant, radio station, employees' club and housing facilities for both married and single employees. Both the offices and dwellings are being air-conditioned. There is a hospital, with medical staff and nurses, providing facilities for both Saudi Arabs and Americans.

Jan 1, 1940

By J. O. Nomland

DuRing the year 1939 the program of the California Arabian Standard Oil Co. in eastern Saudi Arabia consisted of drilling wells to increase the production of Dammam Dome. (This structure is also sometimes referred to as Dhahran Dome.) In addition, in other areas of the concession, wildcat wells are being drilled on geologically favorable structures. In the early wells drilled at Dhahran, production was at a depth of 2000 to 2200 ft. Since discovery of the "Arab zone" below 4300 ft., all of the later wells have been drilled to the deeper productive members. At present there are at Dhahran fivc wells in various stages of drilling or completion. In addition, 15 wells previously were drilled to the upper or lower zones. Although some of the early locations are exceptions, in general the spacing of the wells is at 3000 feet. Prospect testing consisted in drilling one well at Abu Hadriya and one at Ma'agala, about 100 miles northwest and 120 miles west of Dhahran. The first had attained a depth of 8655 ft. without encountering the main Darnmam productive zone, while the second was at a depth of 1372 ft. Both of these wildcat wells are on large dome structures. Production.—During the year 3,933,903 bbl. of approximately 35" gravity oil was produced, all from flowing wells. A part of this production was shipped in barges to the refinery at Bahrein. In early May a 40-mile 10-in. pipe line was completed to the deep-water terminal at Ras Tanura. The ceremony of first opening the valve for flow of oil into an ocean tanker was performed by King Abdulaziz Ibn Saud. Since that time tanker shipments have continued, both to Bahrein and to world markets. Only sufficient gas for camp purposes has been produced. Equipment.—A stabilization plant has been completed at Dhahran and plans have been made for a refinery at Ras Tanura. A modern camp is being built including power plant, central air-conditioning plant, radio station, employees' club and housing facilities for both married and single employees. Both the offices and dwellings are being air-conditioned. There is a hospital, with medical staff and nurses, providing facilities for both Saudi Arabs and Americans.

Jan 1, 1940

By L. M. Barker, E. G. Lewis

THE literature of milling is replete with papers devoted to the subject of ball milling, all of which no doubt have contributed in one way or another to progress in that art. In this paper reference will be made to only a few of the many authors, but the value of the contributions of all who have written on that subject is hereby acknowledged. With a few exceptions the efforts of most students of the subject have been devoted to laboratory investigations of principles. Davis1 was one of the first to report on plant-scale investigations and to present to mill men certain criteria for the guidance of ball-milling practices. His conclusions with respect to the significance of sizing analyses of classifier sands in their relation to the factors of mill speed and ball sizing are particularly referred to. Those conclusions were: I. If the balls are large or the speed of the mill is high, crowding will appear at the finer sizes in the classifier sands. 2. If the balls are small or the speed is low, crowding will appear at the coarser sizes in the classifier sands. 3. The indications are that best efficiency is obtained when the screen analysis of the sands show a minimum crowding at any size. The last conclusion was qualified by the statement that it had not been proved conclusively. It is surprising, however, that the literature of later years reveals little evidence that millmen have made any serious attempt to apply those criteria. This may, perhaps, be explained by the fact that the average plant-scale ball-milling problem presents so many variables that an investigation of any one of them encounters the problem of control of the others-a problem that often is unsurmountable in a small plant. In a large plant, in which there is a duplication of grinding units in parallel operation, opportunity may be afforded for determining the value of such criteria. Nevertheless, a study of published data from grinding circuits of both large and small plants suggests that either Davis' criteria have been tried and found inapplicable or have never been given consideration. For the purpose of testing Davis' conclusions and with improvement of ballmilling efficiency as the final objective, a test program was initiated in the concentrator of the New Cornelia branch of the Phelps Dodge Corporation early in 1938. The practices of that plant have already been described.2 The fine-grinding units are arranged so that any one of eight units may be operated as a test unit and its results compared with those of the remaining units. All units receive similar feed from a common storage bin, in which the product of the fine-crushing plant is bedded by traveling tripper. The ball mills are all similar in size and operated at the same speeds, and are individually metered. The feeder conveyors of each unit are equipped with Merrick weightometers. The test program as initially outlined proposed investigation of the following:

Jan 1, 1941

By T. V. Falkie, Robert Stefanko

Coal Mine Health and Safety Act in December 1969, the most comprehensive law in the history of the coal mining industry went into effect. Hardly anyone will quarrel with the philosophy that all miners in the United States should be afforded equal protection under the law irrespective of the state in which they reside. Furthermore, it appears contrary to any sound judgment that a competitive advantage should appear to accrue to a mine operator because his operations are located in a state with less stringent (and costly) health and safety laws Yet it is recognized that the quality of state mine laws and inspection agencies has been extremely variable. Why, then, should there be such resentments over the passage of the Act? The Act was written In the highly emotionally charged atmosphere following the Consol No. 9 disaster: the technical expertise within the industry was discredited and largely ignored; and those directly involved in the writing of the Act were non- technical and largely nonmining people. The result was that the law incorporated certain requirements that were impossible to meet (automatic brakes are the classical example) and certain parts that were too ambiguous and consequently open to interpretation.

Jan 1, 1971

By R. V. Whetsel, V. R. Garfias

The production of petroleum in Mexico during 1933 totaled 33,430,-000 bbl., or 625,000 bbl. more than in the previous year. This is the first time since the peak in 1921 that the declining trend of output has been reversed. Drilling activity in the proven areas of the Isthmus of Tehuantepec and the Northern fields increased substantially during the year. The completion of two producers in the Poza Rica area south of Tuxpam and a shallow gas well in the Camargo district near the American border were the outstanding features of development. Late in September the Northern fields and the oil port of Tampico were swept by a hurricane followed by floods which caused loss of life and heavy damage to the City of Tampico and to transportation, tank farms and refineries. For three weeks, owing to the silting of the Tampico Bar and destruction of terminal facilities, no oil could be shipped for export. About half the wells of the Northern fields were closed for a period of 30 days. The prompt and effective steps taken by General Macias, chief of military operations, prevented the spread of epidemics and any serious aftermath of the catastrophe.

Jan 1, 1934

By James Kemp

IN earlier years, the custom prevailed of regarding the anthracite basins as cases of folding with slight development of faulting. Folding is so pronounced and, in the eastern and western Middle Fields, at times so violent, that the inference was a natural one and led to the widespread impression that practically all the disturbances of the seams could be explained in this way. The cross-sections-and maps prepared forty or more years ago for the Second Geological Survey of Pennsylvania, by Mr. Ashburner under Prof. J. P. Lesley, exhibit little else than folds.1 So far as I can discover faults fail in the charts, except in one small case in the Henry Colliery near Plainsville on the outskirts of Wilkes-Barre. Some years ago, while spending a day or two in Wilkes-Barre, under the guidance of R. V. Norris, I looked over some recent and accurate cross-sections of a number of the large collieries and was deeply impressed with the peculiar behavior of some of the seams and the intervening shales. Thus, a seam might present a small, more or less overturned fold, rising 30 to 50 ft. (9 to 15m.) above its general course, and yet the movement would be taken up in the overlying shales, so as hardly to be noticeable in the seams next above or below. These and similar anomalies, especially when shown with the accuracy of engineer's surveys, possess great scientific and practical interest, bearing as .they do, not alone on coal mining, but on theoretical geology and the actual behavior of strata under great compressive stresses. In preparation for the semicentennial meeting of the Institute, an, effort was therefore made to secure some of the most interesting sections for presentation to the members. The collection of illustrations here shown is mainly due to, Mr. Douglas Bunting of the local committee, to whom and to the contributing companies acknowledgments are due.

Jan 1, 1922

By Walter Kauenhowen

The production of crude oil in Germany during 1933 totaled about 1,669,521 bbl., a slight increase over the 1,608,558 bbl. produced in 1932. This is an extension of a yearly increase which has continued uninterruptedly since 1928. The 1933 increase in production is due chiefly to developments in the Nienhagen field. The production of the Wietze and Oberg fields remained rather stable, while the Oelheim-Eddesse and Volkenroda fields showed decreases. Nienhagen Field.—This field furnished about 61 per cent of the total German oil production in 1933. Most of the drilling activity centered the north district near the village of Nienhagen, where the trend of

Jan 1, 1934

By S. W. Hazen

The use of operations research and computer techniques continued to expand during 1967. A number of mining companies either obtained computers or were experimenting with their use through service bureaus. This trend was also evident in the Canadian mining industry. Although the annual Symposium and Short Course on Computers and Operations Research in Mineral Industries was not held in 1967, technical periodicals like MINING ENGINEERING, Mining Congress Journal and Engineering and Mining Journal stepped up their coverage on the subject. The annual AIME meeting had eight papers in two sessions and one session on Operations Research was held at the SME Fall Meeting in Las Vegas.

Jan 2, 1968

By Anna H. Connard

SUMMARY The discussion focusses on developments in the debt/equity swap market since the Marte project was negotiated in early 1988. It emphasises carrying forward the recent market trends to anticipate the breadth and scope of debt/equity conversions for mine development in the 1990s. Secondary market prices of LDC paper, conversion values and political influences in the host countries and the use of near debt and commodity-based instruments as components of mine financing in debt/equity deals will be placed in the perspective of recent trends and expectations for the future. THE MARTE PROJECT The Marte mine is a gold porphyry deposit in Chile's high Atacama, for which financing was put together at the beginning of 1988. The Marte project was financed by a combination of common equity and loans. It was unusual that the equity infusions were made under different programs. Some of the international equity was infused with fresh funds via DL 600. Other common foreign equity was provided through the conversion of Chilean bank debt under Chapter XIX. On the loan side,. export credits for the import component of machinery and equipment were sought. Local bank financing was negotiated for the remainder of ' the project's anticipated cost. The debt conversion market in Chile was at its apex in terms of interest, activity and government support when the mine financing was arranged. The price of Chilean paper in the secondary market hovered about 62 to 66 cents per U.S. dollar of face value. Meanwhile, the Chilean government was negotiating conversion redemptions significantly closer to full face value. The government differentiated between debt paper exchanged for corporate investors who had sourced that paper in the secondary market, and debt paper held by bank investors who would incur a transaction loss in the conversion. The use of a combined DL 600lChapter XIX equity financing created different yield calculation bases for the various investors. Chapter XIX prevents remittance of profits before year 5 and capital repatriation before year 11. Investors choosing this vehicle have either for a corporate policy in the target project not to declare dividends until repatriation is allowed, or they have to seek uses for the peso liquidity that would be generated through dividend declarations in the early years. However, DL 600 investors face no such waiting period on dividends, nor do they have restrictions imposed on cashing out of the investment before the 11th year. Therefore, any equity structure with components of both investment mechanisms will have inherent differences in cost basis and future income flows for the various participants. This equity imbalance is defensible if the investment motivations of the parties are analyzed: a mining investor using fresh funds looks for a hurdle return on equity calculated at conservative commodity prices, with as much flexibility to reap upside benefits as possible; a mining investor choosing to invest through a debt conversion mechanism will realize a modest short term gain on the conversion, reducing his effective cost basis, but sacrificing some return because of the waiting period on repatriation of dividends. INVESTMENT OBJECTIVES A bank investor exchanging his own paper for an equity participation in a mining project realizes a conversion loss on the transaction. He seeks a risk adjusted acceptable hurdle rate of return to recoup that loss over time. Motivation for the bank investor to take that loss may be derived partly from a strategy to diversify its existing portfolio by internal policy and externally regulated guidelines. The bank will compare yields on its loan portfolio to that country with anticipated dividend flows discounted back at a risk adjusted rate. It will analyze the project with return objectives of yield enhancement over time and with

Jan 1, 1990

By John W. Roberts

The Federal income tax law permits as a deduction in determining net income "in the case of mines,... a reasonable allowance for depletion and for depreciation of improvements, according to the peculiar conditions in each case, based upon cost, including cost of development not otherwise deducted: Provided, that in the case of such properties acquired prior to Mar. 1, 1913, the fair market value of the property (or the taxpayer's interest therein) on that date shall be taken in lieu of cost up to that date." The law provides for a reasonable allowance but the regulations provide for a definite method of computation that possesses more the virtue of simplicity than that of reasonableness. Article 210 of Regulations 45 reads: "When the cost or value as of Mar. 1, 1913, or within 30 days after the date of discovery of the property shall have been determined, and the number of mineral units in the property as of the date of acquisition or valuation shall have been estimated, the division of the former amount by the latter figure will give the unit value for purposes of depletion, and the depletion allowance for the taxable year may be computed by multiplying such unit value by the number of units of mineral extracted during the year." This is simple, but is it reasonable? The intent of the law is clearly that the cost of the ore in the ground shall be considered as part of the cost of the same ore when removed and sold. The regulations fail to carry out that intent, because of the unwarranted assumption that all the ore in the mine cost the same amount per ton. This is what gives the Treasury Department's method its simplicity, but at the same time robs it of its reasonableness because the assumption is contrary to fact. It is self-evident that a ton of ore near the surface or exposed by present workings is worth much more than a ton buried so far down in the earth that it cannot be removed for many years. If no improvements in mining methods were expected, the value of deeply buried ore would be further reduced by the greater expense that would be required to

Jan 1, 1922

By R. W. Raymond

THE specimen of anthracite which I exhibit is from the Ortiz Mine Grant, about fifteen miles southwest of Santa Fe. The beds belong to the lignitic formation of the Galisteo, which Hayden and

Jan 1, 1874

By B. Das, V. Hucka

In light of the present energy crisis, coal appears now as the only reliable source of energy. The production of coal is expected to regain a rising trend after the latest slump. Aside from the competitive price with natural gas and oil, the other retarder of coal production is its environmental pollution effect. Gasification of coal has been advanced as the partial solution to the energy-ecology crisis. All the Advantages In situ gasification of coal may be considered a further step in this direction. It carries all the advantages of normal coal gasification as a stable source of energy; it is clean to handle and nonpolluting of the environment. It partially and sometimes fully does away with mining, makes uneconomical low grade coal and lignites economical and places some formerly unworkable seams within the scope of modern technology. The seams posing problems for mining due to tectonic disturbances may be converted into gas in situ. Low grade coals, such as lignites, which otherwise would be left in nature as uneconomic wealth, may be exploited by underground or in situ gasification. Thus, in situ gasification is likely to increase the exploitable reserves of coal and may reduce the cost of production. An additional merit of this method is that coal substance never reaches the surface and there is no problem of cinder disposal.

Jan 8, 1973

CLARENCE M. HAIGHT, Franklin, N., J. (communication to the Secretary*).-In that hart of Mr. Wilson's paper describing the Gilman cut-and-fill system, a few features do not appear to be fully explained. In what way is the waste used for filling obtained? The text mentions that, if waste is encountered when driving the filling raises, these raises are stopped until the fill is needed; that seems to suggest mining the capping for fill, which might make the backs of the stopes had as the stopes approach the top of the ore. If, on the other hand, the fill is brought to the raises in cars, are the crosscuts that are necessary in ore or waste? Is the cost of this fill included in the stoping costs given?

Jan 5, 1917

By J. W. Ristori

During the year 1940, production of crude oil in RiIexico totaled 43,914,000 bbl., or 2,776,000 less than in 1937, the year before expropriation. The 1940 output was I,2000,000 higher than in the previous year. In 1937, Poza Rica production accounted Declines in exports of Panuco crude, fuel oil and gasoline were recorded but these were more than offset by increased exports of 4,000,000 bbl. of Poza Rica crude, which was the approximate amount shipped to Sinclair during 1940 under the terms of the settlement. Over-all exports increased by 1,500,000 bbl. over the preceding year. The outstanding development regarding the destination of Mexican exports in 1940 was the increase of I0,000,000 bbl. in the exports to the United States. Exports to Germany ceased toward the end of '939 and to Italy in the second half of 1940. During the year 1940 the Sinclair interests and the Mexican Government settled their expropriation question. By the terms of the settlement Sinclair is to be compensated by cash payments and oil-purchase contracts. On Dec. I, 1940, Ada Camacho was inaugurated President of Mexico for a term of six years. Among his first acts following his election were: I. A proposal to change the Constitution to restore Supreme Court Judges' terms to life tenure. This has been ratified by both chambers of the Mexican congress and is now before the legislatures of the States of Mexico for ratification. The, taking away of the administration of the railroads from labor and restoration to the State.

Jan 1, 1941

By J. W. Ristori

During the year 1940, production of crude oil in RiIexico totaled 43,914,000 bbl., or 2,776,000 less than in 1937, the year before expropriation. The 1940 output was I,2000,000 higher than in the previous year. In 1937, Poza Rica production accounted Declines in exports of Panuco crude, fuel oil and gasoline were recorded but these were more than offset by increased exports of 4,000,000 bbl. of Poza Rica crude, which was the approximate amount shipped to Sinclair during 1940 under the terms of the settlement. Over-all exports increased by 1,500,000 bbl. over the preceding year. The outstanding development regarding the destination of Mexican exports in 1940 was the increase of I0,000,000 bbl. in the exports to the United States. Exports to Germany ceased toward the end of '939 and to Italy in the second half of 1940. During the year 1940 the Sinclair interests and the Mexican Government settled their expropriation question. By the terms of the settlement Sinclair is to be compensated by cash payments and oil-purchase contracts. On Dec. I, 1940, Ada Camacho was inaugurated President of Mexico for a term of six years. Among his first acts following his election were: I. A proposal to change the Constitution to restore Supreme Court Judges' terms to life tenure. This has been ratified by both chambers of the Mexican congress and is now before the legislatures of the States of Mexico for ratification. The, taking away of the administration of the railroads from labor and restoration to the State.

Jan 1, 1941