Search Documents

By A. N. Roberts, N. W. Stump

New developments in on-stream analysis using immersed radioisotope gages including results from plant installations are described. The control of grinding and flotation using a small digital computer has been complemented by this development. A control scheme for grinding, which is based on maximum throughput at constant product size, and preliminary work in flotation control are also outlined.

Jan 1, 1975

By J. H. Nelson

An outline survey of the economic outlook for the United States export trade in petroleum products resolves itself broadly into two general divisions; first, a consideration of our present position in this trade, and second, a discussion of the visible factors which promise to affect appreciable changes in the immediate future in that trade. The United States PetRoleum Exports of majoR Petroleum Products 1925, 1926 and 1927

Jan 1, 1928

By Waldemar Lindgren

FIFTEEN years ago, in his presidential address before the Washington Academy of Sciences,1 Alfred H. Brooks said: "Applied geology can only maintain its present high position by continuing the researches which advance the knowledge of basic principles. Future progress in applied geology depends on progress in pure geology." Early in 1927, Dr. David White, then chairman of the Division of Geology and Geography of the National Research Council, appointed a committee "On the Processes of Ore Deposition," which was the first recognition by the Council of this branch of applied geology. This committee will not be able to solve the many complex problems involved; it can only clear the way, survey the field, state the problems and encourage systematic research. This short paper aims to outline and to analyze the present status of this kind of geological research, to ascertain the quality of the work and to suggest lines that might profitably be followed. INCREASING DEMAND FOR GEOLOGISTS Economic geology, or the art of geology, could develop only after the principles of geology and mineralogy had been established. Before that time it was merely a collection of trade rules accompanied by more or less wild speculations. Thus we observe the beginnings of economic geology in the period 1770-1820. Soon afterwards, the State Surveys were established in this country, with the realization that the natural resources should be investigated and described. Geology was hardly yet equal to the task of scientific research in relationships and genesis, however, and there followed a period of discouragement and stagnation. In the meanwhile, pure geology had again registered progress, and, based on its principles and also on the rapid mining development in the Cordilleran region, the present phase of the study of ore deposits began to take form. Raphael Pumpelly, S. F. Emmons and G. F. Becker were among the pioneers in this movement. The United States Geological Survey was organized. Ore deposits were scientifically described and studied along lines of structure and mineralogy; theories of genesis were advanced, not always permanent but based on sound induction.

Jan 1, 1928

By D. Duffey, P. F. Wiggins, F. E. Senftle

An examination of the neutron capture gamma ray method using a 252CF neutron source indicates that this technique may be feasible for process stream analysis of ores. Simulated laboratory experiments were made on iron in taconite and magnetite, and copper and nickel in their respective ores. Satisfactory analyses were obtained for 500-1000-g samples in a combined irradiation and counting time of 100 min. For large industrial size samples this time could be shortened. Based on these experiments, a set of guidelines are given for the use of the neutron capture gamma method in an industrial mill.

Jan 1, 1974

Improved safety, economy, and flexibility-which translate into increased productivity-promote the case for greater utilization of diesel-powered equipment in underground coal mines. On the other hand, opponents of diesel use say that the alleged health hazards are not worth it. Who's right? The continuing debate was the focus of a special "Diesels in Underground Coal Mining" session held during the SME-AIME Fall Meeting in Lake Buena Vista, Fla., last September. Looking at the record to date, there are more than 20,000 diesel-powered units operating in underground mines throughout the world; more than 1000 are in Western European coal mines and 10,000 such units are in North American mines. Surprisingly, of the 10,000 North American units, only 200 are utilized in US underground coal mines.

Jan 4, 1979

By William P. Blake

In view of the present exposition at Atlanta, and the timely meeting of the Institute in that city, and the expressed desire of the Council for contributions to the knowledge of the mineral resources of the Southern States, I may be permitted to offer some desultory notes upon the subject, chiefly in the form

Jan 1, 1896

By George Rice

THE A.I.M.E. Ground Movement and Subsidence Committee, pro-posed in 1920, held its first technical meeting in February 1923, under the able chairmanship of Mr. H. G. Moulton. The following list of papers and discussions, indicating the scope of the problems and relation to various conditions and method of mining, were given at that meeting by the distinguished mining engineers: J. Parke Channing, on Subsidence at Miami, Arizona; Howard N. Eavenson, on Mining an Upper Bitu-minous Seam after a Lower Seam Has Been Extracted; J. J. Rutledge, on Subsidence in Two Oklahoma Coal Mines; Benjamin F. Tillson, on Caving Cracks at the Franklin Mine, New Jersey; Dr. F. W. McNair, on the Dome Theory; William Kelly, on disadvantageous effects in Mining and Back-filling Working Upward a Steep-Pitching Iron-ore Bed; Eli T. Conner, on the good results of Back-Filling by Hydraulic Means in Preventing Destructive Subsidence in the Anthracite District; Thomas H. Claggett, on the merit of Systematic Pillar Drawing in Preventing Cracks in an Upper Seam; Henry H. Otto, successful results in the anthracite district in Mining Lower Seams before Upper Seams; Douglas Bunting, on Leading Factors Incident to Successful Mining of an Overlying Seam; Edwin Ludlow, on there being "less damage to buildings when there was complete removal of coal with complete packing than when room and pillar is used without extracting the pillars"; Edward O'Toole on "bumps" in eastern Kentucky mines, which he thought were the result of geologic stresses: H. A. Buehler, on Upheaval of Surface in an Illinois Case in Advance of the Face; and R. Dawson Hall, on The Mechanics of Subsidence from Mining. The author of this paper discussed various Winds of problems of ground movement and subsidence in both metal mining and coal mining; the production of great landslides by workings near an outcrop, as at Turtle Mountain, Alberta, Canada; and general

Jan 1, 1939

By John Boardman

THE Anaconda company has never indulged in any employee activities at Butte which might be termed paternalistic, but it has exerted a vast amount of effort in care of its employees during working hours. The reason for this policy is not lack of interest or that the company does not feel the effect of employees' activities while they are "off the job"; it is that the company and the city of Butte have grown up together and, each has been adequate in its own sphere, the company in providing employment at the highest possible wage and the city in providing housing, sanitation, commercial services, medical services, schools, churches, amusements and entertainments. The one exception to this independence between the company and the community is the Butte Water Co., which is a wholly owned sub-sidiary of the Anaconda Copper Mining Co. Mention of this relationship is made here because the water supply of such a city as Butte is one of the principal factors in determining the health of the people. Very early in the development of the Anaconda company an adequate and dependable water supply for the operations became necessary, therefore the company took over this important community function. So well has this activity worked out that during the whole period of time covered, in which the company has expanded to become practically the sole mine operator and the community has grown from a small mining camp to the status of a modern city, there has been no shortage of water or any outbreak of water-borne, epidemic disease.

Jan 1, 1938

By John R. Caldon

INTRODUCTION Leasing has become a major industry in many countries because of the advantages it affords. Whilst the accounting, legal and tax treatment of leasing varies from country to country, there is far more similarity than difference. The general approach to the subject is largely the same. This paper looks to the basic financial considerations in the decision to lease or buy. TYPES OF LEASES Before embarking upon the subject, it would seem appropriate to define a "lease". A lease may be defined as: "an agreement granting one party the right to use, for a specified period of time, property owned by another party in return for a series of payments of rental by the user to the owner''. Ownership, of course, generally entitles the owner to unrestricted use of the asset over its useful life in contrast to a lease which gives the lessee use over a limited period. The distinction between the status of owner and a lessee often is fairly small. In this case we are dealing with what is generally termed a "finance lease". A finance lease is one which substantially transfers the risks and benefits of ownership from the legal owner to the lessee. For example, a finance lease would exist where the lessee enters into a lease of an asset for most of its useful life and has an option to buy the asset at the end of the lease for a price which takes cognisance of the rentals already paid. Where a lease does not substantially transfer the benefits and risks of ownership to the lessee, i.e. those benefits and risks remain with the owner and lessor, the lease is termed an "operating lease" and is an agreement for the renting and usage by the lessee of an asset owned by the lessor for a limited period. An example of an operating lease might be where a tenant leases a building for a defined period say 6 years with the rent and occupancy subject to renegotiation at the end of the lease term. The economic consequences of the distinction between a finance and an operating lease is very important. With a finance lease, the lessee has a de facto economic interest in the asset and the alternative to a finance lease is some form of purchase; with an operating lease, the lessee does not have a basic economic interest in the asset and consequently a comparison with a purchase option involves far more than simply a funding comparison. Some of the principal differences between finance and operating leases can be summarised as follows: (a) finance leases: -the risks and benefits of ownership are substantially transferred to the lessee; -the lessor normally recovers his investment during the term of the lease; -the lessor in entering into the transaction is relying more on the creditworthiness of the lessee than the underlying value of the asset; - the lease is either non-cancellable or a large penalty will apply for unilateral cancellation by the lessee; (b) operating leases -the risks and benefits of ownership remain essentially with the lessor; -the lease rental income would not normally cover the recovery of the lessor's investment; -the lessor evaluates his risk in terms of the underlying value of the assets;

Jan 1, 1985

Jan 1, 1944

By E. J. Dulis, R. M. Fisher, K. G. Carroll

IT is well known that ferritic steels containing more than 15 pct Cr when subjected to temperatures in the range of 700" to 1000°F exhibit increasing hardness and decreasing ductility. The phenomenon has been widely termed the "885 °F embrittlement," after the temperature of most marked effect.'.' In view of the excellent review articles available in the literature3-6 only a brief account of experimentally established facts need be given here. The extent of changes in physical characteristics during embrittlement depends on chromium concentration and time at temperature, higher alloy content and longer time both promoting more rapid and extensive changes. In a 27 pct Cr steel, changes in impact strength and in angle of fracture in bending can be detected after only a 1 hr exposure at 885°F; after 50 hr this steel becomes quite brittle. Hardness increases slowly with time during thousands of hours exposure and may attain a maximum hardness number twice as large as that of the unexposed steel. Microstructural changes accompanying embrittlement have been described as an initial widening of grain boundaries followed by eventual darkening of ferrite grains. Embrittled steels etch more readily, e.g., the weight loss of a 27 pct Cr steel in acid solution may occur at a rate one hundred fold greater following exposure at 885 OF. Marked changes which accompany embrittlement have been observed in electrical resistivity, specific gravity, and magnetic coercive force. Changes in physical properties may be readily removed by heating at temperatures above the embrittling range, such as a treatment at 1100°F for 1 hr. It has frequently been noted that the 885 °F embrittlement suggests precipitation on a submicro-scopic scale of a chromium-rich constituent, the nature of which has not been revealed by X-ray diffraction. Progressive broadening of the body-centered cubic diffraction lines during embrittlement has been observed," and recent observations by Lena and Hawkes' upon single crystals have shown early asterism in X-ray photographs, disappearing within an hour at 900 °F. Many workers have ascribed8-13 the phenomenon to a precipitation of a phase (FeCr), which is known to cause embrittling effects at temperatures much higher than 885°F. Two general observations, however. suggest that a precipitation cannot be responsible for the 885°F phenomenon: 1—prior cold work greatly enhances a formation, whereas it scarcely affects the 885 °F embrittlement, and 2—the presence of an alloying element such as nickel or manganese may have an effect on the 885 °F embrittlement which is opposed to its effect upon a formation. The slight enhancement of a formation and 885°F embrittlement observed in the presence of elements with strong carbide and nitride forming tendencies' is probably a consequence of lessened chromium depletion of the matrix. The bar graph in Fig. 1 shows a typical example, taken from two 27 pct Cr steels used in this work, of the hardness after exposure for 10,000 hr at 900°, 1050°, and 1200°F. Steel A (0.03 pct C, 3.13 pct Mn) showed marked hardening at 900" and 1200°F, whereas steel B (0.12 pct C, 0.63 pct Mn) exhibited only the 900°F hardening. The cr phase was found in steel A at the higher temperatures but not in steel B. Presumably a formation is enhanced by the low-carbon and high-manganese concentrations in A," Thus there are two distinctly different hardening phenomena present which cannot both be ascribed to v precipitation without invoking a transition phase possessing remarkable properties. Materials A number of chromium steels exposed for long periods (5000 to 34,000 hr) at 900°F, as well as unexposed samples of one of the steels, were available for this investigation. Table I gives the chemical compositions and aging treatments of these steels. In addition to these steels exposed in the elevated temperature test furnaces of the National Tube Division, a number of high-chromium steels were heated for short periods in small laboratory air furnaces and lead baths. Supplementing these commercial steels, a sample of high-purity (0.018 pct C, 0.002 pct N) 28 pct Cr iron, exposed 1000 hr at 887°F. was furnished by the Union Carbide and Carbon Corp. In addition, an alloy of iron and chromium of high purity containing 46 pct Cr was used. This

Jan 1, 1954

By M. F. Williams, L. G. Hendrickson

IN classification of pulps bearing magnetized ferromagnetic particles, depolarizing is of great importance. If size separation is to be effective, particles must be individual rather than in floes. Depolarizing is also practiced in heavy medium separations in which ferrosilicon or magnetite is the medium. When particles of ferromagnetic material have been removed from a magnetic field, residual magnetism causes agglomeration. The term depolarizing refers to the operation of reducing or eliminating this residual magnetism and may thus be considered magnetic deflocculation. The terms demagnetizing and randomizing are also used. At the Research Laboratory of Oliver Iron Mining Div. in Duluth a method was developed for measuring depolarization of the pulp of ferromagnetic material. Experiments were made with Mesabi taconite,' a natural magnetite of low coercive force. Ferromagnetic materials of higher coercive force, such as lodestone or the artificial magnetite produced by reduction roasting of hematite, present a more difficult problem, which was not within the scope of this investigation. It is possible, however, that some of the techniques evolved for measuring and calculating electrical characteristics of alternating current coils would be of use in depolarizing high coercive force material, particularly in conjunction with high-frequency alternating current, as proposed by Hartig and others.'," Properties of Ferromagnetic Materials:'7 Experimental work, described below, has shown that if a sample in the magnetized state is heated above the Curie point and cooled, much of the preferred orientation is destroyed and the sample is substantially depolarized. It has been thought that when the sample cools below the Curie point the domains cancel each other, leaving a zero net moment. However, such particles still exhibit a tendency to cohere, and undoubtedly this is caused by the forces of residual magnetism. -AS measured by the percent depolarization, this tendency is reproducible for any sample upon repeated heating above the Curie point and subsequent cooling and is independent of the initial state of magnetization. It is postulated, therefore, that as the material is cooled below the Curie point the domains in any particle do not completely cancel each other, but rather are preferentially oriented to some extent. Mechanism of Depolarizing with Alternating Current Magnetic Fields: It is believed that when ferromagnetic material is passed through an alternating magnetic field, depolarizing occurs in the decaying portion of the field. As the particles pass through the portion of highest intensity they become magne- tized. If the particles are not free to move, the polarities of the particles will be reversed (by a mechanism similar to that described above for magnetism) at a frequency equal to that of the applied field. As the material moves through the decaying field, intensity levels become such that a domain does not completely reverse, but stops on an axis of easy magnetization. By the time the material reaches the point of zero field intensity, a state of fairly random orientation of domains is achieved. If conditions are such as to give a completely random orientation, the particle will have little or no external magnetic field, and a pulp of such particles will be depolarized. Previous Work In 1918 E. W. Davis was granted a patent for demagnetization of magnetite pulps.' His method consisted of passing the pulp through a tapered coil, activated by alternating current of normal frequency (60 cycle). This method, with minor modifications, has been used almost universally in all pilot plants and commercial installations in which depolarization of low coercive force materials has been required. Hartig, Onstad and Foot2,3 avd made a detailed study of the factors involved in depolarizing both low (below 100 oersteds) and high (above 100 oersteds) coercive force material. They developed a method for evaluating the relative degree of depolarization of any pulp based on the settling characteristics of the pulp. Their standard of comparison was a sample heated to above the Curie point and cooled in a zero field, all in a neutral atmosphere.* For low coercive force material they found treatment.Thisprocedure is subsequently called, in this report,theCurie that results equivalent to Curie treatment could be

Jan 1, 1957

By J. D. Miller, R. L. Atwood

The structure, properties, and composition of commercial chelating-type copper extractants are examined. Characterization of these extractants was accomplished using organic separation techniques and analytical tools such as NMR and infrared spectroscopy. Results indicate that only the trans isomer of the diphenylhydroxyoxime (LIX 64N) is capable of copper chelation. The effects of structural modification of the extractants on the extraction and stripping reactions are discussed.

Jan 1, 1974

Mining Methods GERALD F. SHERMAN, Chairman CHARLES F. JACKSON, Vice-chairman Alluvial Mining CLINTON BERNARD H. R. NORSWORTHY - O. B. PERRY Open-cut Mining Iron MAX H. BARBER J. A. MACKILLICAN Copper MICHAEL CURLEY R. B. TEMPEST Underground Mining Iron C. H. BAXTER TENNEY C. DESOLLAR Copper W. B. DALY R. W. THOMAS

Jan 1, 1936

By Reynold Q. Shotts

Nitric acid oxidation rate analyses of three coals, previously studied microscopically by the Bureau of Mines, revealed three components. Relative quantities agree with those found for the four components given by the Bureau and results are consistent with current ideas of coal constitution. Possible multi-component composition for bright coal and a reactivity-rank relation are suggested.

Jan 5, 1953

By H. G. Doll

'This paper discusses a method and apparatus for determining the dip of formations traversed by a drill hole, by means of electrical measurements in the hole. The process consists in recording the Spontaneous Potentials present along three oriented generatrices in the hole. By comparison of the three curves thus obtained, after application of a correction factor to compensate for any deviations of the hole, the dip angle and the dip direction are determined. Excellent accuracy is obtained for dip angles over 10°. Because the method is simp1e and the apparatus rugged, the measurements are rapid and reliable; consequently, they can be made at all the levels that are of interest at any time after the well has been drilled. Mechanical cores are not needed to evaluate the dips. A convenient, time-saving procedure is to perform the dipmeter survey at the time the electrical log is taken, using for both operations the same cable and truck. Actual examples of results obtained in wells of the Gulf Coast area are given. Introduction The problem of determining the angle and direction of the dip of the strata traversed by a drill hole has practical interest, and sometimes vital importance, which need not be emphasized to the oil industry. The need for that type of information has existed ever since wells have been drilled. Certainly it has not subsided, in spite of the numerous inventions and improvements made in other fields of the art of drill-hole exploration. The few examples given in this paper are but illustrative of this fact. In the past, methods have been devised, and used, to solve this problem, but generally they have met with limited success, possibly because they failed more or less to answer the requirements of a modern age for fast yet accurate measurements. If accurate, the results were obtained at the cost of very tedious and lengthy operations. The new S. P.* dipmeter service offered to the oil industry is the result of exhaustive and in this particular field. In 1032 a dipmeter and electromagnetic teleclinom-eter service was made available. The apparatus employed then was of a rather delicate and costly construction, and the measurements had to be made with precautions sometimes difficult to secure on the rig. Although the information given by the electromagnetic dipmeter was limited to the direction of the dip, very interesting results were obtained in California, Trinidad, Venezuela, Rumania and, most notably, in the Netherlands East Indies.+ Apparatus The S. P. dipmeter surveys present none of the drawbacks mentioned above. The apparatus is rugged and free from constructional complications, therefore well adapted to field use. This, combined with the new, basically simple approach to the problem, explains the rapidity of execution of the measurements. The results are remarkably accurate and they are complete, giving the

Jan 1, 1946

By H. G. Doll

'This paper discusses a method and apparatus for determining the dip of formations traversed by a drill hole, by means of electrical measurements in the hole. The process consists in recording the Spontaneous Potentials present along three oriented generatrices in the hole. By comparison of the three curves thus obtained, after application of a correction factor to compensate for any deviations of the hole, the dip angle and the dip direction are determined. Excellent accuracy is obtained for dip angles over 10°. Because the method is simp1e and the apparatus rugged, the measurements are rapid and reliable; consequently, they can be made at all the levels that are of interest at any time after the well has been drilled. Mechanical cores are not needed to evaluate the dips. A convenient, time-saving procedure is to perform the dipmeter survey at the time the electrical log is taken, using for both operations the same cable and truck. Actual examples of results obtained in wells of the Gulf Coast area are given. Introduction The problem of determining the angle and direction of the dip of the strata traversed by a drill hole has practical interest, and sometimes vital importance, which need not be emphasized to the oil industry. The need for that type of information has existed ever since wells have been drilled. Certainly it has not subsided, in spite of the numerous inventions and improvements made in other fields of the art of drill-hole exploration. The few examples given in this paper are but illustrative of this fact. In the past, methods have been devised, and used, to solve this problem, but generally they have met with limited success, possibly because they failed more or less to answer the requirements of a modern age for fast yet accurate measurements. If accurate, the results were obtained at the cost of very tedious and lengthy operations. The new S. P.* dipmeter service offered to the oil industry is the result of exhaustive and in this particular field. In 1032 a dipmeter and electromagnetic teleclinom-eter service was made available. The apparatus employed then was of a rather delicate and costly construction, and the measurements had to be made with precautions sometimes difficult to secure on the rig. Although the information given by the electromagnetic dipmeter was limited to the direction of the dip, very interesting results were obtained in California, Trinidad, Venezuela, Rumania and, most notably, in the Netherlands East Indies.+ Apparatus The S. P. dipmeter surveys present none of the drawbacks mentioned above. The apparatus is rugged and free from constructional complications, therefore well adapted to field use. This, combined with the new, basically simple approach to the problem, explains the rapidity of execution of the measurements. The results are remarkably accurate and they are complete, giving the

Jan 1, 1946

By Lester C. Uren

Today, a dozen or more universities and colleges in the United States are offering curricula designed for the specialized training of engineering students who plan to enter the petroleum industry. Many hundreds of students are following these curricula in their academic preparation, with the expectation that by so doing they will be better equipped to enter the petroleum industry in an engineering capacity than their competitors that seek to do likewise with training of less specialized character. Those who have helped plan and develop these curricula believe that such specialization should and does afford the student a superior preparation for his task. Others have questioned this and urge a broad preparation in fundamentals without specialization. Still others are suggesting even greater specialization than present petroleum engineering curricula afford. Some would have the student first prepare himself in one of the more general divisions of engineering, such as civil, mechanical or electrical engineering, and then seek some degree of specialized preparation in a graduate program. Which of these views is correct; or, if there is merit in each, which plan offers the greater advantage to the student? It is time that we paused to take stock of our objectives and of our way of attaining them. Is the training received by our petroleum engineering students what it should be? To what extent is the product of our petroleum engineering schools meeting the requirements of the industry? How may graduates be better equipped for the work they are called upon to do? These are questions that educators interested in the training of petroleum engineering students are ever asking. They must depend upon engineers and executives engaged directly in the industry for advice and helpful suggestions in better planning the training to be offered to our future engineers. This paper will have served its purpose if it is successful in focusing attention of men active in the industry on some of these educational problems, to the end that the ideas of men close to the needs of the industry may be made known to those who have responsibility in the control of our educational programs.

Jan 1, 1937

By T. R. Armstrong

During the year 1939, Mexican production totaled 42,479,000 bbl.; a daily average of 116,381 bbl. or a little over 2 per cent of the estimated world production. The Mexican Government operates 100 per cent of the refining branch of the industry, 100 per cent of the domestic distribution, 96 per cent of the crude production and 92 per cent of the total exports. No discussion of the Mexican petroleum industry in 1939 is adequate without reference to the "expropriation" of the foreign-owned oil properties in Mexico by executive fiat on March 18, 1938. The forcible seizing of the properties culminated a long series of efforts on the part of the Mexican Government to obtain control of the oil properties developed through foreign initiative and with foreign capital in Mexico. The heart of the issue is whether the Mexican nation or any nation may with impunity confiscate the legally acquired properties of American citizens. The Department of State of our Government has in its communications to Mexico emphasized the fact that its "expropriation" of American properties was confiscatory because Mexico had failed to make "adequate, effective and prompt compensation"; that the taking was no less confiscatory "because there may be an expressed intent to pay at some time in the future," and that, consequently, "Mexico has assumed and continues to assume to exercise a right without compliance with the condition necessary to give such exercise a recognizable status of legality." Mexico has professed its willingness to pay for the oil properties but at the same time through its Supreme Court it has declared that the owners or lessees do not have the exclusive right to extract and dispose of the oil in the subsoil. This is a reversal of the Mexican position with respect to oil as set forth in the Mexican mining laws, affirmed by Mexican Supreme Court decisions, and as clarified in the Warren-Paync and the Morrow-Calles agreements, as well as in diplomatic correspondence. Efforts to Settle the Controversy Responding to suggestions from the State Department, representatives of the principal oil companies undertook in 1939 to effect a direct

Jan 1, 1940

By T. R. Armstrong

During the year 1939, Mexican production totaled 42,479,000 bbl.; a daily average of 116,381 bbl. or a little over 2 per cent of the estimated world production. The Mexican Government operates 100 per cent of the refining branch of the industry, 100 per cent of the domestic distribution, 96 per cent of the crude production and 92 per cent of the total exports. No discussion of the Mexican petroleum industry in 1939 is adequate without reference to the "expropriation" of the foreign-owned oil properties in Mexico by executive fiat on March 18, 1938. The forcible seizing of the properties culminated a long series of efforts on the part of the Mexican Government to obtain control of the oil properties developed through foreign initiative and with foreign capital in Mexico. The heart of the issue is whether the Mexican nation or any nation may with impunity confiscate the legally acquired properties of American citizens. The Department of State of our Government has in its communications to Mexico emphasized the fact that its "expropriation" of American properties was confiscatory because Mexico had failed to make "adequate, effective and prompt compensation"; that the taking was no less confiscatory "because there may be an expressed intent to pay at some time in the future," and that, consequently, "Mexico has assumed and continues to assume to exercise a right without compliance with the condition necessary to give such exercise a recognizable status of legality." Mexico has professed its willingness to pay for the oil properties but at the same time through its Supreme Court it has declared that the owners or lessees do not have the exclusive right to extract and dispose of the oil in the subsoil. This is a reversal of the Mexican position with respect to oil as set forth in the Mexican mining laws, affirmed by Mexican Supreme Court decisions, and as clarified in the Warren-Paync and the Morrow-Calles agreements, as well as in diplomatic correspondence. Efforts to Settle the Controversy Responding to suggestions from the State Department, representatives of the principal oil companies undertook in 1939 to effect a direct

Jan 1, 1940