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By Robert M. Dreyer

Although lateritic ore deposits are relatively flat-lying, surficial ore bodies, the evaluation of lateritic bauxite and nickel deposits is among the most difficult problems confronting an economic geologist. Laterite is a soil formed under tropical conditions resulting in the concentration, within the soil zone, of certain trivalent metals-principally iron and aluminum, but also, locally, nickel and manganese. The soil zone is divided into two parts: (a) the true soil or lateritic zone and (b) the zone of partially altered bed rock or saprolite. Whereas bauxite generally is confined to the lateritic zone, some nickel deposits occur in both the laterite and saprolite zones. The evaluation of bauxite and lateritic nickel deposits thus has both similarities and differences. These ores have been formed by supergene, soil-forming solutions moving downward through zones of widely varying permeability within the weathering rock. Because the permeability varies widely, both vertically and laterally, the extent of weathering may vary greatly within short distances. Because the weathering process varies widely, the degree of metal concentration may also vary widely. It is not at all uncommon for a laterite to change, within a few centimeters, from a virtually valueless rock to a high grade ore. Moreover, the depth of weathering, and hence the depth and form of the ore profile, vary greatly. Obviously, for this type of deposit, a few grab samples or a few drill holes are virtually worthless. The evaluation of such a deposit requires a sophisticated statistical study based on thousands of carefully selected samples. As a rule of thumb, the cost of evaluating a large bauxite or lateritic nickel deposit will be about one cent per ton of ore in the ground. Thus, the cost of evaluating a several hundred million ton deposit may be considerable.

Jan 8, 1978

By H. S. Gieser

THE flotation of oxidized silver, ores offers an interesting problem to the operating metallurgist, who has to treat this material. The advances made in the art of selective flotation by the use of newer collectors with accelerating and inhibiting reagents suggests that there should be something to help to decrease tailing losses. For many years there was no working hypothesis, so the subject was approached more or less in the dark, but with the publication of a paper by Taggart, Taylor and Ince1 giving results of flotation tests with many organic compounds and presenting a tentative theory, a better foundation has been laid and henceforth progress should be more rapid. Over a period of one and one-half years there was much experimentation with flotation of oxidized silver ores at El Tigre, Sonora, Mexico. The material coming to the mill was straight sulfide ore in a silicified rhyolite gangue, the ore minerals being sphalerite, galena, pyrite and tetrahedrite. This came largely from the lower levels of the mine. With the approaching exhaustion of these orebodies, attention was turned to oxidized ores left behind during higher prices of silver. Of late oxidized ore has been at times 25 per cent. of mill tonnage. Aerofloat 25, in considerable quantity, together with ethyl xanthate, has been used in the mill. The former raises large quantities of "insoluble" or gangue, which is difficult to reject when the density of the tailing pulp approaches 33 per cent. solids, as it did during periods of water scarcity. The mill tailing at times contained as much as 5 oz. of silver on a 32-oz. mill head.

Jan 1, 1931

By Chester Washburne

AT present it is impossible to estimate closely the amount of oil obtainable from a given area of land. However, after the completion of a few properly distributed prospect wells, one can calculate the approximate yield of the sands penetrated, with a probable error of say 50 per cent. Even rough predictions of this kind are of value in, large operations. Without wells upon it, one can never be absolutely certain that an area will produce any oil whatever, and one can only indulge in wild guesses of the probable productive area, before the geological structure has been carefully contoured and the top of the basal water plotted on a map. This requires wells. At times it is desirable to form an idea of the possible yield of oil in advance of drilling, as in cases where the price asked for undeveloped land seems too high, but where the probability of finding oil is furnished by neighboring development, supported by the geology. In such cases the most one can do is to make an estimate of possible maximum yield, which may of course far exceed results, and which is of use mainly in the prevention of excessive initial investment. The method is very significant in a general way, as in regions like the Bighorn Basin, Wyoming, where the productive sands in the Cretaceous shale are so few and so thin and fine that they cannot develop very great production, although the high quality of the oil probably will counterbalance this defect sufficiently to give local profit in favorable areas. Reservoir Capacity of Sands.-The porosity of a stratum is the measure of its maximum reservoir capacity for liquids and gases. The porosity may be determined experimentally and must be used in connection with the total volume of the sand.

Jan 2, 1915

By Ashbel Welch

Gentlemen of the American Institude of Mining Engineers.—As you well know an application is about to be made to Congress, by the American Society of Civil Engineers, for the appointment of a cornmission composed of persons skilled in the production and use of iron, steel, and other structural materials, whose duty it shall be to test the strength, elasticity, and other quatities of such materials ; not simply the substances used as such, but the members of large structures composed of such materials, of the forms and sizes in which they are actually used. As I understand, the papers that will be read here to- night will have for their object to show the necessity for such tests, and therefore the necessity for the commission asked for. As the representative of the Society of Civil Engineers, I have to thank you, gentlemen of the Mining Engineers, for the great zeal with which yon have taken up this subject, and seconded the efforts of the Civil Engineers; or, perhaps I ought rather to say, initiated the efforts to get a suitable commission appointed to obtain most vitally important information which it is admitted on all hands we do not now posses. In drawing up the memorial to Congress, in connection with some of the ablest and best informed of our Society, and in all the discossions on the subject, I have been struck with the emphasis with which the confession is made, that so little is known of the strength of the larger-sized members constantly used in building structures of the magnitude which the present requirements of the country now demand. I presume the remarks made to-night will bring this out very prominently. This is no disgrace, for with the means here-

Jan 1, 1882

Hugh M. ROBERTS,* Minneapolis, Minn. (written discussion ? ).¬The paper by Messrs. Hall and Row marks a distinct advance in the art of diamond drilling, because it records a systematic-application of a method for directing the path of the diamond bit. Their work is an admirable example of engineering development. They had a definite object to attain; i.e., the drilling of many vertical diamond-drill holes to depths of 2500 or 3000 ft. (762 or 914 m.). They availed them-selves of a method of wedging seldom used, improved the manner of making the wedges, developed a technique of survey, and put the process into practical, continuous operation. So effectively has this been done that they determine the average cost of the work. The publication of the results, in the form of detailed diagrams, makes the application general to whoever has a similar problem. The wedging of diamond-drill holes has been practised in the Lake Superior region for the purpose of making branch holes, particularly where the original hole has penetrated a great thickness of glacial drift. The uneven nature of the iron formations has caused the results to be somewhat uncertain. One operation, in 1907, near the American mine on the Marquette Range, by the firm of Longyear & Hodge, predecessors of the E. J. Longyear Co., resulted in the drilling of a hole 1828 ft. (557 m.) deep, with two branches at depths 100 ft. (30 m.) and 770 ft; (234 m.), respectively. A second hole from the same set-up went to a depth of 2497 ft. (761 in.) with a branch at 185.0 ft. (563 m.). In this instance, the wedges were forged to the desired shapes and angles with respect to each other. A drill hole, sunk in 1915,. in the township of Bates in the. Iron River district of Northern Michigan, which penetrated 385 ft.

Jan 11, 1919

By R. H. B. Jones

THIS paper reviews pertinent geology of the Biwabik iron formation, Mesabi Range, Minnesota. This iron formation is divisible into four members. Each member is distinctive and contains marker horizons, which are recognizable throughout all phases of alteration from lean, fresh rock to high-grade iron ore. Some beds have a larger magnetite content than others. During the process of ore genesis, which is essentially an oxidation process, the magnetite content is lowered. Alteration from iron formation to ore includes both oxidation of iron minerals and silica removal by leaching and these distinct processes progress at variable rates for different locations and structures. Magnetic intensities, of each horizon of the iron formation are dependent chiefly upon its preoxidation magnetite content, upon the subsequent degree of oxidation, upon the character of the enclosing rocks, and on the extent of fracturing, folding, or faulting. The results of a number of magnetic surveys are described and are correlated with results of drill-hole and mine exploration and development. The magnetic anomalies obtained are discussed in relation to phases of formation of ore within the iron formation.

Jan 1, 1946

By Harold M. Mooney

RESISTIVITY measurements for determining depth to bedrock, water table, and other geologic discontinuities have had only limited success. Many of the difficulties can be attributed to complex geology and to basic limitations of the method; current flow through a continuous medium is a diffusion phenomenon, emphasizing irregularities near the source and smoothing out those at a distance. Some of the failures, however, are due to careless field work and incompetent interpretation. A forthcoming publication1 may help to reduce difficulties of this sort. The writer here attempts to bring order into the multiplicity of interpretation methods and, to a limited extent, to evaluate them. For all methods, the field data to be interpreted consist of apparent resistivity values plotted against electrode separation, Fig. 1. The interpretation should give depths to one or more geologic horizons. Direct currents and the Wenner four-electrode configuration will be assumed, since these are widely used, although the interpretation problems remain essentially the same for other electrode configurations. Alternating currents higher than, say, 20 cycles per second introduce complications beyond the scope of this paper. Three approaches to the interpretation problem have been used. These may be called empirical, theoretical curve matching, and direct. Many techniques have been proposed, but each can be reduced to one of these approaches and to a single geologic idealization. This idealization rests on the following assumption: the earth in the limited volume of interest can be approximated by a horizontal sequence of layers, each homogeneous and isotropic in its electrical properties. This seemingly restrictive assumption has proved to have practical value, although future work should aim at removing some

Jan 1, 1955

On Dec. 8, 1916, at a meeting held at the Massachusetts Institute of Technology, the John Fritz Medal was presented to Professor Elihu, Thomson, "for his achievements in electrical invention, in electrical engineering, in industrial development and,in scientific research." Professor Albert Sauveur presided. John J. Carty, chairman of the Presentation Committee of the Board of Award, made a short address-on the history and significance of the medal. He was followed by E. W. Rice, Jr., president of the General Electric Co., who spoke at length of the achievements of Dr. Thomson, whom he called "one of the world's most prolific and industrious inventors and scientists." Among other things, he said: "In the, field of electrical inventions alone, Professor Thomson has been awarded something over 550 United States patents, and in other fields; notably mechanical work, about 150 patent.,. he has made contributions to the world's scientific, and technical literature, in several hundred articles describing not only his own dis-coveries and inventions but making remarkably interesting contributions to scientific speculation and thought. "A skilled workman, he is always able himself to do the work which he asks others to perform. "His inventions are the result of such profound and accurate knowledge,. and developed with such skill, that they almost invariably work on the first, trial in accordance with expectation." Dr. Richard C. Maclaurin, President of the Massachusetts Institute of Technology, spoke of the personality of the man as well as of his accomplishments, as follows: "He has not only clone great things himself, but has shown ,in intense desire to help all who are struggling earnestly with scientific problems. He has proved an inspiration to an ever-widening circle of engineers and others who have entrusted him with their secrets and sought his help in overcoming their difficulties. They have done this knowing. that they had only to ask in order to get the full benefit of his

Jan 2, 1917

By John L. Baum

GEOLOGISTS and engineers working around a diamond drill rig have often had the opportunity to observe the magnetic attraction of drill rods pulled out of the hole for core removal. This is sometimes an amusing pastime, but this same magnetic force inadvertently applied to a compass needle can cause it to lose its polarity entirely or to become reverse polarized when placed in the immediate vicinity of stacked rods. The first recommendation, of course, would be to avoid the rods, but in surveying an operating drillhole this is not always possible; therefore steps must be taken to neutralize the magnetic effect of the drill rods. Early in the summer of 1949 the geological department of the New Jersey Zinc Co. undertook at Franklin, N. J., an extensive program of surveying the course of deep diamond drillholes. The majority of the holes were surveyed while in the process of being drilled, and considerable difficulty was encountered. A pattern for the deviation of drillholes had been established for the district from surveys in holes from which the drill rig had been removed. It was observed that a certain operating deep drill- hole being surveyed did not fit this pattern. In the resulting confusion of repeated surveys and cementing a plug for wedging operations, the lower 1800 ft of the hole was lost. Because of this incident studies were initiated to determine the source of the difficulties and to develop safeguards against recurrence of faulty surveys.

Jan 12, 1954

By John A. Church

AT the last meeting of the Institute, a discussion arose upon the question, Is there pressure in coke ovens?" and many of the members seemed to think that the superiority of the Belgian furnace might be due to the fact that it is a completely closed chamber, in which the gases given off by the coal are, or may be, at more than the atmospheric reassure. It seems to me that this position is untenable, 'and that an examination of one of these ovens in operation will show, not only that there is no excess of pressure in the coke chamber, but that the contrary is true, and a partial vacuum exists. The Belgian or Francoise oven consists of a rectangular chamber closed at the ends by sliding doors, and furnished with flues in the side walls and floor. The new charge is introduced at a time when the furnace is so hot as to cause immediate and copious discharge of the volatile constituents of the coal. The gases pass downwards through the side flues giving out their heat to the walls and thus to the coal. Underneath the floor air is introduced and the gases burn, producing intense heat. Heat is also reflected from the arched roof upon the coal which is therefore heated from all sides. The especial advantage which this construction was designed to secure is that no air is admitted to the coke-chamber. All the heat is produced by the combustion of the unsociable gases, and the yield ought to be a maximum. I t is so in fact, allowing for the imperfections inseparable from furnace construction and management. Sometimes the yield is in excess of the percentage indicated by assay, showing that

By C. M. Schwartz, A. P. Young

ZIRCONIUM is noticeably embrittled at room temperature by hydride precipitate not only in notch-impact tests but also in tensile-impact tests.' The embrittlement in slow-strain tensile samples is much less severe. To understand better the relationship of the hydride precipitate to the strain-rate effect in tensile samples, the surfaces of chemically polished zirconium tensile samples strained at a slow rate (0.03 in. per min head speed) and at an impact rate (18.1 fps hammer speed) were examined in the light and electron microscopes. Vacuum-degassed samples and hydrogenated samples (100 ppm hydrogen) were examined. The hydrogenated samples were slow cooled from 800°C. The most apparent difference between slow-strain and impact tensile samples was the preponderance of twinning over slip in impact samples as opposed to relatively little twinning in slow-strain samples. The twin bands in hydrogenated samples often terminated on hydride needles as seen in Fig. 1. Almost opposite the twin terminus is a fine crack and a nearly round fissure. Holes near the areas where single lens-shaped twins or opposing pairs terminate on hydride particles also could be seen In the light micrbscope. Quite frequently, microcracks associated with a partial row of hydride particles were visible, as in Fig. 2, indicating that the crack was parallel to a row of hydride particles. Some samples were chemically polished after straining to remove metal with a minimum of disturbance of internal voids. Fig. 3 shows a crack in the interior of a hydrogenated impact sample. Holes along grain boundaries were seen after impact in both degassed and hydrogenated samples. Very few microcracks were seen in degassed samples after impact or slow strain, or in hydrogenated samples after slow strain.

Jan 1, 1959

By A. J. Lanza

IN view of the immense amount of attention that silicosis has received in this country in the past few years, it is timely to review the status of the silicosis problem at present. Who gets silicosis? The individual exposed to the inhalation of free silica dust. The effects upon the individual depend upon the amount of silica inhaled or, in other words, the severity of exposure, rather than upon any special variation or susceptibility among those exposed. A considerable amount of study has been given to determine what may be the role of predisposing causes in the development of silicosis. To men-tion one instance, at the Picher Clinic careful records were kept of all previous illnesses of the men examined as well as abnormalities present at the time of examination. Examinations of over 27,000 miners were made during the years the clinic was conducted under governmental auspices-a very fair sized sample. The general conclusions from all this work were that the incidence of silicosis is not appreciably influenced by racial, structural, or other inherent qualities; it is influenced by acquired defects-particularly as these affect the lungs. That is to say, the average run of human beings respond similarly to similar exposures to silica dust and those whose lungs are already impaired by tuberculosis or other pulmonary disease acquire silicosis more readily than those with healthy lungs. It may well be, and there is some clinical evidence in support, that negroes acquire silicosis more readily than do whites, but the infection factor has not been so carefully studied among negroes exposed to silica as it has among whites. We know that tubercle infection is more prev-alent among negroes than among whites. There may be other factors concerned in the development of silicosis in negroes as compared to whites, but there is not available information upon which to base posi-tive statements.

Jan 1, 1937

By E. A. Stephenson

In spite of tremendous handicaps notable advances in production engineering have been achieved during 1932. The technique of deep well drilling has continued to progress, notably in California and at Big Lake, Texas. In the latter field a method has been devised by which two grades of oil in contact with each other are produced without intermingling. In rig design many improvements have been made whose objective is to facilitate deep drilling with reduced power losses and increased life of the equipment. Flush joint casing and drill pipe have been improved further, careful tests indicating that the drilling time can be reduced by from 5 to 20 per cent where flush-joint pipe is used. Slow-speed pumping has come into wider use, with further increases in over-all efficiencies. A number of improved well pumps also have been developed and are being tested. One of the most important of these is a positive displacement pump of the rotary type, directly connected to an electric motor placed in the bottom of the hole, and adaptable to various sizes of tubing and casing. In some localities the trend is towards the replacement of electric motors and large-cylinder engines by multiple-cylinder gas engines. Experiments have been conducted and critical analyses made of flow conditions in wells equipped with various styles of tubing which give promise that tubing may be designed to fit individual well conditions. In those wells producing at less than maximum capacity, the gas-oil ratio has been shown to depend on the rate rather than on the method of production, or the design of equipment. Important factors in the design of screened pipe have been carefully analyzed and made the basis of a method for determining the required mesh. Remarkable progress has been made in the use of subsurface pressure data. In East Texas particularly, use of such data is providing a means for the control and equalization of water encroachment and is also pointing the way to a sound means of allocating to individual tracts an

Jan 1, 1933

NOW continuing with the preparation of the moulds I say that it is necessary to give the greatest attention to the differences of the clays as well as to the differences of those things that you wish to mould; and to know that every concavity in the mould produces a convexity and every convexity a hollow following the shape of the original pattern that you have. The pattern should be a body of a harder mated than the thing [78] you wish to mould with and of a substance that is not swollen or disintegrated by moisture. Its archetype may be of marble, bronze, lead, or any other metal, or also of wood, wax, tallow, gypsum, sulphur, or other plaster compositions-in short, of whatever you may have or whatever succeeds best for you, depending on whether the works are large or small and easy or &cult to mould. If you wish to cast them in bronze, you must mould them with loam, covering them with it and then drying it. There are some things in which it is enough to form only one part, such as half- or bas-reliefs. These are easy if they have no undercuts. Some other patterns that are easily handled are formed in two halves, or in three or four pieces, if they are of a hard material. There are also moulds for large statues, which, if one desires to make them of bronze, are first made of wax according to the ordinary procedure. I have in mind to describe every one of these processes in their own place. There are like- wise some moulds that are difficult to make, like scenes on a plane to which figures in full relief are attached, or twisted ornaments or other detached things that cannot be withdrawn from the mould without break-

Jan 1, 1942

By H. F. Dawes

In China all minerals are, theoretically at least, the property of the Emperor, and the Imperial permission must be got from him for the privilege of working them. A direct tax is levied on this privilege, and by simple command, the Emperor can close a mine at any time. Occult geomantic influences are a large factor in determining the opening or the arbitrary closing of a mine. The location with reference to points of the compass, graves and natural objects, may be really or professedly considered as indicating that those influences are favorable or unfavorable. The consequence, is, of course, that for the authorization and encouragement of any considerable enterprise, friends' at court, practical politics, and more or less bribery, are required. As a result, most Chinese mining is illicit, and is carried on in a small way only. Often along a single vein, or over a small section of mining country, a few individuals obtain rights over all the openings, most probably by loaning money to the head-men of the operators and holding the mines as security for the debt. In such cases, perhaps, for better security, all the ore is reduced in the works established by the creditors, who also handle all silver produced..As the head-men are, for the most part, improvident, and the laws and customs for the collection of' debts are stringent and peculiar, the " officemen" or creditors acquire in time what is practically an ownership of

Jan 1, 1892

By William R. Rumbold

When I was in South Africa during the latter part of 1904, there were three known tin-fields, which may be called the Cape Town, the Bushveld, and the Swaziland fields. The Cape Town Tin-Field. This district is situated near Kuils river, 20 miles west of Cape Town, and 5 miles from Kuils River station on the Cape Town & Stellenbosch railway. The deposits are in granite, intrusive in the Malmesbury beds, which are supposed to be of Silurian or Cambrian age. The granite, resisting denudation better than the surrounding shales, has formed low-lying hills, the highest of which, the Bottlelary Berg, is 1,510 ft. above sea-level. The rock consists of quartz, orthoclase feldspar, and biotite mica; tourmaline is also present. The feldspar occurs in large crystals. The rock is generally decomposed on the surface, and the decomposition sometimes extends as deep as 100 ft. This formation—granite intrusive in Silurian shales— extends for many miles to the northeast, but so far as I know the Kuils River deposits are the only ones now known to occur in it, though probably further prospecting will reveal other deposits. This particular discovery was accidental; alluvial tin being found in the course of boring for oil. The Kuils River Deposit. This deposit comprises both lode and alluvial tin. The lode strikes N-S., and dips about 30' E. into the hill. It is 5 ft. wide, and composed of dense white quartz, in which pinkish-gray cassiterite is distributed in large crystals. The vein also contains considerable quantities of wolframite. Fig. 1 is a rough plan of the relative positions of the lode and the alluvial deposit, the latter, as shown, following the course of a stream, while the lode crops out on the hillside ,

Jan 1, 1909

By Albert R. Ledoux

I am indebted to The Kaolin Co. of West Cornwall, Conn., and particularly to its engineer, Mr. M. Wanner, for permission to make public, through the Transactions of the American Institute of Mining Engineers, the interesting results of his experiments, having in view the winning of kaolin from deep deposits without shaft-sinking or removing of the overburden. So far as I am aware, nothing like it has been accomplished heretofore, although it reminds one of the methods successfully employed in Louisiana for the winning of sulphur from deep beds by the sinking of pipes one within another, injecting superheated steam under pressure through one pipe, the heat of the steam liquefying the sulphur and the pressure forcing it up through the other pipe to bins at the surface. The kaolin-deposit at West Cornwall is an alteration in situ— that is, it is not sedimentary. A series of clay-veins, dipping about 50" from the vertical, lie between a foot-wall of' limonite and a hanging-wall of gneiss and hornblende schist. The clay-veins alternate with veins or seams of more or less broken quartz, and unaltered feldspar. The deposit, which occurs at a point about 600 ft. above the Housatonic river, was opened five years ago, and about 5,000 tons of a superior grade of washed kaolin have been extracted from open pits, and sold. It soon became evident that this mode of extracting the product would prove unremunerative, by reason of the dip of the vein and the intercalary strata and lenses of quartz, and a more satisfactory method of working the deposit was sought. It is well understood that, in the preparation of all clays for market, especially residuary kaolin, the most important as well as the most difficult step is the washing of the crude product. The dificulties increaee with the percentage of foreign matter, especially quartz and mica, contained in the product. Hence, a system

Jan 1, 1907

By Alden B. Greninger, Alexander R. Troiano

The crystallographic mechanism for the austenite-to-martensite trensformation has been deduced from the results of the following new experimental determinations: (I) the accurate evaluation of the lattice relationship between austenite and individual crystals of martensite—and thus the relationship between the martensite lattice and the martensite plate, and (2) the measurement and analysis of the change in positions that a volume of austenite unclergoes when it transforms into a crystal of martensite. For the latter study, a new tool was developed, the stereographic analysis of shear. Lattice relationship.—Thirty-five separate 50-gram melts of an alloy containing about 22 per cent nickel and 0.8 per cent carbon were prepared in a high-vacuum furnace. This alloy is all-austenite at room temperature; grain size was about I cm. Specimens of the alloy were cooled to about — 70°C. to form a few martensite crystals, and suitable specimens were ground and polished on a surface parallel to a single martensite plate, exposing the martensite crystal for an area of 1 mm. or more. Four martensite cystals from four diffierent ingots were prepared in this manner; the largest crystal of this group is illuslratecl in Fig. I. Back-reflection Laue patterns were obtained from martensite crystals (and the matrix austenite) both before and after tempering. The locations of the basal-plane pole of martensite was checked by means of oscillating crystal X-ray patterns. All four crystals studied yielded the same solution ( ± 0.5°), and these relationships are expressed in gnomonic projection in Fig. 3.* The narrow dark-etching bands often visible in martensite "needles" were found to be parallel to (112) and thus are undoubtedly twin bands in the martensite crystal.

Jan 1, 1941

By Francis S. Kendorski

INTRODUCTION Nuclear waste has been generated since the time of the Curie's and continues to be generated worldwide at an ever-increasing rate as the world will (and should) rely more and more upon fission (and hopefully fusion) for power. Also, the needs for strategic weapons will also generate so-called defense wastes. The largest class of high level nuclear waste (HLW) is spent fuel, the tail end of the nuclear reactor fuel cycle. At present, spent fuel is stored at the reactors producing it or at a few accepting places for away-from-reactor storage. All such storage facilities, as presently constructed, will begin to run out of usable storage space during the next decade or so. Congress enacted and President Reagan signed into law in early 1983 the National Nuclear Waste Policy Act of 1982. This law provides for the permanent isolation of nuclear waste in deep geologic repositories. The Act sets 1998 as the date at which the first repository should be operational. This date is extremely ambitious, and the Department of Energy (DOE), which is charged with the responsibility of constructing and operating repositories, admits that this date will slip by at least a few years. The Act also provides for licensing of repositories by the Nuclear Regulatory Commission (NRC) in a fashion very similar to nuclear power generating reactors. This requirement imposes a very special rigor on the analyses, investigations, designs, construction, and operation of repositories so as to assure the protection of the public and the environment from radioactive contamination. In addition the states and affected Indian Tribes must be consulted, especially concerning siting, and, needless to say, no one wants a HLW repository in their back yard.

Jan 1, 1984

By John 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.

Jan 1, 1921