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By Dennis J. McCarthy

TAX TREATMENT OF EXPLORATION AND DEVELOPMENT EXPENSES Exploration Expenditures General Principles. Exploration expenditures are expenses incurred within the United States or the Outer Continental Shelf for the purpose of ascertaining the existence, location, extent or quality of any deposit of ore or other mineral. Section 617 of the Internal Revenue Code permits a taxpayer to elect to deduct these expenditures currently. In default of election, exploration expenditures must be capitalized and included in the basis of the mineral property for purposes of determining cost depletion. Entitlement to Deduction. In order to qualify for current deduction, exploration expenditures must be incurred prior to the commencement of the development stage, i.e., when mineral deposits are shown to exist in sufficient quantity and quality to reasonably justify commercial exploitation. Generally, expenditures for geological and geophysical investigations, reconnaissance, surveying, testpitting, trenching, drilling, driving of exploration tunnels and adits and similar types of work constitute exploration expenditures if incurred prior to the commencement of development. However, expenditures to further delineate the extent and location of an existing commercially marketable deposit are not exploration expenditures. Exploration expenditures may be incurred from within a producing mine to ascertain the existence of what appears to be a different ore deposit. Expenditures for property which is subject to an allowance for depreciation are not deductible under §617. However, depreciation properly allowable on assets used in exploration is an exploration expenditure. Election to Deduct Exploration Expenditures. The election to deduct exploration expenditures is made by deducting these expenditures in the return for the first taxable year for which such treatment is desired. The election applies to all properties of the taxpayer. Once the election is made all exploration expenditures, in the year of election and thereafter, must be deducted, unless the election is revoked with the prior consent of the Commissioner. The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) made substantial changes in the treatment of exploration expenditures. For exploration expenses incurred after 1982 and before 1984 by a corporation, the amount currently deductible is limited to 85% of the expenditure. The remaining 15% must be capitalized and recovered over a five-year period. Although exploration costs capitalized under this provision are not part of the basis of the property for cost depletion purposes, investment credit may be claimed with respect to these expenditures. Further changes have been added by the Tax Reform Act of 1984 with respect to expenditures made after 1984. The Act reduces the amount of otherwise currently deductible costs from 85% to 80%. Additionally, it limits the availability of the investment credit for capitalized mineral exploration costs to deposits located in the United States. TEFRA also allows individuals a special method of recovery under which exploration expenditures may, at the election of the taxpayer, be amortized ratably over a 10-year period beginning with the year in which the costs are paid or incurred. If taxpayer does not use this method, the excess of the exploration expenditures actually deducted over the amount that would have been deducted if 10 year amortization had been elected is an item of tax preference subject to the alternative minimum tax.

Jan 1, 1985

THOSE MARKED THUS * ARE MEMBERS, MARKED THUS t ARE ASSOCIATES THESE SIGNS DOUBLED INDICATE LIFE MEMBERS AND ASSOCIATES RESPECTIVELY THE FIGURES AT THE END OE THE ADDRESS INDICATE THE YEAR OE ELECTION HEAVY FACED T1 PE SIGNIFIES HONORARY MEMBERSHIP *ABADIE, EMILE R , Min Engr P 0 Box 83, Berkeley, Cal '76 *ABBE, CLEVELAND, JR, Geol Aid, U S Geological Survey, Washington, D C '00 *ABBOTT, AI ARTHUR, Cerro de Pasco Mining CO , Cerro de Pasco, Peru, So America '95 *ABBOTT, ARTHUR V , Electrical Engr , Westinghouse, Church, Kerr & Co , 8 Bridge St, New York, N Y '82 *ABBOTT, CLARENCE E, Chief Min Engr, Care Fayal Mine, Eveleth, Minn '04 *ABBOTT, JAMES W , Min Engr , Special Agent, Rocky Mountain and Pa¬cific Coast Division, U S Dept of Agriculture, "Tile New Markham," Denver, Colo '94

Jan 1, 1910

Geological discontinues in the coalbed, such as faults, sandstone channels, permeability facies, lithotype changes, and large scale partings in the coal seam, can cause intermittent production problems or produce unexpected amounts of water or gas from degasification boreholes. These discontinuities not only can impact methane emissions into the mine workings, especially if they hinder proper and effective degasification of the coalbed but may act as conduits for methane flow from gassy strata into advancing mine workings. The effects of these discontinuities are still under debate by mining and gas production experts. This study presents a numerical investigation using reservoir simulations of the effects of partings and permeability facies and lithotype changes on the production performances of vertical and horizontal degasification boreholes, as well as the emissions during longwall operations. In this work, the grid block was designed in a multi-layer 3-D structure which enabled spatial descriptions of the geometries and properties of the discontinuities within the coal seam. The studied coal seam discontinuities and their properties were distributed arbitrarily within the model. Production was simulated by vertical and horizontal boreholes. Degasification boreholes operated two years prior to start of the mining. The results of this numerical study show that in coal seams with major heterogeneities and discontinuties, the geometry and location of the boreholes are important for improved gas production. These considerations are also important for controlling methane and water inflow into the working environment during longwall mining.

Jan 1, 2008

By W. H. Oppelt

The Federal Bureau of Mines investigated combustion of lignite in domes-tic heating equipment to obtain information on equipment performance and to evaluate testing procedures. Three types of domestic heating equipment were tested, ranging from a hand-tilled, magazine-type space heater to a ram-type overfeed stoker. Lignite was readily burned in each of the three units under various test conditions. Burnoff rates determined by adding weighed charges to the magazine were found to be in error because of shrinkage of the lignite when only a portion of the magazine capacity was consumed during a test. More reliable burnoff rates could be determined by carbon-nitrogen balances. A hand-fired magazine-type space heater (Booker heater) was operated without the furnace attachment at efficiencies to 75 pct. One test series was run with minimum supervision under conditions encountered in actual household operation. No mechanical trouble was encountered.

Jan 1, 1960

By R. L. Handy

The objective of this research was to devise and test an apparatus to rapidly evaluate the cohesive and frictional strength of coal in situ, in order to increase the safety and percentage of coal recovery from underground coal mines. During the first year device was designed utilizing the bore-hole shear test principle from soil shear strength testing: Two opposing corrugated plates are forced outward to exert a controlled contact pressure against the sides of a previously bared hole, and then the plates are very slowly pulled along the axis of the hole to cause shearing of coal in contact with the plates. Results with the device are expressed in terms of a friction angle[_] and a cohesion c. The [ ] angles obtained from an Iowa coal arc in close agreement with and fall between results from triaxial and direct shear laboratory tests on the same coal. The measured cohesion was found to be much less than from the comparable laboratory tests. It may be increased by pre-stressing and other techniques to embed the shear plate teeth for the first shear test point.

Jan 1, 1973

By W. P. Yana, J. B. Littlefield

"INTRODUCTION AND OBJECT OF EXPERIMENTAn explosion in and rupture of a gas-tight switch box on an electric loader in a mine located near Pittsburgh indicated that the cause was an internally generated inflammable gas-air mixture. This led to the suspicion that moisture condensation or ""other unusual conditions might have caused a spark or are across the surface of the material and that the heat may have created a carbonized path across the synthetic plastic base which would then conduct a large current with the generation of considerable heat and thermal decomposition of the base materials base in the box which exploded gave every indication that this series of events had taken place, and accordingly it was desired to determine what explosive gases such a decomposition of these insulating materials would produce.ACKNOWNLEDGMENTSThe desirability of making this investigation was suggested to the authors by L. O. Ilsley, supervising engineer, electrical section, Bureau of Mines, to whom the occurrence of an explosion in a switch box had been reported. The writers also acknowledge with thanks the assistance of L. B. Berger, chief scientific aide, health laboratory section, Bureau of Mines, in checking the calculations in the tables. DESCRIPTION OF MATERIAL INVESTIGATEDThe ten materials used in the tests, identified by letters A to J inclusive, are described in a succeeding list of materials. All the materials except I had a phenolic odor, especially when freshly cut."

Dec 1, 1932

By J. P. H. Steele, T. Vincent, C. Debrunner, M. Whitehorn

For a variety of reasons, the need for automation of underground mining equipment is growing dramatically, e.g., improved safety and health, availability of labor, deeper mines, and desire for more focused excavation. While there has been tremendous progress made in this direction, much needs to be done to reach the holy grail of an autonomous mining machine. This paper reviews a number of technological developments and presents research and development needs for future development. A report on our current project for the Western Mining Resource Center at CSM is included.

Jan 1, 2000

Prevention of coal-mine explosions depends largely upon thorough knowledge of the causes that initiate explosions. A review of coal-mine explosions in one geographical area when supplemented by nationwide data of similar nature, should serve as a guide for the adoption of measures for explosion prevention. Explosions in bituminous-coal mines of the United States during the 10 years ended December 31, 1932, ranked third in the causes of fatal accidents and constituted 16.1 percent of all fatal accidents in bituminous mines. Kentucky now ranks fourth in coal output in the coal-producing States of this country; a study of the coal-mine explosions in this state will be of definite interest locally among coal-mining people, as well as to those in the coal-mining industry who are concerned in preventing coal-mine explosions. This circular reviews gas and dust explosions in Kentucky coal mines to show their hazards, to point out the influence of certain factors in causing explosions, and to indicate the effectiveness of preventive measures.

Jan 1, 1934

By Jr. Flynn

This U.S. Bureau of Mines publication is a compilation of fundamental cyanide chemistry data obtained through review of the scientific literature. It includes information on thermodynamics and chemical equilibria, ultraviolet-visible and infrared spectra, and the chemistry and photochemistry of cyanide, chemical species derived from cyanide, and metal cyanide species. It also includes guidance on the use of the data for solving practical problems in precious metals applications. This publication is intended mainly for use as a reference by personnel in the precious metals industry and regulatory agencies, and other cyanide users, to provide comprehensive information on cyanide chemistry. The document should assist in the formulation of effective policies for cyanide control in the construction, operation, and closure phases of precious metals mining and metallurgical operations. In addition, the data in this publication will be useful in other contexts, such as dealing with industrial cyanide usage, cyanide-containing wastes and associated environmental problems.

Jan 1, 1995

By Reginald Williams

THE amount or value of the precious metals consumed in dentistry is probably amazing to most people. It falls very little short of that which is consumed in jewelry. Inasmuch as the ultimate destination is in the human mouth, dental alloys enjoy some importance because life and health depend upon restorations made with them. Prosthetic dentistry has made wonderful progress in the last few years. The manufacturers who supply the metals also deserve commendation. This industry which deals with metals to go into people's mouths is comparatively new. There is no literature on the subject, and little or no precedent by which to be guided. It was only by close cooperation with the dentist or prosthetic technician that desirable physical properties were produced, as nearly as possible, in the metals which were available and permissible. It is true that there were and still are conflicting opinions among the dentists as to the physical properties they require. Sometimes they request the impossible, such as alloys which are exceedingly stiff and springy, yet will bend or adjust easily. Even in this latter instance, progress has been made by supplying methods of heat-treatment whereby metals may be softened or hardened at will. (Figs. 1 and 2.) The demands made upon manufacturers are extremely varied. They must supply metals of tensile strengths ranging from approximately 30,000 to 100,000 lb. per sq. in. and over. The latter metals must be workable and in many instances capable of extreme deformation. They must not be affected by mouth conditions, nor should they oxidize greatly when molten, at red heat, or during a soldering operation. In addition to physical specifications, color demands must also be met. The firm of which I have the most knowledge manufacturers 11,553 standard stock articles of precious metals, taking into consideration formulas, finenesses, grades, colors, gages, lengths, sizes and weights. If special demands are taken into consideration, the number would be in excess of 25,000. Wrought metals are manufactured in a great many alloys of different sizes and shapes, such as plate, bar, rod, wire, sheet, strip, mesh and foil. There are also other products of importance.

Jan 1, 1928

By Leandro Pérez

La flotación es una actividad que se aplica naturalmente en pequeña escala y con elementos empíricamente buscados para flotar plomo, zinc y así obtener la amalgamación del oro y la plata. En este sentido, el presente texto señala los cambios (slimes) del proceso de flotación que se realizaron en la concentradora de Carahuacra. Actualmente existe un tratamiento para slimes llamado «Ultraflotación» aplicada a la flotación de caolín donde después de flotar los slimes ( skin) regresan nuevamente a las espumas de flotación, cerrando el circuito varias veces (piggybacked), observándose que todas las partículas del mismo polo son flotadas bastante limpias.

Jan 1, 1966

By C. R. Hubbard

The Bureau of Mines investigated the mineral resources of the Upper Missouri River Basin as a part of a comprehensive water and related land resources study by six Bureaus of the Department of the Interior, coordinated by the Department's Missouri River Basin Field Committee. The mineral resource study covers an area of about 18,000 square miles within the Great Plains physiographic province of central Montana. Exposed Formations in the plains are chiefly flat-lying Cretaceous sediments. Plutonic rocks crop out in the central parts of the mountain uplifts, with steeply tilted Paleozoic sediments exposed around the margins. Oil and gas have been produced from several fields in the study area; total value exceeds $45 million. Coal-bearing formations of Upper Jurassic and Cretaceous age cover approximately 45 percent of the study area. Total production of coal since 1880 has been between 40 and 50 million tons, exceeding $75 million in value. Total metal production has been about $52.5 million. Industrial mineral production from 1925 through 1960, is valued at $24 million.

Jan 1, 1964

By C. R. Hubbard

The Bureau of Mines investigated the mineral resources of the Upper Missouri River Basin as a part of a comprehensive water and related land resources study by six Bureaus of the Department of the Interior, coordinated by the Department?s Missouri River Basin Field Committee. The mineral resource study covers an area of about 18,000 square miles within the Great Plains physiographic province of central Montana. Exposed formations in the plains are chiefly flat-lying Cretaceous sediments. Plutonic rocks crop out in the central parts of the mountain uplifts, with steeply tilted Paleozoic sediments exposed around the margins. Oil and gas have been produced from several fields in the study area; total value exceeds $45 million. Coal-bearing formations of Upper Jurassic and Cretaceous age cover approximately 45 percent of the study area. Total production of coal since 1880 has been between 40 and 50 million tons, exceeding $75 million in value. Total metal production has been about $52.5 million. Industrial mineral production from 1925 through 1960, is valued at $24 million.

Jan 1, 1964

By Forest H. Majors

"INTRODUCTION The Brutch sulfur deposits were explored by the Bureau of Mines during the spring and summer of 1944. Old workings were rehabilitated and sampled, test pits and shafts were sunk, and trenches were cut through the surface alluvium.ACKNOWLEDGMENTSIn its program of exploration of mineral deposits, the Bureau of Mines has as its primary objective the more effective utilization of our mineral resources to the end that they make the greatest possible contribution to national security and economy. It is the policy of the Bureau to publish the facts developed by each exploratory project as soon as practicable after its conclusion. The Mining Branch, Lowell B. Moon, chief, conducts prelimi¬nary examinations, performs the actual exploratory work, and prepares the final report. The Metallurgical Branch, R. G. Knickerbocker, chief, analyzes samples and performs beneficiation tests. Both these branches are under the supervision of Dr. R. S. Dean, assistant director.Special acknowledgment is due S. R. Zimmerley, regional engineer, and Paul T. Allman, principal engineer, Bureau of Mines, Salt Lake City, for their supervisory aid, and to the metallurgical staff, Salt Lake City, for beneficiation of samples."

Oct 1, 1946

By Donelson A. Robertson

Literature was searched and cases of alleged water well damage were investigated. Occurrence of ground water in Appalachia is primarily in low yield, fractured, water table aquifers. Four test sites were chosen based on geographic and geologic diversity. Test wells were drilled at each site and base line data on water quality, static water level, and drawdown characteristics were obtained before surface mining commenced. Blast induced ground vibrations were measured at the surface by the wells at levels up to 5.44 inches per second maximum resultant particle velocity. Measurements made at the bottom wells indicated that vibrations were considerably attenuated at depths of 140 to 160 feet. No direct evidence of change in water quality or well performance was produced by blast vibrations, but removal of downslope support by excavation does cause lateral stress relief which permits the water-bearing fractures to become more open. This additional storage capacity causes the static water level to drop and for well-bore permeability to improve. Static water level recovers if sufficient recharge is available and well performance is improved.

Jan 1, 1980

By Don M. Coulter

"INTRODUCTION The Margerum bauxite district, in Colbert County, Ala. was investigated in December 1940 and in February 1943 by R. W. Smith of the Bureau of Mines .3/ A geologist of the Federal Geological Survey investigated and mapped the district in the fall of 1942.These preliminary investigations indicated bauxite showings over an area about a mile long by 2,000 feet wide. It was felt that the chances were good for finding one or more large deposits of low- to medium-grade bauxite. The location - within 35 miles of the alumina plant of the Reynolds Metals Co. atLister Hill, Ala. – made it especially attractive. A field office was established in Iuka, Miss., on May 19, 190,, and mineral agreements were executed with four landowners covering 1,146.6 cores.The drilling on the project was done under contract. The power drilling was supplemented by a labor crew that drilled hand-auger holes, where there was little or no gravel overburden, and sampled the old test pits.The Federal Geological Survey, after thorough study of the district, recommended 54 drill holes 4/ to delimit the known deposits and to search for possible extensions. After the drilling started, many of these locations eliminated, and others were changed upon the basis of information gathered from the holes as they were drilled."

Mar 1, 1948

Las primeras exploraciones de la atmósfera Jibrese se iniciaron en 1934 por medio de los vuelos a alturas de 6,000 m. y globos pilotos. En 1938 J. A. Broggi, G. Petersen G. y G. H. Wagner practicaron una serie de ascenciones de globos pilotos. En ese sentido, se describe una reseña histórica y una interpretación de las cuatro capas de vientos al ser observados sobre Lima (Perú) y datos sobre las temperaturas observadas en las alturas de 6,000 y 12,500 m.

May 1, 1958

By George T. Faust

The petrographic microscope plays an important role in the mineral dressing of nonmetallic materials. Petrographers and mineral technologists have evinced an interest in the technique developed, specifically, for mineral-dressing problems. The following dissertation makes the informa¬tion more generally available. ACKNOWLEDGMENTS The authors are indebted to O. C. Ralston, chief engineer, Nonmetals Division, and to Will H. Coghill, supervising engineer of the Southern Experiment Station for a critical reading of the manuscript. They are also indebted to their colleagues for technical information obtained in the course of cooperative work, in particular to J. B. Clemmer for the use of the data on fluorite.

Jan 1, 1940

By M. J. Sapko

The pressure and flame development of the methane-air-nitrogen system was investigated in the Bureau's l2-foot-diameter sphere to define buoyancy effects and to develop relationships for predicting venting requirements. Pressure rise (?P) is defined as a function of time (t) and nitrogen dilution and is shown to deviate noticeably from the cubic law (?P = kt3), depending upon the period of combustion and the mixture composition. Corresponding flame speed (Sf) and burning velocity (Su) data are given which show that Sf is time dependent and that Na dilution has a greater effect than air dilution in inhibiting the flame propagation. The Su data agree with "accepted" values and are unique in that they are based on much larger flames than those used in other investigations. Downward propagation limits are shown to depend mainly upon buoyant forces, which can affect the burning of even stoichiometric CH4-air systems. Theoretical expressions, based on the mixture burning velocity and expansion ratio, are given for predicting the venting requirements for ignitions of hydrocarbon-air-nitrogen mixtures in spherical or cubical enclosures.

Jan 1, 1976

This Bureau of Mines report summarizes the research, development, and evaluation demonstrations conducted by the Bureau of Mines under the Health and Safety Act of 1969 to improve the means of notifying miners underground, who are away from their own phone, that they are being called.

Jan 1, 1977