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By R. G. Gillies, C. A. Shook, W. H. W. Husband

"The current state of knowledge concerning pipeline transport of coal in water slurry form is summarized for the four categories: coal-water fuels, conventional fine coal slurries, coarse coals and stabilized mixtures of coarse and fine particles. Surface chemistry is of dominant importance for coal-water fuels and considerable progress in understanding the role of surfactants has been achieved in recent years. Little generalized research on the flow of conventional fine coal slurries has been done in the past 17years, although innumerable conceptual designs and feasibility studies have been undertaken. Coarse coal slurries are fairly well understood but the model which explains their flow requires more data to be established fully. Stabilized flow mixtures should probably obey the same model as coarse coal slurries but experimental results for stabilized mixtures have not yet been incorporated in a comprehensive theory.IntroductionPipeline transportation of coal in a water vehicle has been employed for many years in coal washeries. It has been used less frequently in hydraulic mining and thermal power station fuel supply systems. The suitability of coal for pipeline transport arises from its moderate specific gravity relative to the carrier fluid and the fact that throughputs are often large and steady over long periods of time."

Jan 1, 1990

By D. Lauzon, H. de Ruiter

"In 1988a decision was taken to design and install a computerized mine monitoring and control system. This system had to monitor and control all pumping and ventilation underground. The operation of the mine air heating, using waste heat from the mine water and compressors, was to be part of the system. It ultimately also had to interface with the four existing Canadian General Electric Series 3 PLC's which controlled the No .3 shaft loading pockets. Beside operational control and trouble shooting, the system is a valuable tool in energy management and ultimate savings are estimated at $50,000 per year.The final equipment selection was a General Electric Series Six PLC on surface with a total of 17 Series One Plus and Juniors PLC located underground. Data is transferred through a two-pair shielded cable using modems. Both analog and digital functions are being utilized.The basic monitoring and control system was commissioned during 1989and, due to a higher level of technology today, further improvements have been planned for the future. The system was designed by Walter Dow together with Gordon Champion of D.G. Champion Engineering Ltd. of Toronto. Advice for the ventilation part of the project was obtained from Maurice White, Independent Ventilation Consultant.The Ministry of Energy, Mines and Resources and the Ministry of Energy of Ontario approved this project together with the waste heat recovery project to qualify for a grant of$135,000 under the Enerdemo-Canada program.IntroductionThe Macassa mine is a narrow vein gold mine situated about 2 km west of the town of Kirkland Lake in northeast Ontario. The mine has been in continuous operation since 1933 and a total of about 3.0 million ounces have been recovered out of 6.6 million tons of ore ."

Jan 1, 1991

By Ludwig Strah

"The paper outlines the history of rubber mill liners beginning with the awarding of the first North American patent rights in 1923. It includes the early-day applications and installations of the 1920s and 1930s through to their present-day application. Over-all rubber mill liner design is discussed in relation to present day installations employing rubber mill liners in various grinding applications. A brief overview is given of a manufacturer's procedures to produce rubber mill liners.IntroductionIn early 1910, it became apparent that the productive life of the silver mines in Cobalt, Ontario, could be substantially prolonged by mining lower-grade ores.The mining of lower-grade ores required the establishment of treatment facilities which initially employed jaw crushers, stamp mills, jigs and concentrating tables. The recovery of silver in other than a coarse metallic form required the additional step which was introduced at that time: the cyanidation of silver concentrates from the tables. The resultant requirement for increased and improved recovery led to the introduction of grinding mills, i.e. tube mills.Shortly after the introduction of the tube mills to the Nipissing Mine's mill in 1914, the idea of using rubber as a mill liner material was spawned. However, no action was taken due to the advent of World War I. It is interesting to note that the idea of rubber mill liners emanated from having used pieces of solid rubber tire as an emergency repair on a set of liners when a liner had broken and no immediately available spare was on site.The credit for this ingenuity and subsequent application for a patent on rubber mill liners falls to James John Denny, the mill superintendent, and Rolla Barnum Watson, the general manager of Coniagas Mines Limited. The patent application was formally made on December 3, 1921. The U.S. Patent Office issued Patent No. 1,470,597 on October 16, 1923."

Jan 1, 1982

By Lloyd A. Clark

"The kuroko deposits, which are extremely variable in size, comprise both stratiform layers of clastic sulphide particles and cross-cutting vein and disseminated components. The ores lie on the flanks of rhyolitic lava domes which have risen from a postulated subvolcanic magma chamber that provided cupriferous hydrothermal solutions and also acted as a heat source driving ground-water convecting cells. The polymetallic sulphides precipitated initially in explosion craters, pipe fillings and feeder veins as rising hydrothermal solutions mixed with sea water. As sulphides clogged the plumbing system, minor phreatomagmatic explosions produced layers of sulphide fragments on the adjacent sea floor. One to ten repetitions of this process produced multiple fragmental sulphide beds. Each deposit formed in a relatively short space of time, because only minor tuff beds are intercalated in spite of active volcanicity in the region. In this model, the heated ground waters convecting through thick piles of acidic pyroclastic rocks leach the zinc, lead and barium later deposited as kuroko ores. As the subvolcanic pluton cools, the supply of silica and copper wanes and the minor counter-circulation cells above the pluton are replaced by main cell fluids bearing zinc, etc. This change in solution flow is abrupt rather than gradual, as the plumbing system is somewhat disrupted by the magmatophreatic explosions that create each ore layer.IntroductionKnowledge of the kuroko deposits ha s greatly expanded during the 25 years since modern recognition of their volcanogenic origin. However, one aspect of the ore s, which may be of unique importance in their genesis, has received little attention. That is the fragmental character of much o f the sulphide ore, which was briefly referred to in a previous publication (Clark, 1971) and is examined in more detail by Barton (1978). Most researcher s have concentrated their attention on or e deposition above and beyond the vent, which is inconsistent with the geology."

Jan 1, 1983

By R. del Villar, A. R. Laplante

"This article presents four grinding simulation programs, written in Applesoft BASIC. The firs t two calculate residence time distributions (RT Ds) for open and closed loops mills. The third program calculates the select ion functions from the RTD, breakage function and particle size distribution (PSD) o f the feed and discharge. Two linear regression programs are also included to calculate the breakage function. These results are used in the fourth program to simulate continuous or batch grinding kinetics.The modelling approach presented is the size discrete, time continuous matrix formulation presented by Reid (1965) from concepts originally proposed by Epstein (1948). It is at the present time the most widely accepted phenomenological model of grinding kinetics and is standard textbook material (Austin et 01., 1982; Kelly and Spottiswood, 1982, p. 152). The concepts of RTDs and tracer testing originated from chemical engineering theory and practice, and are well presented in Leven spiel (2n d Ed . 1972 , Ch. 9) .Applesoft* was chosen because it is compatible with many micro computers. It is also one of the simplest and least powerful BASIC versions. Thus it can easily be adapted to other more complex BASIC versions.Open Loop Residence Time Distributions (Program RTDOPEN)As mixing, channelling, stagnation and short-circuiting all affect slurry motion in tumbling mills, transport characteristics are very complex an d cannot be derived from fundamental principles. Fortunately , as grinding follows first order kinetics, transport characteristics for the purpose of grinding simulation ca n be represented by the RTD of the slurry phase . It is normally determined using liquid tracers, as it has been demonstrated and is commonly accepted that in industrial ball mill s, the RTD of the so lid phase is particle size independent and equal to that of the liquid phase."

Jan 1, 1985

By Ann Lamontagne

Le parc à résidus de l?ancienne mine Dunraine contient des résidus générateurs de drainage minier acide. Le concept proposé pour la restauration du site est d?utiliser le fort potentiel alcalin des boues rouges, résidus d?aluminerie, afin de neutraliser les résidus miniers. En appliquant une certaine quantité de boues rouges à la surface du parc, on provoquera une neutralisation de l?acidité. De plus, les alcalis contenus dans les boues rouges vont provoquer la précipitation de minéraux stables (sulfates tel la jarosite). La précipitation de ces minéraux provoquera la formation d?une couche indurée qui rendra difficile la circulation de l?oxygène et de l?eau. Bien que ce concept ait été vérifié en laboratoire, ce sont là des hypothèses qui restent à vérifier dans des conditions réelles d?exposition. Les principales questions soulevées par l?utilisation des boues rouges, mis à part le contexte géochimique, est le contexte technico-économique. En effet, le transport de quantité importante d?un matériel argileux humide présente un défi économique important. Outre le défi économique, la manipulation et l?épandage de ce produit sur des parcs à résidus constituent également un défi important. Cet article présente les conclusions d?une étude technique sur le transport, la manutention et l?épandage de boues rouges sur un parc à résidus situés en Abitibi : le site de Dunraine.

Nov 1, 2002

By B. Stuckert, P. Sheehan, J. Balfour, B. (Manas) Das, D. Fawcett

"With the growth of large scale surface mining operations, waste disposal and stability of waste dumps pose a challenging problem to engineers. Vibrations due to blasting operations proximal to these dumps further complicates dump design. Many dumps which are statically stable may become unstable due to the effects of blasting vibrations.A joint project between CANMET and Smoky River Coal Ltd. has been initiated to study the dynamic stability of waste dumps. The study involves development of an analytical algorithm combined with field monitoring to assess dump performance.Another objective of the study is to provide baseline data for a vibration attentuation relationships for sedimentary rock (coal) environments: most studies to date are for base metal mines. The effect of dump thickness on vibration response is also addressed.The key objective of the study is to present a methodology for assessing the dynamic stability of waste dumps. Implicit in this methodology are a number of assumptions concerning vibration attenuation in sedimentary rock environments, and response of the dump material to induced vibration. Where possible, these assumptions have been compared with monitoring data as a check on their validity."

Jan 1, 1989

By T. G. Joseph

The strain softening relationship developed in part 1 is now applied to coal. Having determined the post-failure stress-strain curve for coal specimens, this information can then be used in a finite element program, such as Phase 2, to examine the post failure characteristics of coal pillars. Using example data, the strength of coal pillars of different width/height ratios are estimated and compared with well-known empirical pillar size-strength relationships. In addition, the post-failure stress-strain behaviour of a coal pillar is compared with an empirical relationship reported in the literature.

May 1, 2002

By M. P. Du Plessis

"The paper discusses coal research in relation to the special needs of Western Canada, with its large resources of lignite and subbituminous coals. Research programs are presented under the following headings: Coal Liquefaction, Pyrolysis, Fluidized-Bed Technology, Underground Coal Gasification and Supporting Investigations. Typical processes are presented and their relevance to Canadian coals is described. The longterm plan of the Alberta Research Council for coal research and the steps taken for its implementation are discussed. Finally, some innovative concepts arising from basic research in coal chemistry are discussed.Canada's Coal ResourcesCanada is richly endowed with coal reserves. With estimated ultimate reserves of 600 billion tons in O.76-m (2.5-ft) thick seams under less than 762 m (2500 ft) of overburden, Canada rank s fourth after the USSR, the USA and Chinatu (see Table I) . Canada's reserves are incompletely explored and estimates are constantly being upgraded. Preliminary information from deeper test-hole logs suggest that similar , if not larger, tonnages occur at depths greater than 762 m (2500 ft).The types of Canadian coals and their regional Distribution(2) is shown in Figure 2. Alberta's subbituminous Plains coal represents about 70% of estimated national reserves. A large portion of the coal can be mined at relatively low cost by surface mining techniques, and it is currently being used exclusively for power generation in conventional thermal plants. This coal, however , also represents a large potential .source of liquid fuels which could equal or exceed that of oilsands and heavy oil. Table 3 compares Federal Government estimates for resources and reserves of fossil fuels in Canada and their recoverable oil content or equivalent.A conservation estimate of only the reserves of thermal coal represents an oil equivalent of 27.6 billion barrels , which equals the recoverable reserves of oil-sand bitumen and heavy oil. A more realistic estimate is probably several times this amount. Although coal can be converted to many other end products, such as fuel gas and synthesis gas for hydrogen and ammonia production, liquid fuels remain the most desirable product mainly because they can be transported more cheaply over long distances and their high energy density makes them uniquely suitable as fuels for transport and agriculture."

Jan 1, 1981

By S. S. Rahman, A. Gholami, M. A. Aghighi

"This paper provides a foundation for studying the growth of fractures in presence of other discontinuities and different anisotropies of low permeable hydrocarbon formations and helps to improve the design strategies for multistage fracturing.The multistage fracturing technology has recently been used to exploit low permeable hydrocarbon reservoirs. However, the mechanism of hydraulic fractures interaction and the impact of local heterogeneities on ultimate trajectory of the growing hydraulic fractures are not yet understood in depth. A fully coupled poroelastic Finite Element based model is developed to investigate the mixed mode propagation behaviour of growing hydraulic fractures. This model takes advantage of an explicit representation of the fracture which enables us to take the effects of rock and fluid related parameters into account. Moreover, impact of fracture geometry and leak-off phenomenon is investigated. The refined mesh around the crack provides the added advantage of more detailed stress distribution, pore pressure change and back stress in the vicinity of the fracture and in particular at the fracture tip. The potential deviation propensity of the fractures is evaluated based on the fundamental rule that fractures propagate perpendicular to the direction of the minimum horizontal stress.This study shows that pressurization of transverse hydraulic fractures results in the reorientation of local principal stresses, particularly in vicinity of fracture tips. Variation of flow patterns clearly influences the evolution of shear stress around the fracture tips which will potentially lead to mixed-mode I and II fracturing and consequently, fracture deviation. The presence of local heterogeneities such as preexisting fissures and/or fractures is a main source of such pore pressure induced stress redistribution and reorientation and potential deviation of hydraulic fractures.Most existing models ignore or simplify the effect of pore pressure/stress coupling as well as the fracture geometry and fluid flow within the fracture. Also, the fluid leak-off from the hydraulic fracture into the formation, which is a controlling factor in fracture growth, is often considered using analytical models. Taking advantage of a fully coupled porelastic model along with an explicitly discretized fracture, this study provides a more realistic insight into the complex fracture propagation processes of multistage fracturing operations particularly in presence of reservoir geo-mechanical complexities."

Jan 1, 2015

By D. C. Rance

"The Quintette Coal Limited property is located in the northeast coal area of British Columbia.A basic agreement with the Japanese steel industry was executed on January 27, 1981 for the sale of 69.5 million tonnes of Quintette metallurgical coal over a 14.5-year period. This contract period can be extended by five years by mutual agreement. Sale agreements have also been signed for the sale of 19.4 million tonnes of oxidized coal over a 15-year period.Work started on site development in the late summer of 1981, and at present, two of the four eventual pits-the McConkey and Frame-are under development.The pits are currently in a prestripping phase. These pits are notable for the stripping volumes that have to be removed from relatively small pit areas. In order to provide for the required detailed rapid short-range planning of these pits, engineering will be computerized, as will the truck dispatch system.The mining area lies 21.1 km from the plant site by road and the transport of raw coal to the plant is by means of a high-speed conveyor system which has a total length of 13.4 km with a vertical drop of 740 m.The surface plant facility was designed on a modularized basis to facilitate maintenance, and is designed to enable the use of gravity f low of raw coal and heavy media in the plant to minimize the use of pumps.The construction of the plant and mine site facilities is ongoing, and the first coal production is scheduled for early December 1983.IntroductionQuintett e Coal Limited is a Canadian company incorporated in the province of British Columbia in 1971. Denison Mine s Limited is the manager of Quintette's activities. Equity in Quintette Coal Limited is held by several shareholders, with interests as follows: Denison Mines Limited, 50%; Charbonnages de France International S.A., 12%; and Japanese interest, 38%."

Jan 1, 1983

By Frédéric Flament, Mary Goldman, Gille Barbery

"Pilot plant testwork on autogenous and semi-autogenous grinding was conducted at the Centre des Recherches Minérales du Québec (CRM) to investigate the effect of ball addition, solids concentration in the feed, specific energy consumption and feed size distribution.A mathematical model that incorporates breakage and surface mechanisms of loss of mass was developed to predict load size distribution of autogenous and semi-autogeneous mills. An empirical model was used to predict product size distribution of autogenous and semi-autogeneous mills.IntroductionAutogenous (AG) and semi-autogenous (SAG) grinding circuits offer potential capital and operating cost savings when compared with conventional grinding. Empirical relationships have been developed to calculate specific power consumption for SAG mills using pilot plant test results (Mular et al., 1989; Barrett and Allan, 1986). Empirical models can be obtained from plant practice data but are applicable only to the particular ore and set of operating conditions used in the model. Grinding mechanisms have to be taken into account in order to develop a model that can be applied to different ores and mills.In AG and SAG, the ore itself acts as grinding media, with the finer sizes being crushed by the coarser ones. Surface mechanisms of loss of mass, in which the inner core of the particle remains intact, also take place. In SAG milling, the effect of balls also has to be taken into account. The role of each one of these mechanisms changes with particle size and the model has to account for such changes."

Jan 1, 1991

By K. Yamaguchi

To contribute highly efficient and environmentally conscious copper smelting process, several topics in chemistry of the continuous converting were discussed. Through the reviewing the authors' thermodynamic simulations, it is recognized that small amount and low copper content of the coexisting slag is preferable. Some discussions were added to the Takeda's diagram for Cu20-FeOx-CaO ferrite slag, and the activity curves of the constituents were derived. Thermodynamic calculations were carried out on the copper contents of the slag during the blister copper formation. The dissolution of copper in slag decrease somewhat with increasing temperature, but the effects of increasing S02 pressure and decreasing %S in copper are considerable to increase in copper content of the slag. The optimum oxygen enrichment in the supplied air, and regulation of the oxidation degree for the blister copper are important in practice. The gypsum phase separation in the calcium ferrite slag was also evaluated thermodynamically, and concluded that decreasing temperature, increasing CaO content or S02 pressure, and extensive oxidation of the blister copper tend to separate CaS04.

Jan 1, 2007

By G. Pouskouleli, T. A. Wheat

"The role and benefits of using statistical methodology in the development and optimization of materials and processes is examined. It is shown that considerable benefits accrue from the use of an appropriate design in which a number of factors (process parameters) are varied simultaneously while the system response such as percent recovery, degree of separation, purity, etc. is monitored and ultimately optimized.Compared with the commonly encountered one-factor-at-a time approach, this schema exploits reduced experimentation (thereby requiring reduced resources [staff, time, dollars, etc.]) yet yields quantitative information on the significance of each factor and their combinations on the measured response."

Jan 1, 1992

By J. Elbrond

"This paper describes qualitatively the progressive are losses and rock dilution in a mining project from the geological modelling to and including the concentration. A simple theoretical model of the net present value of a deposit, assuming a log-normal grade frequency function, is used to find the pair of decisions on rate of production and cut-off grade, which maximizes the net present value. Various degrees of ore losses and rock dilution are then applied on this optimum, and the resulting decreasing net present values are calculated, as well as the increasing cost of metal and the increasing metal losses as a function of are losses and rock dilution.IntroductionDue to a variety of uncertainties, to inevitable lack of precision in deposit estimation and in mine planning, and due to production constraints, ore losses and rock dilution occur throughout the many phases of a mining project. The phases range from the geological definition of the orebody, over the cut-off grade optimization and decision, over the design of the mining method and the actual mining to the ore dressing, where the final loss of valuable ore into the tailings occurs. Quantification of ore losses and rock dilution are mostly difficult if not simply impossible to obtain. At the end-phase an estimate of the total dilution may be obtained with some degree of precision by observations of the amounts and analysis of concentrate and tailings. It is much more difficult to estimate the total ore losses because the uncertainty of the geological modelling in the initial phase and in the mining phase is very difficult to quantify, despite the use of geostatistics for grade estimation.Many attempts at quantification of ore losses and rock dilution have been made and some examples are shown in Table I. Although they differ widely from each other, it is obvious from these figures that ore losses and rock dilution are significant and have considerable effects on the economical results of a mining operation. Life length, net present value, cost of producing metal and the loss of metal are all affected."

Jan 1, 1994

By R. F. Favreau, R. A. Morin, G. W. Kuzyk, P. J. Babulic, N. J. Tienkamp

"Atomic Energy of Canada Limited is constructing an Underground Research Laboratory (URL) as part of a comprehensive program to evaluate the concept of nuclear fuel waste disposal deep in crystalline rock formations. Careful blasting methods have been used to minimize damage to the excavation surfaces. Good wall quality is desirable in any excavation. In excavations required for nuclear waste disposal, the objective will be to minimize blast-induced fractures which may complicate the sealing requirements necessary to control subsequent movement of groundwater around a sealed disposal vault. The construction of the URL has provided an opportunity for the development of controlled blasting methods, especially for drilling accuracy and optimization of explosive loads in the perimeter and cushion holes. The work has been assisted by the use of blast simulations with the mathematical model Blaspa.This paper reviews the results of a recent project to develop a controlled method of full-face blasting, and compares the observed field results with the results of a blast simulator called Blaspa. Good agreement is found between the two, and the Blaspa results indicate quantitatively how the blasting may induce damage in the final excavation surface. In particular, the rock in the final wall may be stressed more severely by the cushion holes than by the perimeter holes. Bootleg of the rock between the perimeter and cushion rows occurs when the burst out velocity imparted to it by the explosive loads in the perimeter holes is inadequate. In practice, these findings indicate that quantitative rock stress and rock burst-out velocity criteria can be established to minimize wall damage and bootleg. Thus, blast simulations become an efficient way to design controlled blasting and to optimize quality of the excavation surf ace."

Jan 1, 1989

By Godfrey W. McDonald, Dennis E. Fredrickson

"Commercial coal mining has been recorded in Nova Scotia since 1863 and during this period an estimated 60,000,000 short tons of mine discard containing 10 1030% coal has been accumulated, Approximately 70% of these dumps are in the Cape Breton region and most are owned by the Cape Breton Development Corporation (CBDC), formerly DEVCO.The explosion of oil produced energy costs which created an increase in thermal coal demand as well as the desire to rehabilitate abandoned mine dumps encouraged coal reclamation. CBDC was receptive to a proposal from the Selminco Joint Venture and encouraged the building of the Princess Recovery Plant (1980) and The Summit Plant (1982).The mine dump contains scrap, waste rocks, coal and substantial quantities of fine shale. The scrap and oversize are removed and the remaining material slurried with water to a density of 1.45. The slurry is cycloned to separate the saleable thermal coal from the rejects which are returned to designated areas of the dump for contouring and revegetation.BackgroundThe recorded coal production in Nova Scotia from 1863 to 1980 was 390,000,000 short tons. This extraction was associated with an estimated 60,000,000 short tons of discarded material. This mining discard and coal washing plant reject are located in numerous, varying sized dumps throughout the mining areas. Approximately 70% of these dumps are in the Sydney coal field region of Nova Scotia. The coal content of these dumps varies from 10 to 30% coal with an average of 18%.Energy CostsThe explosion o f energy costs in the mid-1970s greatly increased the sale price of thermal coal which made recovery of coal from some of the dumps economical. The environmental benefit of these operations will be the rehabilitation of the dumps upon cessation of the coal reclamation operation."

Jan 1, 1983

By Jean-Luc Collins

"The paper deals with the impact of fleet imbalance on a deterministic evaluation of shovel fleet productive capacity. It shows that if the fleet imbalance is overlooked, then estimated fleet productive capacity will be overrated.The paper shows that fleet imbalance inflates utilization, and care must be taken when using such statistics which are derived from reported field-equipment-hours. It shows that the utilization must be deflated by a factor called 'balancing efficiency"" in order to estimate shovel productive capacity correctly. The paper also shows how fleet imbalance can be controlled by managing idle time or downtime in an actual operation.The technique used for measuring the balancing efficiency factor is based on statistical analysis of equipment utilization."

Jan 1, 1980

By G. Grant Smith

In situ bulk density of coal is a variable applied to various aspects of coal resource evaluation, such as compositing ply analyses of coal attributes that are expressed on a weight per cent basis, and determining tonnages from volume estimates. Its value is a function of composition and porosity of the in situ material. When densities of ash-free coal, ash and water are fixed, in situ bulk density of a coaly mix can be expressed as a function of proportionate weight of ash in the mix. Correlations between in situ bulk densities and weight per cent ash contents of coaly mixes have been estimated for four general rank classes of coal (low medium volatile bituminous, high volatile bituminous, subbituminous, and lignitic).

Jan 1, 1991

By D. W. MacFarlane

In the formation of Oil and Gas Producing Units lawyer& and engineers are interdependent members of the same team. Management is, there-fore, entitled to expect no less than a total cooperative effort from the members of these professions. The petroleum and natural gas lawyer must diligently inform himself on the implications of engineering evidence. Otherwise he can be of little assistance to his engineering witness in a thorough, systematic and convincing presentation of his technical evidence. Conversely, the engineer must appreciate the concern of counsel that quasijudical hearings, whether technical or otherwise, be con-ducted in such a manner as to pre-serve some semblance of organized judicial procedures in the adjudication of property rights. The principal problems in unitization are the participation formula and the adjustment of investment in unit facilities. The equating of oil to gas, the effect of unit infill drilling, the relative values of producing zones and well productivity have •been controversial factors in several Saskatchewan units to date. Perhaps the most perplexing of these has been well productivity. While preserving current income, it may also preserve an ability to drain adjacent tracts plus an inequitable sharing of .reserves properly attributable to secondary recovery operations. However, inequity may also result in depriving an operator of the benefits accruing to him under competitive operations by virtue of his favourable reservoir position or his use of advanced production techniques. The Saskatchewan Oil and Gas Conservation Act has been construed by the Department of Mineral Resources as •completely negating any benefits inherent in the rule of capture when determining equities under unit operations. Under adjustment of investment provisions, large cash flows between owners of exploited acreage should be avoided upon the creation of a unit. These provisions should not deprive any company of the benefits it may have obtained under competitive operations in producing its fair share of the reservoir at a lower net cost per barrel than its competitors. Unitization should be concerned with physical conservation rather than in equalizing production costs as between operators.

Jan 1, 1960