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Show m i amii miiBifi I to 0 1 -- a N LAKE -s I "Oor .$; euA etf in The Oil and M C9 HHtMuiy World" A V .Vol. 28; No. 31 Salt Lak New Park Mining nc Friday, September e were in hopes that con-ia- l action would provide .elief in this price situation ne mine has been operating loss for several months an-- , sating a favorable decision. It is now apparent that no help will be forthcoming before January of 1958, and we regret to announce that due to this economic situation we are forced to close the operation of the Mayflower Mine. We deeply appreciate the cooperation of our employes and trust that conditions will permit us to open our mine in the not too distant future. He noted that since May of 1957, the combined price of lead and zinc had dropped 20 per cent under the blows of foreign Oil Board Hears Plans For 80 Acre Pattern 40-ac- re Shell Announces White Mesa Test 6,070-6,26- inter-connecte- d 80-ac- re 80-ac- re acid-fractur- e To gain approval of new uranium mills and expansion of existing concentrators, plans are being pushed to final stages for the Gas Hills District of Fremont County, Wyo. Grand Junction Operations Office of the Atomic Energy Commission already has approved technical aspects of a proposal of Fremont Minerals Corp., to build a concentrator at Riverton. Fremont is one of several subsidiaries of Susquehanna Corp., a Chicago holding company whose interests include the North Shore Railroad, municipal bus companies in Wisconsin and control of a uranium mill at Edgemont, S. D. It is reported that Vitro Uranium Co., a division of Vitro Corporation of America, had abandoned its attempts to get AEC approval for an upgrading mill serving its ore holdings in the 500-to-a-d- 80-acr- es 80-ac- re - - 40-ac- re Mexico Pipeline Co. also is readying construction of a line from An60,000 barrel-a-da- y Texas-Ne- w eth to Jal, N. M., from where crude will be transported across Texas to the Houston area, according to officials of this pipeline company in which Texaco has major interests. Lucky Me increase its mill capacity at the Gas Hills district to 2,500 tons daily. The company already has pending before the AEC at Grand Junction a proposal to hike capacity to 1,700 tons a day from the present 750 tons. Phelps Dodge Corp., second largest producer of copper in the U.S. is a party to this expansion. The Lucky Me group contends that with a major expansion of its mill and ore reserves owned or controlled by it and its partners, it can turn out concentrates cheaper in the Gas Hills district than any other operators. Allan Jones, manager of the Grand Junction Operations Office of the commission, said however, that price of concentrates was not the only consideration being entertained by the government agency in decisions regarding mill expansion in Wyoming. He listed location as important. So is service to custom millers. And he added that the commission does not want to establish any mill which would be monopolistic in nature. At the core of the race is time. The mills must be launched and going before March 31, 1962, if ore reserves are to be mined beconfore end of the centrates program of the com1962-196- 6 mission. Even at that, Mr. opinion that all the United tSates will and milled before ends. Jones is of the ore in western not be mined the 1966 plan Howe Sound Co. Shifts To Salt Lake Office Howe Sound Co., with principal proximately 5,000 square feet. Mr. Holmes said that designs properties in western United should be completed within the States and Mexico, will move its next 20 days and that invitations executive headquarters from New to be made after that. will bid York City. to Salt Lake City, it Construction will be carried out was announced recently. W. T. Holmes, secretary-treasureduring the winter with occupancy said recently that the slated for about April 1. Mr. Holmes also announced the change to be effective in the of two new board memat addition 1958 was aimed givof spring also will be members of who more unfied bers a the ing corporation excommittee of the the executive the would It operation. bring ecutive echelon into closer contact firm. with the operating situation in the William L. Less, a member of West. the brokerage firm of D. H. Ellis We recognize that Salt Lake & Co., was named a director sucCity is the center of the nonfer-rou- s ceeding the late L. Boyd Hatch, metal mining industry in the Logan financier, who attained United States, Mr. Holmes said. world renown in Wall Street, and Establishing headquarters here Ralph Stillman, president of will be Cecil Roper, president of Grace National Bank of New Howe Sound; V. A. Clark, vice York, succeeding Harry M. Dur-ninresigned. president mining; H. A. Pearse, metallurgy, and Joseph Rosenblatt, president of Mr. Holmes. Eimco Corp., Salt Lake City, also To accommodate the executive is a member of the board of direcoffices, Mr. Holmes said, archi- tors and executive committee of tects Haines and Purhonen of Salt Howe Sound. Lake City, have been commission, In addition to company research ed to design a second story for Howe Sounds subthe Howe Sound metallurgical center here, Calera Mining Co., operlaboratories located at 238 N. 21st sidiary, ates a cobalt refinery at Garfield, West St. Utah, and cobalt mine and mill at The ' new floor will cover ap Cobalt, southern Idaho. r, S.L. Firm Starts Coring Program slim-hol- 5 U-M- ill the Aneth pay zone was closely and that on basis of bottom hole pressure data of wells at the field, spacing of less than would work toward district. The AEC has held firm to a uneconomic recovery. price structure which made the Edward Clyde, a member of the operation of the upgrader and spac- subsequent shipment of concencommission, said the ing proposal by Texas Co., Con- trates to the Salt Lake mill of tinental Oil and Carter Oil Co the company unprofitable.- - was filed with the agency after This is in line with a policy of the Shell Oil Co. announced a the AEC not to encourage any plan to drill the Utah State School major expansion of the uranium Section 16 in about the middle of industry in the United States into basis. the field on a Vitro , whose affiliated Vitro be mined Three States has been conduct- United States willhasnot substantial Minerals Corp. ing a drive toward development in the Wyoming uraniholdings of fields in the Basin with an um belt, was reported in negoeye to meeting requirements of tiations with Lucky Me Uranium the new Four Corners Pipe Line Co. facility from Utah and New Corp. Under terms of very preliminMexico to the Los Angeles refindiscussions, it is proposed that ary ing district. The line is scheduled to start its take in October and has an initial rating of 60,000 barrels of crude oil per day. Oil Inc., Salt Lake independent, matter Utah is the e the has started a coring Hearing In its original wildcat, com- State Land board, sitting as the Grand at Westwater, program menced April 3, 1955,-anplugged state oil and gas conservation County, gas field in evaluation and abandoned June 19, 1955, commission. of the structure for location of a Shell in a drill stem test of the wildcat confirmation test to a disParadox formation between According to Texas Co. authori- covery prospect completed earlier feet, had green 40 degree ties there would be some 380 In 1957. gravity oil to surface in four trilling units on the field under program. Engineers hours and 15 minutes. It flowed the James Wetherell, operations at a rate of 30 barrels of fluid said that primary recovery oil at manager, said that the 10,962 acre daily, 48 barrels of which was the field would amount to some area was also being placed into unit. 400,000 barrels per a federal unit for development oil and remainder salt water. Burnable natural gas, estimated This gives the field reserves purposes. between 250,000 and 750,000 cubic of about 152 million barrels. The The second well will seek oil feet a day, rose to surface in five figure is somewhat lower than minutes. Shell set pipe and treat- estimated by other geologists in production in the Entrada formaDaed the well to two series of the state, who, of course, did not tion and natural gas in the which formation in same kota jobs, but on have the core and pressure data heavy original gas find was made. Oil final swabbing" operations, the available to Texaco. . Inc. has a 55 per cent working inwildcat made only 45 barrels of terest disclosed in the prospect in Township that, Other testimony oil fluid, 60 per cent of which was 17 South Texaco and Range 23 East. in opinion of engineers, salt water. -- 10 C 27, 1957 oy Bows Out Of Operations Bidders Must Meet 1962 Deadline C One of Utahs principal lead-silve- r However, the declining p producers announced Thurs- of the two metals, the destn day that it would close its proper- of the traditional tariffs e; ties in the Park City, Utah dis- by the industry on the y' trict. Washington policy-make- r increased costs ot tionary W. H. H. Cranmer, veteran west and transportation, an equipment ern mining man, president of New have to close this Park conspired Park Mining Co., said the closure City property. was caused 'by continuing operaNew Park lost money during ting losses attributed to dumping 1956, as did all other of foreign lead and zinc on Ameroperators in Utah, with the ican markets. possible exception of one. The losses were curbed in the He added that to date Washington had failed to act on the plight forepart of 1957 with reduction of the industry, despite years of in working force and increases in output. However, the drastic reappeal. duction of prices last spring, when It now appears that, at best, the the government abandoned the western lead-zin- c mining industry temporary support measures escan expect little relief from the tablished as alternatives to tariffs, excessive import situation until brough new problems. next January, he said. This could In the interim, said Mr. Cran- come only if the U.S. Tariff Commission acts to place quotas on imports, he said. The jobs of some 200 miners and family men of Park City are affected by the closure. Only other time that New Park has closed, since the company orHearings were held Wednesday ganized in the depression year of by the Utah Oil and Gas Conser1932, was in the fall of 1956. vation Commission on the proAt that time, employment was of the Texas Co. and others posal reduced from 300 miners and sur-fac- e to set a drilling pattern of one crewmen, to the present 200 well to every 80;. acres at the figure. Mr. Cranmer said the prop- Aneth Pool in' Ban Juan County. erties had been producing some An attorney for Texaco said 6,000 tons of ore monthly from the that 85 per cent of the interests principal Mayflower mine. at ..the . pool were supporting the Its major tunnel into the May- Texas Co in this application. flower properties was commenced in 1940. At its stark, the mine repThis exception to the regular resented the only new major, lead-zin- c spacing regulation of the ore body discovered in prev- commission is opposed by Shell ious quarter century in Utah. Oil Co., Gulf Oil Oorp., both have Through the depression, war leases on the field, and Standard and postwar years, the firm has Oil Company of California has been a consistent producer of lead fringe holdings at Aneth. and zinc for the nation. The issue is perhaps one of the most important one to come before the agency since it was estab. lished about two years ago. Evidence of this was furnished by the crowded nature of sessions in the Senate Chambers at the Utah Capitol Wednesday. Shell Oil Co. Tuesday anDecision of the commission on nounced location for another wildcat test in the White Mesa area the spacing plan would have at of San Juan County where in least a short term effect on pace 1955 the firm discovered oil, but of drilling at the pool during the failed to attain a commercial com- next two years and quite probably would affect rate of daily pletion. average production. The area is 12 miles southwest of White Mesa Pool (formerly Any determination by the East Desert Creek) and is not re- agency would be concerned prigarded as any extension of this marily with what is the maximum efficient spacing necessary to ecofield. nomical recovery of the largest Shells White Mesa No. 2 amounts of oil from the pay zone wildcat will be drilled 4,627 feet at Aneth Field, however, and not from the north line and 651 feet with such subsidiary economic fac. from the east line of Section 4, tors as number of rigs at work, Township 43 South and Range 24 etc., oilmen said. East. lead-silver-zi- v g, vice-preside- nt |