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Show V , gWorl4' I f A Volume 28; No. 46 Salt Lake City, Utah, January 17, Oilmen Offer $7 Million or Inidlian Land Rights Major oil companies bid for rights to drill on some 167,449.68 acres of Navajo Indian tribal wildcat land in Utah and Arizona Wednesday. A spokesman for the tribes oil and gas department said the amount was excellent considering the improved nature of the tracts. The companies smell oil, he said. They also agreed to pay the new 16 23 per cent royalty on Indian lands and $1.25 a year rentals for the leases. Of the total acreage, 46,942 was in San Juan County, Utah, generally southeast of Aneth pool in Texas Co. for lands in Desert Creek area of Utah. The bid was $411.33 an acre for a total of $526,502, 1958 Hearing on Well Spacing Continues7 I A recessed hearing on weu spacing at Desert Creek area San Juan County, reconvened Monday before the Utah Oil & Gas Conservation Commission. re spacing Proponents of continued presentation of their case. re Seeking spacing in the area which is larger on acrage basis than Aneth Pool, are Continental Oil Co. Superior ; Oil Company of California, Texas Co., Carter Oil Co. and many others. Shell Oil Co., the protestants, has yet to present its initial arguments in favor of re spacing The area includes Ratherford Field, White Mesa Field, Desert Creek Field and apparently the McElmo Creek Field which pro80-ac- In general. Pan American Petroleum (Pan-Asubsidiary of Standard Oil Company of Indiana, dominated the bidding. The firm bid alone and jointly in separate areas. with Amerada in one case and Superior Oil Company of California in other instances. The firm bid a total of $1,854,084.14 with Superior; $316,-48- 3 with Amerada and by itself Township 40 and 41 South and (in $888,974. Arizona), Range 21 East. Total bonus bid on was The total $3,058,541.60 for ponents maintain are all this Utah acerage was $3,435,884-.9- 5. Pan American-connectbidding. The companies paid a total of $3,756,007.09 for rights on 120,-5acres in the natural gas areas 80-ac- m) 40-ac- ed 08 of Apache County, Ariz. It was the highest price ever paid for Arizona oil rights. Largest bid per acre was by the uranium mill at Monticello, San Juan County, until March 31, 1962, is the Atomic Energy Commissions Circular Five purchase program for ores. Allan Jones, general manager of Grand Junction. Operations Office for the AEC, said the circular provides for receipt of minimum amounts of ores at Monticello. While some other provision culd be made at Monticello for such purchasing, Mr. Jones doubts the need, so long as there is adequate supply of ore in the area for the mill. He denied that AEC was in negotiation regarding possible sale of the mill, either with National Lead Co., .which operates the facility for AEC, or anyone else. Mining Idle Find Plants Little Help Most persons idled by mine tlosures in' the region will not find ready employment at growing electronics and guided misfile plants. Wed like to help out, a spokesman for one of the new says, but what have we got that miners and timbermen would be interested in, or could do. Exception: machinests employed at surface plant etc. The new industries do not want to be blamed for not hiring those workers who have been dropped by a minerals industry which has been staggered by declining raw materials prices. It would seem the best way to keep trained miners at work is to provide an American market for the products of western metalic and non metalic raw materials mining and processing industries. i Price 10 cei dard Oil Announce ildcat Deals in Utah Standard Oil Company of Cali- led within the next 15 months, fornia has concluded two deals would go to around 5,100 feet. Standard also has option to leading to drilling of three wildcats in Utah's Paradox Basin, it start first tests in the first half of 1958. was announced Wednesday. Location is now being studied. Paradox Production Corp., of Paradox reported some shows of Salt Lake City reported it had oil and gas in the Hermosa at finalized a farmout agreement previous tests on the Wayne with Standard under which the county segment of this block. Standard Oil of California, for major company would earn a its part, announced that as opersubstantial interest" in approxiator in the joint venture northmately 9,500 acres on the sout west of Blanding, San Juan Counend of Paradox Productions Dirty ty, with Four Comers Uranium Devil block in Garfield county. and affiliate Outwest Uranium Standard agrees to drill two Co., both of Denver, it would wells in exploration of the Upper start operations soon on a second Hermosa and Paradox formations, test on this 42,000 acre block, according to Q. L. (Kit) Carson, in Sectcion 32, Township 35 South president of Paradox Production. The new wildcat will be located The wells, which must be dril- in Section 32, Township 35 South and Range 22 East. Federal Uranium Stockpiles Ore A factor militating toward continued operation of the U.S. government-owne- d c? Foreign Copper Cutback Untrue AEC to Continue Monticello Mill The Financial Times of London says it is untrue that Southern Rhodesian copper producers Federal Uranium Corp. of Salt have cutback production 10 per cent. Lake City is stockpiling newly It also reports that although discovered ore in the Conjecture' the Chilean government has in- silver mirieTrfCfoeur dAlene did- dicated it would approve like curtailments by Braden Copper trict of Idaho, preparatory to Corp. and Anaconda Co. in Chile, milling it. this action has not yet been taken. According to Conjecture Mines, Braden is an affiliate of Ken-nec- Inc., Spokane, Wash., which granCopper Corp. (50-5- 0) in its. The point of the Times article ted Federal rights is not that the Rhodesians and mine, Federal has almost comChileans have made the cut- pleted its exploration program backs so much as the reductions under the 18 month operating are apparently impending. agreement. The shaft has been sunk from It stated that previously anthe 500 foot level to the 700 foot nounced reductions by Rhodesian Selection Trust and level, Conjecture Shareholders were Informed in a letter. not were real and Group This drifting has opened up a readjustrepresented mearly the extensions of the ore shoots ment of schedules. To date then, all major cut- on the 700 foot level and both of backs in world copper production these ore shoots have increased companies in the western United in length, width and value over have been made by American what they were on the 500 foot States and Michigans White level. Ore from these workings Pine district, with consequent is being stockpiled for milling. loss of employment to miners in The drifting will continue on the 700 foot level so long as they this country. (Federal) continue in ore, the letter states. Elsewhere in the letter, it is ott Anglo-Americ- WORLD ON WHEELS The cars and highways of the fuwhen Wide ture, as well as the past were shown on NBC-TWide World" presented The World on Wheels Sunday, Jan. 5. The General Motors Firebird II (top), a gas turbine passenger car, is the. first automobile designed to operate on the electronic Highway of Tomorrow (bottom). An electronic computer system, housed in die towers in the lower photo, would control the movement of cars on the ulta-saf- e V radar-controll- ed highway. . an Cut in Copper Prices to Bring Job Drop, Say Observers Cuts in price of copper announced Monday will lead inevitably to further unemployment at western mines, according to mining observers. Custom smelters, big U.S. producers and foreign brokers alike joined in price reductions Monday. Kennecott Copper Corp. and Phelps Dodge Corp. number one and number two respectively in output in the United States, dropped prices from 27 cents to a 25 cents a pound. Their action followed a reduction by leading custom smelter to 24 cents a. pound. Custom smelters, in turn, are closed in New York 41 to 46 points lower with March delivery bid at 22.78 cents a pound. As it costs slightly more than one cent to ferry the copper across the Atlantic to American pound. This shows a determination of foreign producers and brokers to keep the LME price at four or more cents below the major American producer price. As .a result copper futures automotive industry this year, conditions will be very serious in the copper business in the United States and theyre plenty affected by lowering quotations on the London Metal Exchange. Copper closed Monday on the London Metal Exchange at a price equivalent to 21.68 cents a -- markets, the foreign producers can now lay copper down in the East for well under 23 cents a lf cents pound one and under custom smelter prices and two cents under the producer one-ha- price. What is the near term outlook on prices? A spokesman for the industry here said that it seems obvious that price cutting alone is not going to stimulate demand. There just isnt the volume of demand for present production at any reasonable price. If there's a strike, as some predict, in the . serious now. Price' reductions do serve one oI otj to to iRtet Significance in the Oil a "Ow PetoS hir O reported thatFederal has com- purpose, if you want to call it pleted $300,000 in exploration of the Idaho Lakeview properties in that. They force mines to close, the district in which Conjecture with resultant unemployment and has operation rights. . reduction in output. This cut in Results were not announced. eventually production would whittle surpluses overhanging the market. United States producers already have made the largest cutbacks in copper. The Southern Rhodesian and Belgium Congo Miss Norinne Tempest, superproducers finally have cut around 10 per cent, which is less than the visor of home study for the UniUSA. has cut, the spokesman versity Extension Division, has said. 'Chile has made no reduction been elected to the first execuin major output whatsoever. We tive board of the newly organized realize their problems, but there National Association of College are many who feel they must and University Concert Managers. make a contribution. Miss Tempest was informed of The Kennecott action came on her election Monday by Willard the heels of an announcement by M. Sistare, manager of the UniChile that production of copper versity of Connecticut Auditorwould be reduced 10 per cent. ium and president of the associaThis move will affect production tion. of mines owned by Kennecott and Miss Tempest directs publicity outfor the Extension Division and the Anaconda Co., reducing tons a month, its concerts, lectures put by about 4,000 entertainment. and other said Associated Press. Utah Publicist Rates Tops |
