Derricks and Mines

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by George B. Griswold

New Mexico is a mineral-rich state. The gross production value of oil, gas, and minerals was $671 million during 1963, making the state the sixth ranking mineral producer in the nation. New Mexico ranks among other states as follows: first in the production of potash, uranium, perlite, and carbon dioxide; third in helium; fourth in copper; fifth in natural gas and liquids; and seventh in petroleum. Important amounts of zinc, lead, gold, silver, magnesium compounds, coal, gypsum, pumice, and salt are also produced from deposits within New Mexico. The oil and gas industry holds a dominant position in the state, accounting for almost two thirds of the value of minerals produced.

OIL AND GAS

Most of New Mexico’s oil and gas are produced in the southeastern part, south and east of Roswell. The bustling towns of Hobbs, Artesia, and Lovington, as well as Roswell, are headquarters for the many oil companies and the associated service and supply organizations operating in the area. Oil and gas are produced from numerous reservoirs, called fields or pools, in Paleozoic sediments ranging from Ordovician to Permian in age. From the standpoint of production, the Eunice-Monument field (lying between these two towns) is the largest, having produced more than 250 million barrels of oil. Other important fields are Hobbs, Vacuum, Langlie Mattix, Denton, and Jalmat. All these fields produce a considerable amount of gas associated directly with the oil.

When driving an automobile through southeast New Mexico, a layman finds it difficult to comprehend the immensity of the petroleum industry of that region. This is due to the scattering of wells over a large area. Seldom are wells spaced closer than one to every ten acres, even in the most productive fields. There are, in fact, some 16,000 wells in this part of New Mexico, ranging in depth from less than 1000 feet to 17,555 feet.

The other oil- and gas-producing area of the state is in the northwest, in the San Juan Basin. Farmington serves as the base of operations for most of this activity. In 1962, there were 7378 wells in the area, 1770 of which were producing oil and gas and 5608 producing gas only. Most of the San Juan Basin production is from Cretaceous sandstones, in contrast to the southeast where the oil and gas are derived from Paleozoic sediments. The development of the San Juan Basin production is relatively new; most of the wells have been drilled since World War II. The petroleum industry can be proud of the great help it has given to the development of this once-almost-forgotten part of the state.

(Courtesy El Paso Natural Gas Co.)
There’s the way to refine oil! Look at those mesas, near Gallup

The methods of finding and producing oil and gas have come a long way from the “boom town” days when wells were drilled for the most part on pure hunches and hopes. The exploration and exploitation of petroleum are now highly specialized technologies. All branches of the geologic and geophysical sciences are brought into play to piece together a comprehensive picture of all the factors which may have made a certain area favorable for the accumulation of oil or gas. These factors include such things as the age, thickness, and permeability of the sedimentary rocks, the structure, old shorelines, and buried reefs. Once a target is selected, a drilling rig is moved onto the location to prove or disprove the theory. This is the costly step of finding oil. A single 10,000-foot hole may cost $350,000, and some individual wells in New Mexico have cost more than $1 million to drill. If the well is in a completely untested area, it is called a “wildcat.” Once a discovery is made, then the land around the wildcat is explored by “offset” wells until the complete extent of the new field is proved.

During 1962, 1666 wells were drilled to an average depth of 5153 feet. The average drilling cost was $71,000 a well, representing a total investment of almost $120 million in a single year! Most of these wells were of the development (offset) type, but even then, 27 per cent were dry. During 1962, 295 true wildcats were drilled; of these, only 46 found oil or gas—about two out of every thirteen.

The story of oil just begins with the discovery of a well. Various special “completion” operations are applied to the oil-producing horizon so as to increase the flow into the well. The most common techniques are either by “acidizing,” pumping acid into the formation to increase flow by enlarging the pores in the rock, or by “hydrafracing,” whereby actual cracks are induced in the formation by pumping oil from the surface back into the well under very high pressure. After the well is “completed,” it may be a natural-flowing well if sufficient gas is associated with the oil. If sufficient gas is not present, then the well is pumped.

In recent years, considerable success has been achieved in revitalizing old fields where production had dropped below the point of economic operation. These fields are reactivated by forcing either water or gas down selected wells within the field, thereby forcing stagnated oil within the producing zone toward the other wells. This technique is called secondary recovery. Many fields will produce more oil under the secondary recovery program than they did during their primary life.

Here’s a wildcat for you!

Once the oil is on the surface, it passes through separators to remove any admixed gas from the oil. The gas is sent into pipelines while the oil is sent to storage tanks called tank batteries. Periodically, the oil is drawn from the tank batteries where it is transported by pipeline or rail to refineries. The great bulk of the crude oil leaves New Mexico for refining via a major pipeline network extending through Texas to both the Gulf and East coasts. Some oil is refined in New Mexico, however. Oil refineries in Artesia, Bloomfield, Ciniza, Farmington, and Monument have a combined capacity to treat some 30,000 barrels (42 gallons a barrel) of crude oil a day. On the other hand, practically all the natural gas is treated in New Mexico so as to recover its liquid petroleum constituents before sending it out of the state by pipeline.

MINING

The mining industry of New Mexico dates back to the days of Spanish rule. Copper was mined from the Santa Rita mine as early as 1800 for shipment to Mexico for use in coinage. Significant mining in New Mexico did not commence, however, until the late 1800’s. There are three major centers today: Carlsbad, potash; Silver City area, copper, zinc, and lead; and Grants, uranium.

Question: where are the other oil pumps and tanks in the San Juan Basin?

The potash mining east of Carlsbad, a $75 million-a-year industry employing more than 3600 persons, is the largest operation of its kind in the world. Six mining companies are active in the area, and a seventh is developing yet another mine. Potash is a word used to denote various potassium compounds. The principal ore mineral at Carlsbad is sylvanite, a mixture of potassium chloride and sodium chloride (common salt). The ore contains the equivalent of 21 to 25 per cent potassium oxide (K2O).[6] Another ore mineral, known as langbeinite, a double salt of potassium and magnesium sulfate, is also mined.

The potash ores occur as horizontal beds sandwiched between thick salt and anhydrite layers. These beds are the result of evaporation of large quantities of salt waters during the latter part of the Permian period some 240 million years ago. The potash-bearing horizons now are buried from 900 to 1800 feet below the surface. The discovery of potash in southeast New Mexico was almost by accident. In 1925, the Snowden and McSweeny Company drilled a wildcat oil test a few miles east of Carlsbad. The hole was dry, but potash minerals were detected in the drill cuttings. The discovery generated considerable interest because the United States was forced to import most of its potash prior to this time. Further drilling proved the existence of tremendous deposits of potassium salts in that area.

The potash mines are among the most highly mechanized of the mineral industry. Access to the buried deposits is gained by vertical shafts. Actual mining is now done to a large extent by continuous miners, machines which bore or rip the potash ore from the face and load it into shuttle cars in one continuous operation. The shuttle cars then transport the ore to conveyor belts which move it to the shafts for hoisting. Working conditions and safety are excellent and have led to high productivity from these mines.

The potash ore is refined or processed by fractional crystallation or flotation. These plants remove most of the unwanted sodium chloride and other gangue minerals to produce high-quality potassium chloride or sulfate. After processing, the potash salts are stored in giant bins to await shipment by rail to the major agriculture areas of the United States. The Carlsbad mines produce some 15 million tons of ore a year which, when refined, produces 4 million tons of marketable potassium salts having a K2O equivalent of 2.5 million tons.

(Courtesy International Minerals & Chemical Corp.)
Crunch!... continuous mining machine at work

Uranium mining is the newest major industry in New Mexico. The boom started in 1950 with the discovery of uranium ore west of Grants by a Navajo sheep rancher named Paddy Martinez. This discovery started one of the most extensive exploration and development campaigns in all mining history. By 1957, the area had proved uranium reserves accounting for more than half of the entire reserve of the nation. These discoveries will make this country self-sufficient in this vital atomic energy metal for years to come. Five mills were built that are capable of producing “yellow cake” (almost pure uranium oxide) from uranium ores containing as little as 0.20 per cent U3O8. Four mills are located in the Grants area, ranging in capacity from 1500 to 4000 tons a day. The fifth mill, rated at 500 tons a day, is at Shiprock.

There are numerous mines, ranging from tiny two-man operations up to great mines producing more than 1000 tons a day. The most prolific producing area is the Ambrosia Lake District north of Grants; most of these mines are underground. Probably the largest single uranium mine, however, is the open-pit Jackpile-Paguate mine of the Anaconda Company on the Laguna Indian Reservation some thirty miles east of Grants. The mine uses electric shovels capable of loading eight cubic yards of ore at a time into large diesel trucks.

Copper is produced from the Chino mine located at Santa Rita, about fifteen miles east of Silver City. This mine, operated by Kennecott Copper Corporation, is the showpiece of the New Mexico minerals industry. The copper ore is low grade, containing only sixteen pounds a ton of the red metal, but the deposit is immense, allowing the mining of 22,500 tons a day. The Chino is by far the largest single mining operation in the state. A large concentrator and smelter are located at Hurley, about ten miles southwest of the pit.

The Chino pit is a spectacular sight for its scenic setting and its sheer size. The deposit is located below the Kneeling Nun, a famous natural statue formed by the erosion of a rhyolite flow which caps a high mesa. The pit covers almost one square mile and is 800 feet deep. The mining is highly mechanized. Large rotary drills make blast holes twelve inches in diameter into which explosives are loaded. A single blast may break 100,000 tons of rock. The ore is loaded with 8-cubic-yard shovels into large trucks carrying from 25 to 65 tons each. The trucks transport the ore to an inclined skipway on the west end of the pit. The skip then carries the ore up to the train level where it is transferred into railroad cars for shipment to the mill. Waste rock, too low-grade to justify sending to the mill, is transported to the very top of the skip way, where it is trucked to the dumps. At Chino, much of the waste rock contains some copper. The amount is small, but a part of it can be recovered by leaching-percolating water down through the rock to dissolve the copper. At the bottom of the dumps, the copper-rich water is collected and sent through precipitating tanks containing scrap iron. The copper plates out on the iron, forming metallic copper. The dump-leaching program alone at Chino is a substantial enterprise.

The concentrator and smelter at Hurley is the facility which reduces the low-grade ore into pure metal. The concentrator first crushes and grinds the ore, then recovers the copper-bearing minerals (principally chalcocite and chalcopyrite) by flotation. The concentrate of these copper sulfides is taken to the smelter to make metallic copper.

North and west of the Chino mine are important deposits of zinc and lead. Two underground mines are now active: the Hanover of the New Jersey Zinc Company and the Kearney—Pewabic of American—Peru Mining Company. Although dwarfed by the Chino mine, these are important producers.

(Courtesy The Anaconda Co.)
Man, dig this hole!... Jackpile open-pit uranium mine near Laguna

(Courtesy Kennecott Copper Corp.)
“Just scoop up copper ore, take it to the skipway....” up the side of the Chino Mine at Santa Rita

Copper, potash, and uranium are not the only mining operations of New Mexico. Perlite is recovered from deposits near No Agua in Taos County and just north of Grants. Two new gypsum plants are now operating northeast of Albuquerque, and a cement plant is located east of that city. High-grade copper veins are worked south of Lordsburg. Coal mining is being reactivated, with producing mines near Gallup, Fruitland, and Raton. A new molybdenum mine is under development east of Questa. New Mexico’s mineral industry is on a broad and firm base.

Mines and derricks are ever-present aspects of New Mexico’s landscapes; they are seen by every citizen of the state and every tourist as he travels across the plains, valleys, and mountains. The derricks and the mine openings are merely surface features through which the vast wealth of the underground is exploited, but they are a monetarily important part of New Mexico’s scenery, rocks, and history.

                                                                                                                                                                                                                                                                                                           

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