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VI-i T ABLE OF CONTENTS OUTLINE OF MINING IN THE CARLSBAD POTASH DISTRICT VIol The early years VI-I Current status _. . . . . VI-I Carlsbad in relation to other producing areas VI-2 Outlook for the future VI-2 CURRENT MINING METHODS Conventional mining Continuous mining using drum miners Mineral processing VI-3 VI-3 VI-4 VI-5 ESTIMATION OF MINING, PROCESSING, AND CAPITAL COSTS VI-5 4th ore zone .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-6 lOth ore zone VI-6 Market prices for products VI-6 Estimate of capacity VI-7 Estimate of development cost and time to bring into production . . . . . . . . VI-7 Historical trend of mining and processing cost versus market price VI-7 ENGINEERING ECONOMIC EVALUATION OF POTASH RESERVES Assignment of discount factor CONCLUSIONS Reserves within WIPP Additional study area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Combined study area The effect of changes of mining and processing costs VI-S VI-S VI-S VI-9 VI-9 VI-9 FIGURES Figure 1. Room & pillar mining . . . . . . . . . . . . . . . . . . . . . . . . .. VI-IO Figure 2. Continuous mining . . . . . . . . . . . . . . . . . . . . . . .. . .. VI-l! Figure 3. Continuous mining with barrier pillars , VI-12 Figure 4. Mineral processing for mixed ore , VI-13 TABLES Table 1. Carlsbad potash production and productivity from 1932 to 1993 . VI-14 Table 2. Operating companies and their-capacities VI-15 Table 3. Salient potash statistics VI-16 Table 4. Summary of operating and development factors VI-17 Table 5. Case I - 4th ore zone cash flow (WIPP area) VI-IS Table 6. Case 2 - 4th ore zone cash flow (WIPP area) . . . . . . . . . . . .. VI-19 Table 7. Case 3 - 4th ore zone cash flow (WIPP area) . . . . . . . . . . . .. VI-20 Information Only
VI-ii Table 8. Case 1 - 4th ore zone cash flow (additional area) VI-2l Table 9. Case 2 - 4th ore zone cash flow (additional area) VI-22 Table 10. Case 3 - 4th ore zone cash flow (additional area) VI-23 Table 11. Case 1 - 4th ore zone cash flow (combined area) . . . . . . . . .. VI-24 Table 12. Case 2 - 4th ore zone cash flow (combined area) VI-25 Table 13. Case 3 - 4th ore zone cash flow (combined area) . . . . . . . . .. VI-26 Table 14. Case 3 - 10th ore zone cash flow (WIPP area) . . . . . . . . . .. VI-27 Table 15. Case 3 - 10th ore zone cash flow (additional area) . . . . . . . .. VI-28 Table 16. Case 3 - 10th ore zone cash flow (combined area) . . . . . . . .. VI-29 Table 17. Summary of engineering economic analysis of potash reserves .. VI-30 Table 18. Profit margin as a function of ore grade . . . . . . . . . . . . . .. VI-31 Table 19. Mining life versus cut-off grade . . . . . . . . . . . . . . . . . . .. Vl-32 Information Only
Page 1 and 2:
FINAL REpORT Evaluation of Mineral
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EXECUTIVE SUMMARY E-l The Waste Iso
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E-3 Resources and reserves of the 1
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£-5 Expected Net Present Values fo
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E-7 Expected revenue present values
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E-9 VOLUME 1 Chapter I POTENTIAL IN
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E-11 VOLUME 1 Chapter II ENVIRONMEN
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E-13 VOLUME 2 Chapter III OVERVIEW
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E-15 VOLUME 2 Chapter IV . FUTURE M
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E-17 VOLUME 2 Chapter VI MINING TEC
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E-19 VOLUME 2 Chapter VII METHOD OF
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Information Only E-21 Figure 28. Th
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E-23 VOLUME 2 Chapter VIII VALUATIO
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E-25 VOLUME 3 Chapter IX REGULATION
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M atnx · aCI'd" IZmg . . . . . . .
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E-29 PROJECTED FUTURE OIL AND GAS P
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E-31 Figure 27. Casing program of t
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Information Only E-33 Figure 58. Ty
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E-35 Table 15E. Los Medanos Bone Sp
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E-37 Table 5. Expected Net Present
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Evaluation of Mineral Resources at
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I-I POTENTIAL INDUSTRIAL MINERAL RE
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The report, authored by C. M. Nethe
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With full access to the surface, th
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occurrences in the WIPP site for th
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depth of 1000 ft. Rustler gypsum un
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is 320 acres, (3) drilling restrict
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1120 acres. Based on hydrocarbon re
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ls of the crude oil (43%), 211 BCF
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obtained by use of a planimeter. Th
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1-19 Keesey, 1.1., 1979. (See Sipes
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Sipes, Williamson, and Aycock, 1977
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Table I. Evaluation of mineral reso
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Table I. (conL) Quantity present Pr
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1-27 Table 3. Effect of allowing th
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II-i TABLE OF CONTENTS ENVIRONMENTA
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II-ii New Mexicp Water Quality Act
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the Federal Register, National Arch
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II-4 U.S. Environmental Protection
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II-6 U.S. Environmental Protection
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• • • • Filing and other ad
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0-10 • Transfers (43 CFR 3106)
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Operations that involve subsurface
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Pennits. special reports. and fees
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RCRA Subtitle D - Solid Waste RCRA
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• National secondary drinking wat
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the withdrawal area that are leased
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• Notification requirements when
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New Mexico Naroral Resources Depamn
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Permits, special repons, and fees I
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II-28 Permits. special reports. and
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II-30 Operations that extract oil a
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industrial, commercial, mining, and
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• Prohibition on disposing of any
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References New Mexico Game and Fish
Page 111 and 112: Clean Air Act TABLE 1 hnpact level
Page 113 and 114: TABLE 1 hnpact level of statutes an
Page 115 and 116: TABLE 2 Impact level of statutes an
Page 117 and 118: FINAL REPORT Evaluation of Mineral
Page 119 and 120: Evaluation of Mineral Resources at
Page 121 and 122: Table 2. K 2 0 equivalent wt. % of
Page 123 and 124: The United States ranked fourth in
Page 125 and 126: have extensive sections of laminate
Page 127 and 128: poor potash deposits probably preci
Page 129 and 130: followed by froth flotation (Fig. 6
Page 131 and 132: Information Only III-ll Hayes P. T.
Page 133 and 134: III-13 Fig.!. Location of the Carls
Page 135 and 136: III-IS Figure 3. Diagrammatic north
Page 137 and 138: Fig. 5. Vertical cyclic sequences i
Page 139 and 140: Fig. 7. Simplified potash crystalli
Page 141 and 142: 1lI-21 Table 2. KzO Equivalent wt.
Page 143 and 144: llI-23 Table 4. Potash Statistics f
Page 145 and 146: m-25 Table 6. General Mineralogy an
Page 147 and 148: Evaluation of Mineral Resources at
Page 149 and 150: IV-l FUTURE MI~lNG TECHNOLOGY Georg
Page 151 and 152: Along with the improvements listed
Page 153 and 154: Saskatchewan and in thick but highl
Page 155 and 156: V-i TABLE OF CONTENTS Introduction
Page 157 and 158: Flotation chemistry Recently, non-e
Page 159 and 160: tures resulting in high salt solubi
Page 161: Evaluation of Mineral Resources at
Page 165 and 166: Vl-2 of these three chemicals plus
Page 167 and 168: shows barrier pillars, but their us
Page 169 and 170: maintenance, and periodic replaceme
Page 171 and 172: Therefore, the engineering economic
Page 173 and 174: _J"L LJ::L.J DO DO ~ LJ L '"-':-:1.
Page 175 and 176: II IK'~II II Ṇ ... , ~ > . VI '-
Page 177 and 178: Vl-14 Table 1. Carlsbad Potash Prod
Page 179 and 180: Table 3. Salient potash l statistic
Page 181 and 182: Table 5. Case 1 - 4th ORE ZONE CASH
Page 187 and 188: u j u ~ uu iTIm!.g!c!~y•. ( j ~,t
Page 189 and 190: Table 13. Case 3 - 4th ORE ZONE CAS
Page 191 and 192: Table 15. Case 3 • 10th ORE ZONE
Page 193 and 194: _------._._ Table 17. Summary of En
Page 195 and 196: Table 19. Mining Life Versus Cut-of
Page 197 and 198: VII-i TABLE OF CONTENTS FORMULATION
Page 199 and 200: Information Only VII-iii Figure 32.
Page 201 and 202: VII-l MEmOD OF POTASH RESERVE EVALU
Page 203 and 204: Information Only VII-3 As mentioned
Page 205 and 206: VII-5 DEFINITIONS OF ORE RESERVES V
Page 207 and 208: Vll-7 hole records. That method can
Page 209 and 210: VII-9 tonnage factor equal to 14.8
Page 211 and 212: VlI-ll consistent with the known st
Page 213 and 214:
VII-13 REFERENCES John, C. B., Chee
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VII-15 Table 2 Resources and reserv
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Table 4. In-ulace resources for oth
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Vll-19 2 6 5 4 3 2 ~..\d..J-.·· :
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VII-21 2 1 6 5 4 3 2 1 1 ·····
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0 -l: 0.0-0.5 0.5-1.0 1.0-1.5 1.5-2
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~ :::r ~o _. a. (1) .... C:::N ~o _
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Information Only :e =r »Q Q.CD --
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Information Only _. ~-:T >Q c.co cN
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Information Only 0.0-0.5 0.5-1.0 1.
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Information Only :e :::r ;x>° cN .
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Information Only 0.0-0.5 0.5-1.0 1.
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Figure 20 4th Ore Zone Equivalent L
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- L_' ••__1 ---' ~ .....__ I 16
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- I.-... __J __J k. _ 14 12 --- ---
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VTI-43 2 6 5 4 3 2 ,, , 2 M..,..---
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Vll-45 2 6 5 4 3 2 , 3 35 '36 •
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VII-47 2 6 5 4 3 2 , 4 25 -374 ~"1
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Information Only 6v-IlA o- ..... »
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Information Only o- ..... »::r .£
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0 - I\:l >< )( )( - - 0 0 0- CAl 0
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Information Only .... 9 >::T' .9:0
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Information Only -'" o »~ -enCl) .
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Information Only ~ a »st .9:0 -c:
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Information Only -L o »:T .Q;o c::
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Information Only ..... o »g. .9:0
Page 265 and 266:
L.... I _ - , .. __J _....... -~ 25
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L . . ----.. - ___~J ~. J I ....,--
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Vll-69 2 6 5 4 3 2 • '34 .·--·
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Vll-71 2 6 5 4 3 2 '_'_,~L::~--L·~
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Vll-73 2 6 5 4 3 2 ~ l ----- ~~.~~~
Page 275 and 276:
Vll·75 2 6 5 4 3 2 - --~';~_:~~~'"
Page 277 and 278:
o Tons of Ore ~ N Co) ~ C1l en 0 0
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Information Only ~ =so CD ~ _'::J O
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Information Only (0-:T o.... CD _N
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Information Only
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Information Only ~ =r o.., co N o ~
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Information Only to-:T ọ .... CD
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L... ..- .. .J , ---' , ...-.. 30 2
Page 291 and 292:
Page 293 and 294:
VIII-I VIII VALUATION OF POTASH RES
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VIII-3 With respect to actual explo
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VIII-5 the simulation include: All
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Information Only VIII-7 data were u
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VIII-9 Potash Simulation Example Ye
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Table 2. Expected revenue present v
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VIII-13 APPENDIX This Appendix cont
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VIII-IS Scenario 2, 15 % discount r
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VIII-17 Lang WIPP Site Data, Case 1
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VIII-19 Lang WIPP Site Data. Case 2
Page 313 and 314:
Page 315 and 316:
VIII-23 Lang WIPP Site Dala, Case 1
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Page 319 and 320:
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VIII-29 Sylvite WIPP Site Data, Sce
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VIII-31 Sylvite WIPP Site Data, Sce
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VIII-33 Lang Combined Area Data, Ca
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vm·35 Lang Combined Area Data, Cas
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Page 331 and 332:
Page 333 and 334:
VIII-41 Lang Combined Data, Case 1,
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Page 337 and 338:
Page 339 and 340:
Page 341 and 342:
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VIII-51 Sylvite Combined Area Data,
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VIII-53 Sylv~e Combined Area Data,
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VIII-55 Sylvite Combined Area Data,
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VIII-57 Lang Additional Area Data,
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VIII-59 Lang Addnional Area Data, C
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VIlI-61 Lang Additional Area Data,
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VIII-63 Lang Addition Data, Case 1,
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VIlI-69 Sylvite Additional Area Dat
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VIII-71 Sylvite Additional Area Dat
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Certificatioll _ We certify under p
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IX-i TABLE OF CONTENTS REGULATIONS
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egulations for drilling oil and gas
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IX-4 characteristics must be favora
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IX-6 ENERGY, STATE OF NEW MEX ICO M
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IX-8 -3- Case No. 9316 Order No. R-
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IX-lO -seaseNo. 931 6 Order No. R-I
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IX-12 -7- ea s e No. 9316 O~de~ No.
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IX-14 -9- Case No. 9316 Order No. R
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IX-16 -11 - Case No. 9316 Order No.
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IX-I8 -13- Ca s e No. 9316 Order No
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In attempting to accomplish. this,
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IX-22 provided by applicable laws a
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IX-24 the depth of the ore plus ten
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IX-26 IV. LQcation Qf Wells· and N
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IX-28 C. In the event the increased
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IX-30 -2- EXHIBIT "A" con'd Section
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IX-32 -u- EXHIBIT "A" eon'd LEA COU
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IX-34 -6- EXHIBIT "A" eon'd T~VNSHI
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IX-36 -7- EXHIBIT "A" eon"d EDDY CO
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J ' , IX-38 ( Friday November 18. 1
Page 407 and 408:
- IX-40 . , '. Of: .m~la c ,.lha O.
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-_...:-- IX-42 Federal Regisler I V
Page 411 and 412:
_-- -_.. ----_ ..-- ----- IX-44 , .
Page 413 and 414:
- ( ( Fedenl ltagistu / Vol. s.1. N
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IX-48 Federal R~ster " Vol. 53, No,
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IX-50 i 1 I ""'""", Federal Ret-ste
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I IX-52 Federal Register I Vol. 53.
Page 421 and 422:
•• .w :"-=~},~0\;!!'.I&4 ••
Page 423 and 424:
IX-56 CHECKLIST for ADMINISTRATIVE
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IX-58 Chapter IX REGULATIONS PERTAI
Page 427 and 428:
'" IX-60 2 ehe U.S. !DVlro~t&l lro
Page 429 and 430:
IX-62 Chapter IX REGULATIONS PERTAI
Page 431 and 432:
IX-64 TABLE OF CONTENrS STATEMENT O
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IX-66 C. Wildlife The BLM shall: 1.
Page 435 and 436:
IX-68 of the DOE (the contributing
Page 437 and 438:
~ ". ~ ~. ._ f - IX-70 ,. ,. If 9-
Page 439 and 440:
IX-72 MEMORANDUM OF UNDERSTANDING B
Page 441 and 442:
IX-74 c. Use avoidance as the prima
Page 443 and 444:
IX-76 and oilleasts adjacent to the
Page 445 and 446:
IX-78 2. The DOr ail"ee3 to: a. For
Page 447 and 448:
Page 449 and 450:
THE PAST-DECADE DEVELOPJ.\ilENTS At
Page 451 and 452:
The POC bits and POC cutter blank m
Page 453 and 454:
X-5 Other applications are explorat
Page 455 and 456:
X-7 optimum production, completion,
Page 457 and 458:
Cement additives Research during th
Page 459 and 460:
1994). The productivity of a fractu
Page 461 and 462:
Hydraulic fracturing - acidizing Th
Page 463 and 464:
X-IS Concluding remarks Technology
Page 465 and 466:
X-17 PennWell Books, Tulsa, OK, p.
Page 467 and 468:
low-friction gauge PDC bits: Societ
Page 469 and 470:
XI-i TABLE OF COl'iiENTS SUMMARY OF
Page 471 and 472:
XI-iii Figure 14 Designated oil poo
Page 473 and 474:
Xl·v and boundaries of designated
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Information Only XI-vii TABLES Tabl
Page 477 and 478:
XI-2 will be produced from the deep
Page 479 and 480:
Definitions Several basic definitio
Page 481 and 482:
CCcJ.. From these projections. esti
Page 483 and 484:
ea"ons often do not yield a product
Page 485 and 486:
Information Only XI-IO made it poss
Page 487 and 488:
XI-12 Canyon production is in the T
Page 489 and 490:
Information Only XI-14 the east. In
Page 491 and 492:
Information Only XI-16 (Fig. 25). U
Page 493 and 494:
discovery wells . Developmentdrilli
Page 495 and 496:
the middle part of the Cherry Canyo
Page 497 and 498:
Information Only XI-22 of approxima
Page 499 and 500:
The sucker rods move vertic;i"y up
Page 501 and 502:
Information Only XI-26 The authigen
Page 503 and 504:
XI-28 fore, stratigraphic traps str
Page 505 and 506:
interbedded with dark basinal shale
Page 507 and 508:
(Fig. 51, Table 2) with probable re
Page 509 and 510:
XI-34 Two wells have drilled throug
Page 511 and 512:
Xl-36 that no such structure, and h
Page 513 and 514:
XI-38 REFERENCES Anderson, R., 1977
Page 515 and 516:
Xl-40 Guidebook 44, pp. 175-184. Kl
Page 517 and 518:
Worthington, R. E., 1994, East Shug
Page 519 and 520:
Figure 12. Annual number of oil and
Page 521 and 522:
XI-46 response of oil production to
Page 523 and 524:
XI-48 additional study area. Separa
Page 525 and 526:
XI-50 Producing provi~ce. "'" Nonpr
Page 527 and 528:
XI-52 'f!'
Page 529 and 530:
1 '
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XI-56 A I I ,I . J- ~ 1 o eo 111Unt
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XI-58 A no"" mIl o 0 Tubb t marl -
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!I r--;-----;---"/"--:;--A;r:-;,...
Page 537 and 538:
300 "C CD 1i) 0.200 E o U tn 1.00 .
Page 539 and 540:
.... XI-64 ~45' 104·45' ·r·--·-
Page 541 and 542:
XI-66 t t t t slope into basin FEED
Page 543 and 544:
XI-68 ~'r-~·'--,-----,--,--,4-r--"
Page 545 and 546:
XI-70 · · . ! ! i =:! .. , I .. ,
Page 547 and 548:
XI-n • + o ", .- .:.... • • .
Page 549 and 550:
XI-74 ~r_-':'-- " ,---.,.--.,...--r
Page 551 and 552:
'D tō-:>< Oil: Los Medanos-8and Du
Page 553 and 554:
XI-78 --'~r--'--"T--..,..--r--'i'--
Page 555 and 556:
XI-80 o 133/8" @ 600 fl 2,000 ! .c:
Page 557 and 558:
Paduca (Delaware) Field Annual Oil
Page 559 and 560:
~._- XI-84 Delaware Basin Northwest
Page 561 and 562:
XI-86 .,' . . 1-; ~. ~. / ./ 'jl .
Page 563 and 564:
XI-88 23 11 8 o o I .5 1ml ! ---- I
Page 565 and 566:
XI-90 • ft. _.. iJ ~ -t .... l..1
Page 567 and 568:
Cabin Lake Strawn; Phillips Petrole
Page 569 and 570:
XI-94 - I · · - . I · · · · "
Page 571 and 572:
XI..96 o 13·/.'@650ft 2,000 4,000
Page 573 and 574:
Los Medanos Atoka (Gas); Bass Enter
Page 575 and 576:
Los Medanos Morrow (Gas); Conoco, I
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XI-102 . · . -, , .. 01''' I I " "
Page 579 and 580:
Los Medanos-Sand Dunes-Ingle Wells
Page 581 and 582:
Quahada Ridge Southeast (Lower Brus
Page 583 and 584:
Strawn Projected Future Annual Gas
Page 585 and 586:
Morrow Projected Future Annual Gas
Page 587 and 588:
TABLE 6. Surface and bottom-hole lo
Page 589 and 590:
Table 15A. Livingston Ridge Delawar
Page 591 and 592:
Table 15C. Cabin Lake Delaware pool
Page 593 and 594:
Table 15E. Los Medanos Bone Spring
Page 595 and 596:
TABLE 15F. (Continued) XI-131 Year
Page 597 and 598:
~ TABLE 15G. (Continued) XI~133 Yea
Page 599 and 600:
Table 16. Projected future annual o
Page 601 and 602:
XII-i TABLE OF CONTENTS SUMMARY RES
Page 603 and 604:
XII-2 additional area gas reserves
Page 605 and 606:
Key assumptions and features associ
Page 607 and 608:
contribute te alterations in the se
Page 609 and 610:
XII-8 160 Combined Area Oil Revenue
Page 611 and 612:
XII-IO 120 Combined Area Oil Revenu
Page 613 and 614:
XII-12 Combined Area Oil Cash Flow
Page 615 and 616:
XII-14 160 I 140 --r- I Combined Ar
Page 617 and 618:
Oil Simulation Example XII-16 Year
Page 619 and 620:
XII-18 Table 6. Expected revenue pr
Page 621 and 622:
XII-20 WIPP Site Gas. 10% discount
Page 623 and 624:
XII-22 WIPP Area Gas, 12.5% Royalti
Page 625 and 626:
XII-24 Additional Area Gas, 12.5% R
Page 627 and 628:
XIl-26 Combined Area Gas. 12.5% Roy
Page 629 and 630:
XII-28 WIPP Area Gas, 12.5% Royalti
Page 631 and 632:
XII-30 Additional Area Gas, 12.5% R
Page 633 and 634:
XII-32 Combined Area Gas. 12.5% Roy
Page 635 and 636:
XII-34 W1PP Site Gas Data, discount
Page 637 and 638:
XIl-36 Additional Area Gas Data, di
Page 639 and 640:
XII-38 Combined Area Gas Data, disc
Page 641 and 642:
XII-40 W1PP Site Gas Data. discount
Page 643 and 644:
XII-42 Additional Area Gas Data, di
Page 645 and 646:
XII-44 Combined Area Gas Data. disc
Page 647:
Information Only XII-46
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