This is a continuing subactivity administering the operating regulations under the various mineral leasing acts governing the exploration, development, and production of mineral deposits from leases on Federal and Indian lands in the United States. This function is conducted in such manner as may best serve the interests of conservation. The responsibilities include the maintenance of an accounting record of the minerals produced, the determination of royalty liabilities, and the collection of lease rentals and royalties.

The work includes (1) the assembly of data on leasable Federal and Indian lands being prospected for uranium, manganese, fluorspar, mica, lead, zinc, etc.; (2) the assembly of data on known and possible ore reserves in areas being mined; (3) the assembly of basic data on ore reserves of quality too low to merit beneficiation by present techniques, but which probably could meet purchase requirements with improved beneficiation techniques; (4) onsite supervision and regulation of development and production operations; and (5) attention to protective methods for workmen exposed to radiation hazards or to other mining hazards. The normal workload of this subactivity is expected to increase during the budget year. In addition, the new responsibility in regard to the health and safety of workmen in uranium mines, stemming from an interagency meeting called by the Public Health Service during May 1959, adds an additional workload of indeterminate magnitude. It was stated by the Public Health Service that the mine air in most radium mines contains radon daughter products in concentrations many times the recommended working level; that mine air in many mines carried excessive amounts of free silica; and that exposure of the workmen to excessive concentrations of radon daughter products associated with silica dust could lead to lung cancer.

The Survey is responsible for the enforcement of mining operating and safety regulations governing the conduct of mining operations, including health and safety measures in uranium mines on Indian and acquired land leases. Under those regulations the Bureau of Mines periodically inspects such mines for health and safety hazards and furnishes reports of their findings to the Survey for remedial action. Specifically, these regulations provide that health and safety requirements shall meet the standards of the Public Health Service and recommendations of the Bureau of Mines. During the past year the Survey has intensified its examination program by making more frequent inspections of all mining operations to assure compliance with health and safety regulations. To promote the increased program two additional engineers have been employed, one at Carlsbad, N. Mex., and one at Billings, Mont.

(c) Mineral classification

The estimate of $850,000 is an increase of $151,000 over 1961. Of this amount $8,000 is to bring increased pay costs to a full-year basis.

Need for increase.-Additional personnel are necessary (1) to properly handle the increasing volume of requests for reports on the mineral character of lands included in surface entries, and (2) to continue the program of systematic review and revocation, of public land withdrawals in order to discharge the Survey's responsibility to aid the Bureau of Land Management in its program of review, modification, and cancellation of withdrawals. The increase requested will provide an additional 16 man-years of personal services.

This is a continuing subactivity responsible for determining what Federal land areas are to be withdrawn from entry for purposes of mineral investigation, and for subsequently classifying the lands as being mineral or nonmineral in character, and initiating orders for restoration of such lands from withdrawal. The primary objectives are (1) the determination from geological data and evidence, of the actual or probably presence of mineral deposits of value in specific tracts or parcels of public land anywhere in the United States; (2) the protection of such mineral estates (by timely notice, withdrawal, or classification) from inadvertent disposal under nonmineral land laws; (3) the promotion of the exploration and develop

ment of such estates under applicable provisions of the Federal mining or mineral leasing laws; and (4) the prompt referral, to the administrative and supervising agencies involved in such development, of the geologic determinations and counsel requisite to the effective discharge of their responsibilities.

Under the mineral-leasing laws, determination and definition of the "known geologic structures" of producing oil and gas fields are the basis for discrimination between lands subject to lease by application or by competitive bidding. For each such lease application the Survey determines whether the land sought is within the known geologic structure of a producing field. The Survey is also responsibile for reporting to the Bureau of Land Management all first discoveries of oil and gas under application-type leases and discoveries of new oil and gas fields, or deposits, pursuant to applicable laws for their effect on rental and royalty liabilities. Comparable classification activities are performed involving lands valuable for coal, oil shale, phosphate, potash, sodium, etc., under the mineralleasing laws.

The economy of this country continues to expand. There is also a continuing correlative expansion of industrialization of many of the Western States resulting in an increasing demand for land and mineral resources, particularly in the public land States west of the Mississippi River. This demand has stimulated the search for and development of leasable minerals on Federal and Indian lands. A comparable interest exists in acquired and public lands east of the Mississippi River. Mineral land classification is an essential function in the administration of the mineral leasing laws applicable to Federal lands. The timely performance of this function is of particular importance if this Nation is to derive optimum benefits from the development and production of its mineral resources.

Plate C-5, following page GS-58 shows a reduction in workload for the year 1960. This is more apparent than real owing to a change in the method of handling land disposal cases. The change resulted from an agreement with State land office managers whereby only the valid filings cleared by adjudication in the land offices are submitted for a Survey report. Previously all filings were forwarded to the Survey for a mineral report, but thousands of these, later found to be invalid, were rejected, but only after the Survey had processed them. The number of valid filings has been increasing year after year and is expected to show the same relative increase in future years, resulting in a displaced workload curve with about the same slope as shown on the chart. The reduction in the number of such cases permits us to give more prompt attention to those valid filings received, and to the other components of the total workload.

Plan of work.-(1) Prepare and revise the current status of development maps of about 400 producing oil and gas fields in 7 Western States where Federal lands are relatively abundant. Additional geologic mapping will be required in 5 midwestern and Gulf States.

(2) Continue the preparation and revision of maps showing mineral occurrences in public land States in aid of classifying the lands as to their mineral

content.

(3) Continue surface and subsurface structural studies involving leasable minerals in California, Colorado, Kansas, Louisiana, Mississippi, Montana, New Mexico, Oklahoma, Utah, and Wyoming.

(4) Prepare for publication a map of California showing structural configuration on basement rocks based on well-drilling data.

(5) Geologic mapping of withdrawn lands as a means of expediting classification for minerals. Approximately 50 million acres of Federal lands are withdrawn awaiting mineral classification. Systematic topographic and geologic investigation and mapping is a prerequisite to such classification and restoration, where appropriate. During the current year $200,000 was appropriated to commence this work. The program, which commenced on July 1, is proceeding on schedule. Fourteen geologists are engaged in mapping some 900 square miles in Montana, Utah, and Wyoming in aid of classification, of which about 480 square miles are withdrawn pending classification. This is an extremely meager portion of the job which should be done, either by the Conservation Division or by the Geologic Division. The entire program, which involves mapping and classifying 240,000 square miles, will require some 4,200 man-years to complete.

(d) Waterpower classification

The estimate of $260,000 is an increase of $10,000 over 1961. Of this amount $3,000 is to bring increased pay costs to a full-year basis and $7,000 will provide normal increases in operating expenses without additional personnel.

Plan of work.-This is a continuing subactivity, the objective of which is the protection, by the prevention of adverse use or disposal, of public lands valuable

for waterpower or storage sites. Protection is provided by the selection and segregation of such lands in waterpower and reservoir sites.

Senator Robert S. Kerr, chairman, Select Committee on National Water Resources, has suggested that one means of improving the Nation's water resources policies and improving the efficiency of our water resources development would come from protecting "*** dam, reservoir, and other sites needed for comprehensive development from future encumbrance for other less essential purposes,

The report of the select committee, titled "Water Resources Activities in the United States" says, "Although technology has increased the range of sites which are physically and engineeringly feasible for economic water storage, such sites still are limited in number. Many of them already are identified. If the premise

of this report is accepted-the need to plan now for ultimate full regulation of all major streams-then protection or reservation of remaining sites seems prudent."

This objective is attained by the Survey through field investigations to obtain the basic map data and related information needed for the location and evaluation of prospective waterpower and storage sites on the public lands, and through subsequent office studies when the basic data is analyzed and final reports are prepared. These reports provide the basis for scientific classification of lands with regard to their power and storage values. Maps and reports prepared during these investigations bring possible waterpower and storage sites to the attention of the public, and are extensively used by State, industry, and other Federal agencies in the preliminary planning stages of proposed developments. They are of particular value to the Bureau of Land Management and the Federal Power Commission in fulfilling their responsibilities relating to administration of the public lands.

An important facet of the continuing objectives of the branch at this time is the systematic review and reappraisal of all lands that have been withdrawn for waterpower and storage purposes. Lands that, in light of present information, do not have power value, or have insufficient power value to justify retention in a reserved status, are recommended for restoration to entry and disposition under public land law. (This may be an outright restoration or restoration under sec. 24 of the Federal Power Act, which will permit other uses of the lands until actually needed for power development.) This review program was started in 1955, but thus far only moderate progress has been made due to the limited personnel in the branch. There are approximately 7 million acres withdrawn for waterpower and storage sites. About one-half million acres of this land have been reviewed since 1956. This review is principally an office function, but certain field surveys and investigations are required in areas where no maps are available or in areas where available maps are inadequate to meet the needs for the evaluation of waterpower and storage potentials. The ever-increasing demand for water and the need for its conservation through storage emphasizes the need for the search for and protection by segregation of potential storage sites, even those of comparatively small capacity. Another facet in the evaluation of waterpower resources is the possible use of pumped storage for use in meeting peak load demands and a search is carried on for sites, where such type of development may be practicable. This type of development is fairly common in Europe but so far not many projects of this type have been developed in the United States.

The review of withdrawals program is planned to give priority to those areas where, on the basis of present knowledge, there is the greatest possibility of making substantial restorations of lands that can be used for other purposes.

The large waterpower potential in Alaska requires extensive field surveys and investigations for proper evaluation. Due to terrain and climatic conditions, along with difficult access, the survey and investigation of waterpower sites in Alaska is much more difficult and expensive than in the 48 conterminous States. The contemplated program for fiscal year 1962 includes surveys and investigations on several lakes and streams on Kodiak Island, Alaska; tributaries of the upper Salmon River in Idaho; and streams in western Oregon. Office activities will include preparation of waterpower resources reports for publication and a continuation of the review and reappraisal of lands previously withdrawn for waterpower and storage purposes.

(e) Federal Petroleum Board

The estimate of $230,000 is an increase of $8,000 over 1961. Of this amount $2,000 is to bring increased pay costs to a full-year basis and $6,000 will provide for one additional examiner.

Plan of work. The Connally Act of February 22, 1935, supports conservation activities of oil-producing States by prohibiting interstate shipment of oil produced in violation of certain State oil and gas proration laws. The act is administered by the Federal Petroleum Board under supervision and direction of the Geological Survey.

Examiners of the Board, by gaging lease production; by inspections of leasehold operations; by lease visits; by checking pipelines, feeder lines, or tank batteries; and by interviewing lease employees, lessees, operators, or well-service company employees; and by checking all records of production and shipments, detect violations of the State proration laws. Following such preliminary investigation and formal docketing of the case, the Board of Examiners makes a full-scale investigation, takes depositions, and prepares the case against the violator for submission through departmental channels to the Attorney General for prosecution.

One of the principal duties of the Board is to see that the oil producers maintain proper records of oil production and its disposition, and that prescribed reports are filed with the Board. By means of these required records and reports the Board maintains a reasonably accurate knowledge of the production of oil, the products derived therefrom, and its transportation in interstate commerce.

The Connally Act is applicable wherever State laws limit the rate of production and prescribe conditions for producing and handling oil. However, due to the small size of the Board its primary activity is in 106 counties of Texas, Lea and Eddy Counties in New Mexico, and all of Louisiana. Unless exempted by the Board in writing and by notice, producers within the above designated areas are required to maintain daily production records and file monthly production reports of operations on each lease. Transporters and refiners are also required to file monthly reports. The processing of such reports accounts for a considerable portion of the workload of the Board.

As far as limited resources permit, the Board also enforces provisions of the Connally Act in other States nearby its offices, such as Mississippi, Oklahoma, Arkansas, and Kansas. This regulatory activity should be extended to other oil-producing States as well.

As

Even within the rather circumscribed limits of its primary activity within the designated areas above, the workload of the Board is extremely variable and unpredictable due to the vagaries of State proration orders, the never constant incidence of violations thereof, and the time lags inherent in the conduct of the numerous investigations, lease inspections, field visits, and interviews necessarily precedent to the detection of violations. Additional time is required for report preparation prior to action on the cases by the Solicitor of the Department, by the Attorney General, and by the U.S. attorney before a case can be closed. a measure of the preliminary work required to prepare a case charging violation of the Connally Act, during fiscal year 1960 there were more than 7,500 visits, inspections, and gagings of leases; 75 pipelines checked; 479 fields visited; and more than 1,500 interviews to secure compliance with State orders and to detect violations. In the same year some 10,700 producers' reports, 439 pipeline reports, and 63 reports from refiners were processed each month. These covered operations in 4,367 oil fields that accounted for about 61 percent of the daily production from Texas, Louisiana, and New Mexico.

The investigative authority of the Board is not limited to the required reports, nor to the designated areas described above, except for the limitation put upon its activities by the availability of funds and personnel, to determine that contraband oil has been produced and shipped in interstate commerce.

It is suspected that numerous serious violations of the Connally Act are being carried on by operators outside the designated areas, but, owing to the limitations of the organization, successful prosecutions have been instituted and penalties imposed for only a few such violations. The Board has repeatedly been asked to restore many additional fields to reporting status and that the designated areas be extended to include additional oil-producing States. Some operators frankly state they believe the administration of the Connally Act to be discriminatory and arbitrarily harsn against the States of Texas, Louisiana, and New Mexico. The Survey believes that the designated area should be extended to other States as an effective conservation measure, and that several additional offices should be opened in States not now included in the designated area, such as Oklahoma and Mississippi.

The following table reflects some of the facets of the enforcement activities of the Federal Petroleum Board during the past 5 fiscal years:

The estimate of $1,565,000 is an increase of $129,000 over 1961. Of this amount $20,000 is to bring increased pay costs to a full-year basis.

Need for increase. In recent years, more and more responsibility for accounting and financial control has been placed at the agency level with a resulting decided impact on workload and cost of operation at this level. This increased responsibility results, in part, from changes in methods of control imposed by the General Accounting Office and the Treasury Department. In addition, the processing of fringe benefits, such as insurance and group health, and the steady increase in the number of States requiring withholding of taxes, further exemplify this trend. It is expected that this trend will continue.

Over the past few years, the housekeeping activities involved in this increasing workload have been absorbed by the current staff and, as a result, much needed improvements in the administrative activity have had to be deferred. The increase will allow for normal increases in operating expenses and provide some relief with respect to the deferred improvements. In addition, the increase will provide for an expansion of the Bureau's internal audit program.

Plan of work. This activity provides for the executive direction of the Geological Survey, as well as such essential management services as budgeting, accounting, voucher examination, organization and management, internal audit, payroll, personnel, purchasing, property control, and mail and messenger.

The work is financed from funds appropriated directly and by an assessment against reimbursements from other Federal agencies and certain nongovernmental sources. However, no assessment is made against funds for the State cooperative programs. A comparison of funds for executive direction and administration, compared with the entire program of the Survey, follows: