Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Interior Secretary Ken Salazar has announced a proposal for the simultaneous development of oil, gas and potash in the southeast of New Mexico which could bring an end to long-standing legal wrangles over resource extraction, in a region which is host to the USA’s largest potash reserves.
Oil, gas and potash developers have been mired in legal disputes for decades over resource extraction rights in the area, with the key issue being spoilage of potash deposits and the safety of miners.
Potash, one of the main ingredients in fertilizer, is situated above oil and gas deposits. Potash companies are opposed to the development of oil and gas beneath potash deposits, on the grounds that drilling both spoils the potash and poses a danger to miners.
Salazar’s proposal would see the identification of areas for safe development of oil and gas, and buffer zones for the drilling of fossil fuels without affecting potash deposits.
“Drilling islands” would be established within a 625-square-mile area where potash resources are protected, and which is home to three-quarters of potash extracted in the US, as well as nearly 800 federal oil and gas leases.
According to experts, the development of new drilling technologies means Salazar’s plan is now a possibility.
Salazar has been working with a committee on the development of the proposal since meeting with industry representatives in January, and expects a final order by the fall.
Comments
marty
salazar is kissing obamas ass right now trying to make it all look good in nm assholes need to reopen all federal and state lands we are loosing royalty funds everyday how is a state to become self suffcient if the federal government holds back all chances of mineral extraction off public lands we still have rich liberals trying to line their pockets a good example is ted turner they stopped the drilling on the valle vidal but next door at the vermejo teds place they are punching holes all day. manipulating bastards like him and t boone pickens are screwing this country up they are screwing their own supporters and they don’t even realize it. Our federal government intends to keep our states broke that way we stay dependent on them. our government needs us more than we need it.