THE MINERAL INDUSTRY OF ARIZONA 
113 
 
MINERAL FUELS 
 
 Helium.12—Grade-A helium was produced throughout the year at the KerrMcGee
Corp. Navajo helium plant. At the plant, helium was extracted from naturally
occurring, nonhydrocarbon gas produced from the Pinta Dome and Navajo Springs
fields in Apache County. 
 The Bureau of Mines estimated 13 that the Navajo plant produced for sale
about 73.8 million cubic feet of grade-A helium in 1967 valued at $2.07 million,
a 16percent increase over the estimated 1966 production of 63.5 million cubic
feet. 
 The Navajo plant was equipped to liquefy large quantities Qf the produced
helium. However, no data were available on the relative volumes of gaseous
and liquid helium produced and sold at the plant. 
 Early in the year, Kerr-McGee Corp. notified the State Land Department that
because it was unable to find helium purchasers interested in the price of
$35 per 1,000 cubic feet of helium, the gas was offered at $28. The change
reduced the wellhead value of the helium.~bearing gas from $1.76 to $1.06
per 1,000 cubic feet; this change, in turn, reduced the royalties received
by the State. 
 Financial difficulties continued to delay construction of the proposed $1
million helium plant of Arizona Helium Corp.; originally scheduled for completion
in January, the plant was planned for a site near the town of Navajo, south
of the Pinta Dome helium field. 
 
 Natural Gas.—The State Oil and Gas Conservation Commission reported
14 a 16percent decline in natural gas production, resulting from depletion
of the reservoirs in the producing fields. At yearend, seven wells were producing
natural gas. 
 As part of its plan to supply additional gas to the southern California
market, El Paso Natural Gas Co. built 130 miles of 30-inch gas pipeline in
Navajo, Coconino, Yavapai, and Mohave Counties. El Paso also replaced a 20-year-old
gas pipeline which served the Morenci mine of Phelps Dodge Corp. The new
10-inch line was to supply gas to three existing mining and smelting customers:
Phelps Dodge was to receive 10.31 million cubic feet per day; Compafiia Minera
de Cananea, S.A., 4.44 million; and Kennecott Copper Corp., 3.36 million.
The remaining 1.02 million 
cubic feet of daily capacity was to serve four utility customers. 
 
 Petroleum.—In petroleum production, Arizona had a record year—drilling
reached an alitime high, and the first major field was discovered. Output
of crude oil was 22 times that of the previous year 
—all because of the new field. 
 The discovery of the new field, Dineh bi Keyah (in Navajo "The People's
Field"), resulted from the workover of an old well: The Kerr-McGee Corp.
No. 1 Navajo, sec. 32, T 36 N, R, 30, E, Apache County, drilled in 1965 to
total depth of 3,864 feet in granite and abandoned. In January 1967 the well
was reentered and casing was perforated with four shots per foot in the 2,860-
to 2,885foot interval; after acidizing and fracturing, the well was completed
for a daily gage of 634 barrels of 43,30 API oil. An additional! zone, 2,885
to 2,942 feet, was opened in July; production was gaged at 1,851 barrels
of oil per day. The productive zone was unique in that it was an intrusive
Tertiary syenite sill in sediments of Pennsylvanian age. 
 The field rapidly developed on a 160acre pattern; at yearend, 13 wells were
yielding 298,850 barrels of oil per month. During the summer, Kerr-McGee
built a 33-mile, 8-inch crude-oil pipeline from the field to the Four Corners
Pipeline Co. pipeline 12 miles southeast of Shiprock, N. Mex.; the line had
an initial daily capacity of 20,000 barrels but, with the addition of pump
stations, could be increased to 40,000 barrels. Helium-bearing gas showing
helium-content of 5.18 to 6.23 percent was found in several of the wells
in the Devonian formations. 
 Of the older fields, Dry Mesa field was the leading source, with output
of 45,854 barrels; East Boundary Butte was next with 39,355 barrels. 
 Drilling activity was at an ailtime high; the 47 wells exceeded the previous
record year, 1962, by one well. Exploratory drilling increased 10 wells over
the level of 1966; the one discovery well—at Dineh bi 
 
 
 12 Prepared by Office of Assistant Director— Helium, Washington. D.C.

 13 The Bureau of Mines estimate is based on Arizona Oil and Gas Commission
reports, and does not involve information or data furnished by the company.

 14 State of Arizona. Monthly Oil, Gas, and Helium Production, December 1967
and December 1966.