MINERAL INDUSTRY OF NEW MEXICO 
555 
 
 Legislative and Government Programs. 
—Several legislative acts of significance to the petroleum and natural
gas industry were passed during the year. The State enacted a new law in
June giving refiners in New Mexico preferential rights to purchase State-royalty
oil from State lands. The six local refineries had been faced with a crude-oil
shortage resulting from shipments of most of the oil out of State. The State
legislature also approved a bill allowing the oil industry to use brackish
water from the Capitan reef (Permian) for waterfiooding; the industry was
expected to use only about 0.5 percent of the 192 billion barrels of water
in the reef. Waterflooding would increase oil production from about 20 to
possibly 50 percent. On May 1, the State Oil Conservation Commission issued
an order requiring that oilfield brines be injected into disposal wells instead
of evaporated in open pits; the Commission estimated that 65 percent of the
brines produced were already being injected and that the new rule would regulate
the remainder and prevent contamination of fresh water supplies. 
 Early in the year the U.S. 10th Circuit Court of Appeals, Denver, Cob.,
remanded to the Federal Power Commission (FPC) the controversial rate case
concerning the Permian basin ~natural gas area on the grounds that insufficient
evidence had been presented to establish minimum and maximum rates to producers.
This case is of great significance to the Nation's gas industry as well as
to that of New Mexico. The U.S. Supreme Court later agreed to hear oral arguments
in the case. At yearend, the Court had heard the arguments, and a decision
was expected by mid- 
1968. 
 A hearing was held in Socorro concerning the proposed inclusion of the Bosque
del Apache National Wildlife Refuge in the National Wilderness System. In
connection with the proposal the U.S. Geological Survey, cooperating with
the Bureau of Mines, published Bulletin 1260—A, B, "Summary Report
on the Geology and Mineral Resources of the Salt Creek Area, Bitter Lake
National Wildlife Refuge, Chaves County, New Mexico; and Bosque del Apache
National Wildlife Refuge, Socorro County, New Mexico".3 
 Pertinent publications by the New Mexico Bureau of Mines and Mineral Resources
at Socorro included Bulletin 81, "Summary of the Mineral Resources of Bernalillo,
Sandoval, and Santa Fe Counties, New Mexico (Exclusive of Oil and Gas) ,"
and Bulletin 89, "Geology of the Chama Quadrangle, New Mexico." 
 The State received, from mineral leases and permits, more than $11.6 million
from Federal lands managed by the Bureau of Land Management. 
 Developments in construction utilizing mining technology or entailing mineral
extraction included the awarding of bids for the $15 million Galisteo dam
project near Waldo in Santa Fe County; also, bids were let for outlet-facility
construction at the $50 million Cochiti dam project north of Alburquerque.

 The 12.8-mile Azotea tunnel, being dug by a mechanical mole, was 81-percent
excavated at the San Juan-Chama diversion project in Rio Arriba County. At
the Navajo irrigation project east of Farmington in San Juan County, a 20foot-diameter,
5-mile-long tunnel was completed. This tunnel, also dug by a tunnel machine,
was the second of six to be constructed. 
 
REVIEW BY MINERAL COMMODITIES 
MINERAL FUELS 
 
 The value of mineral fuels production increased $42 million or 8 percent.
The total value of mineral fuels ($583 million) represented 67 percent of
the value of State mineral production, about the same percentage as in 1966.
Increases in every category of mineral fuels, except carbon dioxide and helium,
resulted in a net increase in total mineral- 
production value despite substantial declines in the metals and nonmetals
classifications. 
 
~ Bachman, George 0. Mineral Appraisal of the Salt Creek Area, Bitter Lake
National Wildlife Refuge Chaves County, New Mexico. U.S. Geological Survey
Bull. 1260-A, 1967, 10 pp. 
 Bachman, George 0., and Ronald B. Stotelmeyer. Mineral Appraisal of the
Bosque del 
Apache National Wildlife Refuge Socorro 
County, New Mexico. U.S. Geological Survey 
Bull. 1260-B, 1967, 9 pp.