Operators' Association, U. S .Department of Commerce, the U. S. Census Bureau, and related agencies. Well Log File: The law now provides that all well logs shall be filed with the Arkansas Bureau of Conservation and Inspection. This law became effective June 10, 1925. Between March 23, 1923, and June 10, 1925, the logs were filed with the Conservation Division of the Arkansas Railroad Commission. There is no law requiring that logs be filed with the Geological Survey. However, the Survey has on file several hundred logs, most of which are of wells drilled prior to March 23, 1923. Copies of these well logs will be furnished upon request. Operators are urge to file logs of wells with this Department -drilled prior to March 23, 1923, in order to assist in compiling information concerning sub-surface conditions. Representative Core Collection: A collection of cores from wells drilled in southern Arkansas including about 800 feet of core, is maintained. In addition to the methods described above, a record is kept of all developed and undeveloped resources of the State and this information is supplied to interested individuals or firms. BENEFITS OF A GEOLOGICAL SURVEY There have been numerous instances in the past where the reports of State surveys and detailed knowledge gathered by them have resulted in developments both small and large. In Arkansas one of the most outstanding instances was the discovery of the bauxite area by J. C. Branner in 1891, a discovery which has proved of great value to the State through an increase in population, capital invested, and revenues to the State. A single discovery of an unknown mineral resource will easily pay for a Geological Survey several times over. Inquiries are continually received from mining and development companies at the office of the present Survey, asking for definite information concerning many of the State's resources. A majority of the inquiries have related to the following: Oil, gas and coal, zinc and lead, manganese, lignite, chalk, novaculite, fuller's earth, bauxite, pottery, fire and brick clays, tripoli, ochre and other paint materials, graphite, greensand, phosphates, slate, soapstone, talc, and whetstones. The benefits which the State may derive from the activities of a State Geological Survey are, in general, two: 1. An increase in the population and capital invested in the State following the development of the State's mineral resources. 2. An increase in the State and County revenue through: a. The severance tax. b. The general property tax due to mineral development. The tax on mineral development corporations. C. d. The oil and gas well permit tax. e. The tax on sand and gravel removed from State-owned stream and lake beds. These taxes will now be considered separately. a. The Severance Tax. The severance tax applies to all minerals and to timber and is a privilege tax amounting to 22% of the gross cash market value of the total production which is levied on all minerals with the exception of coal, which has a rate of 1 cent per ton, and manganese ore, which has a rate of 10 cents per ton. Timber has a special rate of 7 cents per thousand feet. Severance Tax Collection by Years 2nd Quarter, 1923—April, May, June.... Total, 1923.. 1st Quarter, 1924 January, February, March. Total, 1924. 1st Quarter, 1925-January, February, March. Total, 1925.. 1st Quarter, 1926—January, February, March.. 2nd Quarter, 1926-April, May, June... Total, Two Quarters 1926. Grand Total (March 23, 1923, to July 1, 1926-13 $ 147,046.82 208,482.71 181,474.08 $ 537,003.61 $276,562.92 363,321.37 277,006.44 289,688.78 $1,206,579.51 $ 309,639.66. 487,887.90 535,278.45 444,589.45 $1,777,395.46 $ 429,819.47 486,975.19 $ 916,794.66. $4,437,773.24 The income according to figures compiled by the Geological Department and the Department of Insurance and Revenue from the severance tax records for different minerals produced from March 23, 1923, to July 1, 1926, is as follows: Oil and Gas.. $420,584.76 $1,044,183.40 $1,653,973.11 $833,300.74 $3,952,042.01 89.0% Timber... 85,903.09 125,852.33 92,474.62 Totals.. $537,003.61 $1,206,579.51 $1,777,395.46 $916,794.66 $4,437,773.24 100.0% b. The State Real and Personal Property Tax. The State real and personal property tax on the mineral industries cannot be accurately estimated. However, the revenue from this source in 1925 can be conservatively estimated at $1,100,000. The following table shows the real and property tax of 28.7 mills paid in Union and Ouachita counties between the years 1920 and 1925 and also shows the increase in 1925 over the tax receipts of 1920. 1924 Excess of 1925 Taxation Over that of 1920 1921 1922 1923 1925 1920 Ouachita.. $154,527.40 $228,216.08 $220,690.30 $307,794.12 $320,565.36 $364,093.00 $209,565.60 Union...... 156,417.95 341,216.19 441,441.55 655,114.98 747,142.85 865,986.00 709,568.05 Total, Union and Ouachita Counties. $919,133.65 This increased revenue is nearly all due to oil and gas development. Thirty and three-tenths per cent of this sum of $919,133.65, of 8.7 mills out of the 28.7 mills, is paid to the State general revenue fund. This amounted to $278,589.40 during 1925. C. The Corporation Tax. The corporation tax is eleven-hundredths of one per cent of the capitalization of domestic and foreign corporations engaged in business in the State. A minimum tax of $11.00 is levied on all corporations whose capitalization is $10,000.00 or less. The tax on industries engaged in mineral development in 1925, according to the State Corporation Clerk, was as follows: Total Capitalization and Corporation Tax of Firms Engaged in the Different Mineral Production Industries in Arkansas in 1925 The permit fee to drill oil and gas wells prior to June 10, 1925, was $50.00, at which time it was changed to $25.00. According to the Department of Conservation and Inspection the revenue derived from this source during 1925 was as follows: 918 permits @ $50.00 per well (Jan. 1 to June 10)$45,900.00 521 permits @ 25.00 per well (June 10 to Dec. 31)...... 13,025.00 Total, 1439 permits.. e. The Sand and Gravel Tax. $58,925.00 The State income on sand and gravel which has been removed from the beds of navigable streams and lakes belonging to the State during 1925, according to the records of the offices of the Attorney General and Commissioner of Insurance and Revenues, was as follows: First six months, 1925. Last six months, 1925. Total. SUMMARY OF REVENUES $ 8,645.12 $22,639.33 The following is a summary of the revenues received by the State which were directly due to the development of its mineral resources during 1925: Severance tax on minerals (timber excepted) General property tax due to oil development (8.7 mills) Sand and gravel tax.. Total..... $1,684,920.84 278,589.40 96,990.61 58,925.00 22,639.33 $2,142,065.18 The total income from the State from all taxes for the fiscal year June 1, 1925-June 1, 1926, was $18,801,698.84.* Eleven and two-tenths per cent of this amount, or $2,142,065.18, was derived directly from mineral developments within the State as shown above. This percentage is, however, actually somewhat higher since the real and personal property tax applies to other property than that in Union and Ouachita counties, which has been enhanced in value on account of the mineral development. This particularly applies to coal and bauxite areas. The increase in taxation in these areas, however, is difficult to estimate accurately. It is significant that of the $2,142,065.18 estimated income referred to above, that $2.080,775.78, or 97 per cent of the total, was derived from oil and gas. CHRONOLOGY OF ARKANSAS' GEOLOGICAL SURVEYS From 1857 to 1860 D. D. Owen was State Geologist and published two reports. *State Comptroller's Office. |