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1 The Mining Institute of Scotland Newsletter Volume 6, Issue 2 June 2015 President’s Message It’s summer again and time for a break from our technical meetings for a few months. Part of my remit as President is to arrange the technical evenings and I’m grateful for the assistance that Council members have offered in fulfilling this task. It’s been a pleasure to introduce some excellent speakers this year on a varied selection of topics covering coal, oil & gas, geology, tunnel inspection, wind turbines and the future of energy production. This year we have had several joint meetings with other societies for example the Institute of Mechanical Engineers, the Institute of Quarrying and the Edinburgh Geological Society. The most recent event was the RW Thomson Lecture held on 1 April 2015 at Garvock House Hotel, Dunfermline where Professor Paul Younger addressed an audience of 55. His thought provoking lecture was entitled Energy: Can we really have it all - secure, low-carbon and cheap? I think it’s fair to say that Professor Younger is not just a very talented engineer, he’s also an entertainer and the evening was one of the most memorable in recent years. Mark Friel (left) with Professor Paul Younger Cont’d on page 2 Oil & Gas Division At the beginning of June British Petroleum published the 64 th issue of the highly regarded statistical review of world energy. Anyone can access the review from www.bp.com . The review covers all forms of energy and includes data on carbon emissions. The website provides comprehensive data along with video clips, trending tools, country and regional insights. The review clearly illustrates the transformational period that global energy is going through. Off the back of onshore shale gas and oil the United States has overtaken Saudi Arabia as the largest oil producer in the world and has overtaken Russia as the largest global producer of oil and gas. The supply of energy and chemical plant feedstock has galvanized the US economy, little wonder that the UK Government seeks to develop the potentially extensive shale oil and gas resources of the UK. Studies have indicated that the development of onshore UK shale gas could support up to 10,000 wells, with 100 rigs working and a second oil centre equivalent to Aberdeen. The supply of large volumes of gas could be transformational for UK manufacturing with high volume feedstock for UK chemical plants such as Grangemouth. While demand for energy has continued to increase the rate of increase has slowed, the energy mix is changing and the flow of energy is shifting with the US no longer needing to import large volumes. Led by Saudi Arabia the response from OPEC has been to increase production to protect market share. This has resulted in a sustained drop in oil and gas prices which has significantly impacted higher cost producers such as the UK. As highlighted in the last newsletter the UK oil and gas sector continues to adjust to current market conditions. Costs are coming down, taxes have been reduced and ongoing major projects are keeping the Industry busy. The new Oil and Gas Authority is continuing to staff up and is due to submit a strategy for maximizing economic recovery from the UKCS to Parliament in the Autumn. In times of reduced oil and gas prices it is important to not lose focus on process safety and personnel competence. These are key areas where the Institute has a significant role. Cont’d on page 2

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Page 1: The Mining Institute of Scotland Newsletter Institute of Scotland... · The Mining Institute of Scotland Newsletter Volume 6, Issue 2 June 2015 President’s Message It’s summer

1

The Mining Institute of Scotland

NewsletterVolume 6, Issue 2 June 2015

President’s MessageIt’s summer again and time for a break from ourtechnical meetings for a few months. Part of my remitas President is to arrange the technical evenings andI’m grateful for the assistance that Council membershave offered in fulfilling this task. It’s been a pleasureto introduce some excellent speakers this year on avaried selection of topics covering coal, oil & gas,geology, tunnel inspection, wind turbines and thefuture of energy production.

This year we have had several joint meetings withother societies for example the Institute of MechanicalEngineers, the Institute of Quarrying and theEdinburgh Geological Society. The most recent eventwas the RW Thomson Lecture held on 1 April 2015 atGarvock House Hotel, Dunfermline where ProfessorPaul Younger addressed an audience of 55. Histhought provoking lecture was entitled Energy: Canwe really have it all - secure, low-carbon and cheap?I think it’s fair to say that Professor Younger is not justa very talented engineer, he’s also an entertainer andthe evening was one of the most memorable in recentyears.

Mark Friel (left) with Professor Paul Younger

Cont’d on page 2

Oil & Gas DivisionAt the beginning of June British Petroleum publishedthe 64

thissue of the highly regarded statistical review

of world energy. Anyone can access the review fromwww.bp.com. The review covers all forms of energyand includes data on carbon emissions. The websiteprovides comprehensive data along with video clips,trending tools, country and regional insights. Thereview clearly illustrates the transformational periodthat global energy is going through. Off the back ofonshore shale gas and oil the United States hasovertaken Saudi Arabia as the largest oil producer inthe world and has overtaken Russia as the largestglobal producer of oil and gas. The supply of energyand chemical plant feedstock has galvanized the USeconomy, little wonder that the UK Government seeksto develop the potentially extensive shale oil and gasresources of the UK. Studies have indicated that thedevelopment of onshore UK shale gas could supportup to 10,000 wells, with 100 rigs working and asecond oil centre equivalent to Aberdeen. The supplyof large volumes of gas could be transformational forUK manufacturing with high volume feedstock for UKchemical plants such as Grangemouth. Whiledemand for energy has continued to increase the rateof increase has slowed, the energy mix is changingand the flow of energy is shifting with the US nolonger needing to import large volumes. Led by SaudiArabia the response from OPEC has been to increaseproduction to protect market share. This has resultedin a sustained drop in oil and gas prices which hassignificantly impacted higher cost producers such asthe UK. As highlighted in the last newsletter the UKoil and gas sector continues to adjust to currentmarket conditions. Costs are coming down, taxeshave been reduced and ongoing major projects arekeeping the Industry busy. The new Oil and GasAuthority is continuing to staff up and is due to submita strategy for maximizing economic recovery from theUKCS to Parliament in the Autumn. In times ofreduced oil and gas prices it is important to not losefocus on process safety and personnel competence.These are key areas where the Institute has asignificant role.

Cont’d on page 2

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President’s Message cont’d

On the subject of energy, 2015 is a difficult year forthe coal business; the price of coal fell to under $60(£39) per tonne, and has not recovered. Tocompound matters, the forecast price is predicted toremain low for some time yet. This means thatHargreaves who is the major producer of surfacemined coal in the UK is not opening any new sitesthis year and production will be reduced. On thepositive side, site restoration is continuing atGlenmuckloch, Muirdean, Broken Cross and StNinians, with proposals to commence restorationworks at another 2 sites this year. So we’re down butstill fighting and still bringing black rocks out of theground!

In May I attended the retired members’ lunch inAyrshire. It’s gratifying that the enthusiasm of TheMining Institute of Scotland members never faltersand the Lochside Hotel, New Cumnock provided anexcellent meal for 22 attendees. I’d like to thankAllan Thomson for arranging a very enjoyable day.

I was approached by the National Mining MuseumScotland recently to lend my support as President ofthe MIS for an application to the Heritage LotteryFund. The museum is hoping to obtain funding toturn the Black Diamond Theatre into an exhibitionspace that explores lighting in the mining industry.2015 is the bicentenary of the invention of the DavyLamp and also the European Year of Industrial andTechnical Heritage. In my view the National MiningMuseum Scotland is a vital component in preservingour proud industrial heritage and I was delighted towrite a letter of support. We look forward withoptimism that the lighting project will come to fruition.

On a final note, I hope to see as many of you aspossible at the retired members’ lunch in Septemberto be held at the National Mining Museum Scotland.

Mark Friel [email protected]

Oil & Gas Division cont’d

In May CNOOC Nexen hosted a Division seminarcovering plant integrity, well integrity and UKlegislative requirements. The seminar was wellreceived and the Division is planning to hold anotherseminar in 2016 covering UK shale gas and oil. Forthe start of the new academic year the Division hasscheduled a range of technical seminars forSt Andrews, The Robert Gordon, Heriot-Watt andAberdeen Universities and Fife College to providestudents with information on the latest developmentsin Industry.

The new IOM3 website has gone live and concurrentwith this the Division has published the first of aseries of overviews of key aspects of the Oil and GasIndustry. The first overview covers well servicingtechniques. This overview and all the latest Divisioninformation can be found on the Division microsite atwww.iom3.org In recognition of the significantcontribution to the UK oil and gas industry, IOM3 is toaward Oil and Gas UK its Medal of Excellence at theAnnual Awards Dinner in July. I would commend thewebsite www.oilandgasuk.co.uk as a very usefulsource of information on the UK Oil and GasIndustry.

Steve BedfordOil & Gas Division [email protected]

Scotland RocksThe Higher Geology Rocks Student Conference 2015(Scotland Rocks) was organised by the RoyalScottish Geographical Society (RSGS) and theUniversity of St Andrews (Dr Ruth Robinson). Itbrought together Scottish secondary school studentstaking Higher Geology, academic staff, industry,BGS, and other Earth Science professionals.

The MIS Trust part-funded the conference held atPerth on 7-8 March 2015. The event proved to be asuccess with 45 students and 14 teachers takingpart. IOM3 (after help from Steve Bedford) partlysponsored it with an award of £1,000.

The conference included a field excursion, key notepresentations, workshops, careers speed dating andnetworking opportunities.

RW Thomson LectureThe RW Thomson Lecture for 2014/15 wasorganised by The Mining Institute of Scotland onbehalf of the local societies in Scotland. The eventwas held at the Garvock House Hotel, Dunfermlineon 1 April 2015 and drew an audience of fifty-five,including members from MIS, SPRA and SAM.

Professor Paul Younger presented his views on theenergy situation in Scotland. He did this through the‘Energy Trilemma’ of (1) security of energy supply,(2) environmental sustainability, and (3) affordability.

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Hidden Riches ‘moved’Thirteen boxes of Hidden Riches have been nestlingaway quietly over the winter in the loft of St Peter’sChurch in Galashiels. However, with the ReverendDuncan McCosh retiring in May 2015, it was feltappropriate that the majority of the books should berelocated elsewhere. On a fine and sunny day inApril, Richard Crockett and I collected 11 boxes fromstore, leaving two boxes for Richard’s future sales.Although stacked in a corner of my house for a fewweeks, the books have found a new home at theoffices of McClure Naismith in Edinburgh, which isdue to the generosity of Jeffrey Hutcheson.

Mark Friel

Pictured: Mark Friel and Richard Crockett transferring the boxes ina Hargreaves pick-up truck

The Mining Institute ofScotland TrustEach year The Mining Institute of Scotland Trustsponsors various activities across the country.During 2014/15, the following activities weresupported:

Provide all students with free StudentMembership of IOM3

Organise Student Recruitment Seminars inSeptember/October

Organise the Young Persons’ LectureCompetition in early March

Provide part funding to students and theiruniversities to help with projects

Part Funding for the next two years of anEconomic Geology Research and TeachingFellow at the University of St Andrews

Part Funding of Scotland Rocks, organised byThe Royal Geographical Society of Scotland

This year both the Sam Mavor Travelling Scholarshipand the Cunningham Scholarship were awarded toenable a student member to undertake a post-graduate degree at the University of Glasgow.

The MIS Trust is also active in terms of benevolence.Such support is in addition to support given by theIOM3 Member’s Benevolent Trust. Jim Wishartworks tirelessly to visit and keep in touch with thosewho are in need of such support.

All technical and social meetings in Ayrshire aresupported directly and each year the Trust supports atechnical meeting at the Garvock House Hotel,Dunfermline and the Retired Members’ Lunch at theNational Mining Museum Scotland.

Enquiries about the work of the MIS Trust and how toapply for support should be directed to the HonorarySecretary/Treasurer of The Mining Institute ofScotland Trust ([email protected]).

A N I N S T I T U T E E V E N T I S T H E

P L A C E T O M E E T F R I E N D S A N D

C O L L E A G U E S B O T H O L D A N D

N E W , W H Y N O T J O I N W I T H U S ?

C A L E N D A R O F E V E N T S

SOME DATES FOR YOUR DIARY IN 2015 ARE:

SOCIAL EVENT

9 SEPTEMBER 2015 – 12.00NOON AT THE NATIONAL MINING

MUSEUM SCOTLAND, LADY VICTORIA COLLIERY,NEWTONGRANGE, MIDLOTHIAN

Retired Members’ Lunch

TECHNICAL MEETING

16 SEPTEMBER 2015 – 6.00PM AT LOCHSIDE HOTEL, NEW

CUMNOCK

TBASPEAKER: ANDREW WATSON, MINES RESCUE SERVICE

Video-conferencing link will NOT be available for the above events

ANNUAL GENERAL MEETING

14 October 2015 – 5.30 pm at Heriot-Watt University & BP,Aberdeen (video-conferencing link)

Retired Members’ LunchThis year the Retired Members’ Lunch has beenarranged for 9 September 2015 at the NationalMining Museum Scotland (NMMS). This event,which is free courtesy of the generosity of The MiningInstitute of Scotland Trust, presents an opportunityfor retired members, friends and colleagues to meet.Those planning to attend are requested to arrive atthe NMMS around midday.

The Lunch will also enable members to collect theirfree copy of Hidden Riches. Additional copies can bepurchased if so desired.

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GovernanceThe Articles of Association of The Mining Institute ofScotland plc state that there will be a minimum offour directors but normally there will be six:

Junior Vice President

Senior Vice President

President

Past President 1

Past President 2

Past President 3.

This arrangement has served us well but in recentyears there has been reluctance for members to seekelection to the board through the Vice Presidentroute. Nevertheless, the minimum number ofdirectors is four and so the board is able to function.However, using the current model of electingdirectors will fail over the short-term.

Council has been considering how best to preservethe election of directors each year at the AGM. Thiswork will result in a resolution being proposed at theAGM in October 2015. It will be up to the membersto resolve any change to the Articles of Association.

It is anticipated that the resolution will not have anyreference to a particular office within The MiningInstitute of Scotland. Rather the directors will bedrawn from any willing member seeking election. Inother words, directors will be appointed by anOrdinary Resolution at the AGM. At every AGM atleast two directors will resign from office but mayoffer themselves for re-appointment.

The minimum number of directors will remain as fourand the maximum number will be six unless varied byan Ordinary Resolution of the Company.

Members will receive notification of the resolutionbeing submitted to the AGM along with the agenda indue course.

David Seath, Company Secretary

The Mining Institute of Scotland is a private limited company registered in Scotland with Number 311798

Industrial VisitAn MIS industrial visit to Muirdean Opencast CoalSite near Crossgates, Fife operated by HargreavesProduction Surface Mining took place on 24 April.Six members plus site staff took part in the visit,which was dry for a change, although cold and windy.Coal production on site equates to 6,000 tonnes perweek from 11 seams ranging in thickness from 0.1mto 1.9m; the total recoverable coal being 700,000tonnes. All the output is directed by road haulage toLongannet Power Station. Earthmoving equipmentcomprises 3 x 220t class excavators and 13 x 100tcapacity dump trucks for the overburden removal,creating a pit of 96m depth. A fleet of smallermachines is required for the coaling operations, tipmaintenance and coal loading. Approximately 80staff are on site. Restoration work is concurrent withcoaling operations and a significant area of the sitehas already been returned to grazing land.

Thanks go to Hargreaves for enabling the visit andproviding site transport even though Mark Friel gotroped into driving! He didn’t give the vehicle enoughrevs on a steep incline and stalled it, which prompteda certain driving instructor sitting beside him to offersome helpful advice on mastering the clutch!

S E C R E T A R Y ’ S A D D R E S S

Mr David Seath BSc(Hons) CEng FIMMM10 Woodhill Grove

CrossfordDunfermlineKY12 8YG

Tel/Fax: 01383 432856Email: [email protected]

Members can receive all correspondence by email. Pleasecontact the Secretary if you wish to receive correspondenceelectronically but currently don’t.