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Show CHAPTER 1 3 NATURE'S BURIED TREASURES: MINING AND OIL DEVELOPMENT X he physical evidence of early mining activity in Summit County is fading. Old mine shafts, tunnels, and portals have been filled in; old mills have burned, collapsed, or been dismantled. But place names like Coalville and Bonanza Flat still tell a story: They remind us that man's quest for nature's buried treasures has helped mold the character of Summit County. The story begins with coal. In 1854, when the Mormons had been in the territory only seven years, the fledgling territorial legislature offered a $1,000 reward to anyone who discovered a coal vein within forty miles of Salt Lake City greater than eighteen inches thick. About five years later, Thomas Rhoades, a veteran of the California gold rush, found outcroppings of coal near Chalk Creek in the northern end of Summit County. Brigham Young sent John Muir and Sam Fletcher to investigate the claim. The two located an impressive vein of coal near Grass Creek in the northern part of the county, which the LDS church later developed into what became known as the Old Church Mine. Brigham Young hired mining expert Henry Spriggs to supervise 285 286 HISTORY OF SUMMIT COUNTY t h e church's holdings while John Spriggs, W H . Kimball, a n d R.J. Redden examined t h e area for other p o t e n t i a l coal mines.1 They found several; according to United States Geological Survey reports, t h e same geological formation, rich in coal seams, is found in the entire area between Coalville and southwestern Wyoming. By 1867, seven mines were u p and running in the n o r t h e r n part of the county. Before the railroad link between Echo and Chalk Creek Canyon was completed in 1873, ox teams hauled hundreds of tons of coal over Parleys Canyon into Salt Lake City. The coal was sold for thirty-five to forty dollars a t o n . The new railroad provided quick t r a n s p o r t of coal, and for a while the Mormon church planned its own railroad line to connect Echo with Ogden; but this plan was later abandoned.2 The mines also continued a lively traffic in wagon-hauled coal, with the Coalville Times reporting each week the number of teams on the road transporting coal. The completion of two railroad spurs to Park City in 1880 gave an immediate boost to the Coalville and Grass Creek coal mines. In the two decades of coal mining u p to that time, the local mines produced an estimated 240,000 tons, or about 12,000 tons per year. In the four decades following 1880, production averaged about 63,500 tons per year.3 The annual o u t p u t of the mines apparently peaked around 1910-11 at about 150,000 tons.4 Of course, averages don't tell the whole story. There were wild swings in production during the first half century of coal production, reflecting the condition of the economy, the whims and policies of the Union Pacific Railroad, labor disputes, a n d conditions underground. The year 1893, for example, saw a strike at the Chalk Creek mines in January, a fire at t h e Wasatch Coal Mine in November, another strike at t h e Wasatch Mine in December, and a dramatic slump in production in the middle of the year, reflecting poor economic conditions in Park City.5 Reflecting on Coalville's dependence on the Park City mines, the Park Record snorted on 9 September 1893: It would appear that the greatly reduced consumption of coal in Park City has a direct and immediate effect upon the county seat, notwithstanding the [Coalville] Chronicle's boast that Coalville NATURE'S BURIED TREASURES: MINING AND OIL DEVELOPMENT 287 would prosper when the mines of Park City ceased to work. The truth of the matter is that Coalville's prosperity is in exact proportion to Park City's, as the amount of Coalville coal used outside of this camp would not require the services of fifty men to mine and send to market. The coal mines also found themselves at t h e mercy of t h e Union Pacific Railroad, which, except for a three-year period between 1880 and 1883, h a d an airtight monopoly on rail traffic from the county's coal mines. It was commonly believed that the Union Pacific deliberately withheld railroad cars and hiked freight rates out of Coalville to favor production from its own coal mines in Rock Springs, Wyoming. A letter to the Salt Lake Herald in March 1876 b l a m e d t h e Union Pacific for the layoff of 300 people at Summit County's coal mines.6 Over the next t h i r ty years, t h e situation didn't change much, as the Coalville Times noted in March 1906: Anything to kill our coal industry seems to be the slogan of the railroad company. On the 17[th] of this month they raised the freight to Park City from 75c to $1 per ton. Why was this done? Why should they charge $1 a ton for coal to Park City, a distance of some twenty odd miles, when they can afford to haul sugar beets to Ogden at 30 cents per ton? Business men, don't you think it is about time you were taking a hand against the undermining of your very business? Take the coal mining industry from us and what have we left?7 For the one-industry town of Grass Creek, t h e answer was: nothing. In its heyday, Grass Creek was a thriving-if tiny-community of about two h u n d r e d people. Between 1880 a n d 1887, t h e Union Pacific even operated its own mine at Grass Creek. The company employed a number of Chinese miners until September 1885, when a deadly race riot in Rock Springs, Wyoming, triggered fierce anti- Chinese sentiment in a number of other area coal mines.8 At the t u r n of the century, Grass Creek had its own school and its own Mormon ward, and even, by 1904, its own post office. Grass Creek's successes actually prompted the editor of the Coalville Times to suggest at one point that the town would make "a powerful competitor for the county seat."9 Others also thought they could see long- 288 HISTORY OF SUMMIT COUNTY term potential. In 1907, Ogden millionaire David Eccles bought more than 1,000 acres of coal-producing lands from the Grass Creek Coal Company and renamed his new business the Union Fuel Company.10 The 1910 census recorded 190 residents of Grass Creek; of the eighty-three who reported their occupations, seventy-one called themselves "coal miners."11 An October 1911 story in the Coalville Times said that there were four producing mines in the area, two in Grass Creek (the Union Fuel Company and the Rees-Grass Creek Coal Company) and two in Chalk Creek (the Wasatch Mine Company and the Superior Fuel and Briquette Company). Production from Grass Creek remained strong into the early 1920s. In 1921, the Park Record reported that the mines were producing about 200 tons a day.12 However, competition from other mines in Wyoming and Utah slowly squeezed the Grass Creek mines out of business. By the late 1920s, production had dropped to an average of less than one railroad car per day. In July 1931, the mines' only remaining customer, a cement plant in Morgan County, suspended operations. In 1932, Union Pacific asked the Interstate Commerce Commission for permission to abandon the spur line to Grass Creek.13 As it turned out, Grass Creek received a stay of execution when the cement plant won a contract to supply construction at Boulder Dam. However, by 1940, the Grass Creek mines had closed down for good and the Union Pacific finally won permission from the federal government to abandon the line.14 The rails and ties have long since been removed, the houses dismantled, the mine entrances bulldozed. Where the bustling little town of Grass Creek once stood, nothing remains except the odd slab of concrete. While Grass Creek slipped away, Coalville held on, sustained by its more diversified economy. Chalk Creek mines continued to produce coal, though at a dwindling rate. In 1934, Thomas, Ernest, and Newell Chappell reopened the old Wilson Mine in Chalk Creek as the Chappell Mine.15 For most of the 1940s, 1950s, and 1960s, the Chappell Mine was the chief coal producer in the area. Then, in 1972, it too closed its doors.16 For the first time in its history, no coal was coming out of Coalville. Except for a brief flurry of activity in NATURE'S BURIED TREASURES: MINING AND OIL DEVELOPMENT 289 1987-88, the coal mines of Summit County have been silent ever since.17 However, less than three years after the closing of the Chappell Mine, another form of energy would be found buried in the rock formations near Chalk Creek. The new energy source was oil. The Oil Boom Besides the fact that Summit County leads the state in mineral wealth, there is a great possibility that it will soon attract nationwide attention to its oil fields, and our county seat, Coalville, now a city of only a few hundred inhabitants, may soon become one of many thousands.18 Those words could have been written in January 1966, when Phillips Petroleum Company found oil on the north slope of the Uinta Mountains. Or they could have been written in December 1974, when the American Quasar Petroleum Company touched off the Overthrust boom with an oil discovery in the Pineview area about twelve miles east of Coalville. Or they could have appeared in December 1979, when Amoco Production Company completed the first well in what would become the giant Anschutz Ranch East oil field. But, in fact, these words appeared in the Park Record in 1921, during one of many early attempts to find and exploit what everyone- even humble newspaper editors-knew was there. Only since the mid-1960s have wildcatters tapped the fabulous wealth of Summit County's oil fields; but long before that, people had an inkling that there was black gold in the rock formations underlying the rugged terrain shared by northeastern Utah and southwestern Wyoming. In July 1847, the vanguard Mormon pioneer company discovered a "spring from which oozed an oil and tar substance" in a small hollow near the Bear River, about eleven miles southeast of the present town of Evanston, Wyoming.19 The spring became a place for travelers on the Mormon Trail to collect oil for their wagon axles, shoes, harnesses, and rifle stocks. Over the next twenty years, other sites where oil had oozed to the surface were discovered around Evanston. A few entrepreneurs tried to capitalize on the resource, drilling sev- 290 HISTORY OF SUMMIT COUNTY eral simple wells during the late nineteenth century, but they did not make any major discoveries.20 Then, in 1901, discovery of high-grade oil in a Union Pacific Railroad water well triggered a flurry of excitement around Evanston. Oil companies flocked to the Spring Valley area east of Evanston. "Scarcely a day passes that additional drills, rigging and cars of casing do not arrive," the Salt Lake Tribune reported in November 1901.21 In December 1901 the Tribune published a seven-page special oil section announcing that the "Oil Era Is At Hand."22 And, in the Evanston area, so it seemed. Between 1901 and 1915 the area witnessed a modest boom. Oil companies drilled a number of wells, built two refineries, and produced perhaps 150,000 barrels of oil.23 However, production began to decline rapidly; by the early 1920s, oil companies were looking elsewhere. Their gaze soon fell upon neighboring Summit County. A succession of oil companies probed the terrain between Coalville and the state line. Among them were Western Empire Petroleum Corporation in 1921, the Ohio Oil Company in 1923, Long Wall Petroleum Corporation in 1935, Mountain Fuel Supply Company in 1938, Texota Oil Company in 1957, and the Ohio Oil Company again in 1959.24 Although several of these companies found tantalizing hints of petroleum, none managed to drill a commercially successful well. By one estimate, the Overthrust Belt in the Evanston-Coalville area was punctured with more than 350 "dry holes" before serious oil production finally began.25 Even unsuccessful wells represented no small achievement in the early 1900s. Drilling a well was a tedious business. Until the rotary rig was perfected, most drillers used a "cable-tool" process, which involved repeatedly hoisting a heavy bit to the top of the derrick and then dropping it down the hole. At regular intervals, crews had to stop drilling so that they could sharpen the bit and remove the "cuttings" from the hole. Using such methods, a well that in the 1990s can reach total depth in a few weeks could have taken years to complete in the 1920s. The 1921 Western Empire well, for example, was still being drilled in 1925! It was in that year that the Summit County Bee insisted, "There is an oil field here, and Coalville will one day soon become the center NATURE'S BURIED TREASURES: MINING AND OIL DEVELOPMENT 291 of activities."26 True, there was oil near Coalville, but at much greater depths than the typical cable-tool rig could reach. Many of these early drillers gave up when they reached 3,000 or 4,000 feet without success. Only major improvements in exploration and drilling technology could take the oil companies where they ultimately needed to go. In the spring of 1965, Phillips Petroleum Company announced plans to drill a well in eastern Summit County, on the north slope of the Uinta Mountains about two miles south of the Wyoming state line. Its target was the Dakota Sandstone formation, about 14,000 feet below the surface. The following lanuary, Summit County heard the news it had been anticipating for decades. Oil! The new Phillips well-nearly three miles deep-was producing about 2,500 barrels a day. This was the deepest producing well ever drilled in Utah.27 On 3 March 1966, the Summit County Bee ran a photograph of a group of local officials lined up in front of a storage tank at the new well. The group included state senator John Lambert, Summit County Commissioners Archie Pace and Carlos Porter, Summit County Attorney Eugene Hansen, Summit County Assessor G. Allen lones, South Summit School Superintendent Keith Bailey, and deputy sheriff Leon Wilde. "The new oil field is expected to have a great impact upon the county's economy," the newspaper said in yet another burst of optimism.28 Calling a single producing well a field was a leap of faith. But, as it turned out, that faith was justified. Phillips completed a second well later in 1966 and three more in 1967. The field, in what is now the Wasatch-Cache National Forest, became known as the Bridger Lake field. Petroleum engineers have learned that allowing the pressure to drop too quickly in an oil reservoir can result in the loss of valuable reserves, so they have developed a number of techniques for keeping pressures high. One of those is to take natural gas that is produced with the oil and reinject it into the reservoir. Often, they supplement this with gas bought from other sources. This was the technique Phillips Petroleum used to extend the life of the Bridger Lake field. In 1969, Mountain Fuel Supply Company built a twenty-seven-mile pipeline to Bridger Lake from its main transmission line in Wyoming, and Phillips began injecting gas into the reservoir.29 292 HISTORY OF SUMMIT COUNTY By the end of 1971, the Bridger Lake field had yielded about 5.3 million barrels of oil from nine producing wells.30 However, production had already peaked and was beginning a slow decline. After that brief flurry of interest in the late 1960s, most oil companies packed up and moved on. But by the early 1970s a separate oil and gas province, about forty-five miles west of Bridger Lake, had caught the attention of the oil companies. Geologists call this area the Overthrust Belt. About 150 million years ago, they say, two of the earth's geologic plates came together in a grinding collision, creating a series of faults running from Central America to Alaska. The turmoil also created traps for oil and gas. In 1971, Occidental Petroleum Company went looking for one of these traps on the Alan lones ranch near Upton. "Many other big oil companies are said to be watching the local project with intense interest," the Summit County Bee reported on 6 January 1972. "An oil strike in the area would mean a real boom for Coalville." Occidental didn't find oil in commercial quantities, but tests from the well were encouraging enough to spark further exploration. By early 1974, American Quasar Petroleum Company and two partners, Energetics Incorporated and North Central Oil Company, had started drilling about twelve miles east of Coalville, not far from the Occidental well. A week before Christmas in 1974, there were unconfirmed reports of oil flowing from the well. A week later, the reports were verified. The companies had found oil and gas in the No. 1 Newton Sheep Company well at about 9,930 feet. The well was completed early in 1975 and began producing about 500 barrels of oil a day.31 In lune 1975, state officials reported that American Quasar had found oil in a second well less than a mile away. Within the next year, two more producing wells were drilled in what had become known as the Pineview field. In October 1978, the Salt Lake Tribune reported there were twenty Pineview wells producing from two different oil-bearing formations. By the end of 1979, Pineview had produced almost 11.5 million barrels of oil and 12 billion cubic feet of natural gas.32 At the time of the Pineview discovery, the Arab oil embargo and the U.S. energy crisis had generated intense interest in finding new domestic oil reserves. It is little wonder, then, that in the late 1970s NATURE'S BURIED TREASURES: MINING AND OIL DEVELOPMENT 293 exploration crews swarmed over the Overthrust Belt in Utah and Wyoming looking for new Pineviews. In Summit County, drilling rigs found oil and gas at Elkhorn Ridge and Lodgepole in 1977 and at Anschutz Ranch in 1978. However, among the Utah discoveries, Pineview remained the most prolific. "All of these appear to be of much more modest size than Pineview, although the Anschutz Ranch discovery to the north still remains to be defined as to size," a state official said in December 1979. "[As of] the middle of 1979, three of the fields-the Anschutz Ranch, Elkhorn Ridge and South Lodgepole fields-have not achieved production beyond initial test."33 Ironically, at the same time that those words appeared in print, Amoco was less than a week away from completing the first well in a new oil and gas field that would eclipse all previous Overthrust discoveries. The well was the No. 1 Bountiful Livestock Well, drilled at a cost of some $7 million about twenty miles northeast of Coalville. The field was Anschutz Ranch East, straddling the Utah-Wyoming state line. It soon became clear to Amoco engineers that they had found something special. During tests, the Bountiful Livestock well flowed at rates as high as 7.5 million cubic feet of gas and 1,500 barrels of oil a day. By the spring of 1981, the completion of three other wells- including one in Uinta County, Wyoming-led Amoco to conclude that the new field contained "the energy equivalent of 800 million to 1.2 billion barrels of oil."34 In the jargon of the oil industry, any field with reserves of 100 million barrels or more is called a "giant." Anschutz Ranch East certainly qualified. Around the country, people took notice. "This field is a giant among giants," David Work, a regional exploration manager for Amoco, told the New York Times in August 1981. "It's the biggest thing in the United States since Prudhoe Bay [Alaska] ."35 Contributing to the euphoria-within the oil and gas industry, at least-was the inflated price that oil was fetching on the world market. A barrel that had sold for less than three dollars before the 1973 Arab embargo was commanding as much as forty dollars in 1981.36 Exploration in the United States also received a boost from President Jimmy Carter's 1979 decision to phase out price controls 294 HISTORY OF SUMMIT COUNTY on domestic oil by September 1981, a timetable accelerated by his successor in the White House, Ronald Reagan. By August 1981, six successful wells had been completed in the Anschutz Ranch East field-three by Amoco, three by Anschutz. A seventh well was being completed and ten others were in various stages of drilling. According to some predictions, there would be eighty producing wells by 1983. "It's going to be at least 1985 before this field is really blowing and going," David Work told the New York Times.37 By l a n u a r y 1981, oil and gas companies had spent more t h a n $1 billion on exploration and production, discovered sixteen oil and gas fields and built three gas-processing plants.38 In lanuary 1982, thirty-seven different companies were o p e r a t i n g a total of n i n e t y - t h r ee drilling rigs along t h e Overthrust Belt.39 By t h e end of 1982, three more fields h a d been discovered in Summit County: Cave Creek (1980), Pineview N o r t h (1982), and Aagard Ranch (1982).40 The Overthrust discoveries had an enormous impact on both sides of t h e Utah-Wyoming state line. The Overthrust Industrial Association, which represented most of the oil companies working in the area, estimated that the b o om created about 9,700 jobs. In the center of the s t o rm was Evanston, which grew in population from 4,000 to about 7,000 in ten years, according to Evanston city manager Stephen Snyder.41 The changes were less d r a m a t i c in Summit County, but there were changes nonetheless. A 1983 social impact study asked 125 residents of the N o r t h Summit (Coalville) area whether they though their area had been affected by the energy development in Utah. O n a scale of 1 to 5, where 1 represented little effect and 5 represented a great effect, the average (mean) response was 3.8. The study found that, among other things: Businesses have flourished; new businesses have been established; jobs are more plentiful for young residents so they do not have to leave the North Summit Valley for employment elsewhere; education has benefited by the building of a new high school, a new high school auditorium, a new grade school, and soon, possibly, a new middle school; new people have influenced the cultural base of the city; and residents have been exposed to new and different societal NATURE'S BURIED TREASURES: MINING AND OIL DEVELOPMENT 295 ideas. Some residents see some negatives of the boom period: there were too many transient workers and residents; safety became a measure of concern-they could no longer allow their children to walk home late at night from a movie, party, school or church event; social influences were present which were not always accepted or condoned; and they found it difficult to not be able to know everyone in town when they walked down the street.42 At the height of the boom in 1984, exploration and production companies paid 419 local residents about $10.8 million to work in the oil and gas fields.43 Perhaps the most dramatic impact was on the county's tax base. In 1985, for example, oil- and gas-producing properties in Summit County were valued at almost $2.1 billion, which represented almost 65 percent of the value of all taxable property in the county. Local taxing districts reaped a windfall. In South Summit School District, oil and gas properties paid almost 92 percent of all district taxes in both 1985 and 1986; in North Summit School District, they paid 66 percent in 1983 and about 62.5 percent in 1984. In Summit County, they paid almost 65 percent in 1985 and 62 percent in 1986.44 But with every boom comes a bust, and the oil fields of the Overthrust Belt were no exception. In 1986, the bottom fell out of the oil market. That summer, the price of a barrel of some grades of crude oil dropped below ten dollars.45 Not long after, the oil companies packed up their drilling rigs and moved away in droves. In 1989, only three new wells were drilled in Summit County; all of them were dry. The number of county residents working in exploration and production had dwindled to seventy-nine, and the total payroll was about a quarter of what it had been five years earlier. In 1990 there were only two new wells. Both were dry holes.46 With no new wells to offset declines in existing fields, production began to drop. The output from Summit County's oil fields peaked at about 16.66 million barrels in 1986. Five years later, it had dropped below 6.5 million; by 1996 it had slid to about 3.1 million barrels.47 For Summit County property owners, who had grown accustomed to tax rates lower than those of almost any other Utah county, the loss of oil revenues was a rude shock. Between 1988 and 1989, the assessed values of oil and gas properties dropped by almost half- 296 HISTORY OF SUMMIT COUNTY from about $1.4 billion to $733 million.48 To compensate, county commissioners hiked tax rates by about a third.49 Then, in 1992, Utah's oil-producing counties-including Summit County-took another hit when the petroleum industry lobbied the UtahTax Commission to change the method it used to value oil and gas properties. That change alone cost the county about 15 percent of its annual revenues.50 By 1995, oil and gas properties were paying less than half the property tax collected by the South Summit School District and only about 11.5 percent of the tax collected by the county.51 Although the bloom appears to be off the rose, industry experts say a large amount of oil and gas still lies within the Overthrust Belt. New technology may make the difference in its retrieval. In 1994, Union Pacific Resources Company attracted industry attention with a well in the Elkhorn Ridge field that produced about six times as much oil as did surrounding wells. The difference? Union Pacific was using a technique known as horizontal drilling in which the drill bit is designed to move sideways through the producing formation. Large expanses of the Overthrust Belt remain to be explored. At the same time, technology keeps improving. Besides innovations in drilling methods, the cost of sophisticated exploration tools such as three-dimensional seismic surveys is steadily dropping. Should oil prices rise again, the drilling rigs may well return. The Park City Mines On the other side of the county, the story lay in silver. In its particulars, the history of silver mining differs from that of coal and oil; but, in many ways, it's the same story. This narrative began in the early 1860s with the discovery of precious metals in the mountains near Salt Lake City. General Patrick Connor, the commanding officer of federal troops stationed at Fort Douglas east of the city, quickly recognized an opportunity to dilute the Mormon majority in Utah with a flood of gentiles, or non- Mormons. To publicize the discoveries, he founded a daily newspaper, the Union Vedette, and he encouraged his troops to prospect for mineral wealth. Before long, troops had found deposits of silver ore in Little Cottonwood Canyon and in the Oquirrh Mountains west of NATURE'S BURIED TREASURES: MINING AND OIL DEVELOPMENT 297 Salt Lake City.52 General Connor was discharged from the U.S. Army in 1866, but prospectors continued to swarm over the territory's mountains in search of precious metals. Exactly who made the first discovery in the Park City area, and when that discovery was made, are questions that have never been settled. According to one story, the honor goes to three soldiers who found an outcropping of ore on a windswept ridge overlooking Bonanza Flats in the fall of 1868.53 Another version indicates that the first discovery was made by prospectors Rufus Walker and Ephraim Hanks in 1869.54 Whatever the date, it's clear that production had begun in the area by the early 1870s. In 1871 the Flagstaff Mine made its camp's first shipment, forty tons of galena ore, shipped by wagon to Echo City. Soon, ore was traveling from other claims to processing mills in Ogden, Salt Lake City, Rush Valley (near Tooele), and elsewhere. A year later, a group of prospectors made the discovery that would become the fabled Ontario Mine. They sold their claim to California investors George Hearst and J.B. Haggin for $27,000. The mine would produce $50 million in rare mineral wealth and $15 million in dividends to its stockholders. During its heyday, the Ontario was considered by some to be the greatest silver mine in the world. By the 1880s, dozens of mines were active in the Park City Mining District. Mining momentum was so strong in Park City that most companies survived the drop in silver prices in 1883. The Crescent Company, founded in 1882, struck it rich immediately. Among the other major producers founded in the 1880s were the Daly Mining Company and the Anchor Mining Company (later known as the Daly-judge), both of which developed ore bodies in Empire Canyon west of the Ontario Mine.55 Even the more significant national financial panic of 1893 had only a limited impact on Park City mines. That it passed through the crisis of 1893 with only two small failures is "ample evidence of the solid basis upon which the town's business interests rests," the Park Record concluded.56 Most of the major producers, such as the Ontario, Anchor, and Daly mines, continued to make millions of dollars during the 1890s; they were assisted by new drilling equipment that allowed them to penetrate ever deeper into the rich lodes of sil- 298 HISTORY OF SUMMIT COUNTY The upper end of Park City in the early 1900s showing the Ontario mill (upper left) and a huge waste dump where a number of houses now stand. (Utah State Historical Society) ver, gold, and other rare metals. During this decade, the Woodside, Bonanza, Mayflower, Silver King a n d Daly-West mines became prominent and made wealthy men of David Keith, Thomas Kearns, l o h n Daly, l o h n Judge, R.C. Chambers, D.C. McLaughlin, Albion Emery, the Ferry brothers, Ezra Thompson, and others. The Daly-West Mine, i n c o r p o r a t e d in 1892, soon hit new ore bodies and passed the $1 million income mark five years later. By 1900 it h a d distributed $1 million in dividends, a n d by 1905 it was paying out $100,000 per month. The mining industry had a powerful impact on Utah's economy, particularly in the years before statehood. In 1882, for example, mineral p r o d u c t s accounted for about 78 percent of t h e state's total exports.57 By t h e early 1960s, t h e major Park City mines h a d produced about 250 million ounces of silver, 900,000 ounces of gold, 1.3 million tons of lead, and 600,000 tons of zinc-with a total value of almost $500 million.58 Ironically, many of the officers and directors of the major mines chose to live not in Park City but in Salt Lake City, where they used their extraordinary wealth to build many monumental architectural NATURE'S BURIED TREASURES: MINING AND OIL DEVELOPMENT 299 The kitchen of a mine boarding house, Park City. (Utah State Historical Society) structures. Elegant buildings named after Daly, Judge, Kearns, and Keith are still standing in downtown Salt Lake City today. Thomas Kearns was elected to the U.S. Senate by the state legislature in lanuary 1901 and bought the Salt Lake Tribune later that year.59 The Kearns mansion on South Temple Street was later donated to the state and now serves as the governor's official residence. The widow of John Judge funded the construction of Judge Memorial Hospital, which later became a school. New mines joined the old ones during the first decade of the twentieth century, including a profitable gold operation opened by the American Flag Company. Along with a handful of substantial mines, hundreds of smaller mines came and went until the national panic of 1907 slowed the fervor. The Kimberly, Utah's leading gold camp and an operation that had relied on scrip, was one of the casualties. But the mines faced more than economic difficulties during this time. Groundwater problems, cave-ins, increasing numbers of 300 HISTORY OF SUMMIT COUNTY lawsuits, rising taxes and levies, and the physical deterioration of older mines also contributed to a slowdown of mining activity. Still, the better managed and financed companies remained strong and kept the industry healthy. By 1912 the Silver King Mine had equalled the world-famous Ontario Mine, each having distributed dividends of $14 million. The Park Utah Mining Company, created in 1917, reached new ore bodies via the Ontario No. 2 (Keetley) mine tunnel. By 1923, the Park Utah Mine had become the leading silver producer in the Park City district, yielding more than three million ounces a year.60 That year, the Union Pacific built a 5.3-mile spur from Richardson Flat to Keetley to serve the new mine.61 Some mines stayed healthy by merging with, or buying out, weaker competitors. In 1922, George Lambourne and several associates formed the Park City Mining and Smelting Company by merging the Daly, Daly-West, and Daly-Iudge mines. By 1925, Lambourne's group had merged the Park City Mining and Smelting Company with the Park Utah and the Ontario Silver Mining Company, forming the Park Utah Consolidated Mining Company.62 The venture met with instant results-the discovery of a "monstrous" ore body. By 1928 the Park Utah company was said to be the largest single silver producer in the United States.63 However, shortly after World War I, the Park City mines went through a period of serious labor unrest. Inflation, triggered by the war, was felt throughout Park City well into 1919. The mines attempted to control the soaring cost of operations by cutting wages by 75 cents a day. In May 1919, the workers rebelled. Some 800 to 900 miners and mill workers walked off the job, an action that, according to the Salt Lake Tribune, forced the first complete shutdown of the Park City mines in 50 years.64 Among other demands, the men wanted a six-hour work day and a pay raise from $4.50 to $5.50 per day. The Park Record lamented the situation: Every mine and mill in Park City District is idle, and one property, the famous old Ontario, that since its dewatering more than four years ago, has produced many thousands of pounds of ore every week, and given employment to scores of men, has been put out of commission perhaps for all time, because of the strikers edict to NATURE'S BURIED TREASURES: MINING AND OIL DEVELOPMENT 301 call out the pumpmen and the consequent flooding of the expensive lower workings of the property.65 Mine owners blamed the strike on the Industrial Workers of the World (IWW), an offshoot of t h e Western Federation of Miners, which one a u t h o r described as t h e "wrecking crew" of t h e labor movement.66 I WW members, who were known as "Wobblies," advocated the overthrow of capitalism and s u p p o r t e d the Russian Revolution and other communist causes. The owners refused to negotiate, saying this radical element did not represent the working miners. However, using their own spies, they carefully monitored the debate between I WW members and less radical miners, many of w h om were married and could ill afford to stay out of work for long. Between 27 May and 6 August 1919, the Silver King Consolidated Mining Company received a series of reports, w r i t t e n by someone identified only as "Opr. #240," which carefully d o c u m e n t e d the movements of t h e strikers. Opr. #240 clearly h a d the confidence of the strike organizers, as this report from 14 June indicates: At the union hall during the afternoon Opr. heard no less than fifteen men complaining about the strike committee not trying to settle the trouble, and they all said that it was better to give up and go back to work, then get all of the underground men lined up in the Western Federation, elect a fair committee from each of the different mines, and then ask for the 75 cents, eight hours collar to collar, and give the mine owners at least ten days to grant the demands. This talk is very well liked by the married men and a good many of the less radical miners in the camp, but it is hated by all radicals and there are quite a number of these left, altho it is very plain to be seen that they are leaving town very rapidly in the past week.67 After about six weeks, t h e strike collapsed. In late June, the miners voted by a margin of about two to one to r e t u r n to work, and the mines gradually began to resume operations.68 However, the strike had forced many miners to look for work elsewhere, aggravating the 302 HISTORY OF SUMMIT COUNTY local labor shortage. In an effort to attract qualified miners and mill workers, t h e Park City mines raised daily wages by 75 cents.69 The Great Depression crippled but didn't entirely kill mining activities in Park City. Just prior to the stock market crash of 1929, stocks in the city's major mines had the following per share values: Silver King: $12.87; Park Utah: $6.40; Park Con: $2.00; a n d New Quincy: $2.50. A year later, t h e same stocks were worth only $6.50, $1.50, $0.27, a n d 7 cents, respectively. Declining metal prices were largely responsible for the drop in prices. In order to survive, mining companies laid off workers, increased hours, and/or lowered wages. James Ivers, who started working in the Silver King about 1932, said t h e company's decision to c o n t i n u e to provide jobs d u r i n g the Depression cost the company dearly later on: The Silver King announced that they would try to keep open if they could. But to do so, they had to ask the people to take a pretty heavy reduction in wages. And as they explained it, "If we close down, you've got no choice for a job but to move on. If we can stay open, even though the wages are minimal, you at least have a choice. You can move on, or you can stay and take the minimal wages." And that decision was [General Manager] Mike Dailey's. And they mined out an awful lot of good ore during that period of time. That was the beginning of the end of Park City because, had they kept that ore, two years later it would have meant millions of dollars difference in what they got for it. But that ore was taken out expressly to keep the mine vital and to keep the people there that needed jobs.70 In July 1933, at the depth of the Depression, the International Union of Mine, Mill and Smelter Workers (formerly the Western Federation of Miners) organized a new local in Park City. Coming at a time of depressed wages, t h e local's militant posture attracted a large following. By November 1935 the u n i o n had 605 members in Park City and another 871 in other Utah locals.71 A year later, the union flexed its muscles, asking for a wage increase of 50 cents a day and d e m a n d i n g t h a t miners be p a i d "collar to collar"-in other words, t h a t t h e y be c o m p e n s a t e d for the t i m e spent traveling to their work locations inside t h e mines. The negotiations involved not only Park City, b u t also the Tintic, Tooele, Lark, and Bingham NATURE'S BURIED TREASURES: MINING AND OIL DEVELOPMENT 303 This building dominated the Park City skyline for 80 years. Built on Park Avenue in 1901 to transfer ore from the Silver King Mine's aerial tramway to waiting railroad cars, it served the mine for about half a century. The abandoned building burned in 1981. (Park City Historical Society 8c Museum, Pop lenks collection) mining districts. Negotiations reached an impasse and, at midnight on 9 O c t o b e r 1936, t h e u n i o n called a s t a t e w i d e strike. "Mines which produced $20,000,000 in 1935 are shut down and producing nothing. The entire payroll of Park City, t h e greatest silver-lead dis- 304 HISTORY OF SUMMIT COUNTY The Silver King and the Ontario mines were Park City's two biggest producers of silver, lead, and zinc ores. The rusting remnants of the Silver King mill (pictured here about 1935) are still visible on the slopes of Park City Mountain Resort. (Park City Historical Society 8c Museum, Pop lenks collection) trict in the nation, is shut off by the strike," lamented the Deseret News.72 A m o n t h later, t h e five m i n i n g companies hit by t h e strike, including two from Park City, offered returning workers a raise of 25 cents a day. Miners and smelter workers in other districts voted to call off the strike, but Park City miners voted to stay out. On 12 December 1936, after u n i o n members had rejected another offer, mine owners t r i e d to break the strike using "valley men," n o n u n i o n miners from neighboring towns such as Heber in Wasatch County. That afternoon, an automobile convoy carrying about 125 strikebreakers was spotted heading into town. According to one report: Union pickets massed at the foot of Main street and Park avenue. Sheriff [Ephraim] Adamson and his deputies met the car- NATURE'S BURIED TREASURES: MINING AND OIL DEVELOPMENT 305 avan. The sheriff assertedly stopped the caravan before it entered the city and searched the Heber City volunteers for weapons before allowing them to proceed. After determining there were no arms in the group, he allowed the machines to proceed. The caravan proceeded up the hill leading to Main street, when it was abruptly confronted by some 400 union pickets, massed tightly in the narrow street. The first automobile was unable to pass. The caravan was stopped. Immediately the mass of pickets closed in from both sides. Nonunion men were snatched from the machines and the two first cars were overturned by the pickets. Other caravan members alighted from the cars, to be met with the flying fists of the union men, and to suffer bruised and bleeding heads and faces. The battle raged in the street for 10 or 15 minutes, then apparently ceased of its own volition. By this time, Sheriff Adamson had arrived, but attempts to stop the struggle were futile. The pitched battle renewed and women lined along the outskirts shouted encouragement to the fighting union men, imprecations to the Wasatch county contingent. Minor encounters were noted along the fringes of the pitched battle, which centered around the caravan. After 40 minutes of fighting, the volunteer workers were beaten and staggered down the hill.73 Ironically, Sheriff Ephraim Adamson, the peacemaker in 1936, had been one of the organizers of the strike of 1919. In the wake of that showdown, Utah Governor Henry H. Blood held separate closed sessions with mine operators and union officials. His efforts apparently paid off-by the following week, the miners had agreed to return to work.74 Although World War II dramatically increased the demand for metals, Park City's mines actually suffered. The war siphoned off many of the mines' skilled workers, and p r o d u c t i o n couldn't keep pace with its prewar levels. Government restrictions also prevented the mines from spending money to explore for new ore deposits. In the decade following the war, the economic picture in Park City was in stark contrast to that in most of the country. Thanks to recurring labor disputes and falling prices for lead and zinc, the area's major mines were operating well below capacity, if they operated at all. In 306 HISTORY OF SUMMIT COUNTY Ephraim Adamson, an organizer of the Park City strike of 1919, later became sheriff and was charged with keeping the peace during the strike of 1936. Here, Adamson (right) stands in front of the Park City sheriffs office, 509 Main St., about 1933. At left is Deputy Sam Billings. (Park City Historical Society 8c Museum, Pop lenks collection) mid-1952, Park Utah Consolidated Mines Company, which included the venerable Ontario Mine, shut down entirely. In March 1954, Summit County Commissioners Archie Pace, Ernest Chappell, a n d David W. Loertscher wrote a l o n g letter to Utah's representatives in Congress pleading for aid in reviving the town's crippled mining industry: As you undoubtedly know, the Park City mines have not operated since approximately the middle of 1952. . . . The mine payrolls constituted the community's only source of income. Since these payrolls have been cut off, the town has been rapidly going down hill in population, school enrollment, business enterprises and financial solvency until the town has become a liability to the county instead of an asset. . . . In 1953, over 200 properties have been sold to the county for NATURE'S BURIED TREASURES: MINING AND OIL DEVELOPMENT 307 taxes. Many of these properties are homes on which, because of the closing of the mines and no income, the owners have been unable to pay taxes. Many of these homes are vacant and rapidly going to ruin. Others are being lived in but the occupants pay no rent. Naturally none of these properties contribute toward the county's tax burden.75 The letter cited statistics showing that Park City's population had dropped from 4,281 in 1930 to about 2,000 in 1953, and that enrollment in the schools had dropped from 1,052 in 1941-42 to 449 in 1953-54. The commissioners urged Utah's representatives to work to protect domestic mines from low-cost foreign metals and to call in government mediators to help settle the two-year-old strike in the Park City mines. However, despite the efforts of Utah legislators, the federal government did little to save Park City's faltering mines. In August 1954, President Dwight Eisenhower dashed the hopes of many miners and mine owners by refusing to increase the tariffs on imports of lead and zinc.76 By the late 1950s, fewer than two hundred men worked in the local mines, hundreds of houses and businesses were deserted, and the mining era had apparently ended. Guidebooks began to list Park City as a "ghost town," and the city's future seemed dim.77 However, some still thought the Park City District contained fortunes in unmined mineral wealth. The 1953 merger of two major mining companies-Park Utah Consolidated Mines Company and Silver King Coalition Mines Company-to form United Park City Mines Company triggered new optimism in Park City.78 In the 1960s, uranium millionaire Charles Steen from Grand County became president of the New Park Company; however, his relative unfamiliarity with silver-mining procedures resulted in poor management and the closure of one of the district's longest operating mines. During its ninety years, the New Park Mine (earlier the Glen Allen) had produced as much as $100 million worth of precious metals. Following its last gasp, the mine's surface rights were sold, including the slopes of 10,000-foot-high Bald Mountain and McHenry Canyon, sites ripe for future ski resort development. In 1970, two major shareholders in United Park City Mines, the 308 HISTORY OF SUMMIT COUNTY Anaconda Copper Company and the American Smelting and Refining Company (ASARCO), formed Park City Ventures to lease all of the Park City company's mining operations. Park City Ventures spent $17 million on a new mill at the Ontario Mine, invested millions more to upgrade the mine's underground workings, and hired more than 300 employees, many from neighboring towns such as Heber and Kamas. Production resumed in the spring of 1975. Park City Ventures was unable to recoup its investment, however, and abruptly closed the mine in February 1978.79 Noranda Mining Company of Canada took over the mine in 1979, invested additional capital, re-employed the miners, and resumed production in the fall of 1980. But Noranda was no more successful than its predecessor. By the spring of 1982, the mine was at a virtual standstill.80 For another thirteen years, United Park City Mines kept a maintenance crew at the Ontario Mine, looking to the day when the tunnels could be reopened. That day came in the fall of 1995-when the Ontario Mine was opened to tourists! Today, the Park City Silver Mine Adventure gives visitors a taste of the mining era with a series of carefully crafted exhibits; it then takes them 1,500 feet underground for a tour of some of the old mine workings. Many of the tour guides are intimately familiar with the subject, having themselves once worked in the Ontario as miners and muckers. Park City's reputation as a mining center has long been replaced by its new identity as a destination resort. The last major mining structure in the city limits-the Silver King Coalition Building-was accidently burned to the ground in luly 1981. On the outskirts of town and up the nearby canyons, a few lonely mining structures remain to remind the curious of a time when the district's mines produced twenty-three millionaires and immense mineral wealth. ENDNOTES 1. Coalville Centennial Souvenir, 11-13. 2. Leonard J. Arrington, "Utah's Coal Road in the Age of Unregulated Competition," Utah Historical Quarterly 23 (Winter 1955): 38; Arrington, Great Basin Kingdom, 275, 276. 3. H.H. Doelling and R.L. Graham, "Eastern and Northern Utah Coal NATURE'S BURIED TREASURES: MINING AND OIL DEVELOPMENT 309 Fields," Utah Geological and Mineralogical Survey, Monograph Series No. 2, 1972. 4. Coalville Times, 4 February 1910, 20 October 1911. 5. Park Record, 28 lanuary 1893, 4 February 1893, 5 August 1893, 9 September 1893, 18 November 1893, 25 November 1893, 9 December 1893, and 16 December 1893. 6. Salt Lake Herald, 3 March 1876. 7. Coalville Times, 30 March 1906. 8. Union Pacific Coal Company, History of the Union Pacific Coal Mines, 1868 to 1940 (Omaha: Colonial Press, 1940), 102; Craig Storti, Incident at Bitter Creek, The Story of the Rock Springs Chinese Massacre (Ames: Iowa State University Press, 1991), 130. 9. Coalville Times, 7 February 1896. 10. Coalville Times, 1 November 1907, 29 November 1907. 11. 1910 Census of the United States, Utah State Archives. 12. Park Record, 26 August 1921. 13. Interstate Commerce Commission Reports, vol. 189, p. 195; testimony was taken in Salt Lake City by the Public Utilities Commission of Utah. See also "Proceedings before the Interstate Commerce Commission," 16 November 1932. 14. Case 2381, Utah Public Utilities Commission, 15 lune 1940; Morgan County News, 14 lune 1940. 15. See Coalville Centennial Souvenir. 16. Summit County Bee, 18 May 1972. 17. F.R. lahanbani, 1995 Annual Review and Forecast of Utah Coal Production and Distribution (Salt Lake City: Office of Energy and Resource Planning, State of Utah Natural Resources, 1996), xvi. 18. Park Record, 1 April 1921. 19. William Clayton, fournal (Salt Lake City: Deseret News, 1921), 289. 20. Walter R. lones, "A History of the Oil Fields of Evanston, Wyoming: Patterns Involved in the Development of an Oil Province in the Rocky Mountain West" (Master's thesis, University of Utah, 1988), 21-27. 21. Salt Lake Tribune, 3 November 1901. 22. Salt Lake Tribune, 1 December 1901. 23. Walter R. lones, "A History of the Oil Fields," 85. 24. Park Record, 26 August 1921, 19 lanuary 1923, 7 lune 1935, 15 September 1938; Summit County Bee, 17 October 1924, 17 luly 1925, 6 lune 1957, 11 lune 1959; Salt Lake Tribune, 12 lune 1938. 25. Amoco Production Company, undated report on the Anschutz 310 HISTORY OF SUMMIT COUNTY Ranch East project, copy in the field files, Utah Department of Natural Resources, Division of Oil, Gas and Mining, Salt Lake City. 26. Summit County Bee, 17 luly 1925. 27. Salt Lake Tribune, 5 lanuary 1966, 15 lanuary 1966. 28. Summit County Bee, 3 March 1966. 29. Salt Lake Tribune, 9 November 1969. 30. P.R. Peterson, "Bridger Lake Field," Oil and Gas Field Studies No. 5, Utah Geological and Mineralogical Survey, 1973. 31. Salt Lake Tribune, 20 December 1974, 26 December 1974. 32. Salt Lake Tribune, 8 lune 1975, 26 October 1978; M. Lee Allison, editor, Energy and Mineral Resources of Utah, 1990 Guidebook (Salt Lake City: Utah Geological Association, 1990), 11. 33. Deseret News, 26 December 1979. 34. Salt Lake Tribune, 10 April 1981. 35. New York Times Magazine, 30 August 1981. 36. Oil & Gas fournal Newsletter, 10 August 1981. 37. New York Times Magazine, 30 August 1981. 38. "Utah's Thrust Belt: Exploration, Development and Economic Impacts," Utah Economic and Business Review 41 (lanuary 1981): 1. 39. "Production Statistics," Overthrust News A (March 1982): 12. 40. Allison, Energy and Mineral Resources, 1. 41. "Total Oil and Gas Employment is At or Near its Peak," Overthrust News 5 (lune 1982): 4; Salt Lake Tribune, 2 March 1980. 42. Lou Ann B. lorgensen, "Rural Population Impact Study, Community Model, North Summit Communities, Summit County, Utah," University of Utah, 1983. 43. Utah lob Service, Employment and Wages in Summit County, Oil and Gas Extraction, 1980-90, Utah Department of Employment Security, Salt Lake City. 44. See Taxable Values papers, Summit County Auditor's Office. The glaring exception was Park City School District, where oil and gas properties never represented more than 10 percent of total taxable values. 45. Oil & Gas fournal Newsletter, 28 luly 1986. 46. Thomas C. Chidsey, Ir., Craig D. Morgan, and Michael D. Laine, "Oil and Gas Drilling in Utah, 1990," Circular 86, Utah Geological Survey, Utah Department of Natural Resources, 1994. 47. See Oil and Gas Production Reports, 1986, 1991, 1996, Division of Oil, Gas and Mining, Utah Department of Natural Resources. By the end of NATURE'S BURIED TREASURES: MINING AND OIL DEVELOPMENT 311 1996, Summit County wells had produced more than 166 million barrels of oil. 48. See Taxable Values papers, Summit County Auditor's Office. 49. Deseret News, 24 lune 1989. 50. Deseret News, 7 August 1992. 51. See Taxable Values papers, Summit County Auditor's Office. 52. Leonard ]. Arrington, "Abundance from the Earth: The Beginnings of Commercial Mining in Utah," Utah Historical Quarterly 31 (Summer 1963): 192-205. 53. Thompson and Buck, Treasure Mountain Home, 6. 54. Arrington, "Abundance From the Earth," 212. 55. EA Hewitt, "History and Development of Park City District, Utah," Bulletin of the Mineralogical Society of Utah 8, (1956): 12; Thompson and Buck, Treasure Mountain Home, 57. 56. Park Record, 24 October 1896. Most of the front page of this issue is devoted to a history of the first quarter-century of mining in Park City. It also includes a detailed description of the building of the Ontario No. 2 drain tunnel to Keetley. 57. Thomas G. Alexander and lames B. Allen, Mormons and Gentiles: A History of Salt Lake City (Boulder: Pruett Publishing Company, 1984), 90. 58. Marvin P. Barnes and lohn G. Simos, "Ore Deposits of the Park City District with a Contribution on the Mayflower Lode," Ore Deposits of the United States, 1933-1967 (New York: American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc., 1968), 1104; Richard W. Sadler, "The Impact of Mining on Salt Lake City," Utah Historical Quarterly 47 (Summer 1979): 248. There are some differences in the numbers used in these two studies, perhaps because they are reporting on slightly different periods. 59. Kent Sheldon Larsen, "The Life of Thomas Kearns," (Master's thesis, University of Utah, 1964), 69-70. 60. Salt Lake Tribune, 1 lune 1923. 61. Park Record, 1 lune 1923, 7 September 1923, 23 November 1923. 62. Park Record, 21 December 1923, 28 December 1923; Summit County Bee, 29 May 1925. 63. Thompson and Buck, Treasure Mountain Home, 158. 64. Salt Lake Tribune, 7 May 1919. 65. Park Record, 9 May 1919. 66. lohn Ervin Brinely, Ir., "The Western Federation of Miners," (Ph.D. dissertation, University of Utah, 1972), 172. 312 HISTORY OF SUMMIT COUNTY 67. Mike Ivers Papers, Special Collections, MS 370, Marriott Library, University of Utah. 68. Salt Lake Tribune, 22 lune 1919. 69. Park Record, 18 luly 1919. 70. lames Ivers, interview with David Hampshire, 13 September 1997, transcript in possession of the author. Ivers was the third generation of his family with ties to the Silver King Mine. In the 1890s, his grandfather, lames Ivers, had the contract to haul ore from the mine with horse-drawn wagons, and later served on the mining company's board of directors. His father, also named lames, succeeded Mike Dailey as the general manager of the Silver King in the late 1930s. The third lames Ivers held several positions at the Silver King during the 1930s and 1940s, including that of chief engineer. He left in 1950 to join a mining company in northern Michigan but returned in 1963 as president of United Park City Mines. 71. Sheelwant Bapurao Pawar, "An Environmental Study of the Development of the Utah Labor Movement" (Ph.D. dissertation, University of Utah, 1968), 433-35. 72. Thompson and Buck, Treasure Mountain Home, 181. 73. Salt Lake Tribune, 13 December 1936. 74. Park Record, 17 December 1936. 75. Summit County Board of Commissioners, Minutes, 8 March 1954; Summit County Bee, 25 March 1954. 76. Salt Lake Tribune, 2 August 1950, 2 August 1951, 11 March 1953, 25 August 1953, 17 December 1953, 21 August 1954, 21 September 1954. 77. Stephen L. Carr, The Historical Guide to Utah Ghost Towns (Salt Lake City: Western Epics, 1972), 53-54. 78. Salt Lake Tribune, 10 May 1953. 79. The (Park City) Newspaper, 18 lanuary 1978; Park Record, 19 lanuary 1978; Raye C. Ringholz, Diggings and Doings in Park City (Park City: Ringholz, 1990), 32-34. 80. The Newspaper, 23 August 1979, 11 September 1980, 28 May 1981, 4 February 1982, 11 March 1982. |