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I was informed that the pig iron produced is phosphoric- i.e., above tho Bessemer standard in phosphorus —but that the excessive titanium contained in the ironsand was greatly eliminated in the furnace. Tho operation being of an experimental nature, further information regarding the quality and analysis of the pig iron was not obtainable by me upon application to Mr. Hesfceth, jun. For the encouragement of the manufacture in New Zoaland of iron and steel the Iron and Steel Industries Act, 1914, has been passed. In this statute provision has been made for the payment of bounties at the rate of 12s. per ton on pig iron, and £1 4s. per ton on puddled bar iron and steel respectively, to cover a period of three years, and with a proviso that the total sum payable as bounty shall not exceed £150,000. Regulations have since been gazetted prescribing the minimum quantity and, the standard of quality of the bounty goods, also the procedure to be followed by applicants for bounty. Petroleum. The year's operations have been uneventful, no new productive wells having been drilled ; and. several of the prospecting companies have ceased operations. The Taranaki Oil-wells (Limited) has treated at the new refinery at Moturoa 525,475 statute gallons of crude oil, the product meeting with a ready sale at prices equal to the imported article. Unfortunately, however, the three productive wells of this company, Nos. 2, 3, and 5, have declined in yield from an average of 689 statute gallons prior to the 27th August, 1912, to about 300 gallons per day for the period intervening between that date and the 24th March, 1915. Unless a more permanent supply of oil is tapped by the drilling operations, which are now being continued to a greater depth, there is little prospect of the company's refinery, which is capable of refining 10,000 gallons per day, being kept actively employed. On the 24th March, 1915, this company had proved to my satisfaction that 776,161 gallons of crude oil had been impounded, and that it contained on an average 97 per cent, of oil capable of distillationDrilling operations are being continued at the Blenheim well, Moturoa, by the Taranaki Oil-lands (Limited). A depth of 3,315 ft. has been attained, and a feeble flow of oil was issuing from the well at the time of my visit on the 24th March, 1915, of which 21,000 statute gallons had then been impounded in the No. 7 tank of the Taranaki Oil-wells (Limited). The. following is a list of oil-wells and prospeeting-boreholes recently drilled, together with their depths and the results* attained : —

Sulphur. Owing to the destruction by earth-tremor and subsequent irruption of the whole of the New Zealand Sulphur Company's works, and the loss of all the eleven employees living on White Island on the 11 th September, as described in Section 111 of this report, operations have ceased, and it is to be hoped that no further attempt will be made to exploit the sulphur-deposits of doubtful commercial value upon that weird island.

Name of Company. Namo or Number of Well. Locality. Total Dopth, in Foot. Result. Taranaki Oil-wells ,, . . . . ,, ,, . . . . Taranaki Oil-lands, &o. I Moturoa 2 3 4 5 0 (rotary) „ 1 Bell Block, Waitara .. 2 „ „ Blenheim Moturoa 3,030 3,030 4,040 850 2,890 2,885f 3,821 2,970 8.315J Abandoned or suspended. Feebly productive. Unproductive. Productive. Drilling; feebly productive. Unproductive ; abandoned. Phoenix Oil Consolidated Oilfields of Taranaki Bonithon Freehold Oil United Oil .. Kotuku Oilfields ,, . . , . New Zoaland Oilfields .. ,, . . . . Mangaone Oilfields Huiroa Near New Plymouth .. Tikorangi, Waitara River Near Lake Bruiiner 1 Near Waipatiki, Hawke's Bay 2 Ditto 1 Totangi, Gisborne 2 Waihirere 1 Mangaone Valley, near Eketahuna 2 Near Eketahuna 2,300:]: 3,700:1: 2,505 695:]: 952 3,000 Productive at, 2,171'ft. and 2,211 ft. Abandoned or suspended. Drilling. Drilling suspended. Abandoned or suspended. Abandoned (in primary rock). Abandoned or suspended. 2,000 511 1,375 3,000t '» 114-f- ,, * The depths and results here given aro from tho best evidence obtainable by the Mini n some cases is difficult to obtain, and tho depths aro not guaranteed as correct. is Department, but information f Tho rotary system of drilling was omployed. | The Canadian-Galician peroussion system of drilling is employed.