Part XV--Proposed New Industry Structure for Oil and Gas Extraction; Mining, except Oil
and Gas; Support Activities for Mining

Section A-- Structure

NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM 

(NAICS)

Agreement Number 26

     This Document represents the proposed agreement on the structure of the North American
Industry Classification System (NAICS) for the following industries:  
Oil and Gas Extraction
Mining, Except Oil and Gas
Support Activities for Mining
  The detailed NAICS structure along with a brief description of the structure is attached
(Attachments 1 and 2).  Each country agrees to release a copy of the proposed NAICS structure
to interested data users.  Comments received will be shared among the countries and additional
discussions will be held before a final decision on the structure is made.  Each country may add
additional detailed industries, below the 4-digit level of NAICS, as necessary to meet national
needs, so long as this additional detail aggregates to a 4-digit NAICS level in order to ensure full
comparability among the three countries.  This NAICS structure was presented and provisionally
accepted at the NAICS Committee meeting held on November 8 and November 9, 1995 in
Washington, D.C.

Accepted       Signature            Date

Canada         /S/   Jacob Ryten        11/9/95
Mexico         /S/   Enrique Ordaz      11/9/95
United States       /S/   Jack E. Triplett        11/9/95

ATTACHMENT 1-- NAICS STRUCTURE

XX        Oil and Gas Extraction
XXX        Oil and Gas Extraction
XXXX       Oil and Gas Extraction
XX        Mining, Except Oil and Gas
XXX        Coal Mining
XXXX         Coal Mining
XXX        Metal Ore Mining
XXXX         Iron Mining
XXXX       Gold and Silver Mining
XXXX         Copper, Nickel, Lead, and Zinc Mining
XXXX         Other Metal Ore Mining
XXX          Non-Metallic Mineral Mining and Quarrying
XXXX       Stone Mining and Quarrying  
XXXX         Sand, Gravel, Clay, Ceramic, and Refractory Mineral Mining and                         Quarrying
XXXX         Other Non Metallic Mineral Mining and Quarrying
XX        Support Activities for Mining
XXX        Support Activities for Mining
XXXX         Support Activities for Mining

Attachment 2--North American Industry Classification System

Draft Classification for:
  Mining

  Representatives of the statistical agencies of Canada, Mexico, and the United States agree to
a draft industry classification for these industries.  
    This draft classification applies to the sector Mining. This sector is subdivided into three
subsectors and five industry groups: Oil and Gas Extraction, Coal Mining, Metal Ore Mining,
Non-Metallic Mineral Mining and Quarrying, and Support Activities for Mining. The five
industry groups are subdivided into 10 industries.  

A General Outline
  
  The Mining sector includes the extraction of liquids and gases such as petroleum and natural
gas by the operation of wells and the extraction of naturally occurring minerals through
underground or surface mining.  Also included is the beneficiating of the ores by crushing,
grinding, washing, drying, leaching, and other means.  The sector is divided into three
subsectors, two being based on the types of minerals extracted and beneficiated and one being
support activities for the extraction.
  The existing industry classifications of Canada, Mexico, and the United States were
remarkably similar in their overall structure for mining.  There were significant differences in the
classifications at the detailed level, as the detailed level varied because of  the specific mineral
deposits that were significant to each country.  The existing classifications were for the most part
inherently production oriented and satisfactory to data users.  The structure maximizes the
comparability between the three countries and makes modest enhancements to the production
orientation of the classification. 

Limitations and Constraints of the Classification

  The extraction of any mineral is conditional on the presence of a suitable mineral deposit.
Generally, the extraction method varies according to the type of deposit mined as does the
beneficiating process. 
  An approach that distinguished surface and underground mining as a basis for defining
industry groups was considered but in the case of many metals and non-metals the activity in
each was too small to permit separation.  On the other hand the difference in the beneficiating
processes (agglomerating, crushing, chemical, leaching etc.) required for different ores provided
the basis for distinguishing production processes.  The type of mineral deposit was therefore
considered to be a good proxy for the production process in most cases of metal mining.
However, these deposits vary significantly among the three countries.  For many types of
minerals the number of deposits in any one country may be too small to permit publishing data
on that industry for that country.  This limited the number of possible industries.  The industries
are therefore based on the type of minerals that generally occur together in a mineral deposit in
all three countries.  For example, the occurrence of combinations of copper, lead, zinc and nickel
in the same mineral deposit is common among the three countries.  In the case of non-metal
mining, the quarrying of stone, above ground, requires precision cutting of large blocks of stone
which is a process very different from the process of extracting sand, gravel, clay, ceramic and
refractory minerals. 

Relationship to ISIC 

  Most 4-digit industries in this sector are contained within Divisions 10-14, Mining and
Quarrying, of the current International Standard Industrial Classification of all Economic
Activities (ISIC Revision 3) of the United Nations.  Generally, the industries can be reaggregated
to the ISIC divisions.  However, there are some differences:  ISIC includes peat with coal in
Division 10, Mining of Coal and Lignite, Extraction of Peat, whereas peat extraction is included
in NAICS industry Non Metallic Mineral Mining and Quarrying.  Although peat is similar to
coal in that it can be used as a fuel, the extraction and beneficiating processes are distinctly
different from coal and are similar to the processes involved with non metallic minerals.  It
should be noted that in North America peat is seldom used as fuel but rather as a soil
conditioner.  ISIC Division 12, Mining of Uranium and Thorium Ores, is not supportable as a
NAICS industry.       

Some Changes to the National Classifications

  For Canada, CSIC 0611, Gold Mines, has been combined with the silver part of CSIC 0614,
Silver-Lead-Zinc Mines, to form the NAICS four digit industry Gold and Silver Mining. Gold
mining and silver mining are separated at the national five digit level.  Silver mining becomes a
null set as it does not exist in Canada.  Silver is mined only as a by product of lead and zinc
mining in Canada.
  CSIC 0612, Copper and Copper-Zinc Mines, has been combined with CSIC 0613, Nickel-Copper Mines, plus the lead and zinc part of CSIC 0614 to form NAICS industry Copper,
Nickel, Lead, and Zinc Mining. 
  CSIC 0615, Molybdenum Mines, was combined with CSIC 0616, Uranium Mines, and CSIC
0619, Other Metal Mines, to form NAICS Other Metal Mining.
  CSIC 0811, Granite Quarries; CSIC 0812, Limestone Quarries; CSIC 0813, Marble Quarries;
and CSIC 0814, Sandstone Quarries, becomes NAICS industry Mining and Quarrying of Stone. 
However these 4 digit industries are restored for national detail.
  CSIC 0821, Sand and Gravel Pits, has been combined with CSIC 0815, Shale Quarries, and
the crude clays from clay pits part of  CSIC 3511, Clay Products, to form NAICS industry Sand,
Gravel, Clay, Ceramic and Refractory Mineral Mining and Quarrying.  However, CSIC 0821,
Sand and Gravel Pits, is restored at the level of national detail.  There are no known
establishments primarily engaged in extracting clay in Canada, although extraction of clay exists
by the manufacturers of clay products.
  For Mexico, peat mining has been split from CMAP 210000, Mining and /or Beneficiation of
Coal, to be included in NAICS industry Non Metallic Mineral Mining and Quarrying.  The
remaining portion of CMAP 21000 is equivalent to NAICS industry Coal Mining.  Peat
extraction is of little statistical significance in Mexico.
  For Mexico, the nickel part of CMAP 232006, Mining and /or Beneficiation of Other
Nonferrous Metallic Ores, has been split out. This split will have little statistical impact as there
is only a very small amount of nickel mining in Mexico.  The split is combined with CMAP
232003, Mining and /or Beneficiation of Industrial Ore with a High Lead and Zinc Content, and
CMAP 232005, Mining and /or Beneficiation of Ore with a High Copper Content, to form the
NAICS four digit industry Copper, Nickel, Lead, and Zinc Mining.
  The creation of the Support Activities for Mining subsector in  is an important change for
Mexico, since such activities are not represented in the Mexican classification.  However, the
coverage of the mining sector is very close to the current mining sector in CMAP.
  For the United States, a structural change involved moving the support activity industries
from their respective 1987 SIC Major Groups and bringing them all together in the NAICS
structure under the subsector Support Activities for Mining. 
  The nickel ore mining part of 1987 SIC 1061, Ferroalloy Ores, Except Vanadium, has been
combined with 1987 SIC 1021, Copper Ores, at the national level. This has a small statistical
impact as production is relatively insignificant. This national level industry plus 1987 SIC 1031,
Lead and Zinc Ores, also maintained at the national level, form NAICS industry  Copper, Nickel,
Lead, and Zinc Mining.
  The bituminous limestone and bituminous sandstone part of 1987 SIC 1499, Miscellaneous
Nonmetallic Minerals, Except Fuels, is moved out of Non Metallic Minerals Mining to NAICS
industry Mining and Quarrying of Stone.

Achievement of Objectives

  The classification meets the objectives for the North American Industry Classification
System (NAICS).  It includes industries that group establishments with similar production
processes, that is, it applies the production-oriented economic concept.  In the main, the
hierarchical structure of the classification also follows the production concept.
  Other objectives of the  project are not as relevant in this area of the classification as in
others. These objectives are the delineation of new and emerging industries, service industries
and industries engaged in the production of advanced technologies.  The industrial sector in
question is relatively mature and uses relatively stable technology for extraction. 
  The industries are highly specialized, and they are economically significant. Disruptions to
time series are minimal.  The classification achieves comparability for the three participating
countries.   All countries agree on the detailed definitions of the industries.

Section B-Annex: United States National Industry Detail

  As explained in the Structure presentation of this notice, for a number of reasons 4-digit
industries in the three NAICS industry subsectors presented in Part XV, Section A--Attachment
1, contain less detail than is currently in the U.S. SIC system, and less detail than is required to
meet important analytical requirements in the U.S.  The three country agreement on NAICS
envisions that each country may develop national detailed industries below the NAICS industry
level, so long as the national detail can be aggregated to the  classification, thus assuring full
North American comparability.
  The ECPC is proposing U.S. 5-digit industry detail for the three NAICS industry subsectors
covered in Part XV of this notice.  For cases where no 5-digit detail is shown, the ECPC is
proposing that the NAICS  4-digit industries will also represent the most detailed U.S. industries.
                                              TABLE 1

The definitions of status codes are as follows: E-existing industry;  N-new industry R-revised industry; and * means "part of".  The abbreviation NEC is used for Not Elsewhere Classified.

1997 NAICS and U.S. description
Status
code
1987
SIC
code

1987 SIC description


XX
Oil and Gas Extraction





XXX
     Oil and Gas Extraction   





XXXX
          Oil and Gas Extraction





XXXXX
               Crude Petroleum and Natural Gas Extraction   
E
1311
Crude Petroleum and Natural Gas


XXXXX
               Natural Gas Liquid Extraction
E
1321
Natural Gas Liquids


XX
Mining except Oil and Gas





XXX
     Coal Mining





XXXX
          Coal Mining





XXXXX
               Bituminous Coal and Lignite Surface Mining
E
 1221
Bituminous Coal and Lignite Surface Mining


XXXXX
               Bituminous Coal Underground Mining
E
 1222
Bituminous Coal Underground Mining


XXXXX
               Anthracite Mining
E
 1231
Anthracite Mining


XXX
     Metal Ore Mining





XXXX
          Iron Mining
E
 1011
Iron Ores


XXXX
          Gold and Silver Mining





XXXXX
               Gold Mining              
E
 1041
Gold Ores


XXXXX
               Silver Mining
E
 1044
Silver Ores


XXXX
          Copper, Nickel, Lead and Zinc Mining





XXXXX
               Copper and Nickel Mining
R
 1021
Copper Ores





*1061
Ferroally Ores, Except Vanadium (nickel)


XXXXX
               Lead and Zinc Mining
E
 1031
Lead and Zinc Ores


XXXX
          Other Metal Ore Mining





XXXXX
               Uranium-Radium-Vanadium Ores Mining
E
 1094
Uranium-Radium-Vanadium Ores


XXXXX
               Other Metal Ore Mining
R
 *1061
Ferroally Ores, Except Vanadium (other ferroalloys except nickel)





 1099
Miscellaneous Metal Ores, NEC


XXX
     Non-Metallic Mineral Mining and Quarrying





XXXX
          Stone, Mining and Quarrying





XXXXX
               Dimension Stone Mining and Quarrying
E
 1411
Dimension Stone


XXXXX
               Crushed and Broken Limestone Mining and Quarrying
E
 1422
Crushed and Broken Limestone


XXXXX
               Crushed and Broken Granite Mining and Quarrying
E
 1423
Crushed and Broken Granite


XXXXX
               Other Crushed and Broken Stone Mining and Quarrying
R
 1429
Crushed and Broken Stone, NEC





*1499
Miscellaneous Nonmetallic Minerals, Except Fuels (bituminous limestone and
bituminous sandstone)


XXXX
          Sand, Gravel, Clay, Ceramic and Refractory Mineral Mining and
          Quarrying





XXXXX
               Construction Sand and Gravel Mining
E
1442
Construction Sand and Gravel


XXXXX
               Industrial Sand Mining
E
1446
Industrial Sand


XXXXX
               Kaolin and Ball Clay Mining
E
1455
Kaolin and Ball Clay


XXXXX
               Clay, Ceramic, and Refractory Mineral Mining
E
1459
Clay, Ceramic, and Refractory Minerals, NEC


XXXX
          Other Non-Metallic Mineral Mining and Quarrying





XXXXX
               Potash, Soda, and Borate Mineral mining
E
1474
Potash, Soda, and Borate Minerals


XXXXX
               Phosphate Rock Mining
E
1475
Phosphate Rock


XXXXX
               Other Chemical and Fertilizer Mineral Mining
E
1479
Chemical and Fertilizer Mineral Mining, NEC


XXXXX
               All Other Non-Metallic Mineral Mining
R
*1499
Miscellaneous Non-Metallic Minerals, Except Fuels (except bituminous
limestone and bituminous sandstone)


XX
Support Activities for Mining





XXX
     Support Activities for Mining





XXXX
          Support Activities for Mining





XXXXX
               Support Activities for Metal Mining
E
1081
Metal Mining Services


XXXXX
               Support Activities for Coal Mining
E
1241
Coal Mining Services


XXXXX
               Drilling Oil and Gas Wells
E
1381
Drilling Oil and Gas Wells


XXXXX
               Support Activities for Oil and Gas Field Exploration
E
1382
Oil and Gas Field Exploration Services


XXXXX
               Other Oil and Gas Field Support Activities
E
1389
Oil and Gas Field Services, NEC


XXXXX
               Support Activities for Non-Metallic Minerals Except Fuels
E
1481
Non-Metallic Minerals Services, Except Fuels

                                                TABLE 2

         The abbreviation "pt" means "part of". @ means time series break has been created that is greater than 3% of the 1992 revenues for the 1987 SIC industry.


1987 SIC code
1987 SIC description
1997 U.S. description


1011       
Iron Ores   
Iron Ore Mining                     


1021      
Copper Ores 
Copper Mining                       


1031       
Lead and Zinc Ores               
Lead and Zinc Mining


1041      
Gold Ores
Gold Mining


1044
Silver Ores                     
Silver Mining


1061    
Ferroalloy Ores, Except Vanadium                



        
     Nickel Ore Mining                    
Copper and Nickel Mining (pt)


        
     Other Ferroalloys
Other Metal Ore Mining (pt)


1081    
Metal Mining Services  
Support Activities for Metal Mining


1094    
Uranium-Radium-Vanadium Ores    
Uranium-Radium-Vanadium Ore Mining


1099 
Miscellaneous Metal Ores, NEC
Other Metal Ore Mining (pt)


1221
Bituminous Coal and Lignite Surface Mining
Bituminous Coal and Lignite Surface Mining


1222
Bituminous Coal Underground Mining
Bituminous Coal Underground Mining


1231
Anthracite Mining
Anthracite Mining


1241
Coal Mining Services
Support Activities for Coal Mining


1311
Crude Petroleum and Natural Gas
Crude Petroleum and Natural Gas Extraction


1321 
Natural Gas Liquids
Natural Gas Liquid Extraction


1381
Drilling Oil and Gas Wells
Drilling Oil and Gas Wells


1382
Oil and Gas Field Exploration Services
Support Activities for Oil and Gas Field Exploration


1389
Oil and Gas Field Services, NEC
Other Oil and Gas Field Support Activities


1411
Dimension Stone
Dimension Stone Mining or Quarry


1422
Crushed and Broken Limestone
Crushed and Broken Limestone Mining or Quarrying


1423
Crushed and Broken Granite
Crushed and Broken Granite Mining or Quarrying


1429       
Crushed and Broken Stone, NEC
Other Crushed and Broken Stone Mining or Quarrying (pt)


1442
Construction Sand and Gravel
Construction Sand and Gravel Mining


1446
Industrial Sand
Industrial Sand Mining


1455
Kaolin and Ball Clay
Kaolin and Ball Clay Mining


1459
Clay, Ceramic, and Refractory Minerals, NEC
Clay, Ceramic, and Refractory Mineral Mining


1474
Potash, Soda, and Borate Minerals
Potash, Soda, and Borate Mineral Mining


1475
Phosphate Rock
Phosphate Rock Mining


1479
Chemical and Fertilizer Mineral Mining, NEC
Other Chemical and Fertilizer Mineral Mining


1481
Non-Metallic Mineral Services, Except Fuels
Support Activities for Non-Metallic Minerals, Except Fuels


1499
Miscellaneous Non-Metallic Minerals, Except Fuels
Bituminous Limestone and Bituminous Sandstone

Except Bituminous Limestone and Bituminous Sandstone

Other Crushed and Broken Stone Mining or Quarrying (pt)

All Other Non-Metallic Mineral Mining


     Description of Changes to the U.S. System
     
          There were no new industries added to the 1997 industry structure for this industry
     sector.
          Oil and Gas Extraction - All oil and gas field services (1987 SIC's 1381, 1382, 1389)
     were transferred to the new 1997 subsector Services Incidental to Mining.  There were no
     changes in the existing 1987 industries.
          Coal Mining - 1987 SIC 1241, Coal Mining Services, was transferred to the new 1997
     subsector Services Incidental to Mining.  There were no changes in the existing 1987
     industries.
          Metal Ore Mining - 1987 SIC 1061, Ferroalloy Ores, Except Vanadium, has been split
     into two new industries, Copper and Nickel Mining and Other Metal Ore Mining.  1987
     SIC 1081, Metal Mining Services, was transferred to the 1997 subsector Services
     Incidental to Mining.  There were no changes in the other existing 1987 industries.
          Non-Metallic Mineral Mining and Quarrying - 1987 SIC 1499, Miscellaneous Non-Metallic Minerals, except Fuels, has been split between Other Crushed and Broken Stone
     Quarrying and Mining (bituminous limestone and bituminous sandstone) and All Other
     Non-Metallic Mineral Mining (all other miscellaneous non-metallic minerals).  1987 SIC
     1481, Non-Metallic Mineral  Services, except Fuels, was transferred to the 1997
     subsector Services Incidental to Mining.  There were no changes in the other existing
     1987 industries.
          Support Activities for Mining - This new subsector was created to include all
     incidental mining services.  No new industries were created within this subsector;
     however, six existing industries were transferred out of the 1987 SIC industry groups
     based upon the mineral/ore mined into this subsector.
                     The number of Mining Industries decreased from 31 in 1987 to 30 in 1997.  For time
     series linkage 30 of the 31 1987 industries are comparable within three percent of the
     1997 industries.