containing beds of lignite. The true source of the oil is still undetermined, but is probably, as suggested by Sir James Hector in 1866, the coal-seams which are supposed to underlie Mount Egmont. Before proceeding to discuss the prospects of oil at the places just reviewed, Mr. Park briefly described the geological conditions usually attending the production of oil in other parts of the globe. Mineral oil, he said, was obtained from two sources—namely, from bituminous shales by distillation, and as a natural product from certain oil-strata. Reference was then made to the oil industry in Scotland, which continued to hold its own against the natural oils of America and Baku. Petroleum was found associated with shales (or coals) and sandstones. The former yield the oil, while the latter serve as reservoirs to collect the oil. The author then went on to consider the prospects of payable oil in the three districts already described. Prospects on East Coast of Wellington.—He did not think the indications sufficient to warrant the assumption that payable oil would be found in this district, his reasons for this belief being as follows: (1.) That the shales contained too small a proportion of carbonaceous matter to yield oil by distillation. (2.) That the strata are too much shattered to afford the pressure necessary to condense the volatile gases. Prospects at Poverty Bay.—The author said that, after a careful consideration of the surface-evidences, he was of the opinion that payable oil would not be found at the places where boring was at present being conducted, his reasons being the same as in the case of the east coast of Wellington. He said the Awanui shale could not be regarded as the source of the oil, as it was always at or near the surface. The dark-grey shales were no doubt the true source, but they contained only 1 or 2 per cent. of carbon, while the oil-shales of Pennsylvania contained from 10 to 20 per cent. As regards his second objection, he said the strata were too much shattered and tilted to afford the pressure to condense the volatile hydrocarbons, and to prevent leakage on the surface. Ample surface-manifestations were not considered a good indication of payable oil. He thought further explorations might discover places in the oil-belt where the geological conditions were more favourable for the accumulation of oil. Prospects of Payable Oil in Taranaki.—With regard to the prospects here, Mr. Park said it was difficult to form an opinion, as there was some doubt as to the true source of the oil. It was probably the coal-seams underlying Mount Egmont; and this hypothesis was supported by the occurrence of fragments of the purest graphite among the débris on the flanks of Mount Egmont. This graphite was no doubt a coal or lignite altered by volcanic agencies. The bores put down at Taranaki were too shallow; and the question of payable oil could only be determined by further explorations. Distillation of Oil-shale.—This was an important industry in Scotland, and he did not see why it should not become the same here. Professor Black had shown that the Orepuki shale is superior to the celebrated torbanite, as it yields forty-two gallons of crude oil and other valuable products to the ton of shale, against forty gallons returned by the latter. To insure the success of this industry it would be necessary to manufacture our own sulphuric acid and alkalies. In the so-called refractory sulphides on our goldfields, and the native-sulphur deposit at White Island, we had an abundance of the raw material. The production of the alkalies would follow as a natural consequence. Mr. Park said our bituminous shales were a valuable asset, which would no doubt yield large returns when the proper time came for their development. Mr. McKay asked the writer of this paper whether he had noticed the presence of petroleum in the east coast district of Wellington: he said that, so far as described, gas-springs only seemed to occur. Mr. McKay